reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-87 Rescission after sales contract becomes binding.

§514B-87 Rescission after sales contract becomes binding.
(a) Purchasers shall have a thirty-day right to rescind a binding sales contract for the purchase of a unit from a developer if there is a material change in the project. This rescission right shall not apply, however, in the event of any additions, deletions, modifications and reservations including, without limitation, the merger or addition or phasing of a project, made pursuant to the terms of the declaration.
(b) Upon delivery to a purchaser of a description of the material change on a form prescribed by the commission, the purchaser may waive the purchaser's rescission right provided in subsection (a) by:
(1) Checking the waiver box on the option to rescind sales contract instrument, signing it, and delivering it to the seller;
(2) Letting the thirty-day rescission period expire without taking any action to rescind; or
(3) Closing the purchase of the unit before the thirty-day rescission period expires.
(c) In order to be valid, a rescission form must be signed by all purchasers of the affected unit, and postmarked no later than midnight of the thirtieth calendar day after the date that the purchasers received the rescission form from the seller. In the event of a valid exercise of a purchaser's right of rescission pursuant to this section, the purchasers shall be entitled to a prompt and full refund of any moneys paid.
(d) The rescission form obtained by the seller under this section shall be kept on file in possession of the seller and shall be subject to inspection at a reasonable time by the commission or its staff or agents, for a period of three years from the date the receipt or return receipt was obtained.
(e) This section shall not preclude a purchaser from exercising any rescission rights pursuant to a contract for the sale of a unit or any applicable common law remedies. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-88 Delivery.

§514B-88 Delivery.
In this part, delivery shall be made by:
(1) Personal delivery;
(2) Registered or certified mail with adequate postage, to the recipient's address; provided that delivery shall be considered made three days after deposit in the mail or on any earlier date upon which the return receipt is signed;
(3) Facsimile transmission, if the recipient has provided a fax number to the sender; provided that delivery shall be considered made upon the sender's receipt of automatic confirmation of transmission; or
(4) Any other way prescribed by the commission. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-89 Sales contracts before completion of construction.

§514B-89 Sales contracts before completion of construction.
If a sales contract for a unit is signed before the completion of construction or, in the case of a conversion, the completion of any repairs required to comply with section 514B-5, the sales contract shall contain an agreement of the developer that the completion of construction shall occur on or before the completion deadline, and the completion deadline shall be referenced in the developer's public report. The completion deadline may be a specific date, or the expiration of a period of time after the sales contract becomes binding, and may include a right of the developer to extend the completion deadline for force majeure as defined in the sales contract. The sales contract shall provide that the purchaser may cancel the sales contract at any time after the specified completion deadline, if completion of construction does not occur on or before the completion deadline, as the same may have been extended. The sales contract may provide additional remedies to the purchaser if the actual completion of construction does not occur on or before the completion deadline as set forth in the contract. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-90 Refunds upon cancellation or termination.

§514B-90 Refunds upon cancellation or termination.
Upon any cancellation under section 514B-86 or 514B-89,
the purchaser shall be entitled to a prompt and full refund of all moneys paid, less any escrow cancellation fee and other costs associated with the purchase, up to a maximum of $250. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-91 Escrow of deposits.

§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; 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. [L 2005, c 93, pt of §4; am L 2006, c 38, §23]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-94 Misleading statements and omissions; remedies.

