HB 70: Condominium Associations; Budget Summaries; Replacement Reserves; Compliance; Enforcement
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-24
Current Status:
In Progress
(2025-06-03: Act 157, on 06/03/2025 (Gov. Msg. No. 1257).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. Clarifies a unit owner's ability to enforce compliance with budget summary and replacement reserves requirements. (CD1)
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance. Effective 7/1/3000. (SD1)
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. States that the defense of good faith compliance is unavailable to any association whose board adopts a budget that omits the required budget summary. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance. Effective 7/1/3000. (HD1)
States that the defense of good faith compliance is unavailable to any association whose board adopts a budget that omits the required budget summary. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
70 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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C.D. 1 |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that condominium unit owners are entitled to disclosure of information about the replacement reserves maintained by the condominium association in which they own a unit. Recent efforts to increase transparency and accuracy include Act 62, Session Laws of Hawaii 2022 (Act 62), which, among other things, provides for periodic review of a reserve study by an independent reserve study preparer and also lengthens the study period to thirty years. Act 199, Session Laws of Hawaii 2023 (Act 199), requires that a budget summary be prepared, with additional detail, to better inform owners of the financial condition of an association.
Accordingly, the purpose of this Act is to emphasize the importance of compliance with the requirements enacted by Acts 62 and 199 by:
(1) Specifying that the budget summary must contain all required information without referring the reader to other portions of the budget; and
(2) Clarifying a unit owner's ability to enforce compliance with budget summary and replacement reserves requirements.
SECTION 2. Section 514B-148, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) The budget required under section 514B-144(a) shall include a summary with at least the following details:
(1) The estimated revenues and operating expenses of the association;
(2) Disclosure as to whether the budget has been prepared on a cash or accrual basis;
(3) The estimated costs of fire safety equipment or installations that meet the requirements of a building fire and life safety evaluation required by the applicable county for any building located in a county with a population greater than five hundred thousand; provided that the reserve study may forecast a loan or special assessment to fund building fire and life safety components or installation;
(4) The balance of the total replacement reserves fund of the association as of the date of the budget;
(5) The estimated
replacement reserves assessments that the association will require to maintain
the property based on a reserve study performed by or on behalf of the
association; provided that the reserve study, if not prepared by an
independent reserve study preparer, shall be reviewed by an independent reserve
study preparer [not] no less than every three years; provided
further that a managing agent with industry reserve study designations shall
not be considered as having a conflict of interest for purposes of this
paragraph;
(6) A general explanation of how the estimated replacement reserves assessments are computed and detailing:
(A) The identity, qualifications, and potential conflicts of interest of the person or entity performing the reserve study, update, or any review thereof;
(B) Disclosure of any component of association property omitted from the reserve study and the basis for the omission;
(C) Planned increases in the estimated replacement reserve assessments over the thirty-year plan; and
(D) Whether the actual estimated replacement reserves
assessments for the prior year as defined in the study [was] were
less than the assessments provided for in the reserve study, and, if so, by how
much, and explaining the impact of the lesser assessments on future estimated
replacement reserves assessments;
(7) The amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments; and
(8) Information as to whether the amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments was calculated using a per cent funded or cash flow plan. The method or plan shall not circumvent the estimated replacement reserves assessments amount determined by the reserve study pursuant to paragraph (5).
The budget summary shall contain all required information without referring the reader to other portions of the budget."
2. By amending subsection (d) to read:
"(d) No
association or [unit owner, director, officer, managing agent, or employee
of an association] entity that, and no person who, makes a
good faith effort to calculate the estimated replacement reserves assessments
[for an association] required by this section shall be liable
[if] in the event that the estimate subsequently proves
incorrect."
3. By amending subsection (g) to read:
"(g)
[Subject to the procedures of section 514B‑157 and any rules
adopted by the commission, any unit owner whose association board fails to
comply with this section may enforce compliance by the board. In any proceeding to enforce compliance, a
board that has not prepared an annual operating budget and reserve study shall
have the burden of proving it has complied with this section.] Any unit owner shall have standing to
bring an action alleging a violation of this section against an association
that the unit owner is a member of, and may seek an injunction to enforce
compliance with this section by the association's board."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Condominium Associations; Budget Summaries; Replacement Reserves; Compliance; Enforcement
Description:
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. Clarifies a unit owner's ability to enforce compliance with budget summary and replacement reserves requirements. (CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
70 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
|
|
STATE OF HAWAII |
S.D. 1 |
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|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CONDOMINIUM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that condominium owners are entitled to disclosure of information about the replacement reserves maintained by a condominium association in which they own a unit. Recent efforts to increase transparency and accuracy include Act 62, Session Laws of Hawaii 2022 (Act 62), which, among other things, provides for periodic review of a reserve study by an independent reserve study preparer and also lengthens the study period to thirty years. Act 199, Session Laws of Hawaii 2023 (Act 199), requires that a budget summary be prepared, with additional detail, to better inform owners of the financial condition of an association.
