STAND. COM. REP. NO. 700

Honolulu, Hawaii

RE:    S.B. No. 923

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, 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 measure is to remove the December 31, 2007, sunset date of section 514B-146, Hawaii Revised Statutes (HRS), relating to delinquent condominium association maintenance fees. 

     Specifically, this measure removes the sunset date from Act 164, Sessions Laws of Hawaii (SLH) 2004, as amended by Act 93, SLH 2005, as amended by Act 273, SLH 2006.

     Your Committee received testimony in support of this measure from the Real Estate Commission of the Department of Commerce and Consumer Affairs, the Hawaii Independent Condominium and Co-op Owners, the Hawaii Council of Associations of Apartment Owners, and the Hawaii Chapter of the Community Associations Institute.  The Hawaii Bankers Association submitted comments on this measure.

     Your Committee finds that section 514B-146, HRS, provides a reasonable and fair process to assist condominium associations with the problem of collecting unpaid maintenance fees from apartment owners.  The intent of this measure is to remove the sunset date of December 31, 2007, in order to allow this section to continue to provide relief to condominium associations in collecting delinquent maintenance fees, especially in cases where an apartment owner is undergoing foreclosure proceedings. 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing 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 placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair