THE SENATE	S.B. NO.	2876
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

relating to common interest communities.

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

SECTION 1. Section 421J-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All costs and expenses, including reasonable attorneys' fees, incurred by or on behalf of the association for:

(1) Collecting any delinquent assessments against any unit or the owner of any unit;

(2) Foreclosing any lien on any unit; or

(3) Enforcing any provision of the association documents or this chapter;

against a member, occupant, tenant, employee of a member, or any other person who in any manner may use the property, shall be promptly paid on demand to the association by such person or persons; provided that if the association is not the prevailing party, all costs and expenses, including reasonable attorneys' fees, incurred by any such person or persons as a result of the action of the association, shall be promptly paid on demand to the person by the association[.]; provided further that the association or board of directors shall not expend association funds to enforce against de minimis infractions of association bylaws, rules, or regulations. The reasonableness of any attorney's fees paid by a person or by an association as a result of an action pursuant to paragraph (2) shall be determined by the court.

For purposes of this subsection, a "de minimis infraction" means a technical violation of a bylaw, rule, or regulation that does not affect the health and safety of other members or occupants and does not devalue the property."

SECTION 2. Section 514B-104, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) If a tenant of a unit owner violates the declaration, bylaws, or rules and regulations of the association, in addition to exercising any of its powers against the unit owner, the association may:

(1) Exercise directly against the tenant the powers described in subsection (a)(11);

(2) After giving notice to the tenant and the unit owner and an opportunity to be heard, levy reasonable fines against the tenant for the violation, provided that a unit owner shall be responsible for the conduct of the owner's tenant and for any fines levied against the tenant or any legal fees incurred in enforcing the declaration, bylaws, or rules and regulations of the association against the tenant; and

(3) Enforce any other rights against the tenant for the violation, which the unit owner as landlord could lawfully have exercised under the lease, including eviction, or which the association could lawfully have exercised directly against the unit owner, or both.

The association or board of directors shall not expend association funds to enforce against de minimis infractions of association bylaws, rules, or regulations; provided that a "de minimis infraction" means a technical violation of a bylaw, rule, or regulation that does not affect the health and safety of other members or occupants and does not devalue the property."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Planned Community Associations; Condominiums; Association Funds

Description:

Prohibits planned community associations, condominium associations, or their boards of directors from expending association funds to enforce de minimis violations of association rules or regulations that do not pose risks to the health and safety of other members, units, or unit owners.

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