Accordingly, the purpose of this Act is to emphasize the importance of compliance with the requirements enacted by Acts 62 and 199 by:
(1) Specifying that the budget summary must contain all required information without referring the reader to other portions of the budget; and
(2) Providing that an association has the burden of proving compliance.
SECTION 2. Section 514B-148, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) The budget required under section 514B-144(a) shall include a summary with at least the following details:
(1) The estimated revenues and operating expenses of the association;
(2) Disclosure as to whether the budget has been prepared on a cash or accrual basis;
(3) The estimated costs of fire safety equipment or installations that meet the requirements of a life safety evaluation required by the applicable county for any building located in a county with a population greater than five hundred thousand; provided that the reserve study may forecast a loan or special assessment to fund life safety components or installation;
(4) The balance of the total replacement reserves fund of the association as of the date of the budget;
(5) The estimated replacement reserves assessments that the association will require to maintain the property based on a reserve study performed by or on behalf of the association; provided that the reserve study, if not prepared by an independent reserve study preparer, shall be reviewed by an independent reserve study preparer not less than every three years; provided further that a managing agent with industry reserve study designations shall not be considered as having a conflict of interest for purposes of this paragraph;
(6) A general explanation of how the estimated replacement reserves assessments are computed and detailing:
(A) The identity, qualifications, and potential conflicts of interest of the person or entity performing the reserve study, update, or any review thereof;
(B) Disclosure of any component of association property omitted from the reserve study and the basis for the omission;
(C) Planned increases in the estimated replacement reserve assessments over the thirty-year plan; and
(D) Whether the actual estimated replacement reserves assessments for the prior year as defined in the study was less than the assessments provided for in the reserve study, and, if so, by how much, and explaining the impact of the lesser assessments on future estimated replacement reserves assessments;
(7) The amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments; and
(8) Information as to whether the amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments was calculated using a per cent funded or cash flow plan. The method or plan shall not circumvent the estimated replacement reserves assessments amount determined by the reserve study pursuant to paragraph (5).
The budget summary shall contain all required information without referring the reader to other portions of the budget."
2. By amending subsection (d) to read:
"(d) No
association or [unit owner, director, officer, managing agent, or employee
of an association] entity that, and no person who, makes a
good faith effort to calculate the estimated replacement reserves assessments
[for an association] required by this section shall be liable
[if] in the event that the estimate subsequently proves
incorrect."
3. By amending subsection (g) to read:
"(g)
[Subject to the procedures of section 514B‑157 and any rules
adopted by the commission, any unit owner whose association board fails to
comply with this section may enforce compliance by the board. In any proceeding to enforce compliance, a
board that has not prepared an annual operating budget and reserve study shall
have the burden of proving it has complied with this section.] Any unit owner shall have standing to
bring an action alleging a violation of this section against an association
that the unit owner is a member of, and may seek an injunction to enforce
compliance with this section by the association's board. The association shall have the burden of proving
substantial compliance with this section in any such action."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Condominium Associations; Budget Summaries; Replacement Reserves; Compliance; Enforcement
Description:
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance. Effective 7/1/3000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
70 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CONDOMINIUM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that condominium owners are entitled to disclosure of information about the replacement reserves maintained by a condominium association in which they own a unit. Recent efforts to increase transparency and accuracy include Act 62, Session Laws of Hawaii 2022 (Act 62), which, among other things, provides for periodic review of a reserve study by an independent reserve study preparer and also lengthens the study period to thirty years. Act 199, Session Laws of Hawaii 2023 (Act 199), requires that a budget summary be prepared, with additional detail, to better inform owners of the financial condition of an association.
Accordingly, the purpose of this Act is to emphasize the importance of compliance with the requirements enacted by Acts 62 and 199 by:
(1) Specifying that the budget summary must contain all required information without referring the reader to other portions of the budget;
(2) Explicitly stating that the defense of good faith compliance is unavailable to any condominium association whose board adopts a budget that omits the required budget summary; and
(3) Providing that an association has the burden of proving compliance.
