Haw. Code R. § 16-107-63

Current through April, 2024

Section 16-107-63 - Effective date for establishing statutory replacement reserves

(a) The requirements of this section shall be subject to the transitional rules stated in section 16-107-64 and the emergency rules stated in section 16-107-67.

(b) Each budget year, beginning in the 1993 budget year, the board of an existing association shall prepare and adopt an annual operating budget for the following budget year. Each annual operating budget shall include assessments sufficient to fund the association's statutory replacement reserves for the year to which the budget relates. Each budget year, beginning with the 1994 budget year, the association shall assess and collect at least its statutory replacement reserves for that budget year.

(c) Each budget year, beginning in the year of a new association's first annual meeting, the board of the new association shall prepare and adopt an annual operating budget for the following budget year. Each annual operating budget shall include assessments sufficient to fund the association's statutory replacement reserves for the year to which the budget relates. Each budget year, beginning in the first budget year after the new association's first meeting, the association shall collect at least its statutory replacement reserves for that budget year.

(d) For those projects where the declaration has been recorded but the association has not held its first meeting by the later of either:

(1) December 31, 1995; or

(2) That date which is thirty-six months after the filing of the declaration,

then at least once each calendar year, commencing with the calendar year immediately following such later date, the developer shall, unless the developer owns one hundred per cent of the apartments in the project, notify in writing each apartment owner of the manner in which replacement reserves for future project maintenance and repairs are being addressed.

(1) The purpose for establishing replacement reserves;

(2) A general summary of the replacement reserve requirements that would apply to associations under chapter 514A, HRS, and this subchapter, which held their first meetings before January 1, 1993, instead of after January 1, 1993, which general summary may be in such form as the commission may provide;

(3) Whether any replacement reserve studies have been prepared for the project; and

(4) The amount of replacement reserves, if any, being collected as part of the owners' maintenance fees, or otherwise being funded by the developer, and the manner in which those reserves were established.

Haw. Code R. § 16-107-63

[Eff 1/2/95] (Auth: HRS§§ 514A-83.6, 514A-99) (Imp: HRS § 514A-83.6)