REPORT TITLE:
Condominium Property Regimes


DESCRIPTION:
Clarifies that projects created as condominium property regimes
under chapter 514A are subject to county zoning and other county
building and development ordinances and rules.  (SD1)

 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO CONDOMINIUM PROPERTY REGIMES.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the function of
 
 2 county zoning and county land development ordinances and rules is
 
 3 to protect public health, safety, and welfare.  The purpose of
 
 4 this Act is to clarify that projects created and established as
 
 5 condominium property regimes are subject to county land use
 
 6 regulatory authority, and to ensure that projects created and
 
 7 established as condominium property regimes conform to the
 
 8 provisions of underlying county zoning ordinances and development
 
 9 requirements and are consistent with the intent of adopted county
 
10 land use policies and the state land use law.
 
11      SECTION 2.  Chapter 514A, Hawaii Revised Statutes, is
 
12 amended by adding to part I a new section to be appropriately
 
13 designated and to read as follows:
 
14      "§514A-    Conformance with county land use ordinances.  Any
 
15 condominium property regime established under this chapter shall
 
16 conform to the existing underlying county zoning for the property
 
17 and all applicable county permitting requirements adopted by the
 
18 county in which the property is located, including any
 
19 supplemental rules adopted by the county, pursuant to section
 
20 514A-45, to ensure the conformance of condominium property
 

 
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 1 regimes to the intent and provisions of county zoning and
 
 2 development ordinances, and chapter 205.  Notwithstanding this
 
 3 section, in the case of a property which includes one or more
 
 4 existing structures being converted to condominium status, such a
 
 5 condominium property regime shall comply with section 514A-11(13)
 
 6 or 514A-40(b)."
 
 7      SECTION 3.  Section 514A-11, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§514A-11  Recordation and contents of declaration.  The
 
10 bureau of conveyances and the land court shall immediately set up
 
11 the mechanics and method by which recordation of a master deed or
 
12 lease and the declaration may be made.  Provisions shall be made
 
13 for the recordation of instruments affecting the individual
 
14 apartments on subsequent resales, mortgages, and other
 
15 encumbrances, as is done with all other real estate recordations;
 
16 provided that land court certificates of title shall not be
 
17 issued for apartments.  The declaration to which section 514A-20
 
18 refers shall express the following particulars:
 
19      (1)  Description of the land, whether leased or in fee
 
20           simple, on which the building or buildings and
 
21           improvements are or are to be located;
 
22      (2)  Description of the building or buildings, stating the
 
23           number of stories and basements, the number of
 

 
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 1           apartments, and the principal materials of which it or
 
 2           they is or are constructed or to be constructed;
 
 3      (3)  The apartment number of each apartment, and a statement
 
 4           of its location, approximate area, number of rooms, and
 
 5           immediate common element to which it has access,
 
 6           designated parking stall, if considered a limited
 
 7           common element, and any other data necessary for its
 
 8           proper identification;
 
 9      (4)  Description of the common elements;
 
10      (5)  Description of the limited common elements, if any,
 
11           stating to which apartments their use is reserved;
 
12      (6)  The percentage of undivided interest in the common
 
13           elements appertaining to each apartment and its owner
 
14           for all purposes, including voting;
 
15      (7)  Statement of the purposes for which the building or
 
16           buildings and each of the apartments are intended and
 
17           restricted as to use;
 
18      (8)  The name of a person to receive service of process in
 
19           the cases hereinafter provided, together with the
 
20           residence or place of business of the person which
 
21           shall be within the county in which the property is
 
22           located;
 
23      (9)  Provision as to the percentage of votes by the
 

 
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 1           apartment owners which shall be determinative of
 
 2           whether to rebuild, repair, or restore the property in
 
 3           the event of damage or destruction of all or part of
 
 4           the property;
 
 5     (10)  Any further details in connection with the property
 
 6           which the person executing the declaration may deem
 
 7           desirable to set forth consistent with this chapter;
 
 8     (11)  The method by which the declaration may be amended,
 
 9           consistent with this chapter; provided that an
 
10           amendment to the declarations of all condominium
 
11           projects existing as of May 22, 1991, and all
 
12           condominium projects created thereafter shall require a
 
13           vote or written consent of seventy-five per cent of all
 
14           apartment owners, except as otherwise provided in this
 
15           chapter; provided further that the declarations of
 
16           condominium projects having five or fewer apartments
 
17           may provide for the amendment thereof by a vote or
 
18           written consent of more than seventy-five per cent of
 
19           all apartment owners;
 
