Bill Text: HI HB811 | 2020 | Regular Session | Amended
Bill Title: Relating To Condominiums.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [HB811 Detail]
Download: Hawaii-2020-HB811-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
811 |
THIRTIETH LEGISLATURE, 2019 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514B-56, Hawaii Revised Statutes, is amended to read as follows:
"[[]§514B-56[]] Developer's public report;
amendments. (a) After the effective date for a developer's
public report has been issued by the commission, if there are any changes,
either material or pertinent changes, or both, regarding the information
contained in or omitted from the developer's public report, or if the developer
desires to update or change the information set forth in the developer's public
report, the developer shall immediately submit to the commission an amendment
to the developer's public report or an amended developer's public report
clearly reflecting the change, together with such supporting information as may
be required by the commission, to update the information contained in the
developer's public report, accompanied by nonrefundable fees as provided in
rules adopted by the director of commerce and consumer affairs pursuant to
chapter 91. Within a reasonable period
of time, the commission shall issue an effective date for the amended developer's
public report or take other appropriate action under this part.
(b) The submission of an amendment to the developer's public report or an amended developer's public report shall not require the developer to suspend sales, subject to the power of the commission to order sales to cease as set forth in section 514B‑66; provided that the developer shall advise the appropriate real estate broker or brokers, if any, of the change and disclose to purchasers any change in the information contained in the developer's public report pending the issuance of an effective date for any amendment to the developer's public report or amended developer's public report; and provided further that if the amended developer's public report is not issued within thirty days after its submission to the commission, the commission may order a suspension of sales pending the issuance of an effective date for the amended developer's public report. Nothing in this section shall diminish the rights of purchasers under section 514B‑94.
(c) The developer shall provide all purchasers with a true copy of:
(1) The amendment to the developer's public report, if the purchaser has received copies of the developer's public report and all prior amendments, if any; or
(2) A restated developer's public report, including all amendments.
(d) The filing of an amendment to the developer's public report or an amended developer's public report, in and of itself, shall not be grounds for a purchaser to cancel or rescind a sales contract. A purchaser's right to cancel or rescind a sales contract shall be governed by sections 514B‑86 and 514B‑87, the terms and conditions of the purchaser's contract for sale, and applicable common law.
(e) Notwithstanding any provision to the
contrary, this section shall not apply to a time share project duly registered
under chapter 514E, if with regard to that time share project:
(1) A copy of the
disclosure statement required by chapter 514E is required to be delivered to
the purchaser or prospective purchaser; or
(2) Pursuant to
section 514E-30, a copy of the disclosure statement required by chapter 514E is
not required to be delivered to the purchaser or prospective purchaser because
the offer and sale of the time share interest is made outside of Hawaii."
SECTION 2. Act 181, Session Laws of Hawaii 2017, is amended by amending section 45 to read as follows:
"SECTION 45. Condominium property regimes created prior to
July 1, 2006, that were issued an effective date pursuant to [section] sections
514A-40 and 514A-41, Hawaii Revised Statutes, may be sold on or after January
1, 2019, without revising any of the governing documents; provided that the
developer's public report was active [on January 1, 2019, and is],
non-expired, and accurate [and not misleading. On] between January 1, 2019, [all
active, non-expired chapter 514A, Hawaii Revised Statutes, developer's public
reports] and July 1, 2020, pursuant to sections 514A-40 and 514A-41,
Hawaii Revised Statutes, along with their most recent disclosure abstract, if
any, will be treated as non-expiring developer's public reports under part IV
of chapter 514B, Hawaii Revised Statutes.
Chapter 514A, Hawaii Revised Statutes, developer's public reports
shall be treated as non-expiring chapter 514B, Hawaii Revised Statutes,
developer's reports on the first day their respective report was accurate and
had an active effective date between January 1, 2019, and July 1, 2020. Should any pertinent or material changes, or
both, occur to the condominium project, the developer shall file [an amended]
a developer's public report superseding all prior reports pursuant to [chapter
514B,] section 514B-56, Hawaii Revised Statutes; provided that such
projects and their subsequent reports filed under chapter 514B, Hawaii Revised
Statutes, shall be exempt from the conversion requirements under section
514B-84(a)(1) and (2), Hawaii Revised Statutes.
