Bill Text: HI SB687 | 2015 | Regular Session | Introduced
Bill Title: Residential Real Property; Condominiums; Planned Community Associations; Fees; Documents
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2015-01-26 - Referred to CPN. [SB687 Detail]
Download: Hawaii-2015-SB687-Introduced.html
THE SENATE |
S.B. NO. |
687 |
TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§421J- Management fees. Fees of persons or entities hired by an association to manage the planned community shall be not more than an amount that reflects a reasonable value for management services rendered by the hired person or entity."
SECTION 2. Section 421J-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Association documents, the most
current financial statement of the association, and the minutes of the most
recent meeting of the board of directors [(], other than minutes
of executive sessions[)], shall be made available for examination
by any member [at no cost, on twenty-four-hour loan or during reasonable hours.]:
(1) During normal business hours;
(2) In hard copy form for a reasonable fee; and
(3) As an electronic document as defined in section 502‑121 through a website maintained by the property management company or by the association, if one exists;
provided that the association may, but is not required to, make available the financial statements of the association as an electronic document as defined in section 502-121."
SECTION 3. Section 514A-84.5, Hawaii Revised Statutes, is amended to read as follows:
"§514A‑84.5 Availability of project documents. (a) An accurate copy of the declaration of condominium property regime, the bylaws of the association of apartment owners, the house rules, if any, the master lease, if any, a sample original conveyance document, all public reports and any amendments thereto, and the annual operating budget shall be kept at the managing agent's office.
(b)
The managing agent shall [provide copies of those] make the documents
listed in subsection (a) available to owners[, prospective purchasers
and their prospective agents during normal business hours, upon payment to the
managing agent of a reasonable charge to defray any administrative or
duplicating costs.] for
review during normal business hours and in hard copy form for a reasonable fee.
(c) The managing agent shall make the documents listed in subsection (a) available to owners as an electronic document through a website maintained by the property management company or by the association, if one exists; provided that the managing agent may, but is not required to, make available to owners the annual operating budget of the association as an electronic document; provided further that the managing agent shall not make available to any agent or prospective purchaser the documents listed in subsection (a) as an electronic document.
For purposes of this subsection, "electronic document" has the same meaning as defined in section 502-121.
(d)
[In the event that] If the project is not managed by a managing
agent, the [foregoing] requirements of subsections (b) and (c) shall
be undertaken by a person or entity[, if any, employed by the association of
apartment owners,] to whom the association of apartment owners has
delegated this function [is delegated]."
SECTION 4. Section 514B-152, Hawaii Revised Statutes, is amended to read as follows:
"§514B-152 Association records; generally. (a) The association shall keep financial and other records sufficiently detailed to enable the association to comply with requests for information and disclosures related to resale of units. Except as otherwise provided by law, all financial and other records shall be made available pursuant to section 514B-154.5 for examination by any unit owner and the owner's authorized agents. Association records shall be stored on the island on which the association's project is located; provided that if original records, including but not limited to invoices, are required to be sent off-island, copies of the records shall be maintained on the island on which the association's project is located.
(b) The association shall make the association's financial and other records available to owners and their respective agents for review during normal business hours and in hard copy form for a reasonable fee.
The managing agent may, but is not required to, make available to owners the annual operating budget of the association as an electronic document.
(c) Notwithstanding chapter 489E to the contrary, the association shall make its records available to owners as an electronic document through a website maintained by the property management company or by the association, if one exists; provided that the association may, but is not required to, make available to owners the financial records of the association as an electronic document; provided further that the association shall not make available to any agent the financial or other records of the association as an electronic document.
(d) For purposes of this section, "electronic document" has the same meaning as defined in section 502-121."
SECTION 5. Section 514B-153, Hawaii Revised Statutes, is amended to read as follows:
"§514B-153 Association records; records to be maintained. (a) An accurate copy of the declaration, bylaws, house rules, if any, master lease, if any, a sample original conveyance document, all public reports and any amendments thereto, and the annual operating budget, shall be kept at the managing agent's office. The managing agent shall make the documents listed in this subsection available to owners and their respective agents for review during normal business hours and in hard copy form for a reasonable fee.
