Bill Text: HI HB649 | 2017 | Regular Session | Amended
Bill Title: Relating To Association Legal Fees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-02-10 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on JUD with none voting aye with reservations; none voting no (0) and Representative(s) Gates, Ing excused (2). [HB649 Detail]
Download: Hawaii-2017-HB649-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
649 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ASSOCIATION LEGAL FEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 421J-10.5, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:
"(c) Except as provided in section 667-92(c), no unit owner shall
withhold any assessment claimed by the association[.]; provided that a
unit owner may withhold payment of legal fees pending a decision in any
mediation, arbitration, or court proceeding in which the unit owner has filed
for a determination to resolve a dispute about the amount or validity of an
assessment claimed by the association, including the reasonableness of the
attorney's fees and costs included in the assessment, under the circumstances
of the dispute. A unit owner who disputes the amount or validity of
an assessment may request a written statement clearly indicating:
(1) The amount of regular and special assessments included in the assessment, including the due date of each amount claimed;
(2) The amount of any penalty, late fee, lien filing fee, and any other charge included in the assessment;
(3) The amount of attorneys' fees and costs, if any, included in the assessment;
(4) That under Hawaii law, a unit owner has no right to
withhold assessments for any reason[;], except for legal fees that
may be withheld pursuant to this subsection;
(5) That a unit owner has a right to demand mediation
to resolve disputes about the amount or validity of an association's
assessment; provided that, except for legal fees that may be withheld
pursuant to this subsection, the unit owner shall immediately [pays]
pay the assessment in full and [keeps] keep assessments
current; and
(6) That payment in full of the assessment does not prevent the unit owner from contesting the assessment or receiving a refund of amounts not owed.
Nothing in this section shall limit the rights of a unit owner to the protection of all fair debt collection procedures mandated under federal and state law.
(d) A unit owner who pays an
association the full amount claimed by the association, or the amount
claimed by the association less legal fees that may be withheld pursuant to subsection
(c), may file a claim against the association in court, including small
claims court, or require the association to mediate under section 421J-13 to
resolve any disputes concerning the amount or validity of the association's
claim. If the unit owner and the association are unable to resolve the dispute
through mediation, either party may file for relief with a court; provided that
a unit owner may only file for relief in court if all amounts claimed by the
association are paid in full on or before the date of filing[.], except
for legal fees that may be withheld pursuant to subsection (c). If the
unit owner fails to keep all association assessments current during the court
hearing, the association may ask the court to temporarily suspend the proceedings.
If the unit owner pays all association assessments within thirty days of the
date of suspension, the unit owner may ask the court to recommence the
proceedings. If the unit owner fails to pay all association assessments by the
end of the thirty-day period, the association may ask the court to dismiss the
proceedings. The unit owner shall be entitled to a refund of any amounts paid
to the association that are not owed."
SECTION 2. Section 514B-146, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:
"(c)
No unit owner shall withhold any assessment claimed by the association[.];
provided that the unit owner may withhold payment of legal fees pending a
decision in any mediation, arbitration, or court proceeding in which the unit
owner has filed for a determination to resolve a dispute about the amount or
validity of the assessment claimed by the association, including the reasonableness
of the attorney's fees and costs included in the assessment, under the circumstances
of the dispute. A unit owner who disputes the amount of an
assessment may request a written statement clearly indicating:
(1) The amount of common expenses included in the assessment, including the due date of each amount claimed;
(2) The amount of any penalty, late fee, lien filing fee, and any other charge included in the assessment;
(3) The amount of attorneys' fees and costs, if any, included in the assessment;
(4) That under Hawaii law, a unit owner has no right
to withhold assessments for any reason[;], except for legal fees that
may be withheld pursuant to this subsection;
(5) That a unit owner has a right to demand mediation
or arbitration to resolve disputes about the amount or validity of an
association's assessment, provided that, except for legal fees that may be
withheld pursuant to this subsection, the unit owner shall
immediately [pays] pay the assessment in full and [keeps] keep
assessments current; and
(6) That payment in full of the assessment does not prevent the owner from contesting the assessment or receiving a refund of amounts not owed.
Nothing in this section shall limit the rights of an owner to the protection of all fair debt collection procedures mandated under federal and state law.
(d) A unit owner who pays an association the
full amount claimed by the association, or the amount claimed by the
association less legal fees that may be withheld pursuant to subsection (c),
may file in small claims court or require the association to mediate to resolve
any disputes concerning the amount or validity of the association's claim. If
the unit owner and the association are unable to resolve the dispute through
mediation, either party may file for arbitration under section 514B‑162;
provided that a unit owner may only file for arbitration if all amounts claimed
by the association are paid in full on or before the date of filing[.],
except for legal fees that may be withheld pursuant to subsection (c). If
the unit owner fails to keep all association assessments current during the
arbitration, the association may ask the arbitrator to temporarily suspend the
arbitration proceedings. If the unit owner pays all association assessments
within thirty days of the date of suspension, the unit owner may ask the
arbitrator to recommence the arbitration proceedings. If the owner fails to
pay all association assessments by the end of the thirty-day period, the
association may ask the arbitrator to dismiss the arbitration proceedings. The
unit owner shall be entitled to a refund of any amounts paid to the association
which are not owed."
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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2112.
Report Title:
Planned Community Associations; Association of Apartment Owners; Foreclosure; Attorneys' Fees; Assessments
Description:
Allows unit owners in planned community associations and condominium associations to withhold legal fees from assessments claimed by associations pending decision in any mediation, arbitration, or court proceeding in which the owner has filed for a determination of the validity of the amounts and attorney's fees claimed by the association. (HB649 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
