STAND. COM. REP. NO.  1227

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 923

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 923 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to assist condominium associations in collecting delinquent maintenance fees by making permanent the law allowing condominium associations to assess delinquent maintenance fees against a person who, in a foreclosure proceeding, purchases an apartment to which the fees are attached.

     The Real Estate Commission, Hawaii Council of Associations of Apartment Owners, Hawaii Independent Condominium and Cooperative Owners, and Hawaii Legislative Action Committee of the Community Associations Institute testified in support of this bill.  The Hawaii Bankers Association submitted comments.

     Your Committee finds that section 514B-146(g), Hawaii Revised Statutes, includes a temporary provision allowing a condominium association to recover up to $1,800 of the last six months of delinquent maintenance fees from the purchaser of a delinquent apartment in a foreclosure sale, or subsequent purchaser.  This bill removes the provision's sunset date of December 31, 2007.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 923 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair