Utah HOA fine rules

"Before assessing a fine under Subsection (1), the board shall give the lot owner a written warning that: (i) describes the violation; (ii) states the rule or provision of the association’s governing documents that the lot owner’s conduct violates; (iii) states that the board may, in accordance with the provisions of this section, assess fines against the lot owner if a continuing violation is not cured or if the lot owner commits similar violations within one year after the day on which the board gives the lot owner the written warning or assesses a fine against the lot owner under this section; and (iv) if the violation is a continuing violation, states a time that is not less than 48 hours after the day on which the board gives the lot owner the written warning by which the lot owner shall cure the violation" (Utah Code § 57-8a-208(2)(a)). The section requires the warning to be written but names no delivery method such as certified mail. Under § 57-8a-208(2)(c), "If permitted by the association’s governing documents, after the board assesses a fine against a lot owner under this section, the board may, without further warning under this Subsection (2), assess an additional fine against the lot owner each time the lot owner: (i) commits a violation of the same rule or provision within one year after the day on which the board assesses a fine for a violation of the same rule or provision; or (ii) allows a violation to continue for 10 days or longer after the day on which the board assesses the fine."

For a continuing violation the written warning must state "a time that is not less than 48 hours after the day on which the board gives the lot owner the written warning by which the lot owner shall cure the violation" (Utah Code § 57-8a-208(2)(a)(iv)). That is a floor stated in hours, not a fixed number of days, and it applies only to a continuing violation. The board may then assess a fine if "(i) within one year after the day on which the board gives the lot owner a written warning described in Subsection (2)(a), the lot owner commits another violation of the same rule or provision identified in the written warning; or (ii) for a continuing violation, the lot owner does not cure the violation within the time period that is stated in the written warning described in Subsection (2)(a)" (§ 57-8a-208(2)(b)).

Utah Code § 57-8a-208(4)-(5). "A lot owner who is assessed a fine under Subsection (1) may request an informal hearing before the board to dispute the fine within 30 days after the day on which the lot owner receives notice that the fine is assessed" (§ 57-8a-208(4)(a)). "At a hearing described in Subsection (4)(a), the board shall: (i) provide the lot owner a reasonable opportunity to present the lot owner’s position to the board; and (ii) allow the lot owner, a board member, or any other person involved in the hearing to participate in the hearing by means of electronic communication" (§ 57-8a-208(4)(b)); a board may not delegate those duties to a managing agent (§ 57-8a-208(6)). "If a lot owner timely requests an informal hearing under Subsection (4)(a), no interest or late fees may accrue until after the board conducts the hearing and the lot owner receives a final decision" (§ 57-8a-208(4)(c)). "A lot owner may appeal a fine assessed under Subsection (1) by initiating a civil action within 180 days after: (a) if the lot owner timely requests an informal hearing under Subsection (4), the day on which the lot owner receives a final decision from the board; or (b) if the lot owner does not timely request an informal hearing under Subsection (4), the day on which the time to request an informal hearing under Subsection (4) expires" (§ 57-8a-208(5)). Note that the hearing under this section comes after the fine is assessed — what must come before the fine is the written warning under § 57-8a-208(2)(a).

Utah sets no dollar cap on an association fine. A fine "shall: (a) be made only for a violation of a rule, covenant, condition, or restriction that is in the association’s governing documents; (b) be in the amount provided for in the association’s governing documents; and (c) accrue interest and late fees as provided in the association’s governing documents" (Utah Code § 57-8a-208(3)).

An association must keep and make available to lot owners the records listed in Utah Code § 57-8a-227(1)(a), including "a copy of the association’s: (A) governing documents; (B) most recent approved minutes; (C) most recent annual budget and financial statement; (D) most recent reserve analysis; (E) certificate of insurance for each insurance policy the association holds; (F) board meeting minutes from the previous three calendar years; (G) profit and loss statement for the previous three fiscal years; and (H) balance sheet for the previous three fiscal years." A written request must include "(i) the association’s name; (ii) the lot owner’s name; (iii) the lot owner’s property address; (iv) the lot owner’s email address; (v) a description of the documents requested; and (vi) any election or request described in Subsection (3)(b)" (§ 57-8a-227(3)(a)), and "An association shall comply with a request described in Subsection (3) within 10 business days after the day on which the association receives the request" (§ 57-8a-227(4)(a)). The association may redact "(i) a Social Security number; (ii) a bank account number; or (iii) any communication subject to attorney-client privilege" (§ 57-8a-227(1)(b)).