House Judiciary Committee Hearing

There is a hearing on Tuesday, February 22, 2005 at 2:00 p.m. in room 325 on some bills of interest to community associations before the House Judiciary Committee before chair Rep. Sylvia J. Luke. The hearing notice discusses the following bills of interest to community associations:

HB 783 This bill would repeal the 1874 nonjudicial (power of sale) foreclosure law and amend the 1998 alternate power of sale foreclosure process by allowing all mortgages to be foreclosed through the process, capping the public sale purchaser's downpayment to not more than 10 percent of the highest successful bid, removing the requirement that the borrower sign the conveyance document, and clarifying that the new property owner may take possession no sooner than 45 days after the public sale. Effective July 1, 2099. The bill is an improvement because the 1874 law does not contain consumer protections. The 1998 law was never used because no one would use the law because they couldn't rely on the borrower to sign the conveyance document after the foreclosure. The bill also adds the additional consumer protection that a 10% downpayment thereby insuring that more people would bid on the property.

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 422, 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.