SB 2838: Condominiums; Associations; Managing Agents; Documents; Electronic Format

A BILL FOR AN ACT

RELATING TO CONDOMINIUMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that a significant portion of the State's housing stock are units in association‑governed condominiums.  The number of individuals living in units governed by condominium associations has risen steadily for over sixty years and is expected to increase because it is one of the more affordable means of home ownership.

     The legislature also finds that reports published by the department of commerce and consumer affairs in the Hawaii Condominium Bulletin regarding mediation cases subsidized by the condominium education trust fund show that most of the disputes were related to interpretation of an association's governing documents.  Reports in the Hawaii Condominium Bulletin also show that one of the more frequent statutory violations by managing agents is the failure to comply with section 514B-154.5(c), Hawaii Revised Statutes, which requires certain association documents to be submitted to owners within thirty days of an owner's written request. 

     Accordingly, the purpose of this Act is to require condominium associations to provide certain association documents in an electronic format to unit owners.

     SECTION 2.  Section 514B-154.2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§514B-154.2[]]  [Governing] Association documents; electronic copies.  (a)  Notwithstanding any other provision to the contrary in the declaration, bylaws, or house rules, an association shall provide an electronic copy of [its governing] the association documents[,] listed in subsection (b), as amended or restated, to a unit owner or the unit owner's authorized agent, upon request, at no cost to the unit owner or the unit owner's authorized agent.

     (b)  [For the purposes of this section, "governing documents" means the declaration; bylaws; covenants, conditions, and restrictions; and house rules.] Association documents to be provided in an electronic format shall include:

     (1)  Evidence of and information on fidelity bond coverage;

     (2)  Names and positions of the officers of the association;

     (3)  The name and contact information of the association's managing agent, if any;

     (4)  The name and contact information of an emergency contact for the association that is not the managing agent;

     (5)  The street and postal address of the project;

     (6)  An accurate copy of:

          (A)  The articles of incorporation, if any, declaration, bylaws, and amendments thereto;

          (B)  Covenants, conditions, and restrictions;

          (C)  The regulations, resolutions, and house rules, if any;

          (D)  Master lease, if any;

          (E)  A sample original conveyance document;

          (F)  All public reports and any amendments thereto;

          (G)  All contracts, leases, or other agreements entered into by the board to which the association is a party or under which the association or unit owners have obligations or liabilities;

          (H)  Minutes of all meetings of the association, pursuant to sections 514B-122 and 514B-126 for the immediately preceding twelve months;

          (I)  All policies of insurance of the association, including current policies and policies for the immediately preceding ten years;

          (J)  The most recent reserve study;

          (K)  A list of the association's planned capital expenditures, if any, from the date of registration through June 30 of the following year;

          (L)  The association's most recent audited financial statement;

          (M)  The association's most recently adopted budget with any monthly or recurring association fees and any applicable current or approved special assessments specifically outlined; and

          (N)  All reports issued within the preceding ten years on the structural status of each property owned, operated, or governed by the project or association; and

     (7)  A description of the location of all building permits for work in the common elements of the project or association, which shall be posted during construction."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Condominiums; Associations; Managing Agents; Documents; Electronic Format

Description:

Requires condominium associations to provide certain association documents in electronic format to unit owners.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to condominiums.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that a significant portion of the State's housing stock are units in association‑governed condominiums.  The number of individuals living in units governed by condominium associations has risen steadily for over sixty years and is expected to increase because it is one of the more affordable means of home ownership. 

     The legislature also finds that reports published by the department of commerce and consumer affairs in the Hawaii Condominium Bulletin regarding mediation cases subsidized by the condominium education trust fund show that most of the disputes were related to interpretation of an association's governing documents.  Reports in the Hawaii Condominium Bulletin also show that one of the more frequent statutory violations by managing agents is the failure to comply with section 514B-154.5(c), Hawaii Revised Statutes, which requires certain association documents to be submitted to owners within thirty days of an owner's written request. 

     The legislature further finds that the real estate commission's annual reports reiterate the commission's long-range goal of providing associations with a central depository for all governing documents on its website.