(b) The managing agent shall make the documents listed in subsection (a) available to owners as an electronic document through a website maintained by the property management company or by the association, if one exists; provided that the managing agent may, but is not required to, make available to owners the financial records and annual operating budget of the association as an electronic document; provided further that the managing agent shall not make available to any agent the documents listed in subsection (a) as an electronic document.
For purposes of this subsection, "electronic document" has the same meaning as defined in section 502-121.
[(b)]
(c) The managing agent or board shall keep, in chronological order,
detailed, accurate records [in chronological order,] of the receipts and
expenditures affecting the common elements, specifying and itemizing the maintenance
and repair expenses of the common elements and any other expenses incurred.
The managing agent or board shall also keep monthly statements indicating the
total current delinquent dollar amount of any unpaid assessments for common
expenses.
[(c)]
(d) Subject to section 514B‑152, all records and the vouchers authorizing the
payments and statements shall be kept and maintained at the address of the
project, or elsewhere within the State as determined by the board.
[(d)] (e) The developer or affiliate of the developer, board,
and managing agent shall ensure that there is a written contract for managing
the operation of the property[, expressing] that expresses the
agreements of all parties[,] on matters including but not limited
to financial and accounting obligations, services provided, and [any]
compensation arrangements, including any subsequent amendments. Copies of the
executed contract and any amendments shall be provided to all parties to the
contract.
[(e)]
(f) The managing agent, resident manager, or board shall keep an
accurate and current list of members of the association and their current
addresses, and the names and addresses of the vendees under an agreement of
sale, if any. The list shall be maintained at a place designated by the board[,]
and a copy shall be available, at cost, to any member of the association as
provided in the declaration or bylaws or rules and regulations or, in any case,
to any member who furnishes to the managing agent [or], resident
manager, or the board a duly executed and acknowledged affidavit stating
that the list:
(1) [Will
be] Is to be used by the owner personally and only for the purpose
of soliciting votes or proxies or providing information to other owners with
respect to association matters; and
(2) Shall not be used by the owner or furnished to anyone else for any other purpose.
A board may prohibit commercial solicitations.
Where the condominium project or any units within the project are subject to a time share plan under chapter 514E, the association shall only be required to maintain in its records the name and address of the time share association as the representative agent for the individual time share owners unless the association receives a request by a time share owner to maintain in its records the name and address of the time share owner.
[(f)]
(g) The managing agent or resident manager shall not use or distribute
any membership list, including for commercial or political purposes, without
the prior written consent of the board.
[(g)]
(h) All membership lists are the property of the association and any
membership lists contained in the managing agent's or resident manager's
records are subject to subsections [(e)] (f) and [(f),] (g),
and this subsection. A managing agent, resident manager, or board [may]
shall not use the information contained in the lists to create any
separate list for the purpose of evading this section.
[(h)]
(i) Subsections [(f)] (g) and [(g)] (h) shall
not apply to [any] time share [plan] plans regulated under
chapter 514E.
(j) If a project is not managed by a managing agent, the requirements of this section shall be undertaken by the person or entity to whom the association of apartment owners has delegated this function."
SECTION 6. Section 514B-154, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d)
The managing agent shall provide copies of association records maintained
pursuant to this section and sections 514B‑152 and 514B‑153 to
owners[, prospective purchasers and their prospective agents during normal
business hours, upon payment to the managing agent of a reasonable charge to
defray any administrative or duplicating costs.] for review during
normal business hours and in hard copy form for a reasonable fee.
The managing agent may, but is not required to, make available to owners the annual operating budget of the association as an electronic document as defined in section 502‑121.
If the
project is not managed by a managing agent, the [foregoing] requirements
of this section shall be undertaken by [a] the person or
entity[, if any, employed by the association,] to whom the
association of apartment owners has delegated this function [is
delegated]."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2015.
INTRODUCED BY: |
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Report Title:
Residential Real Property; Condominiums; Planned Community Associations; Fees; Documents
Description:
Restricts management fees to an amount that reflects a reasonable value for services rendered. Requires that condominium property managers, associations of apartment owners, and planned community associations make association documents available to owners under reasonable terms, including through a property management company's or association's website, if one exists, and for reasonable costs.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.