STAND. COM. REP. NO.583

Honolulu, Hawaii

, 2003

RE: S.B. No. 394

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 394 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM PROPERTY REGIMES,"

begs leave to report as follows:

The purpose of this measure is to extend for an additional four years the law that allows condominium associations to assess the purchaser of a condominium unit for unpaid common expenses attributable to that unit and to eliminate the prerequisite of the filing of a lien against the delinquent unit.

The Hawaii Independent Condominium and Cooperative Owners, Hawaii Bankers Association, and Hawaii Council of Associations of Apartment Owners testified in support of this measure. The Mortgage Bankers Association of Hawaii and Community Associations Institute-Hawaii Chapter opposed the measure in favor of a similar measure being heard by the House of Representatives.

Act 39 (Act 39), Session Laws of Hawaii 2000, authorizes condominium associations to specially assess purchasers of condominium units for unpaid common expenses attributable to the purchased units. Act 39 is scheduled to sunset on December 31, 2003, and this measure extends the sunset date to December 31, 2007. This measure also replaces the requirement of the filing of a lien against the delinquent unit with a requirement that the association make available at no charge to prospective purchasers a notice of the association's intent to claim a lien against the unit that states the amount of the special assessment, the method of calculation, and the unit's legal description.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 394 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair