Bill Text: HI SB744 | 2025 | Regular Session | Introduced
Bill Title: Relating To Condominiums.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced) 2025-01-31 - The committee(s) on CPN/EDT has scheduled a public hearing on 02-05-25 9:45AM; Conference Room 229 & Videoconference. [SB744 Detail]
Download: Hawaii-2025-SB744-Introduced.html
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THE SENATE |
S.B. NO. |
744 |
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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 CONDOMINIUMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the lack of adequate insurance coverage may deter potential buyers from purchasing units within these buildings, thereby reducing the pool of interested buyers and potentially diminishing property values. The legislature also recognizes that many mortgage lenders require proof of insurance as a prerequisite for financing. In the absence of insurance, condominium owners encounter difficulties in securing and maintaining mortgages, potentially leading to foreclosure or financial instability. Without proof of insurance, the sale process of a condominium unit becomes more complicated and protracted.
The legislature acknowledges the importance of providing financial assistance to condominium associations and believes that establishing a condominium loan program to be administered by the Hawaii green infrastructure authority will improve property conditions by helping to fund essential repairs and maintenance and enhance the insurability of properties by addressing deferred maintenance and structural issues.
Accordingly, the purpose of this Act is to establish a condominium loan program for registered condominium associations to obtain loans to:
(1) Improve property conditions and fund essential repairs and maintenance; and
(2) Enhance the insurability of condominium properties in the State by addressing deferred maintenance and structural issues.
SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding two new sections to part IV to be appropriately designated and to read as follows:
"§196-A Condominium loan program. (a)
There is established within the authority a condominium loan program, to
be administered by the authority on behalf of the department in a manner
consistent with chapter 39, part III, for the purposes of funding
essential repairs, addressing deferred maintenance and structural issues, and improving
property conditions to enhance the insurability of condominiums organized under
chapter 514B.
(b) The authority may make loans to
private entities, whether corporations, partnerships, limited liability
companies, or other persons for the purposes of addressing deferred maintenance
pursuant to section 196-B.
§196-B Condominium loan program special fund. (a)
There is created within the state treasury a condominium loan program special
fund, into which shall be deposited funds appropriated by the legislature. The special fund shall be administered by the
authority on behalf of the department for purposes of carrying out the condominium
loan program established under section 196-A.
(b) The term of the loans issued under the condominium loan program shall extend for a period of twenty years from the effective date of issuance."
SECTION
3. There
is appropriated out of the general revenues of the State the sum of $30,000,000
or so much thereof as may be necessary for fiscal year 2025-2026 and the same
sum or so much thereof as may be necessary for the fiscal year 2026‑2027
to be deposited into the condominium loan program special fund established
pursuant to section 196-B, Hawaii Revised Statutes.
SECTION
4. There
is appropriated out of the condominium loan program special fund the sum of $30,000,000
or so much thereof as may be necessary for fiscal year 2025-2026 and the same
sum or so much thereof as may be necessary for the fiscal year 2026‑2027 for
the purposes of the condominium loan program special fund established pursuant
to section 196-B, Hawaii Revised Statutes.
The
sums appropriated shall be expended by the Hawaii green infrastructure
authority on behalf of the department of business, economic development, and
tourism to carry out the purposes of this Act; provided that all moneys remaining
in the fund that are not expended or encumbered as of the close of business on
June 30, 2045, shall lapse to the general fund on that date.
SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 6. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2025; provided that this Act shall be repealed on June 30, 2045.
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INTRODUCED BY: |
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Report Title:
DBEDT; Hawaii Green Infrastructure Authority; Condominium Loan Program; Condominium Loan Program Special Fund; Condominium Associations; Deferred Maintenance; Appropriations
Description:
Establishes the Condominium Loan Program and the Condominium Loan Program Special Fund, to be administered by the Hawaii Green Infrastructure Authority on behalf of the Department of Business, Economic Development, and Tourism, for the purpose of providing funding for essential repairs and deferred maintenance to condominium associations organized under chapter 514B, HRS. Appropriates funds. Repeals 6/30/2045.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
