Gov. Josh Green has vetoed the first bill of this legislative session, and the first of his administration.
Senate Bill 921, would have clarified the time period in which a condominium association could take action against a developer.
In his veto message, Green said the bill may increase the cost of housing as an unintended consequence and could potentially require additional insurance premium coverage for homeowners.
"Our administration is focused on alleviating our critical housing shortage in Hawai‘i and we are reluctant to enact any new law that could add costs to housing or delays in construction," Green said in the message.
Sen. Karl Rhoads of Oʻahu introduced the bill and disagrees with Green's assessment. Rhoads said the bill doesn't really affect affordable housing as Green argues, but rather condo owners.
The measure proposes that the statute of repose, which is 10 years, would not preclude a condominium association from suing a developer until two years after the developer terminated control of the building.
A simple example would be when a developer held a building and its board for 11 years. Within two years of the developer terminating its ownership, a condominium association retains the right of legal action for two years, even though the repose period has passed.
Rhoads said the issue doesn't come up often, but can mean a lot for those associations where this may happen.
On Monday, Rhoads said he disagrees with Green’s assessment and told HPR he would like the state Legislature to override the veto.