     The legislature further finds that the "Five States’ Approaches to Aspects of Condominium Law" study, as required by Act 43, Session Laws of Hawaii 2024, and completed by the legislative reference bureau in November 2025, found that there was near-universal support for use of online portals to provide access to association documents.

     The legislature further finds that it is in the best interests of residents of the State to require condominium associations to file timely registrations with the State containing certain information and documents, to be published by the State in a publicly accessible online database.  The database would facilitate transparency, as well as resident awareness and access to important information and documents regarding community associations that are necessary for association governance.  The database would also alleviate the workload of the real estate commission, lower the burden of condominium disputes on mediation agencies and the courts, and reduce costs for condominium associations and unit owners.

     Accordingly, the purpose of this Act is to:

     (1)  Require the department of commerce and consumer affairs to establish a publicly accessible online portal to include certain condominium association information and documents;

     (2)  Impose an additional condominium education trust fund fee for biennial condominium registrations to fund the establishment of the online portal for condominium association information and documents;

     (3)  Require certain association information and documents to be provided to the real estate commission for publication on the online portal for condominium association information and documents;

     (4)  Require condominium associations to maintain records of the information and documents provided to the real estate commission for publication on the online portal and to make those records available to a unit owner upon request;

     (5)  Authorize unit owners to recover reasonable attorneys' fees and costs if they prevail in enforcement actions against a condominium association that fails to make documents available upon request within a specified timeframe;

     (6)  Enable a managing agent to dispose of certain association records after a specified timeframe; and

     (7)  Substitute certain requirements for written affidavits with requirements for written certifications in relation to access to certain association documents.

     SECTION 2.  Section 514B-52, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  An application for registration of a project shall:

     (1)  Be accompanied by nonrefundable fees as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91; and

     (2)  Contain the documents and information concerning the project and the condominium property regime as required by sections 514B-54, 514B-83, [and] 514B-84, 514B-103, 514B-153, 514B-154, and 514B-154.5, as applicable, and as otherwise may be specified by the commission."

     SECTION 3.  Section 514B-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each project or association with more than five units shall pay to the department of commerce and consumer affairs:

     (1)  A condominium education trust fund fee within one year after the recordation of the purchase of the first unit or within thirty days of the association's first meeting, and thereafter, on or before June 30 of every odd-numbered year, as prescribed by rules adopted pursuant to chapter 91; [and]

     (2)  Beginning with the July 1, 2015, biennium registration, an additional annual condominium education trust fund fee in an amount equal to the product of $1.50 times the number of condominium units included in the registered project or association to be dedicated to supporting mediation or voluntary binding arbitration of condominium related disputes.  The additional condominium education trust fund fee shall total $3 per unit until the commission adopts rules pursuant to chapter 91[.]; and

     (3)  Beginning with the July 1, 2027 biennium registration, an additional annual condominium education trust fund fee in an amount equal to the product of $1.00 times the number of condominium units included in the registered project or association to be dedicated to establishment of the online portal for condominium association information and documents.  The additional condominium education trust fund fee shall total $2.00 per unit until the commission adopts rules pursuant to chapter 91.

     On June 30 of every odd-numbered year, any unexpended additional amounts paid into the condominium education trust fund and initially dedicated to supporting mediation or voluntary binding arbitration of condominium related disputes, as required by this paragraph, shall be used for educational purposes as provided in section 514B-71(a)(1), (2), and (3)."

     SECTION 4.  Section 514B-103, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each project or association having more than five units shall:

     (1)  Secure and maintain a fidelity bond in an amount for the coverage and terms as required by section 514B‑143(a)(3).  An association shall act promptly and diligently to recover from the fidelity bond required by this section.  An association that is unable to obtain a fidelity bond may seek approval for an exemption, a deductible, or a bond alternative from the commission.  Current evidence of a fidelity bond includes a certification statement from an insurance company registered with the department of commerce and consumer affairs certifying that the bond is in effect and meets the requirement of this section and the rules adopted by the commission;

