THE SENATE

S.B. NO.

3204

THIRTY-SECOND LEGISLATURE, 2024

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to condominiums.

 

 

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

 

     SECTION 1.  The legislature finds that while condominium self-governance can be successful in the State, there have been cases of abuse of power and other acts of retribution or retaliation by certain associations, boards, managing agents, resident managers, and unit owners.  The legislature finds that these acts of retribution and retaliation--which often include harassment and unwarranted and improper fines, assessments, legal costs, and foreclosures--frequently result in emotional and financial harm to victims, and therefore additional protections are necessary to help prevent and mitigate these wrongful acts.

     Accordingly, the purpose of this Act is to:

     (1)  Prohibit retaliatory actions against a unit owner, board member, managing agent, resident manager, or association employee who takes lawful action in an effort to address, prevent, or stop a violation of the condominium law, the governing documents of the association, or any law, ordinance, rule, regulation, or code that impacts the association;

     (2)  Allow a unit owner, board member, managing agent, resident manager, or association employee to bring a civil action for retaliation in the district court or circuit court, whichever is appropriate, to allege a violation;

     (3)  Provide a claimant that brings a civil action for retaliation in the circuit court with the right to a jury trial; and

     (4)  Prohibit an association from using association funds or reserves in a manner that would be considered retaliation in any lawsuit against a unit owner.

     SECTION 2.  Section 514B-191, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§514B-191[]]  Retaliation prohibited.  (a)  An association, board, managing agent, resident manager, unit owner, or any person acting on behalf of an association or a unit owner shall not retaliate against a unit owner, board member, managing agent, resident manager, or association employee who, through a lawful action done in an effort to address, prevent, or stop a violation of this chapter [or]; the governing documents of the association[:]; or any law, ordinance, rule, regulation, or code that impacts the association:

     (1)  Complains or otherwise reports an alleged violation;

     (2)  Causes a complaint or report of an alleged violation to be filed with the association, the commission, or other appropriate entity;

     (3)  Participates in or cooperates with an investigation of a complaint or report filed with the association, the commission, or other appropriate entity;

     (4)  Otherwise acts in furtherance of a complaint, report, or investigation concerning an alleged violation; or

     (5)  Exercises or attempts to exercise any right under this chapter [or]; the governing documents of the association[.] or any law, ordinance, rule, or code that impacts the association.

     (b)  A unit owner, board member, managing agent, resident manager, or association employee may bring a civil action in the district court or circuit court, whichever is appropriate, alleging a violation of this section.  The court may issue an injunction or award damages, court costs, attorneys' fees, or any other relief the court deems appropriate.  A claimant that brings a civil action in the circuit court shall have the right to a jury trial.

     (c)  An association shall not use association funds or reserves to retaliate against a unit owner or in a manner that would violate subsection (a) in any lawsuit against a unit owner.

     [(c)] (d)  As used in this section:

     "Governing documents" means an association's declaration, bylaws, or house rules; or any other document that sets forth the rights and responsibilities of the association, its board, its managing agent, or the unit owners.

     "Retaliate" means to take any action that is not made in good faith and is unsupported by the association's governing documents or applicable law and that is intended to, or has the effect of, being prejudicial in the exercise or enjoyment of any person's substantial rights under this chapter or the association's governing documents."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Condominiums; Retaliation; Prohibition

 

Description:

Prohibits retaliatory actions against a unit owner, board member, managing agent, resident manager, or association employee who takes lawful action in an effort to address, prevent, or stop a violation of the condominium law, the governing documents of the association, or any law, ordinance, rule, regulation, or code that impacts the association.  Allows a unit owner, board member, managing agent, resident manager, or association employee to bring a civil action for retaliation in the district court or circuit court, whichever is appropriate, to allege a violation.  Provides a claimant that brings a civil action for retaliation in the circuit court with the right to a jury trial.  Prohibits an association from using association funds or reserves in a manner that would be considered retaliation in any lawsuit against a unit owner.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.