HOUSE OF REPRESENTATIVES	H.B. NO.	1647
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to condominiums.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 514B-148, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  The association shall deposit at least ten per cent of all revenues for each fiscal year, except for estimated replacement reserve assessments, into the total replacement reserves fund of the association.  The association shall further assess the unit owners to attain in either fund a minimum of fifty per cent of the estimated replacement reserves assessments or fund one hundred per cent of the estimated replacement reserves assessments when using a cash flow plan; provided that a new association need not collect estimated replacement reserves assessments until the fiscal year that begins after the association's first annual meeting.  For each fiscal year, the association shall collect the amount assessed to fund the estimated replacement reserves assessments for that fiscal year, as determined by the association's plan."

     2.  By amending subsection (g) to read:

     "(g)  Subject to the procedures of section 514B‑157 and any rules adopted by the commission, any unit owner whose association board fails to comply with this section may enforce compliance by the board[.]; provided that in cases where a board fails to deposit the minimum ten per cent into the total replacement reserves fund:

     (1)  The department shall enforce the minimum deposit;

     (2)  The unit owner may file a complaint with the commission in lieu of enforcing the minimum deposit through an action; and

     (3)  Each member of a board that is found to have failed to deposit the minimum ten per cent into the total replacement reserves fund shall be held personally liable and subject to a fine of $          .

     In any proceeding to enforce compliance, a board that has not prepared an annual operating budget and reserve study shall have the burden of proving it has complied with this section."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2024.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Condominiums; DCCA; Replacement Reserves; Condominium Boards of Directors; Enforcement; Penalty

 

Description:

Requires boards of directors of condominium associations to deposit at least ten per cent of all revenues for each fiscal year, except for estimated replacement reserve assessments, into the total replacement reserves fund of the association.  Requires the Real Estate Commission to enforce the minimum deposit requirement and allows unit owners to file complaints with the Commission.  Holds board members who fail to comply with the minimum deposit requirement personally liable and subject to a fine.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.