Bill Text: HI HB61 | 2019 | Regular Session | Amended
Bill Title: Relating To Condominiums.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-07-09 - Act 192, 07/02/2019 (Gov. Msg. No. 1294). [HB61 Detail]
Download: Hawaii-2019-HB61-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
61 |
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THIRTIETH LEGISLATURE, 2019 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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C.D. 1 |
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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. The legislature finds that the changes made by Act 195, Session Laws of Hawaii 2018, were designed to provide greater clarity and certainty in the application of common expense payments by condominium unit owners. Specifically, the Act clarified that condominium associations must apply common expense payments to common expenses owed first, or to fines or fees if indicated by the payee.
However, the Act did not address situations that require the application of funds beyond common expenses. This has resulted in confusion by association boards of directors in allocating the priority of payments paid in excess of common expenses owed.
Therefore, the purpose of this Act is to clarify the allocation of payments made by or on behalf of a condominium unit owner and which are paid in excess of any common expenses owed.
SECTION 2. Section 514B-105, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) [No association shall deduct and apply
portions of common expense payments received from a unit owner to unpaid late
fees, legal fees, fines, and interest (other than amounts remitted by a unit in
payment of late fees, legal fees, fines, and interest).] Any payments made by or on behalf of a
unit owner shall first be applied to outstanding common expenses that are
assessed to all unit owners in proportion to the common interest appurtenant to
their respective units. Only after said
outstanding common expenses have been paid in full may the payments be applied
to other charges owed to the association, including assessed charges to the
unit such as ground lease rent, utility sub-metering, storage lockers, parking
stalls, boat slips, insurance deductibles, and cable. After these charges are paid, other charges,
including unpaid late fees, legal fees, fines, and interest, may be assessed in
accordance with an application of payment policy adopted by the board; provided
that if a unit owner has designated that any payment is for a specific charge
that is not a common expense as described in this subsection, the payment may
be applied in accordance with the unit owner's designation even if common
expenses remain outstanding."
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, 2019.
Report Title:
Condominium Associations; Common Expense Payments; Excess Amounts
Description:
Clarifies the allocation of payments made by a condominium owner that are in excess of any common expenses owed. (HB61 CD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