     (2)  Register with the commission through approval of a completed registration application, payment of fees, and submission of any other additional information set forth by the commission.  The registration shall be for a biennial period with termination on June 30 of each odd-numbered year.  The commission shall prescribe a deadline date prior to the termination date for the submission of a completed reregistration application, payment of fees, and any other additional information set forth by the commission.  Any project or association that has not met the submission requirements by the deadline date shall be considered a new applicant for registration and be subject to initial registration requirements.  Any new project or association shall register within thirty days of the association's first meeting.  If the association has not held its first meeting and it is at least one year after the recordation of the purchase of the first unit in the project, the developer or developer's affiliate or the managing agent shall register on behalf of the association and shall comply with this section, except for the fidelity bond requirement for associations required by section [[]514B-143(a)(3)[]].  The public information required to be submitted on any completed application form shall include but not be limited to [evidence of and information on fidelity bond coverage, names and positions of the officers of the association, the name of the association's managing agent, if any, the street and the postal address of the condominium, and the name and current mailing address of a designated officer of the association where the officer can be contacted directly;]:

          (A)  Evidence of and information on fidelity bond coverage;

          (B)  Names and positions of the officers of the association;

          (C)  The name and contact information of the association's managing agent, if any;

          (D)  The name and contact information of an emergency contact for the association that is not the managing agent;

          (E)  The street and postal address of the project;

          (F)  An accurate copy of:

               (i)  The articles of incorporation, if any, declaration, bylaws, and amendments thereto;

              (ii)  The regulations, resolutions, and house rules, if any;

             (iii)  Master lease, if any;

              (iv)  A sample original conveyance document;

               (v)  All public reports and any amendments thereto;

              (vi)  All contracts, leases, or other agreements entered into by the board to which the association is a party or under which the association or unit owners have obligations or liabilities;

             (vii)  Minutes of all meetings of the association, pursuant to sections 514B-122 and 514B-126 for the immediately preceding twelve months;

            (viii)  All policies of insurance of the association, including current policies and policies for the immediately preceding ten years;

              (ix)  The most recent reserve study;

               (x)  A list of the association's planned capital expenditures, if any, from the date of registration through June 30 of the following year;

              (xi)  The association's most recent audited financial statement;

             (xii)  The association's most recently adopted budget with any monthly or recurring association fees and any applicable current or approved special assessments specifically outlined; and

            (xiii)  All reports issued within the preceding ten years on the structural status of each property owned, operated, or governed by the project or association; and

          (G)  A description of the location of all building permits for work in the common elements of the project or association, which shall be posted during construction;

     (3)  Pay a nonrefundable application fee and, upon approval, an initial registration fee, a reregistration fee upon reregistration and the condominium education trust fund fee, as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91;

     (4)  Register or reregister and pay the required fees by the due date.  Failure to register or reregister or pay the required fees by the due date shall result in the assessment of a penalty equal to the amount of the registration or reregistration fee; and

     (5)  Report promptly in writing to the commission any changes to the information contained on the registration or reregistration application or any other documents required by the commission.  Failure to do so may result in termination of registration and subject the project or the association to initial registration requirements."

     SECTION 5.  Section 514B-153, Hawaii Revised Statutes, is amended to read as follows:

     "§514B-153  Association records; records to be maintained.  (a)  An accurate copy of [the declaration, bylaws, house rules, if any, master lease, if any, a sample original conveyance document, all public reports and any amendments thereto,] all documents listed in section 514B-103(a)(2)(F) shall be kept at the managing agent's office[.], a convenient location at the project, or a location designated by the board; provided that the minutes shall be for all meetings of the association and its board and not limited to the meetings in the immediately preceding twelve months.

     (b)  The managing agent or board shall keep detailed, accurate records in chronological order, of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred.  The managing agent or board shall also keep monthly statements indicating the total current delinquent dollar amount of any unpaid assessments for common expenses.

     (c)  Subject to section 514B‑152, all records and the vouchers authorizing the payments and statements shall be kept and maintained at the address of the project, or elsewhere within the State as determined by the board.

     (d)  The developer or affiliate of the developer, board, and managing agent shall ensure that there is a written contract for managing the operation of the property, expressing the agreements of all parties, including but not limited to financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments.  Copies of the executed contract and any amendments shall be provided to all parties to the contract.

