Honolulu, Hawaii

                , 2015


RE:   H.B. No. 104

      H.D. 1





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 104 entitled:




begs leave to report as follows:


     The purpose of this measure is to limit the use of the alternative power of sale foreclosure process for planned community and condominium associations to the recovery of unpaid unit owner assessments that exceed the total amount the association owes to the unit owner.


     Your Committee received testimony in support of this measure from one individual.  The Community Associations Institute, Hawaii Chapter, and Associa, Inc., opposed this measure.


     Your Committee finds that homeowner associations collect assessments from unit owners for the payment of common expenses.  Among other options, an association may recover unpaid assessments by foreclosing upon the unit owner using the alternative nonjudicial process established specifically for associations under part VI of Chapter 667, Hawaii Revised Statutes.  This measure requires associations seeking to use that process to first offset all amounts the association owes to the unit owner.


     Your Committee has amended this measure by changing the effective date to January 1, 2112, to encourage further discussion on the measure.


     Should the Committee on Judiciary decide to hear this measure, your Committee respectfully requests that it review whether a homeowner association has the authority to proceed with the alternative power of sale foreclosure process when the association owes money to the unit owner being foreclosed upon.


     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 104, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 104, H.D. 1, and be referred to the Committee on Judiciary.


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