Orem, UT HOA Rules: Assessment & Dues (2026)
Key Facts
- Governing section
- Orem City Code 22-16-7
- Applies to
- Condominium and townhouse conversions
- CC&R must require
- Periodic and special assessments to owners
- Developer duty
- Maintains common areas until all units sold
- Approval gate
- Required before Planning Commission final approval
- Penalty
- Class C misdemeanor, up to $500-$1,000 fine
Summary
Orem City Code Section 22-16-7 requires any condominium or townhouse conversion project to record a Declaration of Covenants, Conditions and Restrictions that establishes a unit owners' association and provides for periodic assessments to the owners for maintenance costs, common utility bills, and special assessments for capital improvements, before the city grants final conversion approval.
The establishment of an association of unit owners that provides for the maintenance of common areas. Maintenance of Common Areas and Facilities - General. In order to protect the public health, safety and welfare, provisions shall be made for periodic assessments to the owners for the costs of maintenance, common utility bills, and special assessments for capital improvements. The developer shall retain responsibility for maintenance of the common areas of the facilities until all of the units have been sold and the City has determined that the unit owner's Association has been established.
Full Breakdown
Article 22-16 of the Zoning Chapter governs any project that converts existing multiple-family housing, or existing commercial or manufacturing buildings, into a condominium or townhouse development. Before the city will give final approval, Section 22-16-7 requires the owner or developer to record a Declaration of Covenants, Conditions, and Restrictions that goes beyond the state Condominium Ownership Act minimums by adding several Orem-specific elements. First, the CC&Rs must establish "an association of unit owners that provides for the maintenance of common areas." Second, under the clause titled "Maintenance of Common Areas and Facilities - General," the declaration must make provisions "for periodic assessments to the owners for the costs of maintenance, common utility bills, and special assessments for capital improvements," so the association, not the city, funds ongoing upkeep and one-time capital costs alike.
Until every unit sells and the city determines the owners' association is actually established, the developer stays responsible for maintaining the common areas itself. The CC&Rs must also spell out the enforcement techniques the association will use to secure owner compliance with the covenants, set aside public utility easements over any private streets, paths, or roadways within the project (and, if the City requires it, additional easements for fire hydrants, water meters, storm drainage, sewers, and similar utilities), and grant the association an easement to enter a privately-owned unit when necessary for common-area construction, maintenance, or repair. These CC&R terms are reviewed as part of the Section 22-16-2 Development Review Application and must be satisfied before the Planning Commission grants final approval of the conversion under this Article.
Violations & Fines
Recording a conversion CC&R that omits the required assessment, maintenance-association, or easement provisions blocks final Planning Commission approval under Article 22-16, and proceeding with a conversion in violation of Chapter 22 is unlawful under Section 22-1-6: a Class C misdemeanor punishable by up to a $500 fine for an individual or $1,000 for a corporation, association, or partnership, up to three months in jail, or both, with each day of the violation a separate offense.
Frequently Asked Questions
Does Orem require an HOA for condo or townhouse conversions?
What must the HOA's assessment provisions cover?
Who pays for common-area upkeep before the HOA takes over?
What happens if the developer skips these HOA requirements?
Sources & Official References
Other rules in Orem
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