§514B-94 Misleading statements and omissions; remedies.
(a) No person may:
(1) Knowingly authorize, direct, or aid in the publication, advertisement, distribution, or circulation of any false statement or representation concerning any project offered for sale or lease; or
(2) Issue, circulate, publish, or distribute any advertisement, pamphlet, prospectus, or letter concerning a project that contains any false written statement or is misleading due to the omission of a material fact.
(b) Every sale made in violation of this section shall be voidable at the election of the purchaser; and the person making the sale and every director, officer, or agent of or for the seller, if the director, officer, or agent has personally participated or aided in any way in making the sale, shall be jointly and severally liable to the purchaser in an action in any court of competent jurisdiction upon tender of the units sold or of the contract made, for the full amount paid by the purchaser, with interest, together with all taxable court costs and reasonable attorneys' fees; provided that no action shall be brought for the recovery of the purchase price after two years from the date of the sale; and provided further that no purchaser otherwise entitled shall claim or have the benefit of this section who has refused or failed to accept within thirty days an offer in writing of the seller to take back the unit in question and to refund the full amount paid by the purchaser, together with interest at six per cent on the amount for the period from the date of payment by the purchaser down to the date of repayment. [L 2005, c 93, pt of §4]
Case Notes
District court predicted that the state supreme court would hold that the two-year period in subsection (b) is a statute of repose, rather than a statute of limitations, with respect to an action where plaintiff claimed, among other things, a violation of the condominium property act by defendants that allegedly promised that guests of condominium owners would be able to use the resort's facilities without additional fees. Plaintiff failed to bring a Chapter 514B claim within two years after the purchase of the condominium, and because statutes of repose are not subject to equitable tolling, plaintiff's claim was time-barred. 371 F. Supp. 3d 803 (2019).
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-95 Definitions.

Revision Note
The sections in this subpart enacted as § §514B-95.1 to 514B-95.11, are redesignated.
§514B-95 Definitions.
As used in this subpart:
"Chronological system" means a system in which the residential units designated for sale to prospective owner-occupants are offered for sale to prospective owner-occupants in the chronological order in which the prospective owner-occupants deliver to the developer or the designated real estate broker completed owner-occupant affidavits, executed sales contracts or reservations, and earnest money deposits.
"Initial date of sale" means the date of the first publication of the announcement or advertisement pursuant to section 514B-95.5.
"Lottery system" means a system in which no prospective owner-occupant has an unfair advantage in the determination of the order in which residential units designated for sale to prospective owner-occupants are offered for sale because the order is determined by a lottery.
"Owner-occupant" means any individual in whose name sole or joint legal title is held in a residential unit that, simultaneous to such ownership, serves as the individual's principal residence, as defined by the department of taxation, for a period of not less than three hundred sixty-five consecutive days; provided that the individual shall retain complete possessory control of the premises of the residential unit during this period. An individual shall not be deemed to have complete possessory control of the premises if the individual rents, leases, or assigns the premises for any period of time to any other person in whose name legal title is not held; except that an individual shall be deemed to have complete possessory control even when the individual conveys or transfers the unit into a trust for estate planning purposes and continues in the use of the premises as the individual's principal residence during this period.
"Residential unit" means "unit" as defined in section 514B-3, but excludes:
(1) Any unit intended for commercial use;
(2) Any unit designed and constructed for hotel or resort use that is located on any parcel of real property designated and governed by a county for hotel or resort use pursuant to section 46-4; and
(3) Any other use pursuant to authority granted by law to a county.
"Thirty-day period" or "thirty days" means thirty full consecutive calendar days, including up to midnight on the thirtieth day. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-95.5 Announcement or advertisement; publication.

§514B-95.5 Announcement or advertisement; publication.
At least once in each of two successive weeks, and at any time following the issuance of an effective date of the first developer's public report for the condominium project, the developer shall cause to be published in at least one newspaper published daily in the State with a general circulation in the county in which the project is to be located, and, if the project is located other than on the island of Oahu, in at least one newspaper that is published at least weekly in the county in which the project is to be located, an announcement or advertisement containing at least the following information:
(1) The location of the project;
(2) The minimum price of the residential units;
(3) A designation as to whether the residential units are to be sold in fee simple or leasehold;
(4) A statement that for a thirty-day period following the initial date of sale of the condominium project, at least fifty per cent of the residential units being marketed shall be offered only to prospective owner-occupants;
(5) The name, telephone number, and address of the developer or other real estate broker designated by the developer that an interested individual may contact to secure an owner-occupant affidavit, developer's public report, and any other information concerning the project; and
(6) If applicable, a statement that the residential units will be offered to prospective purchasers through a public lottery. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-96 Designation of residential units.