SECTION 2. Section 514B-148, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) The budget required under section 514B-144(a) shall include a summary with at least the following details:
(1) The estimated revenues and operating expenses of the association;
(2) Disclosure as to whether the budget has been prepared on a cash or accrual basis;
(3) The estimated costs of fire safety equipment or installations that meet the requirements of a life safety evaluation required by the applicable county for any building located in a county with a population greater than five hundred thousand; provided that the reserve study may forecast a loan or special assessment to fund life safety components or installation;
(4) The balance of the total replacement reserves fund of the association as of the date of the budget;
(5) The estimated replacement reserves assessments that the association will require to maintain the property based on a reserve study performed by or on behalf of the association; provided that the reserve study, if not prepared by an independent reserve study preparer, shall be reviewed by an independent reserve study preparer not less than every three years; provided further that a managing agent with industry reserve study designations shall not be considered as having a conflict of interest for purposes of this paragraph;
(6) A general explanation of how the estimated replacement reserves assessments are computed and detailing:
(A) The identity, qualifications, and potential conflicts of interest of the person or entity performing the reserve study, update, or any review thereof;
(B) Disclosure of any component of association property omitted from the reserve study and the basis for the omission;
(C) Planned increases in the estimated replacement reserve assessments over the thirty-year plan; and
(D) Whether the actual estimated replacement reserves assessments for the prior year as defined in the study was less than the assessments provided for in the reserve study, and, if so, by how much, and explaining the impact of the lesser assessments on future estimated replacement reserves assessments;
(7) The amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments; and
(8) Information as to whether the amount the association must collect for the fiscal year to fund the estimated replacement reserves assessments was calculated using a per cent funded or cash flow plan. The method or plan shall not circumvent the estimated replacement reserves assessments amount determined by the reserve study pursuant to paragraph (5).
The budget summary shall contain all required information without referring the reader to other portions of the budget."
2. By amending subsection (d) to read:
"(d) No
association or [unit owner, director, officer, managing agent, or employee
of an association] entity that, and no person who, makes a
good faith effort to calculate the estimated replacement reserves assessments
[for an association] required by this section shall be liable
[if] in the event that the estimate subsequently proves
incorrect. The defense of good faith
shall be unavailable to an association whenever its board adopts a budget that
omits the summary required by subsection (a)."
3. By amending subsection (g) to read:
"(g)
[Subject to the procedures of section 514B‑157 and any rules
adopted by the commission, any unit owner whose association board fails to
comply with this section may enforce compliance by the board. In any proceeding to enforce compliance, a
board that has not prepared an annual operating budget and reserve study shall
have the burden of proving it has complied with this section.] Any unit owner shall have standing to
bring an action alleging a violation of this section against an association
that the unit owner is a member of, and may seek an injunction to enforce
compliance with this section by the association's board. The association shall have the burden of
proving substantial compliance with this section in any such action."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Condominium Associations; Budget Summaries; Replacement Reserves; Compliance; Enforcement
Description:
Requires budget summaries to contain all required information without referring the reader to other portions of the budget. States that the defense of good faith compliance is unavailable to any association whose board adopts a budget that omits the required budget summary. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
70 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to condominium.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that condominium owners are entitled to disclosure of information about the replacement reserves maintained by a condominium association in which they own a unit. Recent efforts to increase transparency and accuracy include Act 62, Session Laws of Hawaii 2022 (Act 62), which, among other things, provides for periodic review of a reserve study by an independent reserve study preparer and also lengthens the study period to thirty years. Act 199, Session Laws of Hawaii 2023 (Act 199), requires that a budget summary be prepared, with additional detail, to better inform owners of the financial condition of an association.
Accordingly, the purpose of this Act is to emphasize the importance of compliance with the requirements enacted by Acts 62 and 199 by:
(1) Explicitly stating that the defense of good faith compliance is unavailable to any condominium association whose board adopts a budget that omits the required budget summary; and
(2) Providing that an association has the burden of proving compliance.
SECTION 2. Section 514B-148, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (d) to read:
"(d) No
association or [unit owner, director, officer, managing agent, or employee
of an association] entity that, and no person who, makes a
good faith effort to calculate the estimated replacement reserves assessments
[for an association] required by this section shall be liable
[if] in the event that the estimate subsequently proves
incorrect. The defense of good faith
shall be unavailable to an association whenever its board adopts a budget that
omits the summary required by subsection (a)."