[Condominium] On July 1, 2020, condominium property
regimes created prior to July 1, 2006, that were not issued an effective date
pursuant to sections 514A-40 and 514A-41, Hawaii Revised Statutes, [and]
did not file a notice of intent pursuant to section 514A-1.5(2)(B), Hawaii
Revised Statutes, or have effective dates expired prior to January 1, 2019,
shall revise their governing documents and register under chapter 514B, Hawaii
Revised Statutes, for a developer to offer for sale or to sell condominiums.
It
shall not be necessary to revise the governing documents of a condominium
property regime registered under chapter 514A, Hawaii Revised Statutes, to
comply with chapter 514B, Hawaii Revised Statutes, for sales of time share
interests to be made in such condominium property regime.
Nothing contained in this Act or in the condominium property act shall be deemed to invalidate any condominium property regime that was validly created under chapter 514A, Hawaii Revised Statutes, prior to July 1, 2006."
SECTION 3. Notwithstanding section 2 of Act 181, Session Laws of Hawaii 2017, and subject to section 2 of this Act, the following sections of chapter 514A, Hawaii Revised Statutes, shall remain operative in the form in which they read on December 31, 2018, until June 30, 2020, for the sole purpose of providing developers with sufficient time to update their developer's public reports and associated documents in order to qualify for the safe harbor provisions of section 45 of Act 181, Session Laws of Hawaii 2017, as amended by this Act:
Part I. General Provisions and Definitions
514A-1 Title
514A-1.5 Applicability of chapter
514A-1.6 Conformance with county land use ordinances
514A-2 Chapter not exclusive
514A-3 Definitions
514A-4 Status of apartments
514A-5 Ownership of apartments
514A-6 Separate taxation
Part II. Creation, Alteration, and Termination
of Condominiums
514A-11 Recordation and contents of declaration
514A-12 Copy of the floor plans to be filed
514A-13 Common elements
514A-13.6 Mailboxes for each dwelling required
514A-14 Parking stalls
514A-14.5 Ownership of parking stalls
514A-15 Common profits and expenses
514A-15.1 Common expenses; prior late charges
514A-15.5 Metering of utilities
514A-16 Liens against apartments; removal from lien; effect of part payment
514A-17 Contents of deeds or leases of apartments
514A-18 Blanket mortgages and other blanket liens affecting an apartment at time of first conveyance or lease
514A-19 Merger of increments
514A-20 Condominium property regimes
514A-21 Removal from provisions of this chapter
Part III. Registration and Administration
514A-32 Questionnaire and filing fee
514A-33 Inspection
514A-34 Inspection expenses
514A-35 Waiver of inspection
514A-36 Public reports and registration fees
514A-38 Request for effective date or hearing by developer
514A-40 Final reports
514A-41 Supplementary public report
514A-42 True copies of public report; no misleading information
514A-43 Automatic expiration of public reports; exceptions
514A-44 Deposit of fees
514A-45 Supplemental regulations governing a condominium property regime
514A-46 Investigatory powers
514A-47 Cease and desist orders
514A-48 Power to enjoin
514A-49 Penalties
514A-50 Limitation of action
Part IV. Protection of Purchasers
514A-61 Disclosure requirements
514A-62 Copy of public report to be given to prospective purchaser
514A-63 Rescission rights
514A-64.5 Protection of purchasers' funds
514A-65 Escrow requirement
514A-67 Financing construction
514A-68 Misleading statements and omissions
514A-69 Remedies; sales voidable when and by whom
514A-70 Warranty against structural and appliance defects; notice of expiration required.
SECTION 4. On July 1, 2020, the authority to extend the operation of the listed sections of chapter 514A, Hawaii Revised Statutes, that is provided under section 3 to allow developers to qualify for the safe harbor provisions of section 45 of Act 181, Session Laws of Hawaii 2017, as amended by this Act, shall expire.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Condominiums; Condominium Property Regimes; Time Share Plans; Extension
Description:
Extends the safe harbor provisions found in section 45 of Act 181, Session Laws of Hawaii 2017, until 7/1/20 to provide sufficient time for condominium property regimes to update their developer's public reports. Excludes time share plans from the developer public reporting and related requirements. (HB811 HD2)
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not legislation or evidence of legislative intent.