Bill Text: HI SB2164 | 2010 | Regular Session | Introduced
Bill Title: Condominiums; Estimated Replacement Reserve Fund; Notice
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed - Dead) 2010-03-24 - (H) The committee(s) recommends that the measure be deferred. [SB2164 Detail]
Download: Hawaii-2010-SB2164-Introduced.html
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THE SENATE |
S.B. NO. |
2164 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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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. Section 514B-23, Hawaii Revised Statutes, is amended to read as follows:
"§514B-23 Amendments to governing instruments. (a) The declaration, bylaws, condominium map, or other constituent documents of any condominium created before July 1, 2006 may be amended to achieve any result permitted by this chapter, regardless of what applicable law provided before July 1, 2006.
(b) An amendment to the declaration, bylaws,
condominium map or other constituent documents authorized by [this section]
subsection (a) may be adopted by the vote or written consent of a
majority of the owners; provided that any amendment adopted pursuant to this
section shall not invalidate the reserved rights of a developer. If an
amendment grants to any person any rights, powers, or privileges permitted by
this chapter, all correlative obligations, liabilities, and restrictions in
this chapter also apply to that person.
(c) The declaration, bylaws, condominium map, public report, or designation of residential units of any condominium created after July 1, 2006 may be amended pursuant to law; provided that the developer provides notice of all changes authorized by this subsection to:
(1) Affected condominium owners by means of notice to the association of apartment owners of the condominium and by posting in common areas of the condominium project;
(2) Purchasers by means of amendments to the developer's public report submitted to the commission pursuant to section 514B-56; and
(3) Prospective purchasers by means of a statement in an announcement or advertisement published pursuant to section 514B-95.5 that amendments have been made to the developer's public report."
SECTION 2. Section 514B-83, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) A developer's public report shall contain:
(1) The name and address of the project, and the name, address, telephone number, and electronic mail address, if any, of the developer or the developer's agent;
(2) A statement of the deadline, pursuant to section 514B‑89, for completion of construction or, in the case of a conversion, for the completion of any repairs required to comply with section 514B‑5, and the remedies available to the purchaser, including but not limited to cancellation of the sales contract, if the completion of construction or repairs does not occur on or before the completion deadline;
(3) A breakdown of the annual maintenance fees and the monthly estimated cost for each unit, certified to have been based on generally accepted accounting principles, and a statement regarding when a purchaser shall become obligated to start paying the fees pursuant to section 514B‑41(b);
(4) A description of all warranties for the
individual units and the common elements, including the date of initiation and
expiration of any [such] warranties, or a statement that no warranties
exist;
(5) A summary of the permitted uses of the units and,
if applicable, the number of units planned to be devoted to [a] each
particular use;
(6) A description of any development rights reserved to the developer or others;
(7) A declaration, subject to the penalties set forth
in section 514B‑69(b), that the project is in compliance with all county
zoning and building ordinances and codes, and all other county permitting
requirements applicable to the project, pursuant to sections 514B‑5 and
514B‑32(a)(13); [and]
(8) The amount of the purchase price for each unit that is designated for deposit into the estimated replacement reserve fund; and
[(8)] (9) Any other facts, documents, or
information that would have a material impact on the use or value of a unit or
any appurtenant limited common elements or amenities of the project available
for an owner's use, or that may be required by the commission."
SECTION 3. Section 514B-91, Hawaii Revised Statutes, is amended to read as follows:
"§514B-91 Escrow of deposits. All moneys paid by purchasers shall be deposited in trust under a written escrow agreement with an escrow depository licensed pursuant to chapter 449. An escrow depository shall not disburse purchaser deposits to or on behalf of the developer prior to closing except:
(1) As provided in sections 514B‑92 [and],
514B‑93[;], and 514B-98; or
(2) As provided in the purchaser's sales contract in the event the sales contract is canceled.
An escrow depository shall not disburse a purchaser's deposits at closing unless the escrow depository has received satisfactory assurances that all blanket mortgages and liens have been released from the purchaser's unit in accordance with section 514B‑45. Satisfactory assurances shall include a commitment by a title insurer licensed under chapter 431 to issue the purchaser a title insurance policy ensuring the purchaser that the unit has been conveyed free and clear of the liens."
SECTION 4. Section 514B-98, Hawaii Revised Statutes, is amended to read as follows:
"§514B-98 Sale of residential units; developer requirements. (a) The developer may go to sale using either a chronological system or a lottery system at any time after issuance of an effective date for a developer's public report.
(b) For a thirty-day period following the initial date of sale of units in a condominium project, at least fifty per cent of the units being sold shall be offered for sale only to prospective owner-occupants; provided that notwithstanding this subpart, in the case of a project that includes one or more existing structures being converted to condominium status, each residential unit contained in the project first shall be offered for sale to any individual occupying the unit immediately prior to the conversion and who submits an owner-occupant affidavit and an earnest money deposit in a reasonable amount designated by the developer.
(c) Each contract for the purchase of a
residential unit by an owner-occupant may be conditioned upon the purchaser
obtaining adequate financing[,] or a commitment for adequate financing.
If the sales contract is canceled, the developer shall re-offer the residential
unit first to prospective owner-occupants on the back-up reservation list
described in section 514B‑96.5, in the order in which the names appear on
the reservation list; provided that the prospective owner-occupant shall not
have already executed a sales contract or reservation for a residential unit in
the project.
(d) At any time, any prospective owner-occupant on the back-up reservation list may be offered any residential unit in the project that has not been sold or set aside for sale to prospective owner-occupants.
(e) At the time of the initial date of sale of at least one-half of the total number of apartments in a condominium project, the developer shall collect an amount equal to per cent of the total sales price of each residential apartment in the condominium project to be set aside for deposit into the estimated replacement reserves required by section 514B-148. This amount shall be held in escrow until it is conveyed to the association of apartment owners on the date of the first meeting of the association as provided by section 514B-102. After that date, the association of apartment owners shall collect the amount designated for deposit into the estimated replacement reserve fund when any remaining apartments are sold and shall deposit the amount in accordance with the applicable bylaws of the association."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2010.
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INTRODUCED BY: |
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Report Title:
Condominiums; Estimated Replacement Reserve Fund; Notice
Description:
Requires that the developer collect a percentage of the initial sales price of each residential apartment in a condominium project to be used to fund the project's estimated replacement reserve fund. Requires that notice of amendments to project documents be provided to owners, purchasers, and potential purchasers.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
