COM. REP. NO. 304
RE: H.B. No. 47
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 47 entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"
begs leave to report as follows:
purpose of this measure is to relieve
homeowner-developers from the burden of filing annual reports and paying the
fee for developments consisting of no more than two units, in which one unit is
the residence of the developer and the initial sale of the other unit has been
Your Committee received testimony in support of this measure
from the Community Associations Institute, Associa, and two individuals. Your Committee received testimony in
opposition to this measure from the Real Estate Commission.
Your Committee finds that the
Condominium Property Act characterizes homeowner-developers who own two units
under a condominium property regime as a developer of a condominium project. Under the Condominium Property Act,
developers are required to file an annual report and pay an annual fee until
all units in a development have been sold.
This requirement unduly burdens homeowner-developers who permanently
reside on their property and do not intend to sell their unit in the
development. This measure will therefore
provide relief in these specific instances from the burdensome annual filing
and fee requirements.
Your Committee has amended this measure by:
(1) Changing the effective date to January 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
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. 47, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 47, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
AARON LING JOHANSON, Chair