rulemaking -comm ass'n

See also Index, rules.

The law authorizes a board to adopt rules, including design criteria, for a community association, subject to the statute and the declaration and subject to the right of the owners to disapprove.  See Utah Code § 57-8a-217.

Business Judgment.  Any action by the board to adopt, modify, create exceptions to, or enforce rules (including design criteria) is subject to the board's duty to exercise business judgment on behalf of the association and the owners, and may be disapproved by the owners.  See id. at (1)(b).

A rule may not interfere with an activity of a lot owner within the confines of a lot and outside of a dwelling to the extent that the activity is in compliance with local laws and ordinances, unless the CC&Rs authorize such a rule.fn1

Recommendation:  If the CC&Rs do not contain authority to adopt rules governing the activities on a lot and outside the dwelling and the association wishes to have such rules, the association needs to amend the CC&Rs.

Required Procedure.  The board may only adopt, change or create exceptions to rules if (1) done at a meeting, (2) at least 15 days before the meeting, notice is given to all owners that the board is considering a change to a rule or design criterion, (3) an open forum is provided at the board meeting giving owners an opportunity to be heard, and (4) a copy of the change in the rules is given to all owners within 15 days after the board meeting.

Veto by Owners.  A board's action to adopt, modify, create exceptions to, or enforce rules is

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Statutes and Cases:

(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)

57-8a-217. Association rules, including design criteria -- Requirements and limitations relating to board's action on rules and design criteria -- Vote of disapproval
57-8a-218. Equal treatment by rules required -- Limits on association rules and design criteria
57-8a-219. Display of the flag