Bill > SB793

This bill requires condominium and planned community associations to implement several key financial and reporting measures to ensure better maintenance and financial transparency. Specifically, associations must now issue a monthly damages and repairs report to members, describing any damages or repairs for which the association is liable and their estimated costs. The bill mandates that associations conduct a comprehensive reserve study by an independent preparer every three years, which evaluates the expected lifespan and replacement costs of the association's assets. Associations are now required to fully fund their replacement reserves, collecting 100% of the estimated replacement reserves assessments each fiscal year. The expenditure of these reserves is strictly limited to maintenance costs outlined in the most recent reserve study and must be approved by four key association officers. Additionally, the bill requires detailed budget disclosures, including information about reserve fund balances, estimated assessments, and a 30-year projection of financial needs. The legislation aims to protect unit owners from unexpected large special assessments, ensure proper maintenance of common property, and provide greater financial transparency by preventing associations from operating with underfunded reserves that could lead to unsafe building conditions or sudden financial burdens on members.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=793&year=2025