Bill Text: HI HB632 | 2025 | Regular Session | Introduced

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Bill Title: Relating To Condominiums.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-21 - Referred to CPC, JHA, referral sheet 2 [HB632 Detail]

Download: Hawaii-2025-HB632-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	632
THIRTY-THIRD LEGISLATURE, 2025
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-3, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""De minimis infraction" means a technical violation of a bylaw, rule, or regulation that results in not more than three complaints from separate units within a calendar year, or does not result in a fine of more than $500 per violation pursuant to the bylaws, rules, or regulations of the association."

     SECTION 2.  Section 514B-104, Hawaii Revised Statutes, is amended to read as follows:

     "§514B-104  Association; powers.  (a)  Except as provided in section 514B‑105, and subject to the provisions of the declaration and bylaws, the association, even if unincorporated, may:

     (1)  Adopt and amend the declaration, bylaws, and rules and regulations;

     (2)  Adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from unit owners, subject to section 514B‑148;

     (3)  Hire and discharge managing agents and other independent contractors, agents, and employees;

     (4)  Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more unit owners on matters affecting the condominium.  For the purposes of actions under chapter 480, associations shall be deemed to be "consumers";

     (5)  Make contracts and incur liabilities;

     (6)  Regulate the use, maintenance, repair, replacement, and modification of common elements;

     (7)  Cause additional improvements to be made as a part of the common elements;

     (8)  Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property; provided that:

          (A)  Designation of additional areas to be common elements or subject to common expenses after the initial filing of the declaration or bylaws shall require the approval of at least sixty-seven per cent of the unit owners;

          (B)  If the developer discloses to the initial buyer in writing that additional areas will be designated as common elements whether pursuant to an incremental or phased project or otherwise, the requirements of this paragraph shall not apply as to those additional areas; and

          (C)  The requirements of this paragraph shall not apply to the purchase of a unit for a resident manager, which may be purchased with the approval of the board;

     (9)  Subject to section 514B‑38, grant easements, leases, licenses, and concessions through or over the common elements and permit encroachments on the common elements;

    (10)  Impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements, other than limited common elements described in section 514B‑35(2) and (4), and for services provided to unit owners;

    (11)  Impose charges and penalties, including late fees and interest, for late payment of assessments and levy reasonable fines for violations of the declaration, bylaws, rules, and regulations of the association, either [in]:

          (A)  In accordance with the bylaws; provided that the bylaws, at a minimum, shall provide a person to whom a charge or penalty is assessed:

              (i)  The right to appeal the charge, penalty, or fine to the board of directors with notice and an opportunity to be heard; and

             (ii)  Written notice of the person's rights under clause (i); or[, if]

          (B)  If the bylaws are silent, pursuant to a resolution adopted by the board that establishes a fining procedure that states the basis for the fine and allows an appeal to the board of the fine with notice and an opportunity to be heard and providing that if the fine is paid, the unit owner shall have the right to initiate a dispute resolution process as provided by sections 514B‑161, 514B-162, or by filing a request for an administrative hearing under a pilot program administered by the department of commerce and consumer affairs;

    (12)  Impose reasonable charges for the preparation and recordation of amendments to the declaration, documents requested for resale of units, or statements of unpaid assessments;

    (13)  Provide for cumulative voting through a provision in the bylaws;

    (14)  Provide for the indemnification of its officers, board, committee members, and agents, and maintain directors' and officers' liability insurance;

    (15)  Assign its right to future income, including the right to receive common expense assessments, but only to the extent section 514B‑105(e) expressly so provides;

    (16)  Exercise any other powers conferred by the declaration or bylaws;

    (17)  Exercise all other powers that may be exercised in this State by legal entities of the same type as the association, except to the extent inconsistent with this chapter;

    (18)  Exercise any other powers necessary and proper for the governance and operation of the association; and

    (19)  By regulation, subject to sections 514B‑146, 514B‑161, and 514B‑162, require that disputes between the board and unit owners or between two or more unit owners regarding the condominium be submitted to nonbinding alternative dispute resolution in the manner described in the regulation as a prerequisite to commencement of a judicial proceeding.

     (b)  If a tenant of a unit owner violates the declaration, bylaws, or rules and regulations of the association, in addition to exercising any of its powers against the unit owner, the association may:

     (1)  Exercise directly against the tenant the powers described in subsection (a)(11);

     (2)  After giving notice to the tenant and the unit owner and an opportunity to be heard, levy reasonable fines against the tenant for the violation, provided that a unit owner shall be responsible for the conduct of the owner's tenant and for any fines levied against the tenant or any legal fees incurred in enforcing the declaration, bylaws, or rules and regulations of the association against the tenant; and

     (3)  Enforce any other rights against the tenant for the violation which the unit owner as landlord could lawfully have exercised under the lease, including eviction, or which the association could lawfully have exercised directly against the unit owner, or both[.];

provided that the association or board of directors, at a minimum, shall afford a person accused of violating the declaration, bylaws, or rules and regulations of the association with the right to appeal any penalty or other remedy under this subsection to the board of directors with notice and an opportunity to be heard; provided further that the person shall be provided with written notice of the person's rights under this paragraph.

     (c)  Notwithstanding any provision of this chapter to the contrary, the association or board of directors shall not enforce against de minimis infractions of association bylaws, rules or regulations.

     [(c)] (d)  The rights granted under subsection (b)(3) may only be exercised if the tenant or unit owner fails to cure the violation within ten days after the association notifies the tenant and unit owner of that violation; provided that no notice shall be required when the breach by the tenant causes or threatens to cause damage to any person or constitutes a violation of section 521-51(1) or 521-51(6).

     [(d)] (e)  Unless a lease otherwise provides, this section does not:

     (1)  Affect rights that the unit owner has to enforce the lease or that the association has under other law; or

     (2)  Permit the association to enforce a lease to which it is not a party in the absence of a violation of the declaration, bylaws, or rules and regulations."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Condominiums; De Minimis Violations; Enforcement; Notice of Rights; Restrictions

 

Description:

Prohibits a condominium association or its board of directors from enforcing de minimis violation of association bylaws, rules, or regulations.  Defines "de minimis violations".  Requires condominium associations to provide persons accused of violations the right to appeal to the board of directors.  Requires a condominium to disclose this right of appeal to alleged violators.

 

 

 

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