RELATING TO CONDOMINIUMS.

HB632

HOUSE OF REPRESENTATIVES

H.B. NO.

632

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO condominiums
.

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

����
SECTION 1.
�
Section 514B-3, Hawaii Revised Statutes, is
amended by adding a new definition to be appropriately inserted and to read as
follows:

����
"
"De minimis
infraction" means a technical violation of a bylaw, rule, or regulation
that results in not more than three complaints from separate units within a
calendar year, or does not result in a fine of more than $500 per violation
pursuant to the bylaws, rules, or regulations of the association.
"

����
SECTION
2
.
�
Section
514B-104, Hawaii Revised Statutes, is amended to read as follows:

����
"
�514B-104
�
Association
;
powers.
�
(a)
�

Except as provided in section 514B‑105, and subject to the
provisions of the declaration and bylaws, the association, even if
unincorporated, may:

����
(1)
�
Adopt and amend
the declaration, bylaws, and rules and regulations;

����
(2)
�
Adopt and amend
budgets for revenues, expenditures, and reserves and collect assessments for
common expenses from unit owners, subject to section 514B‑148;

����
(3)
�
Hire and discharge
managing agents and other independent contractors, agents, and employees;

����
(4)
�
Institute, defend,
or intervene in litigation or administrative proceedings in its own name on
behalf of itself or two or more unit owners on matters affecting the
condominium.
�
For the purposes of actions
under chapter 480, associations shall be deemed to be "consumers";

����
(5)
�
Make contracts and
incur liabilities;

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(6)
�
Regulate the use,
maintenance, repair, replacement, and modification of common elements;

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(7)
�
Cause additional
improvements to be made as a part of the common elements;

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(8)
�
Acquire, hold,
encumber, and convey in its own name any right, title, or interest to real or
personal property;
provided
that:

���������
(A)
�
Designation
of additional areas to be common elements or subject to common expenses after
the initial filing of the declaration or bylaws shall require the approval of
at least sixty-seven per cent of the unit owners;

���������
(B)
�
If the
developer discloses to the initial buyer in writing that additional areas will
be designated as common elements whether pursuant to an incremental or phased
project or otherwise, the requirements of this paragraph shall not apply as to
those additional areas; and

���������
(C)
�
The
requirements of this paragraph shall not apply to the purchase of a unit for a
resident manager, which may be purchased with the approval of the board;

����
(9)
�
Subject to section
514B‑38, grant easements, leases, licenses, and concessions through or
over the common elements and permit encroachments on the common elements;

���
(10)
�
Impose and receive
any payments, fees, or charges for the use, rental, or operation of the common
elements, other than limited common elements described in section 514B‑35(2)
and (4), and for services provided to unit owners;

���
(11)
�
Impose charges and
penalties, including late fees and interest, for late payment of assessments
and levy reasonable fines for violations of the declaration, bylaws, rules, and
regulations of the association, either [
in
]
:

���������
(A)
�
In

accordance with the bylaws
; provided that the bylaws, at a minimum, shall provide
a person to whom a charge or penalty is assessed:

�������������
(i)
�
The
right to appeal the charge, penalty, or fine to the board of directors with
notice and an opportunity to be heard; and

������������
(ii)
�
Written
notice of the person's rights under clause (i);
or[
, if
]

���������
(B)
�
If

the bylaws are silent, pursuant to a resolution adopted by the board
that establishes a fining procedure that states
the basis for the fine and allows an appeal to the board of the fine with
notice and an opportunity to be heard and providing that if the fine is paid,
the unit owner shall have the right to initiate a dispute resolution process as
provided by sections 514B‑161, 514B-162, or by filing a request for an
administrative hearing under a pilot program administered by the department of
commerce and consumer affairs
;

���
(12)
�
Impose reasonable
charges for the preparation and recordation of amendments to the declaration,
documents requested for resale of units, or statements of unpaid assessments;

���
(13)
�
Provide for
cumulative voting through a provision in the bylaws;

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(14)
�
Provide for the
indemnification of its officers, board, committee members, and agents, and
maintain directors' and officers' liability insurance;

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(15)
�
Assign its right
to future income, including the right to receive common expense assessments,
but only to the extent section 514B‑105(e) expressly so provides;

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(16)
�
Exercise any other
powers conferred by the declaration or bylaws;

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(17)
�
Exercise all other
powers that may be exercised in this State by legal entities of the same type
as the association, except to the extent inconsistent with this chapter;

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(18)
�
Exercise any other
powers necessary and proper for the governance and operation of the
association; and

���
(19)
�
By regulation,
subject to sections 514B‑146, 514B‑161, and 514B‑162, require
that disputes between the board and unit owners or between two or more unit
owners regarding the condominium be submitted to nonbinding alternative dispute
resolution in the manner described in the regulation as a prerequisite to
commencement of a judicial proceeding.

����
(b)
�

If a tenant of a unit owner violates the declaration, bylaws, or rules
and regulations of the association, in addition to exercising any of its powers
against the unit owner, the association may:

����
(1)
�
Exercise directly
against the tenant the powers described in subsection (a)(11);

����
(2)
�
After giving
notice to the tenant and the unit owner and an opportunity to be heard, levy
reasonable fines against the tenant for the violation, provided that a unit
owner shall be responsible for the conduct of the owner's tenant and for any
fines levied against the tenant or any legal fees incurred in enforcing the
declaration, bylaws, or rules and regulations of the association against the
tenant; and

����
(3)
�
Enforce any other
rights against the tenant for the violation which the unit owner as landlord
could lawfully have exercised under the lease, including eviction, or which the
association could lawfully have exercised directly against the unit owner, or both[
.
]
;

provided
that the association or board of directors, at a minimum, shall afford a person
accused of violating the declaration, bylaws, or rules and regulations of the
association with the right to appeal any penalty or other remedy under this
subsection to the board of directors with notice and an opportunity to be heard;
provided further that the person shall be provided with written notice of the
person's rights under this paragraph.

����
(c)
�

Notwithstanding any provision of this chapter to the contrary, the
association or board of directors shall
not enforce against de
minimis infractions of association bylaws, rules or regulations.

����
[
(c)
]
(d)
�
The rights granted under subsection (b)(3)
may only be exercised if the tenant or unit owner fails to cure the violation
within ten days after the association notifies the tenant and unit owner of
that violation; provided that no notice shall be required when the breach by
the tenant causes or threatens to cause damage to any person or constitutes a
violation of section 521-51(1) or 521-51(6).

����
[
(d)
]
(e)
�
Unless a lease otherwise provides, this
section does not:

����
(1)
�
Affect rights that
the unit owner has to enforce the lease or that the association has under other
law; or

����
(2)
�
Permit the
association to enforce a lease to which it is not a party in the absence of a
violation of the declaration, bylaws, or rules and regulations."

����
SECTION
3.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION
4.
�
If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the invalidity
does not affect other provisions or applications of the Act that can be given
effect without the invalid provision or application, and to this end the
provisions of this Act are severable.

����
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:

_____________________________

Report Title:

Condominiums;
De Minimis Violations; Enforcement; Notice of Rights; Restrictions

Description:

Prohibits
a condominium association or its board of directors from enforcing de minimis
violation of association bylaws, rules, or regulations.
�
Defines "de minimis
violations".
�
Requires condominium
associations to provide persons accused of violations the right to appeal to
the board of directors.
�
Requires a
condominium to disclose this right of appeal to alleged violators.

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