HOUSE OF REPRESENTATIVES
THIRTY-FIRST LEGISLATURE, 2021
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-95, Hawaii Revised Statutes, is amended by amending the definition of "residential unit" to read as follows:
""Residential unit" means "unit" as defined in section 514B‑3, but excludes:
(1) Any unit intended for commercial use;
(2) Any unit in a project in which time share use is permitted under section 514E-6;
(2)] (3) Any
unit designed and constructed for hotel or resort use that is located on any
parcel of real property designated and governed by a county for hotel or resort
use pursuant to section 46‑4; and
(3)] (4) Any
other use pursuant to authority granted by law to a county."
SECTION 2. Section 514B-95.5, Hawaii Revised Statutes, is amended to read as follows:
§514B-95.5[ ]] Announcement or advertisement; publication. At
least once in each of two successive weeks, and at any time following the
issuance of an effective date of the first developer's public report for the
condominium project, the developer shall cause to be published in at least one
newspaper published daily in the State with a general circulation in the county
in which the project is to be located, and, if the project is located other
than on the island of Oahu, in at least one newspaper that is published at
least weekly in the county in which the project is to be located, an
announcement or advertisement containing at least the following information:
(1) The location of the project;
(2) The minimum price of the residential units;
(3) A designation as to whether the residential units are to be sold in fee simple or leasehold;
(4) A statement that
for a thirty-day period following the initial date of sale of the condominium
project, at least [
fifty] ninety per cent of the residential
units being marketed shall be offered only to prospective owner-occupants;
(5) The name, telephone number, and address of the developer or other real estate broker designated by the developer that an interested individual may contact to secure an owner-occupant affidavit, developer's public report, and any other information concerning the project; and
(6) If applicable, a statement that the residential units will be offered to prospective purchasers through a public lottery."
SECTION 3. Section 514B-96, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The developer of any project containing
residential units shall designate at least [
fifty] ninety per
cent of the units for sale to prospective owner-occupants pursuant to section
514B‑98. The designation shall be
set forth either in the developer's public report or in the announcement or
advertisement required by section 514B‑95.5, and may be set forth in
both. The units shall constitute a
proportionate representation of all the residential units in the project with
regard to factors of square footage, number of bedrooms and bathrooms, floor
level, and whether [ or not] the unit has a lanai."
SECTION 4. Section 514B-98, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) For a thirty-day period following the initial
date of sale of units in a condominium project, at least [
per cent of the units being sold shall be offered for sale only to prospective
owner-occupants; provided that, notwithstanding this subpart, in the
case of a project that includes one or more existing structures being converted
to condominium status, each residential unit contained in the project first
shall be offered for sale to any individual occupying the unit immediately
prior to the conversion and who submits an owner-occupant affidavit and an earnest
money deposit in a reasonable amount designated by the developer."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Condominiums; Residential Units; Time Share Units; Sale; Owner-occupants
Makes condominium laws regarding sales to owner-occupants inapplicable to time share units. Increases the minimum percentage 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 per cent to ninety per cent. Effective 7/1/2050. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.