RELATING TO CONDOMINIUMS.
HB106 revises Hawaii condominium law to create a more detailed framework for condominium association fines and assessment disputes. The bill authorizes associations to levy reasonable fines against unit owners or tenants for violations of declarations, bylaws, house rules, or regulations, but requires advance notice, a board-adopted appeals process, an opportunity to be heard, and the ability to appeal to small claims court. It also limits when fine-related attorney’s fees may be charged and preserves other association remedies under chapter 514B.
The measure also clarifies how condominium assessments are handled and disputed. It confirms that common expense assessments generally must be paid first and cannot be withheld, while allowing unit owners to dispute those assessments only after payment in full. For non-common-expense charges, including fines, late fees, lien filing fees, and attorney’s fees, the bill creates a process for requesting a written breakdown, seeking mediation, and, in some cases, filing court actions. It further amends the small claims statute to give the small claims division exclusive jurisdiction over cases arising under the new condominium fine-dispute section.
HB106 would amend multiple provisions of chapter 514B, Hawaii Revised Statutes, governing condominium associations, liens, assessments, tenant violations, and enforcement costs. It would also revise the small claims jurisdiction statute in chapter 633 to add condominium fine disputes as a category heard exclusively in small claims court. In practical terms, the bill would standardize association fining procedures, restrict some collection practices until fines become enforceable, and clarify the order in which payments are applied to common expenses versus other charges. It would affect condominium associations, unit owners, tenants, managing agents, and courts handling condominium-related disputes.
The bill’s stated purpose is to balance association enforcement authority with due process protections for owners and tenants, and the text reflects that policy goal. The available context shows no recorded votes or committee testimony, but the measure was deferred by the House Judiciary and Hawaiian Affairs committee on February 25, 2025. Based on the bill language, the overall sentiment appears to favor clearer procedures and stronger dispute rights while still preserving association enforcement tools.
The main points of contention are likely to be the scope of association authority versus owner and tenant protections, especially around fines, attorney’s fees, and collection timing. Associations may view the new notice, hearing, mediation, and small-claims appeal requirements as adding procedural burdens and limiting immediate enforcement, while owners and tenants may support them as necessary due process safeguards. Another likely issue is the bill’s treatment of common expense assessments, which continues to require payment before dispute, versus other charges that may be challenged before payment. The shift of fine disputes into exclusive small claims jurisdiction may also be debated as to whether it improves access to justice or creates a narrower forum for resolving condominium conflicts.