Section: Planned Community Statutes

1. Unless limitations in the community documents would result in a lower limit for the assessment, the association shall not impose a regular assessment that is more than twenty percent greater than the immediately preceding fiscal year’s assessment without the approval of the majority of the members of the association. Unless reserved to the members of the association, the board of directors may impose reasonable charges for the late payment of assessments.  A payment by a member is deemed late if it is unpaid fifteen or more days after its due date, unless the community documents provide for a longer period. Charges for the late payment of assessments are limited to the greater of fifteen dollars or ten percent of the amount of the unpaid assessment and may be imposed only after the association has provided notice that the assessment is overdue or provided notice that the assessment is considered overdue after a certain date.  Any monies paid by the member for an unpaid assessment shall be applied first to the principal amount unpaid and then to the interest accrued.
2. After notice and an opportunity to be heard, the board of directors may impose reasonable monetary penalties on members for violations of the declaration, bylaws and rules of the association. Notwithstanding any provision in the community documents, the board of directors shall not impose a charge for a late payment of a penalty that exceeds the greater of fifteen dollars or ten percent of the amount of the unpaid penalty. A payment is deemed late if it is unpaid fifteen or more days after its due date, unless the declaration, bylaws or rules of the association provide for a longer period.  Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued.  Notice pursuant to this subsection shall include information pertaining to the manner in which the penalty shall be enforced.
3. A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents without regard to whether a monetary penalty is imposed by the notice may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice. The response shall be sent to the address identified in the notice.
4. Within ten business days after receipt of the certified mail containing the response from the member, the association shall respond to the member with a written explanation regarding the notice that shall provide at least the following information unless previously provided in the notice of violation:
   1. The provision of the community documents that has allegedly been violated.
   2. The date of the violation or the date the violation was observed.
   3. The first and last name of the person or persons who observed the violation.
   4. The process the member must follow to contest the notice.
5. Unless the information required in subsection D, paragraph 4 of this section is provided in the notice of violation, the association shall not proceed with any action to enforce the community documents, including the collection of attorney fees, before or during the time prescribed by subsection D of this section regarding the exchange of information between the association and the member and shall give the member written notice of the member’s option to petition for an administrative hearing on the matter in the state real estate department pursuant to section 32-2199.01. At any time before or after completion of the exchange of information pursuant to this section, the member may petition for a hearing pursuant to section 32-2199.01 if the dispute is within the jurisdiction of the state real estate department as prescribed in section 32-2199.01.

1. Except as prescribed in subsection B of this section and notwithstanding any provision in the community documents, in any planned community that allows natural grass on a member’s property, after the period of declarant control, the association may not prohibit installing or using artificial turf on any member’s property.  An association may do all of the following:
   1. Adopt reasonable rules regarding the installation and appearance of artificial turf if those rules do not prevent installing artificial turf in the same manner that natural grass would be allowed by the community documents. Those rules may regulate the location on the property and percentage of the property that may be covered with artificial turf to the same extent as natural grass and may regulate artificial turf quality.
   2. Require the removal of a member’s artificial turf if the artificial turf creates a health or safety issue that the member does not correct.
   3. Require replacement or removal of the artificial turf if the artificial turf is not maintained in accordance with the association’s standards for maintenance.
2. The association may prohibit the installation of artificial turf if the artificial turf would be installed in an area that the association is required to maintain or irrigate. If an association prohibits new installation of natural grass on a member’s property, the association may also prohibit new installation of artificial turf on a member’s property, except that, in that instance, an association may not prohibit a member from converting natural grass to artificial turf on the member’s property.
3. Notwithstanding any provision in the community documents, in an action against the association for a violation of this section, the court shall award reasonable attorney fees and costs to any party that prevails as determined by the court.
4. This section does not:
   1. Affect an association’s responsibility to carry out both the express and the reasonably implied intent of a declaration that provides that the design standards of the planned community are required to be followed to protect the natural environment in which the planned community is developed.
   2. Apply to a planned community that has unique vegetation and geologic characteristics that require preservation by the association and in which the viability of those characteristics is protected, supported and enhanced as a result of the continued existence of natural landscaping materials.

1. This chapter applies to all planned communities.
2. Notwithstanding any provisions in the community documents, this chapter does not apply to any school that receives monies from this state, including a charter school, and a school is exempt from regulation or any enforcement action by any homeowners’ association that is subject to this chapter.  With the exception of homeschools as defined in section 15-802, schools shall not be established within the living units of a homeowners’ association.  The homeowners’ association may enter into a contractual agreement with a school district or charter school to allow use of the homeowners’ association’s common areas by the school district or charter school.
3. This chapter does not apply to either of the following:
   1. Timeshare plans or associations that are subject to chapter 20 of this title.
   2. Notwithstanding any provision in the community documents, a nonprofit corporation or unincorporated association of owners that is created or incorporated before January 1, 1974 and that does not have authority to enforce covenants, conditions and restrictions related to the use, occupancy or appearance of the separately owned lots, parcels or units in a real estate development, unless a majority of all the members of such a nonprofit corporation or unincorporated association of owners elect in writing to subject the corporation or association to this chapter by recording a notice of election pursuant to subsection D of this section.
4. A nonprofit corporation or unincorporated association of owners that has the power under recorded covenants to assess members to pay the costs and expenses incurred in the performance of obligations created by recorded covenants for a real estate development that does not qualify as a planned community may elect to subject the nonprofit corporation or unincorporated association of owners to this chapter with the written approval of a majority of all the members.  A notice of election to be subject to this chapter shall be recorded by the nonprofit corporation or unincorporated association of owners with the county recorder of the county or counties in which the real estate development is located.  The notice is effective as of the date of the recording of the notice.  Any such election may be rescinded in the same manner as an election and is effective as of the date of the recording of the notice of rescission.

Except with respect to property to which section 33-534 applies, an owner of real property subject to an unlawful restriction may submit to the recorder for recordation in the land records of the county in which the property is located an amendment to remove the unlawful restriction, but only as to the owner’s property.

1. The governing body of an association of owners identified in a governing instrument, including the board of directors of a condominium as prescribed in chapter 9 of this title or a planned community as prescribed in chapter 16 of this title, without a vote of the members of the association, may amend the governing instrument to remove an unlawful restriction.
2. A member of an association of owners may request in a record that sufficiently identifies an unlawful restriction in the governing instrument that the governing body exercise its authority under subsection A of this section.  Not later than ninety days after the governing body receives the request, the governing body shall determine, reasonably and in good faith, whether the governing instrument includes the unlawful restriction. If the governing body determines the governing instrument includes the unlawful restriction, the governing body not later than ninety days after the determination shall amend the governing instrument to remove the unlawful restriction.
3. Notwithstanding any provision of the governing instrument or any other law, the governing body may execute an amendment under this section.
4. An amendment under this section is effective, notwithstanding any provision of the governing instrument or any other law that requires a vote of the members of the association of owners to amend the governing instrument.

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