Bill Text: HI SB3032 | 2018 | Regular Session | Amended
Bill Title: Relating To Condominium Property Regimes.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2018-02-12 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPH. [SB3032 Detail]
Download: Hawaii-2018-SB3032-Amended.html
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THE SENATE |
S.B. NO. |
3032 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUM PROPERTY REGIMES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a need to revise laws related to agricultural property regimes. Recently, there has been an increased interest in developing agricultural lands through the condominium property regime process. While this provides land developers with a process to reduce front-end costs of selling agricultural lands, it often thwarts the long-term viability of these "units", as master planning is absent, particularly with respect to supporting county infrastructure.
The legislature finds that current condominium property regime laws only require that the proposed condominium property regime comply with county zoning, but does not require compliance with county subdivision requirements, which is where counties can review and ensure that necessary supportive infrastructure is available, including roads, water, and sewer lines, prior to the sale of the property. This current process also inhibits a county's ability to plan, regulate, and enforce its agricultural plans, goals, and infrastructure services.
Further, current law specifically exempts condominium property regime projects with all units restricted to nonresidential uses and to be sold for $1,000,000 or more from the requirement to be registered with the real estate commission. These types of projects may be of equal, if not greater, concern to the counties and the communities surrounding them.
The legislature further finds that section 205-4.5(e)(3), Hawaii Revised Statutes, specifically allows agricultural land developers to bypass county subdivision requirements. Accordingly, this promotes the condominium property regime process over the county subdivision process. The condominium property regime process is a complex set of regulations and restrictions that is often not easily understood at the time of purchase.
Accordingly, the purpose of this Act is to provide an option for county participation in the approval of major condominium property regimes.
SECTION 2. Section 205-4.5, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"[[](f)[]] Notwithstanding any other law to the
contrary, agricultural lands may be subdivided and leased for the agricultural
uses or activities permitted in subsection (a); provided that:
(1) The principal use of the leased land is agriculture;
(2) No permanent or temporary dwellings or farm dwellings, including trailers and campers, are constructed on the leased area. This restriction shall not prohibit the construction of storage sheds, equipment sheds, or other structures appropriate to the agricultural activity carried on within the lot; provided that no residential or congregate use of such sheds or other structures for any length of time shall be permitted, and any violation of this paragraph shall be subject to county enforcement authority and fines pursuant to sections 46-4, 205-12, and 205-13; and
(3) The lease term for a subdivided lot shall be for at least as long as the greater of:
(A) The minimum real property tax agricultural dedication period of the county in which the subdivided lot is located; or
(B) Five years.
Lots created and leased pursuant to this section
shall be legal lots of record for mortgage lending purposes [and shall be
exempt from county subdivision standards]."
SECTION 3. Section 514B-5, Hawaii Revised Statutes, is amended to read as follows:
"§514B-5 Conformance with county land use laws. Any condominium property regime established under this chapter shall conform to the existing underlying county zoning and subdivision or equivalent requirements for the property and all applicable county permitting requirements adopted by the county in which the property is located, including any supplemental rules adopted by the county, pursuant to section 514B‑6, to ensure the conformance of condominium property regimes to the purposes and provisions of county zoning, subdivision, and development ordinances and rules and chapter 205, including section 205-4.6 where applicable. In the case of a property which includes one or more existing structures being converted to condominium status, the condominium property regime shall comply with section 514B‑32(a)(13) or 514B‑84(a)."
SECTION 4. Section 514B-6, Hawaii Revised Statutes, is amended to read as follows:
"[[]§514B-6[]] Supplemental county ordinances and
rules governing a condominium property regime. Whenever any county deems it proper, the
county may adopt supplemental ordinances and rules governing condominium
property regimes established under this chapter in order to implement this
program; provided that any of the supplemental rules adopted shall not conflict
with this chapter or with any of the rules adopted by the commission to
implement this chapter."
SECTION 5. Section 514B-51, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The registration requirement of this section shall not apply to:
(1) The disposition of
units exempted from the developer's public report requirements pursuant to
section 514B‑81(b); or
[(2) Projects in
which all units are restricted to nonresidential uses and all units are to be
sold for $1,000,000 or more; or
(3)] (2) The sale of units in bulk, such as
where a developer undertakes to develop and then sells all or a portion of the
developer's entire inventory of units to a purchaser who is a developer. The registration requirements of this section
and the developer's amended developer's public report requirements of section
514B‑56 shall apply to any sale of units to the public following a sale
of units in bulk."
SECTION 6. Section 514B-52, Hawaii Revised Statutes, is amended to read as follows:
"§514B-52 Application for registration. (a) An application for registration of a project shall:
(1) Be accompanied by nonrefundable fees as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91; and
(2) Contain the documents and information concerning the project and the condominium property regime as required by sections 514B‑54, 514B‑83, and 514B‑84, as applicable, and as otherwise may be specified by the commission.
(b) An application for registration of a project in the agricultural district classified pursuant to chapter 205 shall include a verified statement, signed by an appropriate county official, that the project as described and set forth in the project's declaration, condominium map, bylaws, and house rules does not include any restrictions limiting or prohibiting agricultural uses or activities, in compliance with section 205‑4.6. The commission shall not accept the registration of a project where a county official has not signed a verified statement.
(c) An application for registration of a project
in a county agricultural zoning district or preservation zoning district shall
include a verified statement, signed by an appropriate county official, that
the project is in compliance with any supplemental county ordinances and rules
adopted pursuant to section 514B-6.
[(c)]
(d) The commission need not
process any incomplete application and may return an incomplete application to
the developer and require that the developer submit a new application,
including nonrefundable fees. If an
incomplete application is not completed within six months of the date of the
original submission, it shall be deemed abandoned and registration of the project
shall require the submission of a new application, including nonrefundable
fees.
[(d)]
(e) A developer shall promptly
file amendments to report either any actual or expected pertinent or material
change, or both, in any document or information contained in the
application."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2018.
Report Title:
Condominium Property Regimes; Agricultural Lands; Subdivisions; County Subdivision Requirements
Description:
Prohibits
the use of storage sheds, equipment sheds, or other structures appropriate to
the agricultural activity carried on within leased agricultural lands for
residential purposes for any length of time. Repeals the exemption for agricultural lands
that are subdivided and leased for agricultural uses or activities from
compliance with county subdivision standards.
Requires condominium property regimes to comply with county subdivision
requirements. Repeals the exemption for certain
condominium property regimes that are to be sold for $1,000,000 or more from
mandatory registration with the real estate commission. Requires that an application for registration
of a project in a county agricultural zoning district or preservation zoning
district include a verified statement, signed by an appropriate county
official, that the project is in compliance with any supplemental county
ordinances and rules. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