§514B-96 Designation of residential units.
(a) The developer of any project containing residential units shall designate at least fifty per cent of the units for sale to prospective owner-occupants pursuant to section 514B-98. The designation shall be set forth either in the developer's public report or in the announcement or advertisement required by section 514B-95.5, and may be set forth in both. The units shall constitute a proportionate representation of all the residential units in the project with regard to factors of square footage, number of bedrooms and bathrooms, floor level, and whether or not the unit has a lanai.
(b) A developer shall have the right to substitute a unit designated for owner-occupants with a unit that is not so designated; provided that the units shall be similar with regard to the factors enumerated in subsection (a). The substitution shall not require the developer's submission of a supplementary developer's public report. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-97 Affidavit.

§514B-97 Affidavit.
(a) The owner-occupant affidavit required by section 514B-96.5 shall expire after three hundred sixty-five consecutive days have elapsed after the recordation of the instrument conveying the unit to the affiant. The affidavit shall expire prior to this period upon acquisition of title to the property by an institutional lender or investor through mortgage foreclosure, foreclosure under power of sale, or a conveyance in lieu of foreclosure.
(b) The affidavit shall include statements by the affiant affirming that the affiant shall notify the commission immediately upon any decision to cease being an owner-occupant.
(c) The affidavit shall be personally executed by all the prospective owner-occupants of the residential unit and shall not be executed by an attorney-in-fact. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-97.5 Prohibitions.

§514B-97.5 Prohibitions.
(a) No person who has executed an owner-occupant affidavit shall sell or offer to sell, lease or offer to lease, rent or offer to rent, assign or offer to assign, or convey the unit until at least three hundred sixty-five consecutive days have elapsed since the recordation of the purchase; provided that a person who continues in the use of the premises as the individual's principal residence during this period may convey or transfer the unit into a trust for estate planning purposes. Any contract or instrument entered into in violation of this subpart shall be subject to the remedies provided in section 514B-99(a).
(b) No developer, employee or agent of a developer, or real estate licensee shall violate or aid any other person in violating this subpart. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-98 Sale of residential units; developer requirements.

§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. [L 2005, c 93, pt of §4; am L 2006, c 273, §13]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-98.5 Enforcement.

§514B-98.5 Enforcement.
(a) Whenever the commission finds based upon satisfactory evidence that any person is violating or has violated any provision of this subpart or rules of the commission adopted pursuant thereto, the commission may conduct an investigation on the matter and bring an action in the name of the commission in any court of competent jurisdiction against the person to enjoin the person from continuing the violation or doing any acts in furtherance thereof.
(b) Before the commission brings an action in any court of competent jurisdiction pursuant to subsection (a) against any person who executed an affidavit pursuant to this subpart, it may consider whether the following extenuating circumstances affected the person's ability to comply with the law:
(1) Serious illness of any of the owner-occupants who executed the affidavit or of any other person who was to or has occupied the residential unit;
(2) Unforeseeable job or military transfer;
(3) Unforeseeable change in marital status, or change in parental status; or
(4) Any other unforeseeable occurrence subsequent to execution of the affidavit.
If the commission finds that extenuating circumstances exist, the commission may cease any further action and order release of any net proceeds held in abeyance.
(c) Any individual who executes an affidavit pursuant to this subpart and who subsequently sells or offers to sell, leases or offers to lease, rents or offers to rent, assigns or offers to assign, or otherwise transfers any interest in the residential unit that the person obtained pursuant to this subpart, shall have the burden of proving the person's compliance with the requirements of this part.
(d) Upon request, the commission may require verification that a presumed owner-occupant continues to be an "owner-occupant", as defined in this subpart. If, due to a sale, lease, assignment, or transfer of the residential unit, the presumed owner-occupant is unable to verify continuing owner-occupancy status, that person may be subject to a fine in an amount equal to the profit made from the sale, lease, assignment, or transfer.
(e) The commission shall adopt rules, pursuant to chapter 91, to carry out the purposes of this subpart. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-99 Penalties.

