Bill Text: HI HB70 | 2025 | Regular Session | Introduced
Bill Title: Relating To Condominium.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2025-01-16 - Introduced and Pass First Reading. [HB70 Detail]
Download: Hawaii-2025-HB70-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
70 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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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) 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.
