THE SENATE	S.B. NO.	2493
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CONDOMINIUM ASSOCIATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that because the costs incurred by a condominium association are shared by all its unit owners, excessive legal fees undertaken by an association to resolve nominal matters can have a negative impact on all unit owners in an association. As such, legal fees paid by the unit owners of a condominium association should be limited in proportion to the costs of the matter being resolved.

Accordingly, the purpose of this Act is to prohibit condominium associations from assessing against, or demanding or seeking reimbursement from a unit owner the association's total and final legal fees in excess of twenty-five per cent of the original debt amount sought by the association.

SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§514B-   Attorneys' fees; reimbursements; limitation; original debt amount. The association shall not assess, demand, or seek reimbursement from a unit owner for the association's total and final legal fees in excess of twenty-five per cent of the original debt amount sought by the association."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2040.

Report Title:

Condominium Associations; Attorneys' Fees; Limit

Description:

Prohibits condominium associations from assessing, demanding, or seeking reimbursement from a unit owner for the association's total and final legal fees in excess of 25% of the original debt amount sought by the association. Takes effect 7/1/2040. (SD1)

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