REPORT TITLE:
Condos/Delinq. Expenses


DESCRIPTION:
Requires mortgage holders to pay common expenses while
foreclosure proceedings are pending, if the unit is being rented.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2744
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
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:

 1      SECTION 1.  The legislature finds that condominium owners
 
 2 pay for common expenses of units in foreclosure when a court-
 
 3 appointed receiver or commissioner is collecting the rent but not
 
 4 paying those common expenses to the association of apartment
 
 5 owners.  The common expenses include insurance, repair and
 
 6 maintenance of common areas, electricity, water, cable service,
 
 7 and recreational amenities for a resident who occupies the unit.
 
 8 In a foreclosure, the mortgage holder or foreclosure receiver or
 
 9 commissioner does not pay the maintenance fees to the association
 
10 despite the fact that the resident continues to receive the
 
11 benefits of the services and amenities.  This Act would provide
 
12 some financial relief to condominium owners who are currently
 
13 subsidizing the common expenses of units in foreclosure to ensure
 
14 the proper maintenance, repair, and operation of condominiums.
 
15      Accordingly, the purpose of this Act is to require a
 
16 mortgage holder or court-appointed receiver or commissioner of a
 
17 property during foreclosure proceedings to pay the association of
 
18 apartment owners the current common expenses chargeable to the
 
19 apartment, if rent is being collected.
 

 
Page 2                                                     2744
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Chapter 514A, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§514A-    Common expenses to be paid during foreclosure;
 
 5 when.  Notwithstanding sections 514A-15(b) and 514A-90, if a
 
 6 mortgage holder or court-appointed receiver or commissioner
 
 7 collects rent on any apartment that is in foreclosure, the
 
 8 mortgage holder or court-appointed receiver or commissioner shall
 
 9 pay to the association of apartment owners the current common
 
10 expenses chargeable to the apartment.  The current common
 
11 expenses shall be paid to the association of apartment owners
 
12 from the date the rent is first collected to the date the rent is
 
13 no longer collected or the foreclosure proceedings are completed,
 
14 whichever occurs first."
 
15      SECTION 3.  New statutory material is underscored.
 
16      SECTION 4.  This Act shall take effect upon its approval.
 
17 
 
18                           INTRODUCED BY:  _______________________