REPORT TITLE:
Condominiums; Lease Rents


DESCRIPTION:
Requires the association of apartment owners to represent all
lessees in lease rent negotiations.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2846
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CONDOMINIUM PROPERTY REGIMES.



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

 1      SECTION 1.  The legislature finds that inconsistencies and
 
 2 ambiguities in the provisions of condominium governing documents
 
 3 and condominium apartment leases or ground leases concerning the
 
 4 responsibility for lease rent renegotiation have become the
 
 5 source of disputes and litigation between associations and their
 
 6 members and between association members.  The legislature further
 
 7 finds that the condominium association is best equipped to
 
 8 conduct these lease rent renegotiations, but that their costs
 
 9 should be borne only by those lessees whose apartments are in
 
10 leasehold at that time.
 
11      SECTION 2.  Chapter 514A, Hawaii Revised Statutes, is
 
12 amended by adding a new section to be appropriately designated
 
13 and to read as follows:
 
14      "514A-     Lease rent renegotiation.  Notwithstanding any
 
15 provision in the declaration of any property submitted to this
 
16 chapter, the by-laws of any association of apartment owners, any
 
17 lease or sublease of the property or of an apartment or an
 
18 undivided interest in the land to an apartment owner, whenever
 
19 any lease or sublease of the property, an apartment, or an
 

 
Page 2                                                     2846
                                     H.B. NO.           
                                                        
                                                        

 
 1 undivided interest in the land to an apartment owner provides for
 
 2 the periodic renegotiation of lease rent thereunder, the
 
 3 association of apartment owners shall represent the apartment
 
 4 owners in all negotiations and proceedings, including but not
 
 5 limited to appraisal or arbitration, for the determination of
 
 6 lease rent as a common expense of the association.  If some, but
 
 7 not all, of the apartment owners have purchased the leased fee
 
 8 interest appurtenant to their apartments, all costs and expenses
 
 9 of the renegotiation shall be assessed to the remaining lessees
 
10 in the same proportion that the common interest appurtenant to
 
11 each lessee's apartment bears to the common interest appurtenant
 
12 to all lessees' apartments.  The unpaid amount of this assessment
 
13 shall constitute a lien upon the lessee's apartment, which may be
 
14 collected in accordance with sections 514A-90 and 514A-94 in the
 
15 same manner as an unpaid common expense."
 
16      SECTION 3.  New statutory material is underscored.
 
17      SECTION 4.  This Act shall take effect upon its approval.
 
18 
 
19                              INTRODUCED BY:______________________
 
20