REQUESTING THE FEDERAL HOUSING FINANCE AGENCY TO DIRECT FANNIE MAE AND FREDDIE MAC TO REPEAL OR REDUCE THE MINIMUM INSURANCE REQUIREMENTS IN GUIDE SECTION 4703.2, REQUIRING CONDOMINIUM MASTER INSURANCE POLICY COVERAGE FOR ALL PERILS IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE REPLACEMENT COST VALUE OF THE PROJECT'S IMPROVEMENTS.

SCR 186 is a Hawaii Senate resolution requesting the Federal Housing Finance Agency to direct Fannie Mae and Freddie Mac to reduce or repeal a specific insurance requirement (Guide Section 4703.2) for condominiums. This requirement currently mandates that condo master insurance policies cover 100% of the replacement cost for all common elements and structures. The resolution aims to lower this threshold, directly benefiting Hawaii's approximately 2,000 condo associations and 350,000+ residents facing high insurance costs and financial strain under the current rule. The request seeks to ease the burden of expensive special assessments on unit owners by making insurance more affordable and accessible.