§514B-99 Penalties.
(a) Any person who executes an affidavit required by this subpart and who violates or fails to comply with any of the provisions of this subpart or any rule adopted by the commission pursuant thereto, shall be subject to a civil penalty of up to $10,000; or fifty per cent of the net proceeds received or to be received by the person from the sale, lease, rental, assignment, or other transfer of the residential unit to which the violation relates, whichever is the greater amount.
(b) Any developer, employee or agent of a developer, or real estate licensee who violates or fails to comply with any of the provisions of this subpart or any rule adopted by the commission pursuant thereto, shall be subject to a civil penalty of up to $10,000. Each violation shall constitute a separate offense. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-99.3 False statement.

§514B-99.3 False statement.
It shall be unlawful for any person to make a false statement in the affidavit required by this subpart or for any person to file with the commission any notice, statement, or other document required under this subpart or any rule adopted by the commission pursuant thereto which is false or contains a material misstatement or omission of fact. Any violation of this section shall be a misdemeanor punishable by a fine not to exceed $2,000, or by imprisonment for a term not to exceed one year, or both. [L 2005, c 93, pt of §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-99.5 Inapplicability of laws.

§514B-99.5 Inapplicability of laws.
(a) This subpart shall not apply to:
(1) A project developed pursuant to section 46-15 or 46-15.1, or chapter 53, 201H, 206, 346, or 356D; provided that the developer of the project may elect to be subject to this subpart through a written notification to the commission;
(2) Condominium projects where the developer conveys all of the residential units in the project to a spouse, or family members related by blood, descent or adoption; and
(3) Condominium projects consisting of two or fewer units.
(b) A developer of a project specified in subsection (a)(1) who elects to be subject to this subpart, or of a project developed pursuant to an affordable housing requirement established by a state or county governmental agency, may elect to waive specific provisions of this subpart that conflict with the eligibility or preference requirements imposed by the governmental agency. The developer of a project specified in subsection (a)(1) who exercises the election shall provide detailed written notification to the commission of the specific provisions that will be waived, an explanation for each waived provision, and a statement from the affected government agency that the project is either an inapplicable project pursuant to subsection (a)(1) or a project for which a governmental agency has imposed eligibility or preference requirements. A copy of this notification shall be filed with the affected governmental agency.
(c) A filing to meet the notification requirements of subsection (a)(1) or (b) shall not be construed to be an approval or disapproval of the project by the commission. [L 2005, c 93, pt of §4; am L 2007, c 249, §26; am L 2010, c 89, §10]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-101 Applicability; exceptions.

§514B-101 Applicability; exceptions.
(a) This part applies to all condominiums subject to this chapter, except as provided in subsection (b).
(b) If so provided in the declaration or bylaws, this part shall not apply to:
(1) Condominiums in which all units are restricted to nonresidential uses; or
(2) Condominiums, not subject to any continuing development rights, containing no more than five units;
provided that section 514B-132 shall not be subject to these exceptions. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-102 Association; organization and membership.

§514B-102 Association; organization and membership.
(a) The first meeting of the association shall be held not later than one hundred eighty days after recordation of the first unit conveyance; provided that forty per cent or more of the project has been sold and recorded. If forty per cent of the project is not sold and recorded at the end of one year after recordation of the first unit conveyance, an annual meeting shall be called if ten per cent of the unit owners so request.
(b) The membership of the association shall consist exclusively of all the unit owners. Following termination of the condominium, the membership of the association shall consist of all former unit owners entitled to distributions of proceeds under section 514B-47, or their heirs, successors, or assigns. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-106.5 Service of process.

§514B-106.5 Service of process.
The board shall establish a policy to provide reasonable access to persons authorized to serve civil process in compliance with section 634-21.5. [L 2009, c 158, § §4, 8; am L 2011, c 65, §1]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-107 Board; limitations.

