SB146 Has Been Hijacked – Homeowners, Pay Attention
What Started as a Bill for Reform Is Now a Trojan Horse
When SB146 was first introduced, many of us—myself included—testified in support. We believed it was finally time for Hawai‘i’s legislature to rein in abusive practices in condominium governance, bring transparency to the process, and give homeowners the tools they need to stand up for their rights.
But now, in its latest form—SB146 SD1 HD1—this bill has become everything we feared: a tool to strip homeowners of due process protections, empower association lawyers, and chill legitimate legal action by making it too risky to pursue.
This post is your deep dive into how this bill has been manipulated, who benefits, and why you should join me in opposing it before it becomes law.
❌ SB146 SD1 HD1 Repeals Critical Homeowner Protections
At the heart of this bill’s betrayal is the full repeal of HRS §514B-157, a statute that gives homeowners a fair chance to be heard in court—without the fear of financial devastation.
This law currently says:
If an owner brings a claim against an association and first attempts mediation in good faith, they will not be forced to pay the association’s legal fees if the case doesn’t go their way.
That’s fair. That encourages resolution before litigation. That gives everyday people a fighting chance.
But SB146 SD1 HD1 strikes this provision entirely and replaces it with a strict “loser-pays” model—meaning if a homeowner loses their case for any reason, they could be forced to pay tens or hundreds of thousands of dollars in legal fees to the association’s lawyers.
Let’s be honest: who does this protect?
Not the homeowner.
⚖️ This Isn’t About Dispute Resolution. It’s About Shutting You Up.
Supporters of this bill will say it promotes mediation and arbitration. But the truth is that the incentive for owners to mediate first is already in the law—it’s the very provision being repealed.
SB146 SD1 HD1 doesn’t improve dispute resolution. It weaponizes attorney’s fees to scare owners away from filing claims at all. That’s not reform. That’s suppression.
🧠 Who’s Behind This? Follow the Money—and the Narrative
This harmful version of the bill appears to be spearheaded by al local industry attorney, a longtime representative of developer and condo association interests. They have:
- Led efforts to water down homeowner protections over the past decade.
- Publicly implied in legal journals that condo owners raising concerns may be mentally unstable (yes, really).
- Served as chair of the state CPR task force, where they previously attempted to push this exact rollback—and was voted down by homeowner advocates.
Now, the same bad idea is back—this time tucked into a bill with a misleading name and a long list of pages designed to hide the harm in plain sight.
💰 Who Wins When This Passes? Lawyers. Developers. Management Companies.
SB146 SD1 HD1 shifts risk away from associations and onto individual homeowners. Associations—backed by insurance and funds from your maintenance fees—can afford to go to court. You can’t.
It turns your association’s legal department into a sword, not a shield. And worst of all, it sends a clear message to victims of mismanagement, fraud, or retaliation:
“Speak up, and you might lose everything.”
This is legally sanctioned retaliation, dressed up as “reform.”
🚨 What Should We Demand Instead?
Hawai‘i doesn’t need more bills written by industry insiders. We need:
- ✅ A State-run, AOAO-funded HOA Office to handle disputes, educate homeowners, and hold boards accountable.
- ✅ Real protections for owners who act in good faith to resolve issues before turning to the courts.
- ✅ A citizen-led task force made up of people who have lived through mismanagement—not the lawyers and companies who profit from it.
Until we have that, no new legislation should pass that further tips the scales against owners.
📢 Take Action – Here’s How
🗓 Testify Against SB146 SD1 HD1 – Before April 1st at 2 p.m.
📍 Submit your testimony here: Hawaii State Capitol Website
🖋 Even a simple “I Oppose” makes a difference.
📣 Spread the Word – Share this article with other owners, neighborhood groups, and condo residents. Most have no idea what’s happening behind the scenes.
✅ LIVE BILLS STILL MOVING FORWARD
❌ KEY ISSUES THAT DIED (DEFERRED OR FAILED TO ADVANCE)
Unfortunately, many pro-owner reforms were deferred, effectively ending their chances this session. Notable topics that did not survive include:
- Owner Rights & Transparency
- Bills that would have enhanced owner access to records or increased transparency around board decisions and AOAO actions were shelved.
- Stronger Regulation of Property Managers
- Proposals to strengthen oversight of management companies and their fiduciary responsibilities to owners did not advance.
- Alternative Dispute Resolution
- Several bills attempting to reduce legal costs and provide fairer dispute resolution mechanisms for owners (outside of court) were deferred.
- Improved ADA Compliance and Protections for Elderly or Disabled Residents
- Legislation meant to ensure better compliance with federal disability access laws and protect vulnerable residents was not prioritized.
⚠️ NEXT STEPS
Condo owners should:
- Stay engaged as the live bills proceed to floor votes and conference committees.
- Begin planning to reintroduce key reforms in 2026, especially those related to owner rights and management accountability.
This CPC Hearing from 1/30/2025 starts at 13:36 in the video recording, written testimonies are below the video.
For an idea of who is who in this industry you just need to review the testimonies.