Bill > SB1046

This bill amends Hawaii's condominium law to require managing agents to notify both individual unit owners and the Real Estate Commission if a condominium association they manage fails to meet specific budget and replacement reserves reporting requirements. The bill specifically targets managing agents whose contracts involve budgetary and replacement reserve responsibilities and provide them authority to communicate with unit owners. The notification requirement is part of a broader set of regulations that mandate detailed budget reporting, including estimated revenues, operating expenses, replacement reserve assessments, and a thirty-year projection of financial needs. The bill also clarifies that associations must fund at least 50% of their estimated replacement reserves and provides protections for good-faith efforts to calculate these reserves. The key addition is a new subsection that explicitly requires managing agents to provide written notification to unit owners and the Real Estate Commission if an association does not comply with the budget and reserves reporting requirements, helping to increase transparency and accountability in condominium management. The bill is set to take effect on July 1, 2050.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1046&year=2026