20     (12)  Description as to any additions, deletions,
 
21           modifications, and reservations as to the property,
 
22           including without limitation provisions concerning the
 
23           merger or addition of later phases of the project.  To
 

 
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 1           the extent provided in the declaration, an amendment to
 
 2           the declaration which is made to implement those
 
 3           additions, deletions, modifications, reservations, or
 
 4           merger provisions shall require the vote or written
 
 5           consent of only the declarant or such percentage of
 
 6           apartment owners as is provided in the declaration; and
 
 7     (13)  [In the case of a project which includes one or more
 
 8           existing structures being converted to condominium
 
 9           status, a statement] A declaration under penalty of law
 
10           that the [project] condominium property regime is in
 
11           compliance with all zoning and building ordinances and
 
12           codes [applicable to the project], and all other
 
13           permitting requirements pursuant to section 514A-   ,
 
14           and specifying[, if applicable:] in the case of a
 
15           property which includes one or more existing structures
 
16           being converted to condominium status:
 
17           (A)  Any variances which have been granted to achieve
 
18                such compliance; and
 
19           (B)  Whether, as the result of the adoption or
 
20                amendment of any ordinances or codes, the project
 
21                presently contains any legal non-conforming uses
 
22                or structures[.];
 
23           except that a property that is registered pursuant to
 

 
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 1           section 514A-31 shall instead provide this declaration
 
 2           pursuant to 514A-40."
 
 3      SECTION 4.  Section 514A-40, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  No effective date shall be issued by the commission
 
 6 for a final public report prior to completion of construction of
 
 7 the project, unless there is filed with the commission:
 
 8      (1)  A statement showing all costs involved in completing
 
 9           the project, including land payments or lease payments,
 
10           real property taxes, construction costs, architect,
 
11           engineering, and attorneys' fees, financing costs,
 
12           provisions for contingency, etc., which must be paid on
 
13           or before the completion of construction of the
 
14           project;
 
15      (2)  An estimate of the time of completion of construction
 
16           of the total project;
 
17      (3)  Satisfactory evidence of sufficient funds to cover the
 
18           total project cost from purchasers' funds, equity
 
19           funds, interim or permanent loan commitments, or other
 
20           sources;
 
21      (4)  A copy of the executed construction contract;
 
22      (5)  Satisfactory evidence of a performance bond issued by a
 
23           surety licensed in the State of not less than one
 

 
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 1           hundred per cent of the cost of construction, or such
 
 2           other substantially equivalent or similar instrument or
 
 3           security approved by the commission;
 
 4      (6)  If purchasers' funds are to be used for construction,
 
 5           an executed copy of the escrow agreement for the trust
 
 6           fund required under section 514A-67 for financing
 
 7           construction, which expressly shall provide for:
 
 8           (A)  No disbursements by the escrow agent for payment
 
 9                of construction costs, unless bills are submitted
 
10                with the request for disbursements that have been
 
11                approved or certified for payment by the project
 
12                lender or an otherwise qualified financially
 
13                disinterested person; and
 
14           (B)  No disbursements from the balance of the trust
 
15                fund after payment of construction costs pursuant
 
16                to the preceding paragraph until construction of
 
17                the project has been completed and the escrow
 
18                agent receives satisfactory evidence that all
 
19                mechanics' and materialmen's liens have been
 
20                cleared, unless sufficient funds are set aside for
 
21                any bona fide dispute;
 
22      (7)  A parking plan to include designated residence parking
 
23           stalls and guest parking, if any, exclusive of
 

 
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 1           assignment to individual apartments, if parking stalls
 
 2           are to be considered limited common elements; [and]
 
 3      (8)  A copy of the disclosure statement required by section
 
 4           514A-62(f)(3) if an effective date for a contingent
 
 5           final public report has been issued by the commission
 
 6           and the report has not expired[.]; and
 
 7      (9)  A declaration under penalty of law that the project is
 
 8           in compliance with all county zoning and building
 
 9           ordinances and codes, and all other county permitting
 
10           requirements applicable to the project, pursuant to
 
11           section 514A-  ."
 
12      SECTION 5.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 6.  This Act shall take effect upon its approval.
 

 
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