§514B-107 Board; limitations.
(a) Members of the board shall be unit owners or co-owners, vendees under an agreement of sale, a trustee of a trust which owns a unit, or an officer, partner, member, or other person authorized to act on behalf of any other legal entity which owns a unit. There shall not be more than one representative on the board from any one unit.
(b) No tenant, resident manager, or employee of a condominium shall serve on its board.
For the purposes of this subsection, "tenant" means any person who occupies a dwelling unit for dwelling purposes who is not also an owner of a dwelling unit in the same condominium.
(c) An owner shall not act as an officer of an association and an employee of the managing agent retained by the association. Any owner who is a board member of an association and an employee of the managing agent retained by the association shall not participate in any discussion regarding a management contract at a board meeting and shall be excluded from any executive session of the board where the management contract or the property manager will be discussed.
(d) Directors shall not expend association funds for their travel, directors' fees, and per diem, unless owners are informed and a majority approve of these expenses; provided that, with the approval of the board, directors may be reimbursed for actual expenditures incurred on behalf of the association. The board meeting minutes shall reflect in detail the items and amounts of the reimbursements.
(e) Associations at their own expense shall provide all board members with a current copy of the association's declaration, bylaws, house rules, and, annually, a copy of this chapter with amendments.
(f) The directors may expend association funds, which shall not be deemed to be compensation to the directors, to educate and train themselves in subject areas directly related to their duties and responsibilities as directors; provided that the approved annual operating budget shall include these expenses as separate line items. These expenses may include registration fees, books, videos, tapes, other educational materials, and economy travel expenses. Except for economy travel expenses within the State, all other travel expenses incurred under this subsection shall be subject to the requirements of subsection (d). [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2006, c 273, §17; am L 2014, c 189, §5; am L 2017, c 71, §5]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-109 Restatement of declaration and bylaws.

§514B-109 Restatement of declaration and bylaws.
(a) Notwithstanding any other provision of this chapter or of any other statute or instrument, an association at any time may restate the declaration or bylaws of the association to set forth all amendments thereto by a resolution adopted by the board.
(b) Subject to section 514B-23, an association at any time may restate the declaration or bylaws of the association to amend the declaration or bylaws as may be required in order to conform with the provisions of this chapter or of any other statute, ordinance, or rule enacted by any governmental authority, or to correct the percentage of common interest for the project so it totals one hundred per cent, by a resolution adopted by the board. If the restated declaration is to correct the percentage of common interest for the project so that it totals one hundred per cent, the proportion of each unit owner's percentage of common interest shall remain the same in relation to the other unit owners. The restated declaration or bylaws shall be as fully effective for all purposes as if adopted by a vote or written consent of the unit owners.
Any declaration or bylaws restated pursuant to this subsection shall:
(1) Identify each portion so restated;
(2) Contain a statement that those portions have been restated solely for purposes of information and convenience;
(3) Identify the statute, ordinance, or rule implemented by the amendment; and
(4) Contain a statement that, in the event of any conflict, the restated declaration or bylaws shall be subordinate to the cited statute, ordinance, or rule.
(c) Upon the adoption of a resolution pursuant to subsection (a) or (b), the restated declaration or bylaws shall set forth all of the operative provisions of the declaration or bylaws, as amended, together with a statement that the restated declaration or bylaws correctly sets forth without change the corresponding provisions of the declaration or bylaws, as amended, and that the restated declaration or bylaws supersede the original declaration or bylaws and all prior amendments thereto. If the restated declaration corrects the percentage of common interest as provided in subsection (b), the restated declaration shall also amend the recorded conveyance instruments that govern the unit owner's interest in the unit.
(d) The restated declaration or bylaws must be recorded and, upon recordation, shall supersede the original declaration or bylaws and all prior amendments thereto. In the event of any conflict, the restated declaration or bylaws shall be subordinate to the original declaration or bylaws and all prior amendments thereto. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2006, c 273, §19]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-110 Bylaws amendment permitted; mixed use property; representation on board.

