UT HB0306

H.B. 306 - Reinvestment Fee Amendments

• HOAs may impose reinvestment fees (charged upon property sale) up to 0.5% of property value for standard associations, or 0.25% for "low-amenity associations" (detached single-family home communities without capital-intensive infrastructure maintenance); large master planned developments (500+ acres or units) are exempt from these caps.

• HOAs that are not large master planned developments must deposit at least 50% of collected reinvestment fees into reserve funds.

• Reinvestment fees may now be used for "capital-intensive infrastructure maintenance," defined as infrastructure with projected useful life exceeding five years that requires periodic replacement or major rehabilitation—excluding routine maintenance, landscaping, signage, and perimeter fencing.

• HOAs must disclose when registering with the Department of Commerce whether they impose a reinvestment fee or transfer fee; the HOA Ombudsman's Office must post a disclaimer that buyers cannot rely solely on these disclosures for purchase documents.

• Effective date is May 6, 2026; amends Utah Code Sections 57-1-46, 57-8-13.1, and 57-8a-105.