Bill > SB793

This bill requires condominium and planned community associations to implement several new financial management and reporting practices. Specifically, associations must issue a monthly report detailing any damages or repairs for which they are responsible, perform a comprehensive reserve study by an independent expert every three years, and fully fund their replacement reserves at 100% of estimated needs. The bill mandates that reserve funds can only be used for maintenance based on the most recent reserve study, and any expenditures over $10,000 must be tracked separately. Additionally, reserve fund expenditures must be approved by four key association officers and reported to members. The legislation aims to prevent underfunded associations from facing sudden large expenses and to protect unit owners from unexpected special assessments. The bill defines key terms like "emergency situation" and "capital expenditure" and provides guidelines for how associations should calculate and manage their reserve funds. Associations are required to be transparent about their financial planning, including detailing the methodology behind their reserve calculations and providing clear information about projected maintenance needs over a 30-year period.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=793&year=2026