§514B-110 Bylaws amendment permitted; mixed use property; representation on board.
(a) The bylaws of an association may be amended to provide that the composition of the board reflect the proportionate number of units for a particular use, as set forth in the declaration. For example, an association may provide that for a nine-member board where two-thirds of the units are for residential use and one-third is for nonresidential use, sixty-six and two-thirds per cent of the nine-member board, or six members, shall be owners of residential use units and thirty-three and one-third per cent, or three members, shall be owners of nonresidential use units.
(b) Any proposed bylaw amendment to modify the composition of the board in accordance with subsection (a) may be initiated by:
(1) A majority vote of the board; or
(2) A submission of the proposed bylaw amendment to the board from a volunteer unit owners group accompanied by a petition from twenty-five per cent of the unit owners of record.
(c) Within thirty days of a decision by the board or receipt of a petition to initiate a bylaw amendment, the board shall mail a ballot with the proposed bylaw amendment to all of the unit owners of record. For purposes of this section only, the bylaws may initially be amended by a vote or written consent of the majority of the unit owners; and thereafter by at least sixty-seven per cent of all unit owners; provided that each of the requirements set forth in this section shall be embodied in the bylaws.
(d) The bylaws, as amended pursuant to this section, shall be recorded.
(e) Election of the new board in accordance with an amendment adopted pursuant to this section shall be held at the next regular meeting of the association or at a meeting called in accordance with section 514B-121(c) for this purpose.
(f) As permitted in the declaration or bylaws, the vote of a nonresidential unit owner shall be cast and counted only for the nonresidential seats available on the board and the vote of a residential unit owner shall be cast and counted only for the residential seats available on the board.
(g) No petition for a bylaw amendment pursuant to subsection (b)(2) to modify the composition of the board shall be distributed to the unit owners within one year of the distribution of a prior petition to modify the composition of the board pursuant to subsection (b)(2).
(h) This section shall not preclude the removal and replacement of any one or more members of the board pursuant to section 514B-106(f); provided that any director elected by a class of unit owners may be removed or replaced only by a vote of a majority of the common interest represented by that class. Any removal and replacement shall not affect the proportionate composition of the board as prescribed in the bylaws as amended pursuant to this section. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2017, c 71, §3; am L 2019, c 14, §3]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-111 Judicial power to excuse compliance with requirements of declaration or bylaws.

§514B-111 Judicial power to excuse compliance with requirements of declaration or bylaws.
(a) The circuit court of the judicial circuit in which a condominium is located may excuse compliance with any of the following provisions in a declaration or bylaws if it finds that the provision unreasonably interferes with the association's ability to manage the common property, administer the condominium property regime, or carry out any other function set forth in the declaration or bylaws, and that compliance is not necessary to protect the legitimate interests of the members or lenders holding security interests:
(1) A provision limiting the amount of any assessment that can be levied against individually owned property;
(2) A provision requiring that an amendment to the declaration or bylaws be approved by lenders;
(3) A provision requiring approval of at least sixty-seven per cent of the common interest to adopt an amendment pursuant to section 514B-32(a)(11) or section 514B-108(e); provided that the amendment does not:
(A) Prohibit or materially restrict the use or occupancy of, or behavior within, individually owned units;
(B) Change the basis for allocating voting rights or assessments among unit owners; or
(C) Apply to less than all of the unit owners;
(4) A requirement that an amendment to the declaration be signed by unit owners; or
(5) A quorum requirement for meetings of unit owners.
(b) The board, on behalf of the association, shall by certified mail provide all unit owners with notice of the date, time, and place of any court hearing to be held pursuant to this section. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-112 Condominium community mutual obligations.

§514B-112 Condominium community mutual obligations.
(a) All unit owners, tenants of owners, employees of owners and tenants, or any other persons that may in any manner use property or any part thereof submitted to this chapter are subject to this chapter and to the declaration and bylaws of the association adopted pursuant to this chapter.
(b) All agreements, decisions, and determinations lawfully made by the association in accordance with the voting percentages established in this chapter, the declaration, or the bylaws are binding on all unit owners.
(c) Each unit owner, tenants and employees of an owner, and other persons using the property shall comply strictly with the covenants, conditions, and restrictions set forth in the declaration, the bylaws, and the house rules adopted pursuant thereto. Failure to comply with any of the same shall be grounds for an action to recover sums due, for damages or injunctive relief, or both, maintainable by the managing agent, resident manager, or board on behalf of the association or, in a proper case, by an aggrieved unit owner. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-113 Medical cannabis; discrimination.

