State Codes and Statutes

Statutes > Utah > Title-57 > Chapter-08a > 57-8a-205

57-8a-205. Unpaid assessment -- Future lease payments.
(1) When authorized in the declaration, bylaws, or rules adopted by the board ofdirectors, if the owner of a lot who is leasing the lot fails to pay an assessment for more than 60days after the assessment is due, the board of directors, upon compliance with this section, maydemand that the tenant pay to the association all future lease payments due to the owner,beginning with the next monthly or other periodic payment, until the amount due to theassociation is paid.
(2) (a) The manager or board of directors shall give the owner written notice, inaccordance with the declaration, bylaws, or association rules, of its intent to demand full paymentfrom the tenant under this section.
(b) The notice described in Subsection (2)(a) shall:
(i) provide notice to the tenant that full payment of the remaining lease payments willbegin with the next monthly or other periodic payment unless the assessment is received withinthe time period provided in the declaration, bylaws, or association rules;
(ii) state the amount of the assessment due, including any interest or late payment fee;
(iii) state that any costs of collection, not to exceed $150, and other assessments thatbecome due may be added to the total amount due; and
(iv) provide the requirements and rights described in this section.
(3) (a) If the owner fails to pay the assessment due by the date specified in the noticedescribed in Subsection (2), the manager or board of directors may deliver written notice to thetenant, in accordance with the declaration, bylaws, or association rules, that demands futurepayments due to the owner be paid to the association pursuant to Subsection (4).
(b) The manager or board of directors shall mail a copy of the notice described in thisSubsection (3) to the owner.
(c) The notice provided to the tenant under this Subsection (3) shall state:
(i) that due to the owner's failure to pay the assessment within the time period allowed,the owner has been notified of the intent of the board of directors to collect all lease paymentsdue to the association;
(ii) that until notification by the association that the assessment due, including anyinterest, collection cost, or late payment fee, has been paid, the tenant shall pay to the associationall future lease payments due to the owner; and
(iii) that payment by the tenant to the association in compliance with this section will notconstitute a default under the terms of the lease agreement.
(d) If a tenant makes payments in compliance with this section, the owner may notinitiate an action against the tenant.
(4) (a) All funds paid to the association pursuant to this section shall be:
(i) deposited in a separate account; and
(ii) disbursed to the association until the assessment due, together with any cost ofadministration which may not exceed $25, is paid in full.
(b) Any remaining balance shall be paid to the owner within five business days afterpayment in full to the association.
(5) (a) Within five business days after payment in full of the assessment, including anyinterest or late payment fee, the manager or board of directors shall notify the tenant in writingthat future lease payments are no longer due to the association.
(b) The manager or board of directors shall mail a copy of the notification described in

Subsection (5)(a) to the unit owner.

Enacted by Chapter 153, 2004 General Session