STAND. COM. REP. NO. 466

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 298

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 298 entitled:

 

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to increase the amount of unpaid maintenance fees that condominium associations may recover in the event of the foreclosure of a condominium apartment.

 

     Your Committee received testimony in support of this measure from the Community Associations Institute and three individuals.  Testimony in opposition to this measure was received from Hawaii Bankers Association, Hawaii Financial Services Association, Hawaii Independent Condominium & Cooperative Owners, and Hawaii Council of Associations of Apartment Owners.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that the rising number of home mortgage foreclosures puts a burden on associations of apartment owners and on individual apartment owners when an association loses maintenance fees due to foreclosure.  Your Committee finds that this measure will allow associations of apartment owners to continue regular upkeep and maintenance and to avoid unnecessarily increasing maintenance fees. 

 

     Your Committee has amended this measure by:

 

(1)  Increasing the maximum recoverable amount of unpaid maintenance fees from $2,400 to $3,600; and

 

(2)  Inserting a new section to include condominiums covered by chapter 514A, Hawaii Revised Statutes, so that this measure applies to all condominiums under Hawaii's parallel regulation structure.

 

     Your Committee notes that the stakeholders who testified on this measure expressed that the maximum recoverable dollar amount contained in this amended measure has been agreed upon by all interested parties.  Your Committee further notes that the $3,600 maximum recoverable amount contained in this amended measure conforms with a similar provision in S.B. No. 572, which your Committee has previously recommended be placed on the calendar for Third Reading.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 298, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 298, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair