On July 13, 2006, I posted an article about the exceptions to the Recodification sections that automatically apply to existing condominiums. In this article, I want to focus on the statutes that automatically apply and more importantly, the statutes that do not automatically apply to existing condominiums. The following are the sections that automatically apply to existing condominiums unless one of the three exceptions I wrote about On July 13, 2006 comes into play:

  1. HRS §514B-3: Definitions (to the extent that they are involved in any of the other sections, below)
  2. HRS §514B-4: Separate Title & Taxation of Condominium Units
  3. HRS §514B-5: Conformance with county land use laws
  4. HRS §514B-35: Unit boundaries provisions that would treat windows, doors and other parts of the project that affects fewer than all of the owners as limited common elements
  5. HRS §514B-41(c): Exception to apportioning limited common expenses when it would be more expensive to allocate
  6. HRS §514B-46: Merger of increments
  7. HRS §514B-72: Payments into condominium education trust fund
  8. HRS Chapter 514B, Part VI: Most of the provisions applicable to the management of condominiums
While most of the provisions that involve the governance of condominium associations automatically apply to existing condominiums there are a few provisions that do not automatically apply to existing condominium associations. Some of the most significant provisions that do not automatically apply to existing condominiums are:

  1. HRS §514B-9 (this provision establishes an obligation of good faith for associations, directors and owners on obligations and duties imposed by HRS Chapter 514B)
  2. HRS §514B-10 (this provision requires that the condominium documents and 514B to be liberally construed by the courts and eliminates punitive damages for any claims under 514B)
  3. HRS §514B-32(11) (this provision reduced the approval requirement for Declaration amendments to 67%)
  4. HRS §514B-38 (this provision: (a) reduced the approval requirement for leases of the common elements to 67%; (b) permits the Association to allow owners to have minimal exclusive use of the common elements without 100% approval; and (c) permits the Association to convert open spaces to other uses without 100% approval)
  5. HRS §514B-47 (this provision includes specific instructions for what happens when a leasehold condominium is condemned)
As you can see, some of the provisions that do not automatically apply to existing condominiums can have a substantial benefit to the associations. In my next post, I will discuss “opting-in” to the Recodification which will allow condominium associations to take advantage of these provisions.