Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2210 entitled:

begs leave to report as follows:

The purpose of this measure is to recodify the laws governing the condominium property regimes.

Testimony in support of the measure was received from the following: Real Estate Commission, Hawaii Association of Realtors, Mortgage Bankers Association of Hawaii, American Resort Development Association, Hawaii Council of Associations of Apartment Owners, Association of Apartment Owners of Royal Kahili, Armstrong Properties, Ltd., Neeley and Anderson LLP, Community Associations Institute, Armstrong Builders, Ltd., Hawaii Developer's Council, Association of Apartment Owners of Makani Kai Marina, Castle and Cooke Homes Hawaii, Inc., Association of Apartment Owners of Nuuanu Parkside, Association of Apartment Owners of Haleakala Gardens, Real Property and Financial Services Section of the Hawaii State Bar Association, Association of Apartment Owners of Makakilo Hale I, A & B Properties, Inc., Gentry Homes, Ltd., and several individuals. Numerous condominium owners testified in opposition to the measure. The Hawaii Inspection Group, Inc., Hawaii's Thousand Friends, and Hawaii Independent Condominium and Cooperative Owners presented comments on the measure.

Act 213, Session Laws of Hawaii 2000, directed the Real Estate Commission to "review Hawaii's condominium property regimes law, make findings and formulate recommendations for recodification of the law, and develop draft legislation consistent with its review and recommendations." This measure is a result of that mandate.

Among other things, this measure:

Your Committee wishes to commend and acknowledge the efforts of all of the parties involved in the difficult and time-consuming task of reviewing the State's condominium laws and developing a comprehensive new system of laws. These parties include the Real Estate Commission, the staff of the Real Estate Branch of the Department of Commerce and Consumer Affairs, the Blue Ribbon Advisory Committee, and the numerous organizations and individuals who participated in the public hearings on this measure and who otherwise contributed to the process. All of their efforts have resulted in the development of a comprehensive set of laws that clarifies the rights of developers, lenders, owners, buyers, condominium boards, and condominium associations, and streamlines the regulatory process.

Your Committee finds that several condominium owners have expressed concerns about proposed law, including concerns that under the proposed measure:

Your Committee acknowledges that this measure remains a work-in-progress and that continued discussion between the parties is necessary in order to address the above and other unresolved issues. Therefore, your Committee has inserted into the measure a delayed effective date, and encourages all stakeholders to continue their dialogue on issues of concern.

Additionally, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2210, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2210, S.D. 1, and be referred to the Committee on Ways and Means.