2. By amending subsection (g) to read:
"(g)
[Subject to the procedures of section 514B‑157 and any rules
adopted by the commission, any unit owner whose association board fails to
comply with this section may enforce compliance by the board. In any proceeding to enforce compliance, a
board that has not prepared an annual operating budget and reserve study shall
have the burden of proving it has complied with this section.] Any unit owner shall have standing to
bring an action alleging a violation of this section against an association
that the unit owner is a member of, and may seek an injunction to enforce
compliance with this section by the association's board. The association shall have the burden of
proving substantial compliance with this section in any such action."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Condominium Associations; Budget Summaries; Replacement Reserves; Compliance; Enforcement
Description:
States that the defense of good faith compliance is unavailable to any association whose board adopts a budget that omits the required budget summary. Clarifies the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
|
Status
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|---|---|
| Jun 3, 2025 | Act 157, on 06/03/2025 (Gov. Msg. No. 1257). |
| Jun 3, 2025 | Act 157, 06/03/2025 (Gov. Msg. No. 1257). |
| May 1, 2025 | Transmitted to Governor. |
| May 2, 2025 | Received notice of passage on Final Reading in House (Hse. Com. No. 821). |
| May 1, 2025 | Received notice of Final Reading (Sen. Com. No. 888). |
| Apr 30, 2025 | Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick excused (2). |
| Apr 30, 2025 | Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. |
| Apr 24, 2025 | 48 Hrs. Notice (as amended CD 1) 04-30-25 |
| Apr 24, 2025 | Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 43). |
| Apr 24, 2025 | Forty-eight (48) hours notice Wednesday, 04-30-25. |
| Apr 24, 2025 | Reported from Conference Committee (Conf Com. Rep. No. 43) as amended in (CD 1). |
| Apr 24, 2025 | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Keohokalole, Rhoads, Fukunaga, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa. |
| Apr 24, 2025 | The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Matayoshi, Todd, Iwamoto, Pierick; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Apr 23, 2025 | Conference Committee Meeting will reconvene on Thursday 04-24-25 1:30PM in conference room 224. |
| Apr 22, 2025 | Conference Committee Meeting will reconvene on Wednesday 04-23-25 1:30PM in conference room 224. |
| Apr 21, 2025 | Conference Committee Meeting will reconvene on Tuesday 04-22-25 1:30PM in conference room 224. |
| Apr 17, 2025 | Bill scheduled for Conference Committee Meeting on Monday, 04-21-25 1:30PM in conference room 224. |
| Apr 16, 2025 | Received notice of Senate conferees (Sen. Com. No. 810). |
| Apr 16, 2025 | Senate Conferees Appointed: Keohokalole Chair; Rhoads Co-Chair; Fukunaga, McKelvey, Awa. |
| Apr 15, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 732). |
| Apr 14, 2025 | House Conferees Appointed: Matayoshi, Todd Co-Chairs; Iwamoto, Pierick. |
| Apr 4, 2025 | House disagrees with Senate amendment (s). |
| Apr 3, 2025 | Returned from Senate (Sen. Com. No. 538) in amended form (SD 1). |
| Apr 3, 2025 | Report Adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 2, 2025 | One Day Notice 04-03-25. |
| Apr 2, 2025 | Reported from JDC (Stand. Com. Rep. No. 1509) with recommendation of passage on Third Reading. |
| Mar 25, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 3 Aye(s): Senator(s) Rhoads, Chang, San Buenaventura; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Gabbard, Awa. |
| Mar 21, 2025 | The committee(s) on JDC will hold a public decision making on 03-25-25 10:01AM; Conference Room 016 & Videoconference. |
| Mar 21, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC. |
| Mar 21, 2025 | Reported from CPN (Stand. Com. Rep. No. 1254) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC. |
| Mar 14, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) McKelvey, Richards. |
| Mar 7, 2025 | The committee(s) on CPN has scheduled a public hearing on 03-14-25 9:30AM; Conference Room 229 & Videoconference. |
| Mar 6, 2025 | Referred to CPN, JDC. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 183). |
| Mar 4, 2025 | Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Reported from JHA (Stand. Com. Rep. No. 1060), recommending passage on Third Reading. |
| Feb 25, 2025 | The committee on JHA recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Perruso, Takayama, Todd; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Cochran, Kahaloa, Garcia, Shimizu. |
| Feb 21, 2025 | Bill scheduled to be heard by JHA on Tuesday, 02-25-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Feb 7, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kong, Ward excused (3). |
| Feb 7, 2025 | Reported from CPC (Stand. Com. Rep. No. 253) as amended in HD 1, recommending passage on Second Reading and referral to JHA. |
| Jan 30, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Pierick. |
| Jan 28, 2025 | Bill scheduled to be heard by CPC on Thursday, 01-30-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE. |
| Jan 21, 2025 | Referred to CPC, JHA, referral sheet 1 |
| Jan 16, 2025 | Introduced and Pass First Reading. |
| Jan 13, 2025 | Prefiled. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 30, 2025 | Final Reading | House Floor |