     (e)  The department of commerce and consumer affairs shall maintain a searchable database containing the registration information and attached documents of each association registered with the commission pursuant to section 514B-52.  The database shall be publicly accessible on the department of commerce and consumer affairs' website.

     [(e)] (f)  The managing agent, resident manager, or board shall keep an accurate and current list of members of the association and their current addresses, and the names and addresses of the vendees under an agreement of sale, if any.  The list shall be maintained at a place designated by the board, and a copy shall be available, at cost, to any member of the association as provided in the declaration or bylaws or rules and regulations or, in any case, to any member who furnishes to the managing agent or resident manager or the board a [duly executed and acknowledged affidavit] written certification stating that the list:

     (1)  Will be used by the owner personally and only for the purpose of soliciting votes or proxies or providing information to other owners with respect to association matters; and

     (2)  Shall not be used by the owner or furnished to anyone else for any other purpose.

     A board may prohibit commercial solicitations.

     Where the condominium project or any units within the project are subject to a time share plan under chapter 514E, the association shall only be required to maintain in its records the name and address of the time share association as the representative agent for the individual time share owners unless the association receives a request by a time share owner to maintain in its records the name and address of the time share owner.

     [(f)] (g)  The managing agent or resident manager shall not use or distribute any membership list, including for commercial or political purposes, without the prior written consent of the board.

     [(g)] (h)  All membership lists are the property of the association and any membership lists contained in the managing agent's or resident manager's records are subject to subsections [(e)] (f) and [(f),] (g), and this subsection.  A managing agent, resident manager, or board may not use the information contained in the lists to create any separate list for the purpose of evading this section.

     [(h)] (i)  Subsections [(f)] (g) and [(g)] (h) shall not apply to any time share plan regulated under chapter 514E."

     SECTION 6.  Section 514B-154, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsections (a) through (f) to read:

     "(a)  [The association's most current financial statement shall be provided to any interested unit owner at no cost or on twenty-four-hour loan, at a convenient location designated by the board.  The meeting minutes of the board of directors, once approved, for the current and prior year shall either:] Any unit owner shall have the right to inspect, examine, and make copies of the records required to be maintained by section 514B-153, in person or by authorized agent, at any reasonable time, at the association's principal office or with the board or managing agent.  To exercise this right, a unit owner shall submit a written request to the board or managing agent, stating the records sought to be inspected, examined, or copied.  Failure of a board or managing agent to make available all records requested within ten business days of receipt of the owner's written request shall be deemed a denial.  Any unit owner who prevails in an enforcement action to compel inspection, examination, or copying of the records required to be maintained by section 514B-153 shall be entitled to recover reasonable attorneys' fees and costs from the association.  These documents shall:

     (1)  Be available for examination by apartment owners at no cost or on twenty-four-hour loan at a convenient location at the project, to be determined by the board of directors; [or]

     (2)  Be transmitted to any apartment owner or the owner's authorized representative making a request [for the minutes], by the board of directors, the managing agent, or the association's representative[, within fifteen days of receipt of the request]; provided that the [minutes] documents shall be transmitted by mail, electronic mail transmission, or facsimile, by the means indicated by the owner, if the owner indicated a preference at the time of the request; [and] provided further that the owner shall pay a reasonable fee for administrative costs associated with handling the request[.]; or

     (3)  Be available on the department of commerce and consumer affairs' online portal for registered condominium associations.

Costs incurred by apartment owners pursuant to this subsection shall be subject to section 514B‑105(d).

     (b)  Financial statements, general ledgers, the accounts receivable ledger, accounts payable ledgers, check ledgers, insurance policies, contracts, and invoices of the association for the duration those records are kept by the association and delinquencies of ninety days or more shall be available for examination by unit owners at convenient hours at a place designated by the board; provided that:

     (1)  The board may require owners to furnish to the association a [duly executed and acknowledged affidavit] written certification stating that the information is requested in good faith [for the protection of the interests of the association, its members, or both;] and will not be used by the unit owner for any commercial purpose or any purpose that does not relate to the association; and

     (2)  Owners shall pay for reasonable administrative costs in excess of [eight] twenty hours per year.

