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HB 306UTAHSession 2026State BillSigned into law
Enacted

Utah Regulates HOA Reinvestment Fees and Requires Reserve Fund Deposits

Original title: Reinvestment Fee Amendments

Last action · March 18, 2026: Governor SignedSponsors: Ariel Defay and 1 other

Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

Utah law now caps standard home-association s at 0.5% of property value and requires associations to deposit at least half of those fees into . The measure also mandates that home associations declare whether they charge transfer or reinvestment fees when registering with the Department of Commerce, effective May 6, 2026.

Why it matters

Homebuyers and property sellers in communities with property associations face new caps on transfer charges, while associations must set aside mandatory cash reserves for major infrastructure upkeep and update their state registrations.

Background
  • Homeowners' associations and common interest communities in Utah are governed by statutory provisions under Title 57 regulating their formation, registration, liens, and fees. context
  • The Department of Commerce maintains registries for business entities and home associations to oversee compliance with state disclosure laws. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

homeowners' associations

Associations must cap reinvestment fees, deposit 50% into reserves, and report fee collection statuses during state registration.

Directly affected

property buyers and sellers

Individuals transferring real property are subject to updated statutory caps on association transfer and reinvestment fees.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the maximum percentage an association can charge for a reinvestment fee?
For properties in associations that are not low-amenity, the fee is capped at 0.5% of the property's value. For s comprising only detached single-family homes without capital-intensive maintenance services, the cap is 0.25%.
What must associations do with the reinvestment fees they collect?
Except for large master planned developments, associations must deposit at least 50% of any collected into .
Does registering with the Department of Commerce require disclosing fees?
Yes, associations must include a statement during registration or renewal indicating whether or not they impose a or a transfer fee.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

50 actions
  1. Mar 18, 2026Lieutenant Governor's office for filingEnrolled
    Governor Signed
  2. Mar 16, 2026House
    House/ to Governor
  3. Mar 16, 2026House
    House/ received enrolled bill from Printing
  4. Mar 12, 2026House
    House/ enrolled bill to Printing
  5. Mar 12, 2026Clerk of the House
    Enrolled Bill Returned to House or Senate
  6. Mar 11, 2026Legislative Research and General Counsel / Enrolling
    Draft of Enrolled Bill Prepared
Show 44 earlier actions
  1. Mar 11, 2026Legislative Research and General Counsel / Enrolling
    Bill Received from House for Enrolling
  2. Mar 11, 2026House
    House/ signed by Speaker/ sent for enrolling
  3. Mar 11, 2026House
    House/ received from Senate
  4. Mar 10, 2026Senate
    Senate/ to House
  5. Mar 10, 2026Senate
    Senate/ signed by President/ returned to House
  6. Mar 10, 2026Senate
    Senate/ received from House
  7. Mar 6, 2026House
    House/ to Senate
  8. Mar 6, 2026House
    House/ concurs with Senate amendment
  9. Mar 6, 2026House
    House/ placed on Concurrence Calendar
  10. Mar 6, 2026House
    House/ received from Senate
  11. Mar 6, 2026Senate
    Senate/ to House with amendments
  12. Mar 6, 2026SenateFloor
    Senate/ passed 2nd & 3rd readings/ suspension
  13. Mar 6, 2026Senate
    Senate/ Rules to 2nd Reading Calendar
  14. Mar 4, 2026Senate
    Senate/ 2nd Reading Calendar to Rules
  15. Feb 26, 2026Senate
    Senate/ circled
  16. Feb 26, 2026Senate
    Senate/ 2nd & 3rd readings/ suspension
  17. Feb 25, 2026Senate
    Senate/ placed on 2nd Reading Calendar
  18. Feb 25, 2026Senate
    Senate/ comm rpt/ amended
  19. Feb 24, 2026Senate
    Senate Comm - Favorable Recommendation
  20. Feb 24, 2026Senate
    Senate Comm - Amendment Recommendation
  21. Feb 19, 2026SenateCommittee
    Senate/ to standing committee
  22. Feb 18, 2026SenateIntroduced
    Senate/ 1st reading (Introduced)
  23. Feb 18, 2026Senate
    Senate/ received from House
  24. Feb 17, 2026House
    House/ to Senate
  25. Feb 17, 2026HouseFloor
    House/ passed 3rd reading
  26. Feb 17, 2026House
    House/ 3rd reading
  27. Feb 10, 2026Released
    LFA/ fiscal note publicly available for HB0306S01
  28. Feb 9, 2026Version Sponsor
    LFA/ fiscal note sent to sponsor for HB0306S01
  29. Feb 9, 2026House
    House/ 2nd reading
  30. Feb 9, 2026House
    House/ comm rpt/ substituted
  31. Feb 6, 2026House
    House Comm - Favorable Recommendation
  32. Feb 6, 2026House
    House Comm - Substitute Recommendation
  33. Feb 6, 2026Legislative Fiscal Agency
    LFA/ bill sent to agencies for fiscal input for HB0306S01
  34. Feb 6, 2026Legislative Fiscal Analyst
    LFA/ bill assigned to staff for fiscal analysis for HB0306S01
  35. Feb 4, 2026HouseCommittee
    House/ to standing committee
  36. Jan 26, 2026House
    House/ received fiscal note from Fiscal Analyst
  37. Jan 26, 2026Released
    LFA/ fiscal note publicly available for HB0306
  38. Jan 22, 2026Version Sponsor
    LFA/ fiscal note sent to sponsor for HB0306
  39. Jan 22, 2026HouseIntroduced
    House/ 1st reading (Introduced)
  40. Jan 22, 2026House
    House/ received bill from Legislative Research
  41. Jan 21, 2026Legislative Fiscal Agency
    LFA/ bill sent to agencies for fiscal input for HB0306
  42. Jan 21, 2026Legislative Fiscal Analyst
    LFA/ bill assigned to staff for fiscal analysis for HB0306
  43. Jan 21, 2026Legislative Research and General Counsel
    Numbered Bill Publicly Distributed
  44. Jan 21, 2026Legislative Research and General Counsel
    Bill Numbered but not Distributed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Ariel DefayHouse · District 15RepublicanPrimary sponsor
Kirk CullimoreSenate · District 19RepublicanCosponsor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift99% confidence

Mandatory Reserve Allocation for Fees

The law introduces a strict requirement forcing home associations to channel half of their reinvestment fee revenues into reserve funds rather than general operating budgets.

Department of Commerce

Connected Entities

Office of the Homeowners' Association Ombudsman, Department of Commerce
OrganizationOffice of the Homeowners' Association Ombudsman“Office providing disclaimers on association websites regarding fee disclosures.”Map →
OrganizationDepartment of Commerce“State agency where home associations must register and report fee statuses.”Map →

Sources

Open source document

le.utah.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

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