Bill > SB253

This bill aims to strengthen transparency and accountability in condominium association budgeting by modifying existing Hawaii law regarding reserve funds. The bill requires that the detailed budget summary include all required financial information within the summary itself, without referring readers to other sections of the budget or reserve study. It removes the "good faith" legal defense for associations that fail to provide a complete budget summary, meaning boards can be held liable for incomplete financial disclosures. The legislation clarifies that any unit owner shall have legal standing to enforce compliance if the association board does not substantially follow the budgeting requirements, and places the burden of proving substantial compliance on the association board. The changes stem from recent legislative efforts to improve financial transparency in condominium associations, such as previous acts requiring periodic independent review of reserve studies and more comprehensive budget reporting. The bill specifically amends Section 514B-148 of Hawaii Revised Statutes to implement these changes, with an unusual effective date of July 1, 3000, which is likely a placeholder or drafting error.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=253&year=2025