How Utah HOAs Can Navigate HB 217 and Rising Fee Pressures in 2025

Utah’s 2025 legislative session has brought major changes for homeowners associations (HOAs), fundamentally reshaping how they operate, budget, and engage with residents. At Advantage Management, we’re committed to guiding Utah HOAs through these transitions with expertise, clarity, and integrity.

1. HB 217: The Game Changer for Utah HOAs

Effective May 7, 2025, House Bill 217 — the “Homeowners' Association Amendments” — institutes sweeping reforms across HOA governance in Utah. These include:

• The creation of an Office of the Homeowners’ Association Ombudsman, designed to help resolve disputes and provide education for both boards and residents.

• A new requirement for annual HOA registration with the Department of Commerce, along with a small renewal fee (anticipated around $90).

• New caps and restrictions on HOA fees — including transfer and reinvestment fees, late fees, and limitations on how such fees can be used.

• Enhanced transparency obligations — ensuring HOAs make key documents (CC&Rs, bylaws, minutes) available upon request, and clarifying rules around amendments and design standards.

HOAs should urgently review their governing documents, policies, and admin workflows to ensure full compliance before the new law takes deeper effect in 2025.

2. What Utah Homeowners are Feeling: Fee Shock Across Communities

At the same time, several Utah HOA communities are grappling with steep fee hikes—sparking concern and resistance:

• In Kearns’ “Field of Dreams” neighborhood, residents saw fees skyrocket from $20 to as much as $400/month, raising alarm, especially among low-income families.

• Homeowners in South Jordan’s Daybreak community were blindsided with additional fees—$240 extra atop existing dues—pushing totals to $700 monthly to address long-ignored roof and window repairs.

• In 2024, nearly half of Salt Lake City home listings came with HOA fees—well above the national average—with median dues ranging from $90 in Logan to $300 in Park City–Heber.

These circumstances highlight an urgent need for proactive financial planning, clear communication, and empathetic governance—especially for associations serving diverse income levels.

3. What Advantage Management Recommends

Here’s how we help HOAs navigate this evolving landscape:

1. Legal & Governance Overhaul: We review and update your governing documents, budget processes, and fee structures to align with HB 217 and anticipate future compliance needs.

2. Educating Your Community: We support boards in explaining changes to residents—focusing on the Office of Ombudsman, fee limits, and document access—to nurture trust and reduce conflict.

3. Fair and Transparent Budgeting: We advocate for reserve studies, fair notice on fee changes, and open budgeting practices—empowering homeowners and strengthening financial health.

4. Accessible Dispute Resolution: We leverage the Ombudsman office to mediate disputes when needed, providing an impartial third-party channel that enhances peace of mind for all stakeholders.

5. Contextual Insights: Through local awareness—whether Salt Lake City, Park City, or Kearns—we guide HOAs using real data on costs, fees, and resident expectations.

Final Thoughts

In 2025, Utah HOAs face a pivotal moment. Legislative reforms like HB 217 are redefining governance and transparency. Simultaneously, evolving market conditions—especially fee-related stress—are challenging traditional HOA practices.

Advantage Management is uniquely positioned to help your HOA adapt and thrive—ensuring compliance, financial fairness, and a focus on community stability.

Ready to align your HOA with Utah’s new regulatory landscape and financial expectations? Reach out to us today for expert HOA management that’s prepared for 2025 and beyond.