What Happens if You Don't Pay for HOA in Hawaii?
The Hawaii legislature has not adopted the Uniform Common Interest Ownership Act. As such, homeowners' associations do not have superior lien rights to collect their delinquent assessments and dues. When Hawaiians fail to pay their homeowners' association fees, homeowners' associations can pursue collections by filing liens against them, levying their personal or real property after filing lawsuits against them.
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Overview
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State laws establish what happens when homeowners do not pay their homeowners' association assessments or dues. Developers or homeowners in private neighborhoods typically create homeowners’ associations, known as HOAs. HOAs have the legal authority to assess fines against delinquent homeowners who fail to pay their regular HOA fees or fail to pay their HOA fines for noncompliance with bylaws or architectural standards.
Uniform Common Interest Ownership Act
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Some states have adopted parts of the Uniform Common Interest Ownership Act. The National Conference of Commissioners on Uniform State Laws drafted the Uniform Common Interest Ownership Act in 1982 as part of an effort to standardize HOA and property laws. The Uniform Common Interest Ownership Act provides HOAs with "super priority" lien rights. Super priority lien rights allow HOAs to assert priority in their rights to collect their delinquencies. Super priority statutes may give HOAs priority over lenders and other lien holders.
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Liens and Levies
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Since the Hawaiian legislature has not adopted the Uniform Common Interest Ownership Act, HOAs may not have priority over lenders to collect their debts. Although Hawaii allows HOAs to record liens against homeowners' real property, they may not have the power to force judicial foreclosure or force a sale of homeowners' property. Instead, they can collect their obligations and debts by filing liens and levies against their property. However, many homeowners who default on their HOA dues' obligations are also in default on their mortgage loans.
Judicial Consequences
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Homeowners who default on their mortgage payments may have to sell their houses through forced sales to satisfy their outstanding loans. When lenders force judicial sales, HOAs can pursue their own collections against homeowners by requesting courts to award any remaining proceeds to satisfy their liens. HOAs can also sue homeowners through Hawaii's judicial system in which courts have the power to award outstanding assessments, dues, court costs, attorneys' fees, damages and interest on late assessments.
Bylaw Enforcement
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HOAs also have the legal authority to enforce their bylaws, including the right to revoke a homeowner's right to use recreational amenities such as swimming pool facilities, clubhouses and gyms. Some HOAs also revoke a homeowner's right to use parking garages and neighborhood spaces. Homeowners who do not settle their delinquencies are unable to sell their homes since buyers refuse to purchase property with existing liens.
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