HRS § 514B-110 - Bylaws amendment permitted; mixed use property; representation on board
The bylaws may be amended to allocate board seats by residential and nonresidential unit proportions, and the board must follow specified notice, voting, recording, and timing rules.
(a) The bylaws of an association may be amended to provide that the composition of the board reflect the proportionate number of units for a particular use, as set forth in the declaration. For example, an association may provide that for a nine-member board where two-thirds of the units are for residential use and one-third is for nonresidential use, sixty-six and two-thirds per cent of the nine-member board, or six members, shall be owners of residential use units and thirty-three and one-third per cent, or three members, shall be owners of nonresidential use units. (b) Any proposed bylaw amendment to modify the composition of the board in accordance with subsection (a) may be initiated by: (1) A majority vote of the board; or (2) A submission of the proposed bylaw amendment to the board from a volunteer unit owners group accompanied by a petition from twenty-five per cent of the unit owners of record. (c) Within thirty days of a decision by the board or receipt of a petition to initiate a bylaw amendment, the board shall mail a ballot with the proposed bylaw amendment to all of the unit owners of record. For purposes of this section only, the bylaws may initially be amended by a vote or written consent of the majority of the unit owners; and thereafter by at least sixty‑seven per cent of all unit owners; provided that each of the requirements set forth in this section shall be embodied in the bylaws. (d) The bylaws, as amended pursuant to this section, shall be recorded. (e) Election of the new board in accordance with an amendment adopted pursuant to this section shall be held at the next regular meeting of the association or at a meeting called in accordance with section 514B‑121(b) for this purpose. (f) As permitted in the declaration or bylaws, the vote of a nonresidential unit owner shall be cast and counted only for the nonresidential seats available on the board and the vote of a residential unit owner shall be cast and counted only for the residential seats available on the board. (g) No petition for a bylaw amendment pursuant to subsection (b)(2) to modify the composition of the board shall be distributed to the unit owners within one year of the distribution of a prior petition to modify the composition of the board pursuant to subsection (b)(2). (h) This section shall not preclude the removal and replacement of any one or more members of the board pursuant to section 514B‑106(f). Any removal and replacement shall not affect the proportionate composition of the board as prescribed in the bylaws as amended pursuant to this section. [L 2004, c 164, pt of §2]