Haw. Code R. § 16-107-67 - Emergencies and emergency situations

(a) An association whose replacement reserves and contingency reserves have been substantially depleted by an emergency shall have three budget years to re-establish a minimum of fifty per cent of a full replacement reserve. The three years shall be calculated from the end of the budget year in which the association makes the payment which substantially depletes the association's replacement reserve.

(b) The board shall have the discretion to assess the owners in monthly, quarterly, or yearly installments to re-establish a minimum of fifty per cent of a full replacement reserve.

(c) In an emergency situation subject to section 514A-83.6(f), HRS, the board shall calculate the twenty per cent limit of that section based on the association's total annual operating budget for the budget year when the expense will occur. The board must notify the owners if an expense required because of an emergency situation will exceed the twenty per cent limit, but the board need not obtain owner approval for the expense. Prior to January 1, 2000, the board of an existing association shall not be subject to the twenty per cent limit.

(d) Section 514A-83.6(f), HRS, shall only limit a board's right to exceed its annual operating budget during the budget year to which the operating budget relates. The section shall not limit the board's right to increase an annual operating budget by more than twenty per cent over the annual operating budget of the previous year.

Notes

Haw. Code R. § 16-107-67

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