Bill > SB1498

This bill establishes an Ombudsman's Office for homeowner associations within the Department of Commerce and Consumer Affairs to address systemic issues and disputes in condominium, cooperative housing, and planned community associations. The bill creates a comprehensive framework for dispute resolution, including mandatory educational requirements for board members, a new special fund to support the office, and extensive powers for the Ombudsman to investigate and resolve conflicts. Key provisions include the Ombudsman's ability to receive and investigate complaints, compel testimony and document production, provide advisory opinions, impose fines, remove board members for misconduct, and offer educational classes for association board members. The bill replaces existing mediation and arbitration processes with a more robust dispute intervention system, requiring board members from all types of homeowner associations to complete educational classes about their responsibilities and governing documents. The Ombudsman will have broad investigative powers and can help unit owners understand their rights, facilitate voluntary meetings to resolve disputes, and potentially bring legal action to enforce decisions. The bill also establishes funding mechanisms through assessments and transfers from the existing condominium education trust fund, with the Ombudsman's Office becoming operational on January 1, 2026.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1498&year=2025