House Consumer Protection Committee Hearing

There is a hearing on Wednesday, February 23, 2005 at 2:00 p.m. in room 325 on some bills of interest to community associations before the House Consumer Protection Committee before chair Rep. Kenneth T. Hiraki. The hearing notice discusses the following bills of interest to community associations:

HB 973 This bill would require that if the managing agent desires to lease part of the property being managed, the managing agent would be required to hire an appraiser to determine the fair market lease rent. It also prohibits the managing agent from hiring any employee of the Association. The bill also requires the developer or board to consider at least two bids prior to executing a contract with a managing agent. I have concerns about the bill because it involves micromanagement of condominium associations. Most people are aware of the going lease rent, particularly if other property is being rented by the Association. Requiring an appraisal will simply add an additional cost lowering the amount a tenant would be willing to pay. As far as hiring an employee of the Association, there are also instances where an association does not need a full time employee and it makes sense for the Association to share an employee with the managing agent. Requiring multiple bids probably does not make sense particularly in situations where the Association is happy with the services of a current managing agent and decides to renew the contract. In any event, that is a business decision that should be made by the Association.

PERSONS WISHING TO TESTIFY ARE REQUESTED TO SUBMIT 35 COPIES OF THEIR TESTIMONY AT LEAST 24 HOURS PRIOR TO THE HEARING TO: (1) THE COMMITTEE'S VICE CHAIR IN ROOM 425, STATE CAPITOL, OR (2) THE HOUSE SGT.-AT-ARMS TESTIMONY DROP OFF BOX IN THE TURNAROUND AREA OF THE CAPITOL BASEMENT PARKING LOT. TESTIMONY MAY ALSO BE FAXED IF LESS THAN 5 PAGES IN LENGTH TO THE HOUSE SGT.-AT-ARMS OFFICE AT: 586-6501 (OAHU) OR 1-800-535-3859 (NEIGHBOR ISLANDS). WHEN FAXING, PLEASE INDICATE TO WHOM THE TESTIMONY IS BEING SUBMITTED, THE DATE AND TIME OF THE HEARING, AND THE REQUIRED NO. OF COPIES THAT IS NEEDED FOR SUBMITTAL.