57-8-16. Contents of bylaws

The bylaws may provide for the following:

(1) the establishment of a management committee, the number of persons constituting the committee and the method of selecting the members of the committee; the powers and duties of the management committee; and whether or not the management committee may engage the services of a manager;

(2) the method of calling meetings of the unit owners; what percentage of the unit owners shall constitute a quorum, and be authorized to transact business;

(3) the maintenance, repair, and replacement of the common areas and facilities and payment therefor;fn1

(4) the manner of collecting from the unit owners their share of the common expenses;

(5) the designation and removal of personnel necessary for the maintenance, repair, and replacement of the common areas and facilities;

(6) the method of adopting and of amending administrative rules and regulations governing the details of the operation and use of the common areas and facilities;

(7) (a) restrictions on and requirements respecting the use and maintenance of the units and the use of the common areas and facilities as are designed to prevent unreasonable interference with the use of their respective units and of the common areas and facilities by the several unit owners; and
     (b) restrictions regarding the use of the units may include other prohibitions on, or allowance of, smoking tobacco products;

(8) the percentage of votes required to amend the bylaws; and

(9) other provisions as may be considered necessary for the administration of the property consistent with this act.

Amended by Chapter 230, 1997 General Session

FN 1.  This section conflates the purpose of bylaws (administration of the association entity) with the purpose of the declaration (administration of property rights).  Traditional and best practice in condominiums, and consistent with use of bylaws in a corporate setting, is for bylaws to provide for the administration of the legal entity, the association (which is usually a nonprofit corporation), but not for the administration of the property itself.  The bylaws should specify the procedures, rights and obligations associated with the corporate structure of the association.  Thus, the bylaws should contain the procedures and processes for voting, meetings, officer duties, and so forth.  Subsections (1) and (2) contain concepts that the bylaws should provide for.

On the other hand, the declaration should establish the rights and obligations associated directly with the property (the condo project - the common area and units).  The declaration should specify what rights individuals have to use the property, should govern how the property may or may not be used, and should contain the obligations to maintain and repair the property and to pay for maintenance and administration of the property.  Thus, the declaration should provide for the concepts in subsections (3), (4) and (7).  

In this way, a clearer distinction between the purposes and content of the declaration versus the bylaws is established, a distinction which is important because not only does a clear distinction help provide for simpler day-to-day reference to the declaration and bylaws by the board, owners and professionals, but bylaws often have a different, often lower, percentage of votes required to amend them than the declaration because the declaration provides for the more fundamental property rights that should be more difficult to change.

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