Hawaii HOA Laws

Homeowners associations in Hawaii can avoid the risk of liability by complying with the laws in their state. But, what are the Hawaii HOA laws you should know about?

For Homeowners Associations

The Hawaii Planned Community Associations oversees the creation, management, authority, and operation of all homeowners associations as of June 16, 1997. You can find the provisions under the Hawaii Revised Statutes Sections 421J-1 through 421J-16.

• Scope.
• Interpretation.
• Definitions.
• Board of directors.
• Notice required; regular annual and special meetings.
• Proxies.
• Meetings of the board of directors; committee or subcommittee.
• Robert’s Rules of Order.
• Documents of the association.
• Restatement of association documents.
• Membership list.
• Notification of assessment increases.
• Attorneys’ fees and expenses of enforcement.
• Association fiscal matters; lien for assessments.
• Association fiscal matters; collection of unpaid assessments from tenants or rental agents.
• Applicability of other laws.
• Amendment of association documents when no procedure provided.
• Mediation of disputes.
• First annual meeting of association.
• Service of process.
• Medical cannabis; discrimination.

For Condominiums

Condominiums in Hawaii must abide by the Hawaii Condominium Property Act. This Act provides guidance for the creation, management, authority, and operation of condominiums. It also covers voting rights, common expenses, and administration. You can find this Act under the Hawaii Revised Statutes. It consists of seven parts, each one divided further into sections.

Part I – General Provisions

• Short title.
• Applicability.
• Definitions.
• Separate titles and taxation.
• Conformance with county land use laws.
• Supplemental county rules governing a condominium property regime.
• Construction against implicit repeal.
• Severability.
• Obligation of good faith.
• Remedies to be liberally administered.

Part II – Applicability

• Applicability.
• Repealed.
• Amendments to governing instruments.

Part III – Creation, Alteration, And Termination Of Condominiums

• Creation.
• Contents of declaration.
• Condominium map.
• Condominium map; certification of architect, engineer, or surveyor.
• Unit boundaries.
• Leasehold units.
• Common interest.
• Common elements.
• Limited common elements.
• Transfer of limited common elements.
• Common profits and expenses.
• Metering of utilities.
• Liens against units.
• Contents of deeds or leases of units.
• Blanket mortgages and other blanket liens affecting a unit at time of first conveyance or lease.
• Merger of projects or increments.
• Removal from provisions of this chapter.

Part IV – Registration And Administration Of Condominiums

• Registration required; exceptions.
• Application for registration.
• Inspection by commission.
• Developer’s public report; requirements for issuance of effective date.
• Developer’s public report; request for hearing by developer.
• Developer’s public report; amendments.
• Commission oversight of developer’s public report.
• Annual report.
• Expiration of developer’s public reports.
• No false or misleading information.
• General powers and duties of commission.
• Deposit of fees.
• Condominium specialists; appointment; duties.
• Private consultants.
• Investigative powers.
• Cease and desist orders.
• Termination of registration.
• Power to enjoin.
• Penalties.
• Limitation of actions.
• Condominium education trust fund.
• Condominium education trust fund; payments by associations and developers.
• Condominium education trust fund; management.

Part V – Protection Of Condominium Purchasers

Part V-A. General Provisions

• Applicability; exceptions.
• Sale of units.
• Developer’s public report.
• Developer’s public report; special types of condominiums.
• Preregistration solicitation.
• Requirements for binding sales contracts; purchaser’s right to cancel.
• Rescission after sales contract becomes binding.
• Delivery.
• Sales contracts before completion of construction.
• Refunds upon cancellation or termination.
• Escrow of deposits.
• Use of purchaser deposits to pay project costs.
• Early conveyance to pay project costs.
• Misleading statements and omissions; remedies.

Part V-B. Sales to Owner-Occupants

• Definitions.
• Announcement or advertisement; publication.
• Designation of residential units.
• Unit selection; requirements.
• Affidavit.
• Prohibitions.
• Sale of residential units; developer requirements.
• Enforcement.
• Penalties.
• False statement.
• Inapplicability of laws.

Part VI – Management Of Condominiums

Part VI-A. Powers, Duties, and Other General Provisions

• Applicability; exceptions.
• Association; organization and membership.
• Association; registration.
• Association; powers.
• Association; limitations on powers.
• Board; powers and duties.
• Service of process.
• Board; limitations.
• Bylaws.
• Restatement of declaration and bylaws.
• Bylaws amendment permitted; mixed use property; representation on board.
• Judicial power to excuse compliance with requirements of declaration or bylaws.
• Condominium community mutual obligations.
• Medical cannabis; discrimination.