     Copies of these items shall be provided to any owner upon the owner's request; provided that the owner pays a reasonable fee for duplication, postage, stationery, and other administrative costs associated with handling the request.

     (c)  After any association meeting, and not earlier, unit owners shall be permitted to examine proxies, tally sheets, ballots, owners' check-in lists, and the certificate of election; provided that:

     (1)  Owners shall make a request to examine the documents within thirty days after the association meeting;

     (2)  The board may require owners to furnish to the association a [duly executed and acknowledged affidavit] written certification stating that the information is requested in good faith for the protection of the interest of the association or its members or both; and

     (3)  Owners shall pay for administrative costs in excess of [eight] twenty hours per year.

     The documents may be destroyed ninety days after the association meeting; provided that in the event of a contested election, the documents shall be retained until the contested election is resolved.  Copies of tally sheets, owners' check-in lists, and the certificates of election from the most recent association meeting shall be provided to any owner upon the owner's request; provided that the owner pays a reasonable fee for duplicating, postage, stationery, and other administrative costs associated with handling the request.

     (d)  The managing agent shall provide copies of association records maintained pursuant to this section and sections 514B‑103, 514B‑152, and 514B‑153 to owners, prospective purchasers and their prospective agents during normal business hours, upon payment to the managing agent of a reasonable charge to defray any administrative or duplicating costs.  If the project is not managed by a managing agent, the foregoing requirements shall be undertaken by a person or entity, if any, employed by the association, to whom this function is delegated.

     (e)  [Prior to the organization of the association, any] Any unit owner shall be entitled to inspect as well as receive a copy of the management contract from the entity that manages the operation of the property.

     (f)  Owners may file a written request with the board to examine other documents.  The board shall give written authorization or written refusal with an explanation of the refusal within [thirty calendar] ten business days of receipt of the request."

     2.  By amending subsection (h) to read:

     "(h)  A managing agent retained by one or more associations may dispose of the records of any association [which] that are more than [five] ten years old, except for tax records, which [shall] may be [kept for] disposed of after seven years, without liability if the managing agent first provides the board of the association affected with written notice of the managing agent's intent to dispose of the records if not retrieved by the board within sixty days, which notice shall include an itemized list of the records proposed to be disposed."

     3.  By amending subsection (j) to read:

     "(j)  Any fee charged to a member to obtain printed copies of association records under this section shall be reasonable; provided that a reasonable fee shall include administrative and duplicating costs and shall not exceed $1 per printed page, or portion thereof, except the fee for pages exceeding eight and one-half inches by fourteen inches may exceed $1 per printed page."

     SECTION 7.  Section 514B-154.2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  For the purposes of this section, "governing documents" means the declaration; bylaws; covenants, conditions, and restrictions; [and] house rules[.]; and any amendments thereto."

     SECTION 8.  Section 514B-154.5, Hawaii Revised Statutes, is amended to read as follows:

     "§514B-154.5  Association documents to be provided.  (a)  Notwithstanding any other provision in the declaration, bylaws, or house rules, if any, the following documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-103, 514B-152, 514B-153, or 514B-154, shall be made available to any unit owner and the owner's authorized agents by the managing agent, resident manager, board through a board member, or the association's representative:

     (1)  All financial and other records sufficiently detailed in order to comply with requests for information and disclosures related to the resale of units;

     (2)  [An accurate copy of the declaration, bylaws, house rules, if any, master lease, if any, a sample original conveyance document, and all public reports and any amendments thereto;] All records required to be maintained pursuant to section 514B-153(a);

     (3)  Detailed, accurate records in chronological order of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred and monthly statements indicating the total current delinquent dollar amount of any unpaid assessments for common expenses;

     (4)  All records and the vouchers authorizing the payments and statements kept and maintained at the address of the project, or elsewhere within the State as determined by the board, subject to section 514B-152;

     (5)  All signed and executed agreements for managing the operation of the property, expressing the agreement of all parties, including but not limited to financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments;

     (6)  An accurate and current list of members of the condominium association and the members' current addresses and the names and addresses of the vendees under an agreement of sale, if any.  A copy of the list shall be available, at cost, to any unit owner or owner's authorized agent who furnishes to the managing agent, resident manager, or the board a [duly executed and acknowledged affidavit] written certification stating that the list:

