Assessments and Collections

Hawaii’s 2025 Legislative Session brought forward over 50 “condo related” bills. We have evaluated them to see how they impact owners and residents living in condos and shared communities. The following considerations were based off the meta-analysis of all bills listed on our Bill Tracker spreadsheet!

Assessments and Collection-Related Bills Evaluation

Bill Consolidation:

HB 106 & HB 631 & HB 632 & SB 147 & SB 591: These bills focus on the process of assessments and bill collection within condominium associations, particularly emphasizing transparency, fairness in fines, and ensuring due process during collection disputes. By consolidating these bills, the legislation can form a comprehensive framework for handling all aspects of assessments and bill collections, including specific guidelines for fines and the appeal processes.

Redundant Bills with Scope for Enhancement:

• HB 1209: Introduces limits on attorneys’ fees and outlines specific procedures for handling legal costs related to collection activities, which could enhance the consolidated bill by ensuring these procedures are uniformly applied across all associations.

Unique Provisions Worth Retaining in Consolidated Legislation:

• HB 632: Introduces a definition for “de minimis infraction” to prevent trivial violations from escalating into significant legal disputes. Incorporating this provision can help in reducing unnecessary legal confrontations and associated costs.
• SB 147: Establishes specific requirements for the imposition of fines, including due process protections such as notice and appeal procedures, ensuring that fines are both fair and transparent.

Specific Enhancements Based on Redundant Bills:

• Detailed Process for Dispute Resolution and Appeals: Drawing from SB 591, establish a clearly defined process for disputing assessments and fines, including timelines for appeals and required notices to unit owners.
• Limitations on Legal Fees: As outlined in HB 1209, include stipulations that legal fees related to collection are capped and that billing practices are transparent and fair.
• Prevention of Trivial Disputes: Implementing the de minimis provisions from HB 632 could help in focusing resources on significant issues rather than minor infractions, thereby saving costs and administrative effort for associations.

By focusing on these enhancements, the consolidated legislation can provide a robust framework that protects unit owners’ rights while ensuring that associations have the necessary tools to effectively manage their properties.

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