H.B. NO.














RELATING TO Associations.





SECTION 1. The legislature finds that landowners whose lots abut private subdivision roads have a legal duty to contribute to necessary maintenance of the private subdivision roads even though their deeds are silent on the matter. Paradise Hui Hanalike v. Hawaiian Paradise Park Corp., 66 Haw. 362, 364, 662 P.2d 211, 212 (1983). However, in those instances where planned residential subdivisions were created without entities to collect such contributions or association dues or to be responsible for the maintenance of common areas such as private roads or parks, the legislature further finds that it is necessary to create a procedure for the creation of such entities.

The purpose of this Act is to authorize the creation of after-the-fact homeowners associations to collect contributions or association dues for the maintenance of common areas and private roadways.

SECTION 2. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"421J-   After-the-fact associations. (a) Where there is no recorded declaration creating an association to collect contributions for the maintenance of common areas or private roadways within a planned residential subdivision, a landowner in a planned residential subdivision may create an after-the-fact association subject to the following:

(1) The association shall be incorporated under chapter 414D, with the primary purpose of maintaining common areas of the real property in the planned residential subdivision, including private roadways, private parks, private meeting halls, and areas of benefit or of use by the planned residential subdivision;

(2) All board members shall attend a class approved by the county or real estate commission on the best practices on how to conduct meetings, create by-laws, or to otherwise run an association subject to this chapter upon their appointment and at least biennially thereafter;

(3) Initial assessments by the association shall not exceed one per cent of the real property tax assessment of a lot within the planned residential subdivision; provided that the founding members may be reimbursed for all reasonable expenses necessary to form such association from the initial assessments;

(4) All landowners within the planned residential subdivision shall be given written notice of the creation of such association; and

(5) Such association shall be recorded with the bureau of conveyances and be subject to this chapter.

(b) If more than one association is created in a planned residential subdivision in accordance with subsection (a), the association receiving a majority vote of the landowners within the planned residential subdivision shall be the association authorized to assess dues and fees and to manage the common areas for the benefit and use of the planned residential subdivision.

(c) Failure of an association created in accordance with subsection (a) to continue to be in compliance with the provisions of this section may be grounds for administrative dissolution under chapter 414D.

(d) For the purposes of this section, "planned residential subdivision" means real property developed through a unified plan primarily for the purpose of residential use where no separate association has been designated or created through a recorded declaration for the purposes of owning or maintaining certain property within the planned residential subdivision or for the purposes of providing services to any unit owners within the planned residential subdivision. "Planned residential subdivision" does not include condominiums, cooperative housing corporations, or time share plans."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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








Report Title:

Homeowners' Associations; Assessments; Nonprofit Corporations



Authorizes the creation of after-the-fact homeowners associations to collect contributions or association dues for the maintenance of common areas.




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