HAR §15-307-152. Legal action on behalf of owner

(a) For the purpose of this section, the term "dwelling unit" means all residences developed, constructed, financed, or sold pursuant to chapter 201G, HRS, regardless of whether or not the restrictions set forth in section 201H-47, HRS, remain in effect. The term "land" means vacant lots developed, constructed, financed, or sold pursuant to chapter 201H, HRS, regardless of whether or not the rest ctions set forth in section 201H-47, HRS, remain in effect. (b) If a dwelling unit or land is found to have a substantial construction or soil defect, the corporation, upon approval of the board, may, but shall not be obligated to, file a legal action on behalf of the owner of the dwelling unit for the recovery of damages or for injunctive relief against the developer, co-developer, general contractor, and their subcontractors, consultants and other parties involved with the development, construction, or sale of the dwelling unit or with the construction or soil defect. (c) Before the corporation may file or participate in any legal action on behalf of the owner, the corporation shall enter into an agreement approved by the board, with the owner relating to the corporation's participation in the legal action. The agreement shall include, but shall not be limited to, provisions as to the following: 307-42 §15-307-161. 5 (1) The scope of the corporation's participation in the legal action; (2) The responsibility for payment of the expenses of litigation, including attorneys' fees and expert witnesses' fees; and (3) The allocation of any damages awarded in the legal action or of any proceeds from settlement of the legal action. (d) The corporation, upon approval of the board, shall have the authority to retain attorneys and expert witnesses and incur the expenses reasonably necessary for the legal action. (e) The corporation shall not be barred from bringing a legal action under this subsection notwithstanding any period of limitations set forth in chapter 657, HRS. [Eff 12/04/10; am and comp 4/28/17; comp JAN 1 5 2022 ] (Auth: HRS §201H-4) (Imp: HRS §201H-51) SUBCHAPTER 10 PROJECT FINANCING OF LOANS AND MORTGAGE AND SECURITY REQUIREMENTS