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 |
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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:
(1) Authorize condominium boards of directors to create a written application of payment policy for excess amounts received; and
(2) Specify that the excess amounts shall be applied to fines, legal fees, late fees, and interest last.
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)[.]; provided
that if a unit owner is not delinquent as to common expense assessments or the
payment made is more than the amounts owed under this subsection, then the
funds received may be applied to the unit owner's account based on a written
application of payment policy by the board of directors. In all cases, fines, legal fees, late fees,
and interest shall be the last priority.
Common expense assessments include but are not limited to:
(1) Maintenance and
reserve contributions assessed to all owners based on each owner's percentage
of common interest;
(2) Special
assessments to all owners;
(3) Bulk cable or wireless
internet services assessed to all owners;
(4) Metered
utilities assessed to owners;
(5) Ground lease
rent; and
(6) Master
association dues collected by a sub-association."
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, 2050.
Report Title:
Condominium Associations; Common Expense Payments
Description:
Authorizes condominium boards of directors to establish application schedules for excess amounts received. Specifies that the excess amounts shall be applied to fines, legal fees, late fees, and interest last. (HB61 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
