Report Title:

Condos, Governance, Foreclosure

 

Description:

Requires mortgage holders to pay common expenses to the association while foreclosure proceedings are pending, if the unit is being rented. Increases membership of real estate commission by 2 members to represent interests of condominium owners.

 

 

THE SENATE

S.B. NO.

769

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to condominium property regimes.

 

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

PART I

SECTION 1. Chapter 514A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§514A— Common expenses to be paid during foreclosure; when. Notwithstanding sections 514A-15(b) and 514A-90, if a mortgage holder or court—appointed receiver or commissioner collects rent on any apartment that is in foreclosure, the mortgage holder or court—appointed receiver or commissioner shall pay to the association of apartment owners the current common expenses chargeable to the apartment. The current common expenses shall be paid to the association of apartment owners from the date the rent is first collected to the date the rent is no longer collected or the foreclosure proceedings are completed, whichever occurs first."

PART II

SECTION 2. The legislature finds that the real estate commission collects annual fees from condominium owners associations for deposit to the condominium management education fund. In recent years, the number of training and workshop opportunities provided for condominium management has been limited. Therefore, excess funds are at-risk of being deposited into the general fund. In an effort to keep government operations from growing too large, condominium associations need representation on the real estate commission rather than the establishment of a condominium commission.

Funds from the education fund are currently being used for staffing the commission for non—education fund purposes, contrary to legislative intent. The legislature further finds that it should be the condominium associations that make decisions regarding the appropriate use of the fund. Therefore, the purpose of this part is to add two additional seats to the commission who represent the interests of condominium governance organizations and prohibit the use of education funds for purposes other than the condominium education fund.

SECTION 3. Section 467-3, Hawaii Revised Statutes, is amended to read as follows:

"§467-3 Commission, appointments, qualifications, tenure. There shall be appointed a commission to be known as the real estate commission, [to consist] consisting of [nine] eleven members, at least four of whom shall be licensed real estate brokers who have been engaged in business as licensed real estate brokers or salespersons for three years immediately preceding their appointments, each of whom shall be a citizen of the United States and shall have resided in the State for at least three years preceding appointment, and one of whom shall be designated by the appointing power as chairperson. Four members shall be residents of the city and county of Honolulu, one shall be a resident of the county of Hawaii, one shall be a resident of the county of Maui, and one shall be a resident of the county of Kauai and [two] four members shall be public members. At least two of the eleven members shall be apartment owners of units in condominium property regimes who represent the interests of condominium governance organizations.

Appointments shall be made for a term of four years, commencing from the date of expiration of the last preceding term and shall be made to expire on June 30. Appointments shall be made so that at least one appointment shall be required each year.

Any vacancy shall be filled by appointment for the unexpired term."

SECTION 4. Section 514A-133, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [The] In order to carry out the responsibilities under this part, the commission and the director of commerce and consumer affairs may use moneys in the condominium management education fund to employ necessary personnel not subject to chapters 76 and 77 for additional staff support, hired exclusively to carry out responsibilities under this part, to provide office space, and to purchase equipment, furniture, and supplies [required by the commission to carry out its responsibilities under this part]. Moneys used from the condominium management education fund shall be used exclusively to carry out the commission's responsibilities under this part."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________