THE SENATE	S.B. NO.	402
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO COMMON INTEREST COMMUNITIES.

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

SECTION 1. Section 421J-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All costs and expenses, including reasonable attorneys' fees, incurred by or on behalf of the association for:

(1) Collecting any delinquent assessments against any unit or the owner of any unit;

(2) Foreclosing any lien on any unit; or

(3) Enforcing any provision of the association documents or this chapter;

against a member, occupant, tenant, employee of a member, or any other person who in any manner may use the property, shall be promptly paid on demand to the association by [such] the person or persons; provided that if the association is not the prevailing party, all costs and expenses, including reasonable attorneys' fees, incurred by any [such] person or persons as a result of the action of the association, shall be promptly paid on demand to the person by the association[.]; provided further that the association or board of directors shall not expend association funds to enforce against de minimis infractions of association bylaws, rules, or regulations. The reasonableness of any [attorney's] attorneys' fees paid by a person or by an association as a result of an action pursuant to paragraph (2) shall be determined by the court.

For purposes of this subsection, a "de minimis infraction" means a technical violation of a bylaw, rule, or regulation of the association that results in not more than three complaints from separate units in the association within a calendar year, or does not result in a fine of more than $500 per violation pursuant to the bylaws, rules, or regulations of the association."

SECTION 2. Section 514B-104, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) If a tenant of a unit owner violates the declaration, bylaws, or rules and regulations of the association, in addition to exercising any of its powers against the unit owner, the association may:

(1) Exercise directly against the tenant the powers described in subsection (a)(11);

(2) After giving notice to the tenant and the unit owner and an opportunity to be heard, levy reasonable fines against the tenant for the violation, provided that a unit owner shall be responsible for the conduct of the owner's tenant and for any fines levied against the tenant or any legal fees incurred in enforcing the declaration, bylaws, or rules and regulations of the association against the tenant; and

(3) Enforce any other rights against the tenant for the violation, which the unit owner as landlord could lawfully have exercised under the lease, including eviction, or which the association could lawfully have exercised directly against the unit owner, or both.

The association or board of directors shall not expend association funds to enforce against de minimis infractions of association bylaws, rules, or regulations; provided that a "de minimis infraction" means a technical violation of a bylaw, rule, or regulation of the association that results in not more than three complaints from separate units in the association within a calendar year, or does not result in a fine of more than $500 per violation pursuant to the bylaws, rules, or regulations of the association."

SECTION 3. Section 514B-157, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All costs and expenses, including reasonable attorneys' fees, incurred by or on behalf of the association for:

(1) Collecting any delinquent assessments against any owner's unit;

(2) Foreclosing any lien thereon; or

(3) Enforcing any provision of the declaration, bylaws, house rules, [and] or this chapter, or the rules of the real estate commission;

against an owner, occupant, tenant, employee of an owner, or any other person who may in any manner use the property, shall be promptly paid on demand to the association by [such] the person or persons; provided that if the claims upon which the association takes any action are not substantiated, all costs and expenses, including reasonable attorneys' fees, incurred by any [such] person or persons as a result of the action of the association, shall be promptly paid on demand to [such] the person or persons by the association[.]; provided further that the association or board of directors shall not expend association funds to enforce against de minimis infractions of association bylaws, rules, or regulations.

For purposes of this subsection, "de minimis infraction" means a technical violation of a bylaw, rule, or regulation of the association that results in not more than three complaints from separate units in the association within a calendar year, or does not result in a fine of more than $500 per violation pursuant to the bylaws, rules, or regulations of the association."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Common Interest Communities; Planned Community Associations; Condominiums; Association Funds; De Minimis Infractions

Description:

Prohibits planned community associations, condominium associations, or their boards of directors from expending association funds to enforce against de minimis violations of association bylaws, rules, or regulations that result in not more than three complaints from separate units in the association within a calendar year or result in a fine of not more than $500 per violation pursuant to the bylaws, rules, or regulations of the association.

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