Read the full stored bill text
HB475
HOUSE OF REPRESENTATIVES
H.B. NO.
475
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO common interest ownership communities
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
����
SECTION
1.
�
The legislature finds that due to the
effects of climate change and the establishment of more stringent structural
facility maintenance requirements, it is more important than ever that common
interest ownership communities, including homeowners' associations, planned
community associations, cooperative housing corporations, and condominium unit
owners' associations, are properly managed to protect the life and safety of
residents in these communities.
����
The
legislature further finds that an estimated three hundred sixty thousand people
in the State, or about one in four persons, live in a common interest ownership
community managed by these types of associations.
�
These individuals live in projects governed
by volunteer boards of directors who often have limited expertise in financing,
property management, or engineering.
�
Therefore, it is crucial that the professional association managers
hired to manage the day-to-day operations of common interest ownership
communities possess the specialized knowledge and expertise required to
properly service these entities.
����
The
legislature also finds that one way to ensure that association managers are
qualified is by establishing licensing requirements.
�
The establishment of licensing requirements for
association managers will increase accountability, improve the safety of
residents, guests, and property, and will help to standardize the long-term
repair and maintenance obligations in common interest ownership communities.
�
Empowering a licensing board to monitor this
profession will also help to ensure boards of directors and individual better
understand the long-term financial obligations required for the common interest
ownership communities in which they reside.
����
Accordingly,
the purpose of this Act is to establish licensing and regulation requirements
for managers of homeowners' associations, planned community associations,
cooperative housing corporations, and condominium unit owners' associations.
����
SECTION
2.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to title 25 to be appropriately designated and
to read as follows:
"
Chapter
MANAGERS of homeowners associations, planned
community associations, cooperative housing corporations, and condominium unit
owners' associations
����
� -1
�
Definitions.
�
As used in this chapter:
����
"Association"
includes homeowners' associations and planned community associations governed under
chapter 421J, cooperative housing corporations governed under chapter 421I, and
condominium unit owners' associations governed under chapter 514B.
����
"Association
manager" means any person, regardless of that person's title, who is hired
or contracted by an association to oversee the daily operations of the
association, including managing the association's budget, collecting dues,
managing delinquencies, bookkeeping, maintaining common areas, performing site
inspections, complying with applicable laws, hiring association employees,
updating and maintaining insurance policies, enforcing governing documents,
performing dispute resolution, and managing vendors.
����
"Board"
means the association manager licensing board.
����
"Department"
means the department of commerce and consumer affairs.
����
� -2
�
License required.
�
(a)
�
Beginning July 1, 2027, it shall be unlawful for any person to be
employed or contracted by an association as an association manager without
having first obtained a license as provided in this chapter.
����
(b)
�
Any person who violates this section shall be
subject to a fine of not more than
$ for each separate
offense.
�
Each day of each violation
shall constitute a separate offense.
����
� -3
�
Exemptions.
�
This chapter shall not apply to any employee
or contractor of an association manager who works under the supervision or
direction of a person who is licensed under this chapter.
����
� -4
�
Association manager licensing board;
established; organization; powers.
�
(a)
�
There is established within
the department for administrative purposes the association manager licensing
board.
����
(b)
�
The board shall consist of
members, including
association
managers having at least five years of experience providing services to
associations preceding their appointment and
private citizens
who are not affiliated with the association industry.
����
(c)
�
In addition to any other powers and duties
authorized by law, the board may:
����
(1)
�
Establish licensure requirements for
association managers;
����
(2)
�
Grant, deny, or renew licenses to association
managers;
����
(3)
�
Adopt, amend, or repeal rules, pursuant to
chapter 91, not inconsistent with the law, as may be necessary to administer,
coordinate, and enforce the licensure of association managers pursuant to this
chapter;
����
(4)
�
Take disciplinary action against an entity for
violation of this chapter or any rules adopted pursuant to this chapter;
����
(5)
�
Develop and adopt rules relating to the
provision of services by association managers;
����
(6)
�
Adopt a code of ethics to address permissible
and prohibited activities of licensees; and
����
(7)
�
Promote the standardization of the long-term
repair and maintenance obligations among associations to help ensure that these
entities and individual owners better understand the long-term financial
obligations required with respect to these types of common interest ownership
communities.
����
� -5
�
License fees.
�
The department may collect a license fee in
an amount determined by the department to be reasonably necessary to reimburse
the department for the costs incurred in establishing and administering the
association manager licensure program pursuant to this chapter and conducting
any periodic inspections.
����
� -6
�
Association managers recovery fund;
established.
�
(a)
�
The board may establish and maintain an
association managers recovery fund from which any person injured by an act,
representation, transaction, or conduct of a duly licensed association manager
that is in violation of this chapter or the rules adopted pursuant to this
chapter, may recover, by order of the circuit court or district court of the
judicial circuit where the violation occurred, an amount of not more than
$ for damages sustained
by the act, representation, transaction, or conduct.
�
Recovery from the fund shall be limited to
the actual damages suffered by the claimant, including court costs and fees as
set by law, and reasonable attorneys' fees as determined by the court; provided
that recovery from the fund shall not be awarded to persons injured by an act,
representation, transaction, or conduct of an association manager whose license
was suspended, revoked, forfeited, terminated, or in an inactive status at the
time of the alleged act, representation, transaction, or conduct.
����
(b)
�
When any person applies for an association
manager license, the person shall pay, in addition to any original license fee
collected pursuant to section -6, a fee of
$ for deposit into
the association managers recovery fund as provided in rules adopted by the
department.
�
If the board does not issue
the license, these fees shall be returned to the applicant."
����
SECTION 3.
�
This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
DCCA;
Association Managers; Homeowners' Associations; Planned Community Associations;
Cooperative Housing Corporations; Condominium Unit Owners' Associations;
Managers; Licensing; Recovery Fund
Description:
Creates
regulation requirements for managers of homeowners' associations, planned
community associations, cooperative housing corporations, and condominium unit
owners' associations in the State.
�
Requires
licensure of association managers beginning 7/1/2027.
�
Establishes an
Association Manager
Licensing Board
within the
Department of Commerce and Consumer Affairs.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.