Legislature seeks to clarify the lawmakers’ intent when it comes to foreclosures by condo associations

By
Real Estate Agent with HI Pro Realty LLC RB-21531 RS-76763
https://activerain.com/droplet/5jmk

 

Legislature seeks to clarify the lawmakers’ intent when it comes to foreclosures by condo associations.

Originally reported by CivilBeat.org

 

Bill  SB 55, before the Hawai'i State Legislature, would add provisions to laws governing foreclosures and condos in Hawaii that say Homeowner Associations don’t need to have a clause in their bylaws since foreclosure power is already granted by the state.

 

The measures argument is whether a condo association should be required to state that they have the power to conduct nonjudicial foreclosures in their governing documents, the practice of allowing homeowner associations to initiate foreclosures to collect liens for maintenance fees in order to avoid a presumably lengthy court process.

 

Opponents decry that lawmakers never intended to give homeowner associations authority to conduct nonjudicial foreclosures and ICA judges, last year, ruled power of foreclosure MUST be written into the associations by-laws. There is a class-action suit claiming that Associations were not intended to have the power of nonjudicial foreclosure, only a seat in the resoulution process.

 

Proponents of the measure say the power of  nonjudicial foreclosure is needed to collect unpaid fees from delinquent owners. Otherwise, the unpaid fees that typically go to common expenses would need to be picked up by other residents.

 

Lawmakers, however, state in the preamble of  SB 551 that it was indeed the Legislature’s intent to give associations the power to foreclose. They noted a 1999 committee report on a bill that granted that power.

 

One of the measures proposed intends that if an owner requests mediation within 30 days after a notice of intent to foreclose, the association would not be able to immediately pursue nonjudicial foreclosure. If the mediation wasn’t completed within 60 days after that, then the foreclosure could proceed.

 

 

 

 

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HI Pro Realty LLC - REALTORS®, PROPERTY MANAGERS® is a boutique brokerage firm offering responsive, dedicated, and professional Real Estate Sales and Management Services in Honolulu, Hawaii. 

 

 

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Rainmaker
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Aloha Kimo - making intentions clear and concise is wise whether by our state legislatures or whatever body decides such things.  Dreaming, I guess(lol).

May 15, 2019 10:03 AM #1
Rainmaker
714,031
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Michael Jacobs, this is more a question of literacy, comprehension, and common sense. But sometimes it's necessary to s.p.e.l.l. it out, lest the financially irresponsible blame game comes a knocking. 

May 20, 2019 12:44 PM #2
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Rainmaker
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Kimo Stowell

REALTOR Associate® RS-76763 - Honolulu Hawai'i
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