Relating To Condominiums.
SB591 revises Hawaii condominium law to clarify how associations may impose and collect fines and how unit owners and tenants may challenge them. The bill authorizes associations to levy reasonable fines for violations of declarations, bylaws, house rules, or regulations, but requires a formal appeals process with notice, an opportunity to be heard, and the ability to appeal a board decision to small claims court. It also requires the association’s notice to identify the specific rule violated and provide the appeals procedure, and it limits the association’s ability to charge attorneys’ fees related to a fine until the fine is enforceable and collectible.
The bill also reorganizes and clarifies the rules governing condominium assessments, especially the distinction between common expense assessments and other charges such as fines, late fees, lien filing fees, and attorneys’ fees. It confirms that common expense assessments must be paid first and generally cannot be withheld, while allowing disputes over common expense assessments only after payment in full. By contrast, other assessments may be disputed before payment, with a right to request written itemization, mediation, court action, and in some cases arbitration. The bill further updates association powers and tenant-related enforcement provisions to align with the new fine-appeal process, and it preserves existing association remedies not specifically changed by the act.
SB591 would amend multiple provisions of chapter 514B, Hawaii Revised Statutes, governing condominium associations. It adds a new section on fines and appeals, revises association powers under section 514B-104, updates payment-application rules under section 514B-105, and substantially revises section 514B-146 on liens, assessment disputes, mediation, and collection procedures. It also amends section 514B-157 to limit fee-shifting for association enforcement actions when the association’s claims are not substantiated. The bill would take effect July 1, 2025, and would not affect rights, duties, penalties, or proceedings that arose before that date.
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears to be supportive of clearer due process protections while preserving association enforcement authority. The stated purpose emphasizes balancing condominium associations’ need to enforce rules with notice and appeal rights for owners and tenants. The bill’s structure suggests a policy preference for more transparent and orderly collection and dispute procedures rather than a reduction in association powers.
The main points of contention likely involve the balance between condominium association enforcement authority and owner/tenant due process rights. Associations may support the bill’s clarification of fining authority and collection rules, but could object to added procedural steps, small claims appeals, mediation requirements, and limits on charging attorneys’ fees before a fine is enforceable. Unit owners and tenants are likely to favor the notice, hearing, and appeal protections, as well as the ability to dispute non-common-expense charges before payment. Another possible area of dispute is the bill’s reaffirmation that common expense assessments must be paid first and cannot be withheld, which preserves strong collection rights for associations.