Section 39 – Limitation on requirements for amending governing documents — Limitation on contracts.

• (1)
  • (a)
    • (i) To amend the governing documents, the governing documents may not require:
      • (A) for an amendment adopted after the period of administrative control, the vote or approval of unit owners with more than 67% of the voting interests;
      • (B) the approval of any specific unit owner; or
      • (C) the vote or approval of lien holders holding more than 67% of the first position security interests secured by a mortgage or trust deed in the association of unit owners.
    • (ii) Any provision in the governing documents that prohibits a vote or approval to amend any part of the governing documents during a particular time period is invalid.
  • (b) Subsection (1)(a) does not apply to an amendment affecting only:
    • (i) the undivided interest of each unit owner in the common areas and facilities, as expressed in the declaration;
    • (ii) unit boundaries; or
    • (iii) unit owners’ voting rights.

• (2)
  • (a) A contract for services such as garbage collection, maintenance, lawn care, or snow removal executed on behalf of the association of unit owners during a period of administrative control is binding beyond the period of administrative control unless terminated by the management committee after the period of administrative control ends.
  • (b) Subsection (2)(a) does not apply to golf course and amenity management, utilities, cable services, and other similar services that require an investment of infrastructure or capital.

• (3) Voting interests under Subsection (1) are calculated in the manner required by the governing documents.

• (4) Nothing in this section affects any other rights reserved by the declarant.

• (5) This section applies to an association of unit owners regardless of when the association of unit owners is created.

Amended by Chapter 324, 2017 General Session