HB 76 Summary

• Allows condominium and planned community associations to conduct nonjudicial foreclosures to collect unpaid assessments without requiring specific power of sale language in association governing documents or owner agreements.

• Clarifies that associations cannot use nonjudicial foreclosure procedures to collect fines, penalties, legal fees, or late fees; such liens must be foreclosed through judicial proceedings.

• Amends the definition of "power of sale" in Chapter 667 to explicitly include association lien enforcement by condominium and planned community associations under part VI of the foreclosure statute.

• Responds to the 2018 appellate court decision in Sakal v. Association of Apartment Owners of Hawaiian Monarch by confirming legislative intent that associations have inherent authority to use nonjudicial foreclosure procedures.

• Effective date: July 1, 2050, with provisions preserving amendments to Chapter 514B-146 during a scheduled reenactment date of June 30, 2020.