HI HR28

Requests the Department of Commerce and Consumer Affairs to convene a task force to study requiring homeowners association disputes to be resolved through alternative dispute resolution before litigation.

Task force composition includes the Director of Commerce and Consumer Affairs, a Judiciary Alternative Dispute Resolution representative, the Ombudsman, a homeowners association representative, a Legislative Reference Bureau member, and a Hawaii Association of Realtors member.

Addresses the current lack of dispute resolution mechanisms for homeowners associations, contrasting with condominium complexes which have access to mediation and arbitration under Hawaii Revised Statutes sections 514A-121, 514A-121.5, and 514B-161.

Notes that homeowners association disputes handled through litigation drain association funds for legal fees rather than maintenance repairs and can delay resolution of critical infrastructure issues affecting hundreds of residents.

Task force must report findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2017 Regular Session.