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HI HB1863

Bill

Status

Introduced

1/25/2016

Primary Sponsor

Cindy Evans

Click for details

Origin

House of Representatives

2016 Regular Session

AI Summary

  • Amends Hawaii Revised Statutes Section 667-100(b) to change the priority order for distributing surplus proceeds from condominium association foreclosures.

  • Removes first mortgage holders from the priority payment order, ensuring they are not paid from surplus proceeds since they retain a lien on the property and other remedies.

  • Establishes that surplus proceeds after paying association attorney fees, foreclosure costs, and amounts owed to the association shall be distributed to junior creditors by priority order (not pro rata).

  • Directs any remaining surplus after all junior creditors are paid in full to be distributed to the former unit owner.

  • Takes effect upon approval.

Legislative Description

Condominium; Association Foreclosure; Priority

Last Action

The committees on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) McKelvey, Woodson, Belatti, Brower, Creagan, Hashem, C. Lee, Nakashima, Takayama, Fukumoto Chang; Ayes with reservations: Representative(s) Har, San Buenaventura; 0 Noes: none; and 4 Excused: Representative(s) Kawakami, Oshiro, Yamane, McDermott.

2/17/2016

Committee Referrals

Consumer Protection & Commerce1/27/2016

Full Bill Text

No bill text available