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Utah narrows HOA transfer rules and tightens reserve expectations after 2026 session
Summary
State officials said 2026 lawmakers renamed transfer fees as "administrative setup fees," limited reinvestment fees for many HOAs, required reserve allocations and warned lenders' Freddie Mac/Fannie Mae expectations could affect FHA backing for condominium projects.
Aaron Ryder, director of the Utah HOA Ombudsman Office, summarized legislative changes from the 2026 session that affect how homeowners associations charge and account for fees and reserves.
Ryder said the statute now refers to transfer fees as "administrative setup fees," and that such charges "are void and unenforceable unless used only to pay expenses related to the transfer of real property." He added that managers who collect administrative setup fees must provide an annual accounting of fees collected by December 31 each year.
The legislature also clarified reinvestment fees—charges intended for capital-intensive infrastructure maintenance—and set caps tied to association type.…
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