Bill > SB1046

This bill amends Hawaii's condominium law to require managing agents to notify unit owners and the Real Estate Commission if a condominium association fails to meet specific budget and replacement reserves reporting requirements. The legislation focuses on ensuring transparency and accountability in condominium financial management by mandating that managing agents with budgetary responsibilities inform unit owners and regulatory authorities when an association does not comply with detailed financial reporting standards. These standards include providing a comprehensive budget summary with specific details such as estimated revenues, operating expenses, replacement reserve fund balance, and a thirty-year projection of replacement reserve needs. The bill also clarifies that managing agents are only subject to this notification requirement if their contract involves budgetary responsibilities and gives them authority to communicate with unit owners. The purpose is to help protect condominium unit owners by ensuring they are informed about potential financial management issues in their association and providing a mechanism for oversight through the Real Estate Commission. The bill is set to take effect on July 1, 2050, giving ample time for condominium associations and managing agents to prepare for the new reporting requirements.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1046&year=2025