Bill > SB253

This bill amends Hawaii's condominium law to enhance transparency and accountability in how condominium associations prepare and disclose their financial budgets and reserve studies. The bill requires that the detailed budget summary contain all required financial information within the document itself, without referring readers to other sections of the budget or reserve study. It eliminates the "good faith" legal defense for associations whose boards adopt a budget that fails to include the mandated summary, which means such associations could be held liable for incomplete financial disclosures. The bill also clarifies that any unit owner shall have standing to bring an action to enforce compliance if the association board fails to substantially comply with budget and reserve study requirements, and places the burden of proof on the association to demonstrate substantial compliance in such legal proceedings. The changes are part of ongoing legislative efforts to improve financial transparency in condominium associations, building upon previous laws (Act 62 in 2022 and Act 199 in 2023) that have sought to provide more comprehensive and accurate financial information to unit owners. The bill is set to take effect on July 1, 3000, though this is likely a placeholder date for the actual future implementation date.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=253&year=2026