HOUSE OF REPRESENTATIVES	H.B. NO.	2195
THIRTIETH LEGISLATURE, 2020		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CONDOMINIUMS.

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

SECTION 1. The legislature finds that homeowners who subdivide their property into as few as two units under a condominium property regime are considered developers under chapter 514B, Hawaii Revised Statutes. Section 514B-58, Hawaii Revised Statutes, requires developers to file an annual report and pay a corresponding annual fee of $50 until all units have been sold. This law has unduly burdened homeowner-developers who permanently reside in one of the units and therefore cannot satisfy the requirement of selling every unit to discontinue filing an annual report and paying the annual fee.

The purpose of this Act is to relieve from the burden of filing annual reports and paying the corresponding $50 filing fee every year those individual homeowners whose development consists of not more than two units, one in which the developer resides, and one for which the initial sale of the other unit has been completed.

SECTION 2. Section 514B-58, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The developer, its successor, or assign shall be relieved from filing subsequent annual reports pursuant to this section [when] after filing an annual report notifying that the initial sales of all units have been completed[.]; provided that for any development:

(1) That consists of not more than two units;

(2) In which one of the units is the principal place of residence of the developer, its successor, or assign; and

(3) For which the initial sale of the other unit has been completed,

all units shall be considered sold for the purposes of this section."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.

Report Title:

Condominiums; Developers; Annual Report; Homeowner

Description:

Provides that any unit in a development that consists of not more than two units; is occupied as the principal place of residence of the developer, its successor, or assign; and for which the initial sale of the other unit has been completed, shall be considered sold for purposes of satisfying a developer's annual report requirement. Effective 7/1/2050. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.