§514B-113 Medical cannabis; discrimination.
A provision in any articles of incorporation, declaration, bylaws, administrative rules, house rules, or association documents of a condominium allowing for any of the discriminatory practices listed in section 515-3(a)(1) to (7) against a person residing in a unit who has a valid certificate for the medical use of cannabis as provided in section 329-123 in any form is void, unless the documents prohibit the smoking of tobacco and the medical cannabis is used by means of smoking. Nothing in this section shall be construed to diminish the obligation of a condominium association to provide reasonable accommodations for persons with disabilities pursuant to section 515-3(a)(9). L 2015, c 242, §5; am L 2017, c 170, §2; am L 2023, c 17, §12
Cross References
For similar provisions, see §421J-16.
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-122 Association meetings; minutes.

§514B-122 Association meetings; minutes.
(a) Minutes of meetings of the association shall be approved at the next succeeding regular meeting or by the board, if authorized by the owners at an annual meeting. If approved by the board, owners shall be given a copy of the approved minutes or notified of the availability of the minutes within thirty days after approval.
(b) Minutes of all meetings of the association shall be available within seven calendar days after approval, and unapproved final drafts of the minutes of a meeting shall be available within sixty days after the meeting.
(c) An owner shall be allowed to offer corrections to the minutes at an association meeting. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2022, c 62, §5]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-124 Association meetings; purchaser's right to vote.

§514B-124 Association meetings; purchaser's right to vote.
The purchaser of a unit pursuant to a recorded agreement of sale shall have all the rights of a unit owner, including the right to vote; provided that the seller may retain the right to vote on matters substantially affecting the seller's security interest in the unit, including but not limited to, the right to vote on:
(1) Any partition of all or part of the project;
(2) The nature and amount of any insurance covering the project and the disposition of any proceeds thereof;
(3) The manner in which any condemnation of the project shall be defended or settled and the disposition of any award or settlement in connection therewith;
(4) The payment of any amount in excess of insurance or condemnation proceeds;
(5) The construction of any additions or improvements, and any substantial repair or rebuilding of any portion of the project;
(6) The special assessment of any expenses;
(7) The acquisition of any unit in the project;
(8) Any amendment to the declaration or bylaws;
(9) Any removal of the project from the provisions of this chapter; and
(10) Any other matter that would substantially affect the security interest of the seller. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-124.5 Voting for elections; cumulative voting.

§514B-124.5 Voting for elections; cumulative voting.
(a) If the bylaws provide for cumulative voting for an election at a meeting, each unit owner present in person or represented by proxy shall have a number of votes equal to the unit owner's voting percentage multiplied by the number of positions to be filled at the election.
(b) Each unit owner shall be entitled to cumulate the votes of the unit owner and give all of the votes to one nominee or distribute the votes among any or all of the nominees.
(c) The nominee or nominees receiving the highest number of votes under this section, up to the total number of positions to be filled, shall be deemed elected and shall be given the longest term.
(d) This section shall not prevent the filling of vacancies on the board of directors in accordance with this chapter and the association's governing documents. [L 2014, c 189, §1]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-126 Board meetings; minutes.

§514B-126 Board meetings; minutes.
(a) Minutes of meetings of the board shall include the recorded vote of each board member on all motions except motions voted on in executive session.
(b) Minutes of meetings of the board shall be approved no later than the second succeeding regular meeting.
(c) Minutes of all meetings of the board shall be available within seven calendar days after approval, and unapproved final drafts of the minutes of a meeting shall be available within thirty days after the meeting; provided that the minutes of any executive session may be withheld if their publication would defeat the lawful purpose of the executive session. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2017, c 81, §4]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-133 Association employees; background check; prohibition.

