HOUSE OF REPRESENTATIVES

H.B. NO.

1817

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to delinquent assessments.

 

 

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

 


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

"421J-   Delinquent assessments; payment plan. (a) A member may submit a payment plan within thirty days after receiving notice from an association regarding any delinquent assessments. The member shall submit the payment plan to the association or its attorney by certified mail return receipt requested or by hand delivery. The association shall not reject a reasonable payment plan.

(b) A member's failure to perform any agreed-upon payment plan shall entitle the association to pursue remedies available pursuant to part IA of chapter 667.

(c) For purposes of this section, "reasonable payment plan" means a plan that provides for:

(1) Timely payment of all assessments that become due after the date that the payment plan is proposed; and

(2) Additional monthly payments of an amount sufficient to cure the delinquent assessments, within a reasonable period under the circumstances as determined by the board of directors in its discretion; provided that a period of up to twelve months shall be deemed reasonable; provided further that the board of directors shall have the discretion to agree to a payment plan in excess of twelve months.

421J-   Delinquent assessments; removal or adoption of foreclosure authority. A provision in the declaration, bylaws, or other governing documents of an association of apartment owners that grants a right to judicially foreclose a lien against any unit that arises solely from delinquent assessments, including fines, penalties, legal fees, or late fees, may be removed from the declaration, bylaws, or other governing documents or adopted as an amendment to the declaration, bylaws, or other governing documents by a vote of at least sixty-seven per cent of the members."

SECTION 2. Chapter 514A, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"514A-   Delinquent assessments; payment plan. (a) An apartment owner may submit a payment plan within thirty days after receiving notice from an association of apartment owners regarding any delinquent assessments. The apartment owner shall submit the payment plan to the association of apartment owners or its attorney by certified mail return receipt requested or by hand delivery. The association of apartment owners shall not reject a reasonable payment plan.

(b) An apartment owner's failure to perform any agreed-upon payment plan shall entitle the association of apartment owners to pursue remedies available pursuant to part IA of chapter 667.

(c) For purposes of this section, "reasonable payment plan" means a plan that provides for:

(1) Timely payment of all assessments that become due after the date that the payment plan is proposed; and

(2) Additional monthly payments of an amount sufficient to cure the delinquent assessments, within a reasonable period under the circumstances as determined by the board of directors in its discretion; provided that a period of up to twelve months shall be deemed reasonable; and provided further that the board of directors shall have the discretion to agree to a payment plan in excess of twelve months.

514A-   Delinquent assessments; removal or adoption of foreclosure authority. A provision in the declaration, bylaws, or other governing documents of an association of apartment owners that grants a right to judicially foreclose a lien against any apartment that arises solely from delinquent assessments, including fines, penalties, legal fees, or late fees, may be removed from the declaration, bylaws, or other governing documents or adopted as an amendment to the condominium declaration, bylaws, or other governing documents by a vote of at least sixty-seven per cent of the apartment owners."

SECTION 3. Chapter 514B, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"514B-   Delinquent assessments; payment plan. (a) A unit owner may submit a payment plan within thirty days after receiving notice from an association regarding any delinquent assessments. The unit owner shall submit the payment plan to the association or its attorney by certified mail return receipt requested or by hand delivery. The association shall not reject a reasonable payment plan.

(b) A unit owner's failure to perform any agreed-upon payment plan shall entitle the association to pursue remedies available pursuant to part IA of chapter 667.

(c) For purposes of this section, "reasonable payment plan" means a plan that provides for:

(1) Timely payment of all assessments that become due after the date that the payment plan is proposed; and

(2) Additional monthly payments of an amount sufficient to cure the delinquent assessments, within a reasonable period under the circumstances as determined by the board of directors in its discretion; provided that a period of up to twelve months shall be deemed reasonable; provided further that the board of directors shall have the discretion to agree to a payment plan in excess of twelve months.

514B-   Delinquent assessments; removal or adoption of foreclosure authority. A provision in the declaration, bylaws, or other governing documents of an association that grants a right to judicially foreclose a lien against any unit that arises solely from delinquent assessments, including fines, penalties, legal fees, or late fees, may be removed from the declaration, bylaws, or other governing documents or adopted as an amendment to the declaration, bylaws, or other governing documents by a vote of at least sixty-seven per cent of the unit owners."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Delinquent Assessments; Planned Community Associations; Condominiums; Payment Plan; Foreclosure Authority

 

Description:

Permits owners in a planned community association or condominium to submit a payment plan within thirty days after receiving notice from an association regarding any delinquent assessments and provides owners with time to cure delinquent assessments. Permits a right to judicially foreclose a lien against any unit or apartment that arises solely from delinquent assessments, including fines, penalties, legal fees, or late fees, to be removed or amended from governing documents by a vote of at least sixty-seven per cent of owners.

 

 

 

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