SB 1046 Hawaii Senate · 2025 Regular Session

RELATING TO CONDOMINIUMS.

Summary

Requires certain managing agents to notify each unit owner and the Real Estate Commission when a condominium association that the agent manages fails to meet budget and replacement reserves reporting requirements. Effective 7/1/2050. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 17, 2025 Last action Apr 2, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB1046 → SB1046_SD1 · 6 edits

MODERATE

This bill amends Hawaii's condominium laws to require managing agents to report to unit owners and the Real Estate Commission when their associations fail to meet budget and replacement reserve requirements. It also clarifies definitions for reserve studies, establishes new reporting obligations for managing agents, and adds provisions for unit owners to enforce compliance when boards fail to prepare required budgets and reserve studies.

Scope change

The bill expands enforcement mechanisms by allowing unit owners to take legal action against boards that fail to comply with budget and reserve study requirements, and adds specific notification duties for managing agents.

ENFORCEMENT

Unit owners can now enforce compliance against boards that fail to prepare annual operating budgets and reserve studies, with the burden of proof on the board to show compliance.

REQUIREMENT

Managing agents must notify each unit owner and the Real Estate Commission in writing when their managed association fails to comply with budget and replacement reserve requirements.

Budgets must now include detailed explanations of how replacement reserve assessments are computed, including identity and qualifications of reserve study preparers and disclosure of omitted property components.

New requirement for separate, designated reserves for property parts where capital expenditures exceed $10,000, with smaller items that can be aggregated.

DEFINITION

Added new definitions for 'Capital expenditure', 'Cash flow plan', 'Emergency situation', 'Independent reserve study preparer', 'Major maintenance', and 'Replacement reserves' to clarify legal obligations.

TIMELINE

Bill effective date set to July 1, 2050, which appears to be a placeholder or error in the original text.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 6, 2025

Committee

Referred to CPC, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 248) in amended form (SD 1).

lower

Mar 4, 2025

Upper · Passed

Report adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 21, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-14-25 9:30AM; Conference Room 229 & Videoconference.

upper

Jan 23, 2025

Committee

Referred to CPN.

upper

Jan 17, 2025

Introduced

Introduced.

upper

6 primary · 0 co-sponsors