57-8a-104. 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 lot owners with more than 67% of the voting interests;
                  (B) the approval of any specific lot 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.
            (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.fn1
      (b) Subsection (1)(a) does not apply to an amendment affecting only:
            (i) lot boundaries; or
            (ii) lot owner's voting rights.

(2) (a) A contract for services such as garbage collection, maintenance, lawn care, or snow removal executed on behalf of the association during a period of administrative control is binding beyond the period of administrative control unless terminated by the board of directors 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 person who filed the association's original governing documents or a successor in interest. 

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

Enacted 2007, ch. 223.  Amended 2011, ch. 137; 2015, ch’s 38732534, eff. May 12, 2015.
(Composite with SB80, Chapter 34, and HB99, Chapter 387, resulted in language identical to future section. No need for future section.)

FN 1. 

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Questions and Answers   

# Voting RightsMWHOA 2020-04-30 17:31
(1)(b)(ii) says it doesn't apply to an amendment affecting only a lot owner's voting rights, but it seems like "voting rights" might be really broad. What exactly are a lot owner’s “voting rights”?
Is the use of a proxy a "voting right"?
Curtis G. Kimble, esq.
# Re: Voting RightsCurtis G. Kimble, esq. 2020-04-30 18:02
A voting right is a right to vote, specifically the right of a member to vote on association matters, including electing and recalling board members and other matters that are designated by law or the governing documents to be subject to an association vote.

A voting right does not include procedural issues - that is, issues that specify how a vote is exercised. The use of a proxy is procedural and not a voting right.
# TitleGuest 2020-06-13 12:49
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