Acts

Bills passed and enacted into law as acts during the 2014 Hawaii state legislative session.

Act 4 – HB 2585 Notice of foreclosure
Specifies parties other than unit owners who may be served notice by publication and posting of nonjudicial foreclosure.

Act 65 – HB 2045 / SB 2484 Community association’s unpaid assessments
Provides a remedy for community associations to recover unpaid assessments for a share of common expenses up to the time of a grant or conveyance of property. Entitles both parties to a statement from the board of directors, either directly or through its managing agent or resident manager, setting forth the amount of the unpaid assessments. Relieves the grantee of liability for any unpaid assessments against the grantor in excess of the amount set forth in the statement, except as to the amount of subsequently dishonored checks mentioned in the statement as having been received within the thirty day period immediately preceding the date of such statement.

Act 106 – SB 2657 Waterproofing roof penetrations and solar installation
Requires a contractor that installs a solar energy device to notify the private entity that installation might void the roofing warranties or guarantees. Unless the private entity forgoes the roofing warranty or guarantee, requires a contractor that installs a solar energy device to obtain written approval from the roof manufacturer and follow written instructions for waterproofing roof penetrations from the roof manufacturer. Requires a roofing contractor that waterproofs roof penetrations related to the installation of a solar energy device to honor the roof warranty or guarantee; provided that if either the roofing contractor’s guaranty or the roofing manufacturer’s warranty is no longer in effect, the contractor who installs the solar energy device and waterproofs the penetrations shall apply the contractor’s or lessor’s standard labor and workmanship warranty.

Act 188 – HB 2401 / SB 2363 Document transparency
Consolidates into one section under chapter 514B, Hawaii Revised Statutes, the documents, records, and information that must be made available to any unit owner and the unit owner’s authorized agents and specifies that these documents, records, and information shall be provided to the unit owner or owner’s authorized agent no later than thirty days after receipt of a unit owner’s or owner’s authorized agent’s written request.

Act 189 – HB 2482 Cumulative voting and other technical changes
Clarifies the process for cumulative voting for an election at an association meeting. Amends the definition of “majority” or “majority of the unit owners” and makes corresponding technical amendments associated with this amended definition. Clarifies that directors who are appointed to fill vacancies on a board of directors must stand for election at the next annual meeting or a duly noticed special meeting. Clarifies that the approval of a lease rent collection system and an annual audit of an association’s financial accounts and cash balance may be waived at an association meeting by a vote of a majority of all the unit owners if the association is composed of less than twenty owners. Makes other technical amendments to the State’s condominium law for purposes of clarity and consistency.

Act 235 – SB 2483 Condominium fiscal matters
Clarifies that a condominium association’s lien is subordinate to real property taxes, rather than all taxes. Clarifies that a condominium association may assess unpaid common fees against any purchaser who purchases a delinquent unit in a foreclosure. Specifies that a condominium board may only fill board vacancies temporarily until a duly noticed election.

 

Bills

Bills not passed during the 2014 Hawaii state legislative session, which are important to track.

HB 474 / SB 500 Transient accommodations reporting
Clarifies that an association’s duty to report to the department of taxation is limited to the relevant information an association actually receives from a transient accommodation operator.

HB 1420 Service animals
Makes it a violation to falsely present an animal as a service animal if that animal is not individually trained to do work or perform tasks for the benefit of an individual with a disability.

HB 1923 Condominium members’ emails
Require resident managers to keep a record of the email addresses of condominium association members.

HB 2002 / SB 2477 Master certificate of title
Authorizes the use of a master certificate of title for common interest communities to simplify and streamline the operation of the land court.

HB 2046 Association approval of charges and penalties
Clarifies fiduciary duties of condominium association boards. Requires association approval of charges and penalties.

HB 2557 / SB 2978 Foreclosures
Requires an association to offset any amount that it owes a unit owner against the amount of the assessment prior to an alternative power of sale foreclosure.

HB 2656 / SB 3127 Quorum requirements and managing agent
Establishes provisions for condominium association annual meetings and quorum requirements. Permits the board of an association to employ and discharge the managing agent of an association, subject to a vote of a majority of the unit owners at an association meeting. Provides an exemption for a condominium project in which a majority of the units have been submitted to one or more vacation plans, or in which one or more units have been submitted to a vacation plan established by the developer of the project or by an affiliate of the developers.

SB 2178 Clotheslines
Permits the installation of clotheslines in any residential dwelling, apartment, condominium, or townhouse. Defines a reasonable restriction on the placement and use of clotheslines as any restriction that is necessary to protect public health and safety, buildings from damage, historic or aesthetic values, and shorelines under certain circumstances.