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Senate narrows HOA reserve-access bill after floor amendment to exclude board members
Summary
Senators amended and passed a bill allowing homeowners associations limited access to reserve funds during statewide emergencies, clarifying that the 10% threshold cannot include board members and requiring at least 48 hours' notice to owners.
The Utah Senate on Feb. 3 amended and passed first substitute Senate Bill 75 to create a narrow exception allowing homeowners associations to tap reserve funds in limited circumstances such as a statewide emergency.
Senator Kevin Fillmore, the bill sponsor, said the measure provides an option for associations to use reserves to pay operational expenses if cash flow is disrupted by an emergency. On the floor Senator Weiler expressed concern about potential misuse by boards, saying, "I'm a little bit suspicious of these," and moved an amendment to prevent board or management-committee members from being counted in the 10% owner threshold that triggers access to reserves.
The amendment also requires at least 48 hours' notice to other association members before a reserve withdrawal. After the amendment was adopted by roll call, Senator Fillmore moved the amended bill, which the Senate passed and will transmit to the House for consideration.
The amendment was offered to limit the bill's scope to a narrow exemption and to add procedural protections for other owners. The Senate recorded the floor amendment and the bill's passage on the record.
The bill as amended narrows the emergency authority for associations and creates explicit notice and membership-count safeguards intended to reduce the risk that a board could unilaterally tap reserves without owner awareness.
