STAND. COM. REP. NO. 2716

Honolulu, Hawaii

RE:    S.B. No. 2483

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2483 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM ASSOCIATIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide that a condominium association may assess unpaid common fees against a purchaser, in addition to a mortgagee, who purchases a delinquent unit in a judicial or nonjudicial power of sale foreclosure and to clarify terms related to condominium association fiscal matters and liens for assessments.

     Written comments in opposition to the measure were received from the Department of Taxation.

     Your Committee notes that the term "other purchaser" was inadvertently left out of an amendment made in 2013 to section 514B-146(g), Hawaii Revised Statutes, and should be included in the statute.  Your Committee further finds that this measure clarifies that liens for real property taxes, rather than all taxes, owed by a condominium unit owner take priority over a condominium association's assessments and related lien.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2483, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2483, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair