HOUSE OF REPRESENTATIVES

H.B. NO.

2385

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to planned community associations.

 

 

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

 


     SECTION 1.  Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§421J‑    Association fiscal matters; lien for assessments.  All sums assessed by the association but unpaid for the share of the common expenses chargeable to any unit shall constitute a lien on the unit with priority over all other liens, except:

     (1)  Liens for taxes and assessments lawfully imposed by a governmental authority against the unit; and

     (2)  All sums unpaid on any mortgage of record that was recorded prior to the recordation of a notice of a lien by the association, and costs and expenses including attorneys' fees provided in such mortgages."

     SECTION 2.  Section 421J-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Common expenses" means expenses connected with the provision or maintenance of facilities or services for the benefit of some or all of the units, the owners, or occupants of the units, or the common areas of the planned community."

     SECTION 3.  Section 667-40, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§667-40[]]  Use of power of sale foreclosure in certain non- mortgage situations.  A power of sale foreclosure under this part may be used in certain non-mortgage situations where a law or a written document contains, authorizes, permits, or provides for a power of sale, a power of sale foreclosure, a power of sale remedy, or a nonjudicial foreclosure.  These laws or written documents are limited to those involving time share plans, condominium property regimes, planned communities, and agreements of sale."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.


     SECTION 5.  This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Planned Communities; Nonjudicial Foreclosure; Residential Real Property

 

Description:

Grants planned community associations the authority to pursue nonjudicial foreclosure as a remedy for the nonpayment of assessments for common expenses.

 

 

 

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