STAND. COM. REP. NO. 399
RE: S.B. No. 799
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 799 entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Make condominium laws regarding sales to owner-occupants inapplicable to time share units; and
(2) Increase the minimum number of residential units in a condominium project that must be offered for sale to prospective owner-occupants in the thirty-day period following the initial date of sale of the condominium from fifty percent to ninety percent.
Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from Associa.
Your Committee finds that given the overall lack of affordable housing options for Hawaii residents, additional policies are necessary to promote owner-occupancy of new condominium developments. This measure assists in increasing the housing pool for local residents and encourages developers to meet the State's dire need for affordable housing. Your Committee heard the concerns raised in testimony that the ninety percent increase may be too high and may have the unintended consequence of discouraging development. Accordingly, amendments to this measure are necessary to address this concern.
Your Committee has amended this measure by:
(1) Lowering the minimum number of residential units in a condominium project that must be offered for sale to prospective owner-occupants in the thirty-day period following the initial date of sale of the condominium from ninety to sixty-seven percent; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
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. 799, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 799, 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