          (A)  Shall be used by the unit owner or owner's authorized agent personally and only for the purpose of soliciting votes or proxies or for providing information to other unit owners with respect to association matters; and

          (B)  Shall not be used by the unit owner or owner's authorized agent or furnished to anyone else for any other purpose;

     (7)  The association's most current financial statement, at no cost or on twenty-four-hour loan, at a convenient location designated by the board;

    [(8)  Meeting minutes of the association, pursuant to section 514B-122;

     (9)  Meeting minutes of the board, pursuant to section 514B-126, which shall be:

          (A)  Available for examination by unit owners or owners' authorized agents at no cost or on twenty-four-hour loan at a convenient location at the project, to be determined by the board; or

          (B)  Transmitted to any unit owner or owner's authorized agent making a request for the minutes within fifteen days of receipt of the request by the owner or owner's authorized agent; provided that:

               (i)  The minutes shall be transmitted by mail, electronic mail transmission, or facsimile, by the means indicated by the owner or owner's authorized agent, if the owner or owner's authorized agent indicated a preference at the time of the request; and

              (ii)  The owner or owner's authorized agent shall pay a reasonable fee for administrative costs associated with handling the request, subject to section 514B-105(d);

    (10)] (8)  Financial statements, general ledgers, the accounts receivable ledger, accounts payable ledgers, check ledgers, insurance policies, contracts, and invoices of the association for the duration those records are kept by the association, and any documents regarding delinquencies of ninety days or more shall be available for examination by unit owners or owners' authorized agents at convenient hours at a place designated by the board; provided that:

          (A)  The board may require unit owners or owners' authorized agents to furnish to the association a [duly executed and acknowledged affidavit] written certification stating that the information is requested in good faith for the protection of the interests of the association, its members, or both; and

          (B)  Unit owners or owners' authorized agents shall pay for administrative costs in excess of [eight] twenty hours per year;

   [(11)] (9)  Proxies, tally sheets, ballots, unit owners' check-in lists, and the certificate of election subject to section 514B-154(c);

   [(12)] (10)  Copies of an association's documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-103, 514B‑152, 514B-153, or 514B-154;

   [(13)] (11)  A copy of the management contract from the entity that manages the operation of the property before the organization of an association;

   [(14)] (12)  Other documents requested by a unit owner or owner's authorized agent in writing; provided that the board shall give written authorization or written refusal with an explanation of the refusal within [thirty calendar] ten business days of receipt of a request for documents pursuant to this paragraph; and

   [(15)] (13)  A copy of any contract, written job description, and compensation between the association and any person or entity retained by the association to manage the operation of the property on-site, including but not limited to the general manager, operations manager, resident manager, or site manager; provided that personal information may be redacted from the contract copy, including but not limited to the manager's date of birth, age, signature, social security number, residence address, telephone number, non-business electronic mail address, driver's license number, Hawaii identification card number, bank account number, credit or debit card number, access code or password that would permit access to the manager's financial accounts, or any other information that may be withheld under state or federal law.

     (b)  Subject to section 514B-105(d), and except as provided under section 514B-154.2, physical copies of the items in subsection (a) shall be provided to any unit owner or owner's authorized agent upon the owner's or owner's authorized agent's request; provided that the owner or owner's authorized agent pays a reasonable fee for duplication, postage, and stationery.

     (c)  Notwithstanding any provision in the declaration, bylaws, or house rules providing for another period of time, all documents, records, and information listed under subsection (a), whether maintained, kept, or required to be provided pursuant to this section or section 514B-103, 514B-152, 514B-153, or 514B‑154, shall be provided no later than [thirty] ten business days after receipt of a unit owner's or owner's authorized agent's written request, unless a lesser time is provided pursuant to this section or section 514B-152, 514B-153, or 514B‑154, and except as provided in subsection (a)(14).

     (d)  Except as provided under section [[]514B-154.2[]], any documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-103, 514B-152, 514B-153, or 514B-154, may be made available electronically to the unit owner or owner's authorized agent if the owner or owner's authorized agent [requests such] makes a request in writing.

