The six-year rule

For homeowners associations the rule is in Utah Code 57-8a-211, part of the Community Association Act. For condominiums it is in Utah Code 57-8-7.5, part of the Condominium Ownership Act. The wording of the two matches almost line for line: the HOA version speaks of the board and lot owners, the condo version of the management committee and unit owners.

Both say the board must "cause a reserve analysis to be conducted" no less often than every six years. The current version on le.utah.gov took effect on May 5, 2021, and the 2026 HOA bill (SB 122) did not change either section.

Utah does not leave "reserve analysis" open to interpretation. The statute lists five things it must include:

• the components that will reasonably need reserve money;
• how many years each one probably has left, as of the analysis date;
• what it will cost to repair, replace or restore each one;
• the total yearly contribution the reserve fund needs to keep up, including a cushion for a budget shortfall the reserves may legally cover;
• a funding plan recommending how the association can make that contribution.

The components in question are common areas with a useful life of at least three years and fewer than thirty years left, where the general budget could not cover the cost. Roofs, asphalt, siding, pool plaster, elevators and boilers usually qualify. A sidewalk that will outlast everyone reading this report usually does not.

Every Utah HOA and condominium association, whenever it was formed, once the developer has handed over control. While the declarant is still in administrative control, the reserve analysis and funding rules do not apply yet. They begin the day owners take over, which is one reason a first analysis is often ordered at turnover.

One phrase deserves a careful read: the six-year timing applies "unless the governing documents provide otherwise". Some declarations set a shorter cycle. If yours is silent, the statute's six years is the outer limit.

The statute gives owners a remedy. An owner who believes the association is out of compliance can send written notice naming the requirement, demanding compliance and giving at least 90 days to fix it. If nothing changes, the owner can sue for an order requiring compliance, $500 or actual damages (whichever is greater), and court costs and attorney fees. For a board, ordering the analysis is much cheaper than defending that case.

Lenders and buyers also ask. A missing or stale analysis is a common question in a resale file, and the full analysis is among the records owners can request.