United States v. Kailua Village Condominium Association

Kailua-Kona, Hawaii · federal · United States District Court for the District of Hawaii

HOA loss · fair-housing

What happened

HUD investigated a disability-discrimination complaint about a Kailua-Kona condominium unit sale involving a buyer with paraplegia, issued a charge, and referred the matter. The United States sued August 19, 2024, naming the association, board members, property managers, sellers, and selling agents (including Jacqueline Frame and Kona Now LLC, among others), alleging refusal to sell, discriminatory terms/statements, refusal of reasonable accommodations/modifications, and harassment. On October 11, 2024, a partial consent order with all defendants except Frame and Kona Now required $112,500 in damages to the complainant, training, RA/RM policy adoption, and four-year reporting. On January 29, 2025, a final consent order required Frame and Kona Now to pay $50,000 and obtain fair-housing training.

What the court (or agency) held

Defendants lost via staged consent orders (no trial verdict). Combined monetary relief to the complainant totaled $162,500 across partial and final consent orders, plus injunctive policy, training, and monitoring obligations for settling association/management/seller-side defendants.

Why this matters for members

FHA disability duties apply to condo sales and HOA approval processes—not only post-closing rule enforcement. Sellers, agents, boards, and managers can all be named; partial settlements may leave holdout defendants to a later consent order with additional damages.

What the member did

Filed a HUD housing-discrimination complaint that led to a charge and DOJ enforcement/consent orders.

Questions for the board

Questions for a lawyer

Citation

United States v. Kailua Village Condominium Association, Civil No. 24-cv-00353 (D. Haw.); partial consent order Oct. 11, 2024; final consent order Jan. 29, 2025 (2025-01-29). United States District Court for the District of Hawaii. Outcome chip: AG/consent. Source: https://www.justice.gov/crt/case/united-states-v-kailua-village-condominium-association-et-al-d-haw

_General information, not legal advice. Outcomes turn on facts and current law._

Source opinion

General information, not legal advice. Outcomes turn on facts and current law.

Not a law firm. Not legal advice. Confirm this against your documents and your state’s law.