As your homeowner association begins a new year (often with a new board or board members), it is entirely appropriate to review your association’s relevant legal documents. While the often-used Declaration and Bylaws may come immediately to mind, do not forget the frequently overlooked Articles of Incorporation and required registrations with the Utah Department of Commerce. The proper legal existence and registration of your association with the State are vitally important to the protection of the Board and community members.
As many of you are aware, a new law went into effect a few years ago requiring all homeowner associations to register with the State of Utah on its HOA Registry. Many associations have completed this requirement by visiting the Utah Department of Commerce, Homeowner Associations Registry website to register their association. In addition, it is important to keep in mind that any change in the information provided in the HOA Registry must be updated within 90 days of the change.
Unfortunately, this required registration with the HOA Registry is often misunderstood as the only filing required for your association. It must be remembered that your association needs to also file and maintain its non-profit corporation status with the Utah Department of Commerce, Division of Corporations. A homeowners association must keep its information and filings current with both the HOA Registry and the Division of Corporations within the Utah Department of Commerce.
Failure to register or keep your association’s corporate existence valid will affect the association’s ability to levy and pursue certain lien rights, as well as potentially exposing board members to unnecessary risk if non-profit status is lost or never in place from the beginning.
Featured Client Question:
If my association is registered with the Utah HOA Registry, do I still have to file yearly reports with the Utah Department of Commerce?
Yes. The Utah HOA Registry is a separate requirement within the Utah Department of Commerce. Your association must still file and maintain its non-profit status with the Division of Corporations.Content on this site is provided for informational purposes only. It is not intended as, and does not constitute, legal advice. While all content is believed to be correct within the scope of its purposes when written, it may be incomplete and/or the relevant law may have changed. Content on this site is not intended to comprehensively cover any subject, does not cover a number of related matters, and does not cover any person or entity's particular situation. As such, it is not reasonable for anyone to rely upon the information herein with respect to any particular legal matter. Rather, readers are encouraged to retain a licensed attorney to provide individualized and current legal advice.handsomely