Hawaii SB2368 regulates the dissolution of planned community associations.

Hawaii SB2368 amends Chapter 421J, Hawaii Revised Statutes, to establish procedures for the dissolution of planned community associations. The bill allows an association to dissolve if a plan of dissolution is approved by 67% of the members and a court. The plan must include a timeline for termination, asset distribution, creditor payment, and asset management. The board or a termination trustee carries out the plan, which includes managing contracts, debts, lawsuits, and property. The board can continue to wind up association affairs after plan approval.

Hawaii SB2368 regulates the dissolution of planned community associations.

Hawaii SB2368 amends Chapter 421J, Hawaii Revised Statutes, to establish procedures for the dissolution of planned community associations. The bill allows an association to dissolve if a plan of dissolution is approved by 67% of the members and a court. The plan must include a timeline for termination, asset distribution, creditor payment, and asset management. The board or a termination trustee carries out the plan, which includes managing contracts, debts, lawsuits, and property. The board can continue to wind up association affairs after plan approval.