Report Title:

Delinquent Condominium Assessments; Fee Caps

 

Description:

Limits any late fee for delinquent condominium common expense assessments to 20% of the monthly maintenance fee per month that any such assessment remains unpaid.  Requires an association to give a unit owner 10 business days notice of any delinquent assessments before taking any action for which attorneys' fees may be assessed.  Effective 01/01/2020.  (HB355 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

355

TWENTY-FIFTH LEGISLATURE, 2009

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.  Section 514B-144, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except for assessments under subsections (c), (d), and (e), all common expenses shall be assessed against all the units in accordance with the allocations under section 514B‑41.  Any past due common expense assessment or installment thereof shall bear interest at the rate established by the association, provided that the rate shall not exceed eighteen per cent per year.  Any late fee for past due common expense assessments shall not exceed twenty per cent of the monthly maintenance fee in effect at the time the delinquency occurs.  The late fee shall be assessed monthly and may be charged for every month that any past due common expense assessment remains unpaid."

     SECTION 2.  Section 514B-157, 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 owner's unit;

     (2)  Foreclosing any lien thereon; or

     (3)  Enforcing any provision of the declaration, bylaws, house rules, and this chapter, or the rules of the real estate commission;

against an owner, occupant, tenant, employee of an owner, or any other person who may in any manner use the property, shall be promptly paid on demand to the association by such person or persons; provided that the association shall give the delinquent unit owner written notice of any delinquency no fewer than ten business days before taking any action for which attorneys' fees may be assessed; provided further that if the claims upon which the association takes any action are not substantiated, 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 such person or persons by the association."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on January 1, 2020.