§514B-133 Association employees; background check; prohibition.
(a) The board, managing agent, or resident manager, upon the written authorization of an applicant for employment as a security guard or resident manager or for a position that would allow the employee access to the keys of or entry into the units in the condominium or access to association funds, may conduct a background check on the applicant or direct another responsible party to conduct the check. Before initiating or requesting a check, the board, managing agent, or resident manager shall first certify that the signature on the authorization is authentic and that the person is an applicant for such employment. The background check, at a minimum, shall require the applicant to disclose whether the applicant has been convicted in any jurisdiction of a crime which would tend to indicate that the applicant may be unsuited for employment as an association employee with access to association funds or the keys of or entry into the units in the condominium, and the judgment of conviction has not been vacated.
For purposes of this section, the criminal history disclosure made by the applicant may be verified by the board, managing agent, resident manager, or other responsible party, if so directed by the board, managing agent, or resident manager, by means of information obtained through the Hawaii criminal justice data center. The applicant shall provide the Hawaii criminal justice data center with personal identifying information, which shall include, but not be limited to, the applicant's name, social security number, date of birth, and gender. This information shall be used only for the purpose of conducting the criminal history record check authorized by this section. Failure of an association, managing agent, or resident manager to conduct or verify or cause to have conducted or verified a background check shall not alone give rise to any private cause of action against an association, managing agent, or resident manager for acts and omissions of the employee hired.
(b) An association's employees shall not engage in selling or renting units in the condominium in which they are employed, except association-owned units, unless such activity is approved by sixty-seven per cent of the unit owners. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-134 Management and contracts; developer, managing agent, and association.

§514B-134 Management and contracts; developer, managing agent, and association.
(a) Any developer or affiliate of the developer or a managing agent, who manages the operation of the property from the date of recordation of the first unit conveyance until the organization of the association, shall comply with the requirements of sections 514B-72, 514B-103, and 514B-149.
(b) The developer or affiliate of the developer, board, and managing agent shall ensure that there is a written contract for managing the operation of the property, expressing the agreements of all parties including, but not limited to, financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments. Copies of the executed contract and any amendments shall be provided to all parties to the contract. Prior to the organization of the association, any unit owner may request to inspect as well as receive a copy of the management contract from the entity that manages the operation of the property. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-135 Termination of contracts and leases of developer.

§514B-135 Termination of contracts and leases of developer.
(a) If entered into before the board elected by the unit owners pursuant to section 514B-106(e) takes office:
(1) Any management contract, employment contract, or lease of recreational or parking areas or facilities;
(2) Any other contract or lease between the association and a developer or an affiliate of a developer; or
(3) Any contract or lease that is not bona fide or was unconscionable to the unit owners at the time entered into under the circumstances then prevailing;
may be terminated without penalty by the association within a period of one hundred eighty days after the board elected by the unit owners pursuant to section 514B-106(e) takes office, upon not less than ninety days notice to the other party.
(b) This section does not apply to:
(1) Any lease or other agreement the termination of which would terminate the condominium or reduce its size, unless the real estate subject to that lease was included in the condominium for the purpose of avoiding the right of the association to terminate a lease under this section; or
(2) A proprietary lease. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]
2023 Hawaii Revised Statutes › Title 28. Property › 514B. Condominiums › 514B-137 Upkeep of condominium.

§514B-137 Upkeep of condominium.
(a) Except to the extent provided by the declaration or bylaws, the association is responsible for the operation of the property, and each unit owner is responsible for maintenance, repair, and replacement of the owner's unit. Each unit owner shall afford to the association and the other unit owners, and to employees, independent contractors, or agents of the association or other unit owners, during reasonable hours, access through the owner's unit reasonably necessary for those purposes. Unless entry is made pursuant to subsection (b), if damage is inflicted on the common elements or on any unit through which access is taken, the unit owner responsible for the damage, or the association, if it is responsible, is liable for the prompt repair thereof; provided that the association shall not be responsible to pay the costs of removing or replacing any finished surfaces or other barriers that impede its ability to maintain and repair the common elements.
(b) The association shall have the irrevocable right, to be exercised by the board, to have access to each unit at any time as may be necessary for making emergency repairs to prevent damage to the common elements or to another unit or units. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2006, c 273, §22]