     (e)  An association may comply with this section or section 514B-103, 514B-152, 514B-153, or 514B-154 by making the required documents, records, and information available to unit owners or owners' authorized agents for download through an internet site, including the department of commerce and consumer affairs' online portal for registered condominium associations, at the option of each unit owner or owner's authorized agent and at no cost to the unit owner or owner's authorized agent.

     (f)  Any fee charged to a unit owner or owner's authorized agent to obtain physical copies of the association's documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-103, 514B-152, 514B-153, or 514B-154, shall be reasonable; provided that a reasonable fee shall include administrative and duplicating costs and shall not exceed $1 per printed page, or portion thereof, except that the fee for printed pages exceeding eight and one-half inches by fourteen inches may exceed $1 per printed page.

     (g)  This section shall apply to all condominiums organized under this chapter or any predecessor thereto.

     (h)  If the board fails to provide records properly requested under this section, the owner may seek appropriate relief and shall be entitled to an award of reasonable attorneys' fees and costs if the unit owner prevails.

     [(h)] (i)  Nothing in this section shall be construed to create any new requirements for the release of documents, records, or information."

     SECTION 9.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect upon its approval.

Report Title:

DCCA; Real Estate Commission; Condominiums; Associations; Managing Agents; Documents; Records; Online Portal; Condominium Education Trust Fund Fee; Attorneys' Fees

Description:

Requires the Department of Commerce and Consumer Affairs to establish a publicly accessible online portal for condominium association information and documents submitted to the Real Estate Commission with registrations, to be funded by an additional Condominium Education Trust Fund Fee.  Requires a condominium association to provide information and documents for publication on the online portal, maintain records, and make records available to a unit owner within a specified timeframe upon request.  Authorizes unit owners to recover reasonable attorneys' fees and costs if they prevail in proceedings related to a condominium association's failure to make documents available upon request within a specified timeframe.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2651

Honolulu, Hawaii

RE:     S.B. No. 2838

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2838 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require the Department of Commerce and Consumer Affairs to establish a publicly accessible online portal for condominium association information and documents submitted to the Real Estate Commission with registrations to be funded by an additional Condominium Education Trust Fund Fee;

     (2)  Require condominium associations to provide information and documents for publication on the online portal, maintain records, and make records available to a unit owner within a specified timeframe, upon request; and

     (3)  Authorize unit owners to recover reasonable attorneys' fees and costs if they prevail in proceedings related to a condominium association's failure to make documents available upon request within a specified timeframe.

     Your Committee received testimony in support of this measure from Palehua Townhouse Association and seven individuals.

     Your Committee received testimony in opposition to this measure from Honolulu Tower; Associa; Law Offices of Mark K. McKellar, LLLC; AOAO Lakeview Sands; Hawaii Legislative Action Committee of the Community Associations Institute; and twelve individuals.

     Your Committee received comments on this measure from the Hawaiʻi Real Estate Commission.

     Your Committee finds that condominium unit owners in the State can face difficulty accessing association documents without incurring significant costs and delays.  This measure would reduce costs and facilitate easier access to a broader range of association documents for unit owners through the establishment of an online portal.

     Your Committee finds, however, that this measure is intended to provide  condominium unit owners with easier and more cost effective access to association documents.  Your Committee has heard the concerns raised in testimony, including the questions regarding the potential publication of certain confidential association documents on an online portal, as proposed by this measure.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting language that would have required certain documents to be provided to the Real Estate Commission with an application for registration of a project;

     (2)  Deleting language that would have increased the annual Condominium Education Trust Fund fee;

     (3)  Inserting language that clarifies that a condominium association shall provide certain association documents to a unit owner in an electronic format upon request and at no cost to the unit owner;

     (4)  Deleting language that would have required the Department of Commerce and Consumer Affairs to maintain a publicly accessible online database of certain association documents;

     (5)  Deleting language that would have enabled unit owners to recover reasonable attorneys' fees and costs if they prevailed in a proceeding related to a condominium association's failure to make documents available;

     (6)  Amending section 1 to remove certain findings and reflect its amended purpose;

     (7)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (8)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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 S.B. No. 2838, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2838, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,