THE SENATE	S.B. NO.	2483
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO CONDOMINIUM ASSOCIATIONS.

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

PART I

     SECTION 1.  The legislature finds that section 514B-146, Hawaii Revised Statutes, was amended during the regular session of 2013 to address, in part, the timing of the payment to a condominium association of the six-month special assessment for unpaid common expenses pursuant to section 514B-146(g) and (h), Hawaii Revised Statutes.  However, the term "other purchaser" was inadvertently left out of the amended statute, and needs to be added back in to section 514B-146(g), Hawaii Revised Statutes, in order to clarify, correct, and mitigate disputes resulting from the absence of this term.

     The purpose of this part is to make a housekeeping amendment to State condominium laws.

     SECTION 2.  Section 514B-146, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Subject to this subsection, and subsections (h) and (i), the board may specially assess the amount of the unpaid regular monthly common assessments for common expenses against a mortgagee or other purchaser who, in a judicial or nonjudicial power of sale foreclosure, purchases a delinquent unit; provided that the mortgagee or other purchaser may require the association to provide at no charge a notice of the association's intent to claim lien against the delinquent unit for the amount of the special assessment, prior to the subsequent purchaser's acquisition of title to the delinquent unit.  The notice shall state the amount of the special assessment, how that amount was calculated, and the legal description of the unit."

PART II

     SECTION 3.  Section 514B-106, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The board may not act on behalf of the association to amend the declaration or bylaws (sections 514B‑32(a)(11) and 514B‑108(b)(7)), to remove the condominium from the provisions of this chapter (section 514B‑47), or to elect members of the board or determine the qualifications, powers and duties, or terms of office of board members (subsection (e)); provided that nothing in this subsection shall be construed to prohibit board members from voting proxies (section 514B‑123) to elect members of the board; and provided further that notwithstanding anything to the contrary in the declaration or bylaws, the board may only fill vacancies in its membership to serve until the next annual or duly noticed special association meeting.  Notice of a special association meeting to fill vacancies shall include notice of the election.  Any special association meeting to fill vacancies shall be held on a date that allows sufficient time for owners to declare their intention to run for election and to solicit proxies for that purpose."

PART III

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2014.

Report Title:

Condominium Association; Unpaid Common Fees Assessments; Board Elections

Description:

Clarifies that a condominium association may assess unpaid common fees against any purchaser who purchases a delinquent unit in a foreclosure.  Specifies that a condominium board may only fill board vacancies temporarily until a duly noticed election.  Effective July 1, 2014.  (SB2483 HD1)

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