Bill > SB1601

This bill establishes a comprehensive Condominium Loan Program within the Hawaii Green Infrastructure Authority to help condominium associations obtain low-cost financing for critical maintenance and repair projects. The program has two main components: direct financing through the authority and a loan loss reserves program designed to incentivize community development financial institutions to provide loans to qualified condominium associations. Eligible projects include installing or repairing fire safety systems, replacing pipes and roofs, and other maintenance work as determined by the authority. To qualify, a condominium association must have been declined a loan by at least one financial institution and must obtain or have full replacement insurance coverage. The program sets a maximum loan term of 20 years and requires associations to increase their replacement reserves fund balance over the loan term. A dedicated Condominium Loan Revolving Fund will be created to support the program, funded through loan repayments, legislative appropriations, and interest earnings. The bill requires annual reporting to the legislature and includes provisions for establishing reserve accounts to mitigate potential loan losses. Importantly, no new loans will be issued after June 30, 2027, and the program is set to be repealed on June 30, 2047, with any remaining funds returning to the general fund.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1601&year=2026