Bill > HB1053

This bill allows condominium associations in Hawaii to temporarily borrow or reallocate funds from their replacement reserve funds to cover operating expenses under specific conditions. The legislation was prompted by unprecedented increases in insurance premiums that could place an unbearable financial burden on condo unit owners. To use this provision, an association must maintain at least 50% of its required estimated replacement reserves, provide written notice to all unit owners, and get consent from unit owners representing at least 50% of the common interest. The association must also create a detailed schedule for restoring the borrowed funds within one year, explaining why the funds are necessary and why the expense was not originally anticipated. Importantly, the bill prohibits borrowing funds reserved for imminent repair projects, prevents borrowing for expenses that primarily benefit the board or its officers, and mandates that any borrowed funds be fully restored before additional borrowing can occur if the replacement reserves are below 100% of estimated needs. The bill aims to provide condominium associations with financial flexibility during unexpected economic challenges while maintaining fiscal responsibility.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1053&year=2026