2020-02-11 Letter to Roy Takumi and Linda Ichiyama HB 1789 Relating to Associations

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v os Roy Takemoto 4ov�►<�'• • •, Managing Director 4144 Harry Kim Manor af•:; „rte M°.� . Barbara J.Kossow .oF N►.�!- Deputy Managing Director County of Hawaii Office of the Mayor 25 Aupuni Street,Suite 2603 • Hilo, Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawai'i 96740 (808)323-4444 • Fax(808)323-4440 February 11, 2020 Representative Roy M. Takumi, Chair Representative Linda Ichiyama, Vice Chair Committee on Consumer Protection and Commerce Dear Chair Takumi, Vice Chair Ichiyama, and Committee Members: RE: HB 1789 Relating to Associations We agree with the premise behind HB 1789, that there should be a mechanism for creating a dues-collecting association in a residential subdivision where one does not exist. However, we would ask for at least one amendment, and then offer some additional thoughts: 1. Page 2, lines 16-17, speak of a "class approved by the county or real estate commission..." The county would not have any expertise is creating such a class, and we ask that the words "the county or" be stricken. 2. Page 3, line 12. It is anticipated that there might be more than one association created. a. If there is a challenge, or an election is required, the bill does not specify what entity will determine the "majority vote of the landowners." This kind of squabble can get very nasty, and again the County should not be required to resolve it. I would suggest that the bill explicitly state that this would be a matter for a court of appropriate jurisdiction. b. Will the landowners have one vote each, or will voting be based on lot size, number of lots owned, or some other method? What about multiple owners of one lot? All that should be spelled out. c. I don't think the bill requires that the "founding members" of the association be residents or even landowners in the subdivision. If that's the case, I could foresee some enterprising individual organizing one or more associations and then attempting to charge the owners for "all reasonable expenses necessary to form such association..." Unless that is what is intended, I would suggest requiring that all founding members be landowners in the subdivision, and probably that there be some minimum number of lot owners required to initiate the procedure. Thank you for your consideration. Respectfully Submitted, Harry Kim MAYOR County of Hawai`i is an Equal Opportunity Provider and Employer.