Part VI-B. Governance – Elections and Meetings

• Association meetings.
• Association meetings; minutes.
• Association meetings; voting; proxies.
• Association meetings; purchaser’s right to vote.
• Voting for elections; cumulative voting.
• Board meetings.
• Board meetings; minutes.

Part VI-C. Operations

• Operation of the property.
• Managing agents.
• Association employees; background check; prohibition.
• Management and contracts; developer, managing agent, and association.
• Termination of contracts and leases of developer.
• Transfer of developer rights.
• Upkeep of condominium.
• Upkeep of condominium; high-risk components.
• Upkeep of condominium; disposition of unclaimed possessions.
• Additions to and alterations of condominium.
• Tort and contract liability; tolling of limitation period.
• Aging in place or disabled; limitation on liability.
• Insurance.
• Association fiscal matters; assessments for common expenses.
• Association fiscal matters; collection of unpaid assessments from tenants or rental agents.
• Association fiscal matters; lien for assessments.
• Association fiscal matters; supplemental nonjudicial foreclosure notices; restrictions on power of sale.
• Association fiscal matters; other liens affecting the condominium.
• Association fiscal matters; budgets and reserves.
• Association fiscal matters; handling and disbursement of funds.
• Association fiscal matters; audits, audited financial statement.
• Association fiscal matters; lease rent renegotiation.
• Association records; generally.
• Association records; records to be maintained.
• Association records; availability; disposal; prohibitions.
• Association documents to be provided.
• Association as trustee.
• Pets.
• Attorneys’ fees, delinquent assessments, and expenses of enforcement.

Part VI-D. Alternative Dispute Resolution

• Mediation.
• Arbitration.
• Voluntary binding arbitration.
• Trial de novo and appeal.

Part VII – Miscellaneous Provisions

• Retaliation prohibited.

Hawaii HOA Laws on Corporate Governance

The Hawaii Nonprofit Corporations Act provides guidance on the corporate procedure and structure of non-profit corporations. A majority of the HOAs in Hawaii form as non-profit corporations, which means they must abide by this Act. You can find this Act under the Hawaii Revised Statutes. It consists of 17 parts, namely:

• General Provisions – Sections 414D-1 through 414D-20
• Organization – Sections 414D-31 through 414D-37
• Purposes And Powers – Sections 414D-51 through 414D-54
• Names – Sections 414D-61 through 414D-64
• Office And Registered Agent – Sections 414D-71 through 414D-74
• Members And Memberships – Sections 414D-81 through 414D-92
• Members’ Meetings, And Voting – Sections 414D-101 through 414D-117
• Directors And Officers – Sections 414D-131 through 414D-167
• Amendment Of Articles Of Incorporation And Bylaws – Sections 414D-181 through 414D-188
• Merger – Sections 414D-200 through 414D-211
• Sale Of Assets – Sections 414D-221 through 414D-222
• Distributions – Sections 414D-231 through 414D-233
• Dissolution – Sections 414D-241 through 414D-256
• Foreign Corporations – Sections 414D-271 through 414D-285
• Records And Reports – Sections 414D-301 through 414D-308
• Superseding Chapters – Section 414D-311
• Transition Provisions – Sections 414D-321 through 414D-324

Hawaii HOA Laws on Property Use Restrictions

Although homeowners associations can impose certain property use restrictions, the HOA laws of Hawaii does contain some limitations. Here are just a few of them.

• Solar Energy Devices. According to the Haw. Rev. Stat. Section 196-7, associations may not prohibit homeowners from installing solar energy devices. Rules or covenants that do so are deemed void and unenforceable.
• Electric Vehicle Charging Stations. Similarly, Section 196-7.5 states that associations may not prohibit homeowners from installing electric vehicle charging systems.
• Clotheslines. Some HOAs restrict owners from hanging their clothes out to dry on clotheslines for the sake of maintaining the exterior appearance of the neighborhood. In Hawaii, though, associations can’t forbid owners to do so, as it is their right to dry according to the Haw. Rev. Stat. Section 196-8.5.

Fair Housing

The federal Fair Housing Act prohibits homeowners associations from discriminating against persons based on certain classes on a national level. The Hawaii Revised Statutes contain similar language under Title 28 Chapter 515. Hawaii’s Fair Housing laws offer protection to persons against discrimination based on race, color, ancestry, sex, gender identity, sexual orientation, religion, familial status, marital status, and disability. For persons with disabilities, HOAs must provide reasonable accommodations and follow provisions concerning the use of service animals.