Condo Reform

Support Hawaii’s 2025 Grassroots Audit Resolution

Hawaii’s 2025 Legislative Session introduced over 50 condo-related bills. Our group carefully evaluated, tracked, and submitted testimony on these proposals, yet nearly all were deferred. Only a handful remain, and we have teamed up with key advocates to push forward a critical resolution aimed at ensuring accountability in condo governance.

We invite you to read this brief resolution (less than four pages) and sign on in support. By adding your name, you’ll help us demonstrate to lawmakers that homeowners demand real oversight for condo boards, managers, agents, lawyers, insurers, and other industry professionals—ensuring they follow the rules they were meant to uphold.

Additionally, we are advocating for the creation of an HOA Task Force or Enforcement Division within the appropriate government agency to provide real enforcement when homeowners’ rights are ignored or violated.

Your support matters. Together, we can demand the transparency and accountability Hawaii’s condo owners deserve.

[Please Read the Resolution SCR187 & Sign On]


Join this Grassroots Movement to Improve Condo/HOA Laws in Hawai’i



🌺 Advocate Update🌺

✅ LIVE BILLS STILL MOVING FORWARD

SB146 SD1 HD1 – DISPUTE RESOLUTION

HB807 SD1 – CONDO LOANS

SB 1044, SD2, HD1 – INSURANCE

Link to our calendar to receive these events automatically on your own calendar!

📢 Outline for the Resolution on State Oversight of HOAs and Condos!

*Remember this is just an outline, we need input and support from our law makers

Title: Resolution to Establish a State-Regulated, Association-Funded Office for HOA and Condominium Governance Oversight

Introduction / Preamble:

  • Statement of Intent: Recognizing the growing concerns over self-governing homeowners’ associations (HOAs) and condominium associations, this resolution proposes the formation of a State-Run, Association-Funded Office to regulate and oversee these communities.
  • Legal & Ethical Basis: The current model of HOAs operates as an unregulated parallel government with authority over private property owners, often conflicting with state and federal protections. There should not be two competing systems of governance.
  • Necessity for Reform: HOA governance has led to financial mismanagement, abusive enforcement practices, lack of transparency, and power imbalances that infringe upon individual property rights.

Section 1: Establishing the HOA Oversight Office

  • The State HOA Regulatory Office (SHOARO) shall be formed as a state entity responsible for ensuring that HOA and condominium governance aligns with state and federal law.
  • Funding: This office shall be funded through mandatory fees paid by all HOAs, condominium associations, and cooperative housing communities within the state, thereby ensuring cost neutrality for the state while maintaining independence from private influence.
  • Jurisdiction: SHOARO shall have oversight over all community associations, ensuring compliance with fair housing laws, consumer protection statutes, and ethical governance practices.

Section 2: Limitations on Private HOA Authority

  • Preemption of Bylaws by State Law: No HOA or condominium association shall enact or enforce bylaws that supersede or conflict with state and federal laws regarding property rights, governance transparency, and due process.
  • Mandatory State Standards for Governance: All HOA boards must adhere to a standardized operational framework dictated by SHOARO, including financial disclosures, voting procedures, and enforcement of rules.

Section 3: Ensuring Financial Transparency & Accountability

  • Audit Requirements: All HOA funds must be subject to annual audits conducted by an independent CPA, with results submitted to SHOARO for public record.
  • Fraud & Mismanagement Prevention: SHOARO shall have the authority to investigate financial mismanagement and impose penalties, including the removal of board members and financial restitution requirements.

Section 4: Homeowner Protections & Due Process

  • Fair Dispute Resolution: SHOARO shall establish a state-run violation and fine system to provide an unbiased judgement on disputes between homeowners and their associations, preventing costly and stressful legal battles.
  • Protection Against Retaliation: Homeowners who file complaints or challenge HOA authority shall be protected under state whistleblower statutes.
  • Elimination of Unfair Liens & Foreclosures: HOAs shall be prohibited from foreclosing on properties for unpaid fines, fees, or dues without court approval and state review through SHOARO.

Section 5: Enforcing HOA Board Accountability

  • Training Requirements for Board Members: All HOA board members must complete state-mandated governance training before taking office.
  • Recall & Removal Procedures: Homeowners shall have a standardized process, overseen by SHOARO, for recalling corrupt or negligent board members.

Conclusion:

🔹Final Call to Action: This resolution aims to restore fairness, transparency, and accountability to community governance, ensuring that property ownership remains free from undue private governance structures that operate beyond state law.

Stay Engaged – Your Voice Matters!

Condo governance affects all of us, and your continued advocacy is making a real impact. Keep the momentum going by submitting testimony, contacting legislators, and staying informed!

💡 Have thoughts on these bills? Share them in the comments or reach out to get involved!


A Message to Hawai’i Legislators

As legislators, you have the opportunity to champion significant change that upholds fairness and integrity within Hawaii’s condominium management system. The proposed Senate Resolution, below, emphasizes the necessity for a comprehensive audit of the Real Estate Commission’s oversight concerning Hawaii Revised Statutes Chapter 514B. This audit is crucial in revealing and rectifying the systemic issues that currently disadvantage condominium owners while disproportionately favoring management agencies and boards.


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