Bill > HB70

This bill addresses transparency and financial reporting requirements for condominium associations in Hawaii by making several key changes to existing law. The bill requires that budget summaries for condominiums must now contain all required financial information within the summary itself, without directing readers to other parts of the budget. It clarifies and expands a unit owner's ability to enforce compliance with budget summary and replacement reserves requirements by explicitly giving unit owners legal standing to bring actions against their association's board if they fail to meet these standards. The bill also modifies provisions related to replacement reserve studies, including requiring that such studies be reviewed by an independent preparer at least every three years and mandating detailed disclosures about reserve fund assessments, such as explaining planned increases over a thirty-year period and disclosing any discrepancies between projected and actual reserve assessments. Additionally, the bill provides protection from liability for those making good faith efforts to calculate replacement reserve assessments, even if their estimates ultimately prove incorrect. These changes build upon previous legislative efforts (Acts 62 and 199) to increase financial transparency and accountability in condominium associations, with the goal of better informing unit owners about their association's financial condition and reserve funding.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=70&year=2025