Bill > SCR186

This concurrent resolution addresses challenges faced by condominium associations in Hawaii regarding insurance requirements set by Fannie Mae and Freddie Mac through Guide Section 4703.2. The resolution urges the Federal Housing Finance Agency (FHFA) to direct these government-sponsored mortgage enterprises to either repeal or reduce the current requirement that mandates condominium master insurance policies cover 100% of a project's replacement cost value for all perils. The background indicates that hundreds of Hawaii's condominium associations are currently ineligible for this coverage, which prevents them from obtaining affordable mortgage financing and reduces their property marketability. By requiring such extensive coverage, associations must seek additional, often expensive secondary insurance policies, creating significant financial hardship for unit owners. The resolution aims to help reduce insurance costs and ease the financial burden on condominium owners by requesting a modification of these strict insurance guidelines. If successful, the resolution would result in certified copies being sent to the FHFA director and the chief executives of Fannie Mae and Freddie Mac.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SCR&billnumber=186&year=2025