When association assessments go unpaid in Hawaii, the burden falls on everyone else. The cash shortfall affects service and maintenance, insurance coverage, and much needed cash reserves. Board members and managers know this all too well. Whether you're managing an oceanfront condo in Waikiki, a townhouse association on Maui, or a planned community on the Big Island, Hawaii's collection laws provide viable tools to address delinquencies—but only if you understand how they work.

What Your Assessments Actually Pay For

Hawaii association assessments keep communities running. Association assessments pay for expenses, maintenance and services that owners often take for granted, such as:

  • Grounds and common areas—landscaping, pool upkeep, lobby maintenance, parking facilities, waste disposal
  • Building infrastructure—elevators, fire safety systems, shared HVAC
  • Shared utilities—water, sewer, electricity for common areas (and sometimes units)
  • Taxes and insurance—property taxes on common elements, depending upon the association's master policy
  • Reserve fund contributions—money set aside for roof replacements, repaving, and other major expenses down the road
  • Special Assessments—Special Assessments are infrequent, and only arise when the cost of major repairs or improvements exceed the amount typically held in reserve funds. In Hawaii, where salt air corrodes building materials, hurricanes pose real threats, and volcanic activity affects some communities, keeping reserves adequately funded through timely collection is essential.

Hawaii has two main statutes governing assessment collections, depending on what type of community you're in:

For Condominiums: HRS Chapter 514B

The Condominium Property Act covers condo associations statewide. Section 514B-146 lays out the rules for assessment liens—how they arise, what they can include, and how to enforce them.

For Planned Communities: HRS Chapter 421J

HOAs in planned developments fall under the Planned Community Associations Act. Section 421J-10.5 establishes the parallel lien and collection framework for these communities.

Under both statutes, a lien attaches to the property automatically, the moment an owner fails to pay. You don't need to file paperwork or go to court for this to happen—the lien is applied by operation of law.

What Goes Into the Lien

When a lien is filed, Hawaii allows associations to include more than just unpaid assessments, such as:

  • Late fees—as spelled out in the Association's governing documents
  • Interest—up to 18% annually for condos under HRS §514B-146
  • Attorney's fees and collection costs—these must be reasonable amounts actually incurred
  • Fines—although there are limits on foreclosing for fines alone

Being able to pass collection costs on to the delinquent owner gives the Association a significant advantage; it allows them to pursue unpaid assessments without draining reserves meant for ongoing maintenance and improvements.

Where Your Lien Stands in Line

The Six-Month Super-Lien

HRS §514B-146(g) gives condominium associations priority over first mortgages for up to six months of unpaid assessments—regardless of when that mortgage was recorded. This "super-lien" covers only the assessments themselves, not interest, late fees, attorney's fees, or fines.

Lien priority determines who gets paid first when a property sells or goes through foreclosure. Generally, whoever records the lien first has priority. But Hawaii's Six-Month Super-Lien gives condo associations a major advantage. Banks and mortgage companies pay attention when their security interest can be reduced by six months of back assessments. That attention often translates into lenders stepping up to pay delinquencies to protect their position.

Association liens rank above nearly everything else except:

  • Real property taxes and government assessments
  • The super-priority portion of other association liens

Options When Owners Won't Pay

When demand letters and payment plans haven't worked, Hawaii associations can foreclose on their liens. There are several paths available:

Judicial Foreclosure

This means filing suit in circuit court. The process takes longer, but it offers distinct benefits:

  • A judge oversees everything
  • You can pursue a deficiency judgment if the sale doesn't cover the full debt
  • Competing liens get sorted out clearly
  • Judicial foreclosures are rarely overturned

Nonjudicial Foreclosure

If your governing documents include a power of sale clause, you can foreclose without going to court. This typically moves faster and costs less, but may be challenged in court.

Alternative Nonjudicial Foreclosure

HRS §667-91 and following sections create an alternative process with additional homeowner protections:

  • A mandatory 30-day window for the owner to propose a payment plan before foreclosure moves forward
  • There are specific notice requirements
  • A neutral third party conducts the sale

One important limitation: Nonjudicial foreclosure is not an option when the lien consists only of fines and penalties, with no unpaid assessments. In that case, judicial foreclosure is your only option.

What Owners Are Entitled To

Hawaii law doesn't give associations unlimited power. There are built-in protections for homeowners that boards need to follow:

Written Notice

Before recording liens or starting foreclosure, associations must send proper written notice. The notice requirements cover content, timing, and how it's delivered.

Payment Plans

Under the alternative nonjudicial foreclosure process, owners can request a payment plan of up to 12 months to resolve a delinquency. Associations have to give these requests genuine consideration.

Mediation

HRS §421J-13 provides for mediation between planned community associations and their members. It's not required for all collection disputes, but it can resolve things before they escalate further.

Military Protections

Hawaii has a large military population, and federal law provides protections that boards need to know about. The Servicemembers Civil Relief Act caps interest at 6% on pre-service debts, allows service members to request stays of proceedings during deployment, and requires extra steps before default judgments can be entered.

The Clock Is Running

In Hawaii, Associations can enforce collection of delinquent assessments up to six years old. Delinquencies that go back further than six years may not be immediately collected. Bankruptcy filings typically pause the clock, preserving collection rights while the bankruptcy proceeds.

We Handle Collections Differently

The Rickel Law Firm has been in operation since 1899, with more than 125 years of experience.

Here's what that means for Hawaii communities:

  • Your reserves stay intact. Our fees and costs are applied to the delinquent owner's balance, not the association's books. 
  • You can see what's happening. Our ONYX portal gives board members and managers around-the-clock access to case status, payment history, and collection progress.
  • We keep it professional. Delinquent owners are still your neighbors. We pursue collections in step with state laws while treating delinquent owners with respect— this produces better results and keeps community relationships intact.
  • We know Hawaii law. From the super-lien provisions to the alternative nonjudicial foreclosure process, we understand what works in Hawaii and what doesn't.

Getting Started

Every month that an assessment goes uncollected, other owners are stuck bearing the shortfall. Maintenance gets deferred. The longer the delinquency goes on, the harder it is to fix.

If your Hawaii association has accounts that need attention, contact us for a free consultation. Don't use funding from people who pay on time to collect from people who don't!  Contact Rickel Law. We will explain how we can help and answer any questions you have about the process.

Call The Rickel Law Firm at 855-752-7156 or reach out through our website to set up a consultation.