Challenging an HOA Fine in Hawaii

In Hawaii, a condominium association's power to fine must follow a fining procedure (with an appeal to the board where the board sets that procedure by resolution) — and the state offers mediation and administrative options if a dispute persists. For your specific situation, a licensed Hawaii attorney is the right resource. This is general information, not legal advice.

Can my condo association fine me without a hearing in Hawaii?

It depends on the bylaws. Under HRS § 514B-104(a)(11), a Hawaii condominium association may levy reasonable fines in accordance with its bylaws or, if the bylaws are silent, under a board-resolution fining procedure that states the basis for the fine and allows an appeal to the board "with notice and an opportunity to be heard."

Under § 514B-104(a)(11), a condominium association may "levy reasonable fines for violations of the declaration, bylaws, rules, and regulations of the association, either in accordance with the bylaws or, if the bylaws are silent, pursuant to a resolution adopted by the board that establishes a fining procedure that states the basis for the fine and allows an appeal to the board of the fine with notice and an opportunity to be heard."

That single sentence builds in several protections:

• The fine must be reasonable and tied to a violation of the governing documents.
• There must be a fining procedure — set in the bylaws or, if they are silent, by a board resolution.
• A procedure set by board resolution (because the bylaws are silent) must state the basis for the fine and allow an appeal to the board "with notice and an opportunity to be heard."

So the first questions are whether a proper fining procedure exists and whether the association followed it, including any appeal that procedure provides.

Can I get mediation over a condo fine in Hawaii?

Yes. Under HRS § 514B-146(d)(4) and (g), an owner contesting a fine in an assessment demand may demand mediation in writing before paying, within thirty days of the written statement. Where a board resolution sets the fining procedure, HRS § 514B-104 also requires it to let an owner who pays the fine seek mediation, arbitration, or a DCCA pilot hearing.

Hawaii goes further than many states by offering owners channels beyond the board. Section 514B-104 itself requires a fining procedure adopted by board resolution to provide that "if the fine is paid, the unit owner shall have the right to initiate a dispute resolution process" under §§ 514B-161 and 514B-162 — mediation and arbitration — or through "a request for an administrative hearing under a pilot program administered by the department of commerce and consumer affairs." Separately, under § 514B-146(d)(4) and (g), an owner who contests a fine included in an assessment demand may "make a demand in writing for mediation on the validity of those charges" before paying them — within thirty days of the written statement described in § 514B-146(d); if the mediation isn't completed within sixty days or doesn't resolve the dispute, the association may proceed with collection. Those options can put a disputed fine in front of a neutral without a full lawsuit.

Does Hawaii have a fine law for non-condo HOAs?

No. HRS ch. 421J, which governs planned communities, sets no fine amount and no fining procedure, so any fine authority and process for a Hawaii planned community come from the declaration and bylaws. Section 421J-13 provides for mediation of disputes on request.

Tenants

Where a tenant violates the governing documents, § 514B-104(b) lets the association act against the tenant directly, but only "[a]fter giving notice to the tenant and the unit owner and an opportunity to be heard" — the same process protection extends to that situation.

What people generally do

For a Hawaii fine, the points that commonly matter:

• The association's records — the bylaws or resolution setting the fining procedure, the cited rule, and relevant minutes.
• Whether a proper fining procedure exists and was followed, including, for a procedure set by board resolution, the right to appeal with notice and a hearing.
• The appeal to the board that § 514B-104(a)(11) requires in a fining procedure set by board resolution.
• Mediation, arbitration, or the DCCA administrative-hearing pilot for an unresolved dispute.
• How the rule has been enforced against others matters, a recognized defense; a licensed Hawaii attorney can advise.

Sources

• HRS § 514B-104 — Association; powers (fines)
• HRS § 514B-146 — Lien for assessments
• HRS ch. 421J — Planned community associations