Bill Text: HI HB2515 | 2016 | Regular Session | Introduced
Bill Title: Condominium; Association Foreclosure; Cure of Default
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-02-10 - The committee(s) on CPC recommend(s) that the measure be deferred. [HB2515 Detail]
Download: Hawaii-2016-HB2515-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2515 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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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 it is important to have clear and effective rules related to association foreclosures on condominiums, including which actions successfully cure a default. The legislature further finds that agreeing to a payment plan is not sufficient to cure a default. Rather, agreeing to a payment plan and paying the delinquency in full is required for a unit owner to cure a nonjudicial foreclosure on a condominium.
The purpose of this Act is to clarify that when a unit owner and association reach a payment plan to cure a nonjudicial foreclosure, the association does not have to rescind the notice of default and intention to foreclose or restart the foreclosure by filing a new notice of default and intent to foreclose if a unit owner defaults on the payment plan agreed to by the parties. In addition, any fines owed to an association may not be converted into fees that may cause a unit owner to default.
SECTION 2. Section 667-94, Hawaii Revised Statutes, is amended to read as follows:
"[[]§667-94[]] Cure of
default. (a) If the default is cured as required by the notice of default
and intention to foreclose[, or if the parties have agreed on a payment
plan,] the association shall rescind the notice of default and intention to
foreclose. If, pursuant to section 667-19, the parties agree on a payment
plan to cure the default, the notice of default and intention to foreclose
shall be put on hold until the payment plan is completed. Within fourteen
days of the date of the cure or an agreement on a payment plan, the association
shall so notify any person who was served with the notice of default and
intention to foreclose. If the default is cured, or the payment plan is
completed according to its terms, and the notice of default and intention
to foreclose was recorded, a release of the notice of default and intention to
foreclose shall be recorded.
(b) If the default is not cured as required by
the notice of default and intention to foreclose, [or] the parties have
not agreed on a payment plan, or the parties have agreed on a payment plan
but the payment plan is not completed according to its terms, the
association, without filing a court action and without going to court, may
foreclose the association's lien under power of sale to sell the unit at a
public sale.
(c) Any fines owed to the association by a unit owner shall not be converted into any additional fees that may cause the unit owner to default. Any dispute over fines owed by a unit owner to the association shall attempt to be resolved through mediation before foreclosure proceedings are commenced."
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.
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INTRODUCED BY: |
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Report Title:
Condominium; Association Foreclosure; Cure of Default
Description:
Clarifies that when a unit owner and association reach a payment plan to cure a nonjudicial foreclosure, completion of the payment plan is required to cure the default. Prohibits an association from converting unpaid fines into fees that may cause a unit owner to default. Requires mediation by a unit owner and association over disputed fines before a foreclosure can be commenced.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