Passed |
|
| Apr 30, 2025 | Final Reading | Senate Floor |
Passed |
|
| Apr 3, 2025 | Third Reading | Senate Floor |
Passed |
|
| Mar 25, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Judiciary |
Passed |
|
| Mar 14, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
|
| Mar 4, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 25, 2025 | The committee on JHA recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
|
| Jan 30, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Consumer Protection & Commerce |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| AMS, PCAM (Career Association Community Manager) | *** Against | Mar 14, 2025 |
| Community Associations Institute Hawaii | ** Support | |
| Hawaii Alliance for Retired Americans | *** Support | Mar 24, 2025 |
| Hawaii First Realty | ** Support | |
| Hawaiiana Management Company, Ltd. | ** Support | |
| Hawaiʻi Association of REALTORS | ** Support | |
| Honolulu Tower Association of Apartment Owners | ** Against | |
| Kokua Council | *** Support | Mar 24, 2025 |
| Law Offices of Mark K. McKellar, LLLC | *** Against | Mar 24, 2025 |
| Mariner’s Village (AOUO) | *** Against | Mar 14, 2025 |
| Mariner’s Village 1 | *** Against | Feb 25, 2025 |
| Palehua Townhouse Association | ** Against | |
| Palehua Townhouse Association | *** Against | Mar 24, 2025 |
| The Continental Apartments (AOUO) | *** Against | Mar 14, 2025 |
| Waialae Place (AOUO) | *** Against | Mar 14, 2025 |
| Waikiki Neighborhood Board | *** Support | Mar 24, 2025 |
CONFERENCE COMMITTEE REP. NO. 43
Honolulu, Hawaii
, 2025
RE: H.B. No. 70
H.D. 1
S.D. 1
C.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madam and Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 70, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to:
(1) Specify that condominium association budget summaries must contain all required information without referring the reader to other portions of the budget; and
(2) Clarify a condominium unit owner's capacity to enforce compliance with the budget summary and replacement reserves requirements and provide that the condominium association has the burden to prove substantial compliance with those requirements.
Your Committee on Conference has amended this measure by:
(1) Deleting language providing that the condominium association has the burden to prove substantial compliance with budget summary and replacement reserves requirements;
(2) Changing the effective date to upon approval; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 70, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 70, H.D. 1, S.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
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____________________________ JARRETT KEOHOKALOLE Chair |
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____________________________ SCOT Z. MATAYOSHI Co-Chair |
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____________________________ KARL RHOADS Co-Chair |
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____________________________ CHRIS TODD Co-Chair |
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STAND. COM. REP. NO. 1509
Honolulu, Hawaii
RE: H.B. No. 70
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred H.B. No. 70, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require budget summaries to contain all required information without referring the reader to other portions of the budget; and
(2) Clarify the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance.
Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS, Community Associations Institute Hawaii, Hawaii First Realty, and five individuals.
Your Committee received testimony in opposition to this measure from the Palehua Townhouse Association, Honolulu Tower Association of Apartment Owners, and eleven individuals.
Your Committee received comments on this measure from one individual.
Your Committee finds that condominium owners are entitled to disclosure of information about the replacement reserves maintained by a condominium association in which they own a unit. Additionally, the Legislature recently passed Act 62, Session Laws of Hawaii 2022, which requires a budget summary with additional details to be prepared on the financial condition of an association. This measure will further enhance transparency and provide both owners and prospective purchasers with valuable insights into the association's financial health by requiring these budget summaries to contain all required information.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 70, H.D. 1, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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________________________________ KARL RHOADS, Chair |
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STAND. COM. REP. NO. 1254
Honolulu, Hawaii
RE: H.B. No. 70
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 70, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Specify that a condominium association's budget summary shall have all required information without referring the reader to other portions of the budget;
(2) Explicitly state that the defense of good faith compliance is not available to a condominium association whose board adopts a budget that omits the required budget summary; and
(3) Clarify the ability to enforce compliance with the budget summary and replacement reserves requirements and provide that an association has the burden of proving compliance.
