STAND. COM. REP. NO. 1092-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 1873

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1873, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to clarify collection procedures where a condominium unit owner is indebted to the condominium association by:

(1) Requiring the condominium association to annually distribute to all unit owners a policy stating that the association may deduct and apply portions of future common expense assessments to unpaid late fees, legal fees, fines, and interest and that the policy shall be included in any agreement by an owner that allows the association to automatically withdraw assessments from the owner's bank account; and

(2) Requiring that the written demand by the condominium association to the unit owner for delinquent common expense assessments contain certain information.

The Hawaii Council of Associations of Apartment Owners dba Hawaii Council of Community Associations, Associa, Community Associations Institute Hawaii Chapter, and two concerned individuals supported this measure. The Kokua Council, Hui ‘Oia‘i‘o, and a few concerned individuals opposed this measure.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1873, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

SCOTT Y. NISHIMOTO, Chair