Your Committee received testimony in support of this measure from Hawaii First Realty, Hawaiʻi Association of REALTORS, Community Associations Institute, and seven individuals.
Your Committee received testimony in opposition to this measure from Honolulu Tower; Hawaii Council of Community Associations; Law Offices of Mark K. McKellar, LLLC; and fifteen individuals.
Your Committee finds that the financial transparency of a condominium association is essential for condominium unit owners to keep informed of an association's financial health. Recent amendments to existing law require, among other things, that condominium associations prepare a detailed budget summary to better inform unit owners of their financial condition. Your Committee further finds that additional clarification is needed to further effectuate the goal to increase financial transparency between associations and condominium unit owners. This measure also aims to prevent associations from misleading consumers by omitting important financial information from their budget summaries under the good-faith defense provisions.
Your Committee notes the concerns raised in testimony, however, that given the comprehensive list of requirements for the budget summary required by this measure, an association could easily inadvertently omit information from the summary, or the information provided in the summary may later turn out to be inaccurate or incomplete. If a specific component is inadvertently omitted from the summary and the omission is not disclosed, an association could be accused of breaching its duty by failing to meet all the budget summary requirements, even if the association acted in good faith. Therefore, to prevent unnecessary litigation or disputes, amendments are necessary to address this issue.
Accordingly, your Committee has amended this measure by:
(1) Removing language that would have barred the defense of good faith for any condominium association whose board adopts a budget that omits the budget summary required by section 514B-148(a), Hawaii Revised Statutes; and
(2) Amending section 1 to reflect its amended purpose.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 70, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 70, H.D. 1, S.D. 1, and be referred to your Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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STAND. COM. REP. NO. 1060
Honolulu, Hawaii
, 2025
RE: H.B. No. 70
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 70, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Specify that the condominium association budget summary must contain all required information without referring the reader to other portions of the budget;
(2) Explicitly state that the defense of good faith compliance is unavailable to any condominium association whose board adopts a budget that omits the required budget summary; and
(3) Provide that a condominium association has the burden of proving compliance.
Your Committee finds that condominium associations in the State play a critical role in managing shared residential properties, yet concerns have arisen regarding the transparency and accountability of financial disclosures, particularly with reserve studies and budget summaries. Your Committee further finds that some condominium associations have failed to provide clear and accessible summaries of their financial health, leaving unit owners without crucial information about their financial obligations and long-term property maintenance. This measure strengthens financial transparency by ensuring that condominium associations provide accurate and complete budget summaries and removes the good faith exemption for boards that fail to comply, promoting better governance and protecting homeowners' interest.
As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 70, H.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,
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____________________________ DAVID A. TARNAS, Chair |
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STAND. COM. REP. NO. 253
Honolulu, Hawaii
, 2025
RE: H.B. No. 70
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 70 entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Provide that the defense of good faith compliance is unavailable to any condominium association whose board adopts a budget that omits the required budget summary; and
(2) Provide that an association has the burden to prove substantial compliance.
Your Committee finds that the Legislature has recently passed laws to increase transparency and accuracy with respect to condominium association replacement reserves and reserve studies. Your Committee further finds that additional effort is needed to ensure that condominium associations are complying with these new laws. Accordingly, this measure is intended to increase condominium association compliance with recent disclosure requirements associated with reserve studies and budget summaries.
Your Committee has amended this measure by:
(1) Specifying that budget summaries must contain all required information without referring the reader to other portions of the budget;
(2) Changing the effective date to July 1, 3000, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 70, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 70, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ SCOT Z. MATAYOSHI, Chair |
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Date
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Testimony PDF
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| Mar 24, 2025 | HB70_SD1_TESTIMONY_JDC_03-25-25_.PDF |
| Mar 14, 2025 | HB70_HD1_TESTIMONY_CPN_03-14-25_.PDF |
| Feb 25, 2025 | HB70_HD1_TESTIMONY_JHA_02-25-25_.PDF |
| Jan 30, 2025 | HB70_TESTIMONY_CPC_01-30-25_.PDF |
Discussed in Hearing
1MIN
Conference Committee
1MIN
Conference Committee
1MIN
Conference Committee
3MIN
Conference Committee
18SEC
Senate Floor
3MIN
House Standing Committee on Judiciary & Hawaiian Affairs
7MIN
House Standing Committee on Consumer Protection & Commerce
Bill Author
Bill Co-Author(s):
