Condo Management Bills

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!

Property Management-Related Bills Evaluation

Bill Consolidation:

• HB 591 & HB 252: These bills require managing agents for residential condominium properties over seventy-five feet in height to have commercial property management experience. These can be merged into a single bill to unify the requirements and streamline compliance.
• HB 475 & HB 1312: These bills both establish licensing requirements for association managers but focus on slightly different aspects of the role. Combining these into one comprehensive bill will provide clear and consistent standards across all types of property management.

Redundant Bills with Scope for Enhancement:

• HB 1447: Requires licensing for individual managing agents and employees of managing agent entities. While similar in nature to HB 475 and HB 1312, it specifically addresses the conduct and licensing at an individual level.

Enhancement Proposal: Integrate the specific duties and ethical standards from HB 1447 into the consolidated licensing bill to ensure all aspects of property management—from organizational to individual accountability—are thoroughly regulated.

Unique Provisions Worth Retaining in Consolidated Legislation:

• HB 475 introduces the concept of a licensing board, which is a critical component for maintaining oversight and ensuring compliance. This board could also handle the certifications and ongoing education of property managers.
• HB 1447’s emphasis on fidelity bonds and detailed responsibilities provides a strong foundation for ensuring that managing agents are financially accountable and act in the best interests of the condominium owners they serve.

Specific Enhancements Based on Redundant Bills:

• Unified Standards: Develop a set of unified standards for the training and continuing education of property managers to ensure they are equipped to handle the complexities of modern property management.
• Centralized Database: Implement a centralized database for licensed property managers accessible to the public to enhance transparency and trust in property management practices.
• Code of Ethics: Incorporate a code of ethics and detailed job responsibilities into the licensing requirements to standardize what is expected from a professional property manager and provide a basis for disciplinary actions if needed.

Consolidation Strategy

• Single Comprehensive Property Management Regulation Bill: Combine HB 591, HB 252, HB 475, HB 1312, and HB 1447 into a single piece of legislation that outlines robust requirements for licensing, experience, and ethical standards for all types of property managers within common interest communities. This unified approach will simplify the regulatory landscape, making it easier for managers and boards to understand their legal obligations and for residents to hold their managers accountable.

Governance-Related Bills Evaluation

Bill Consolidation:

• HB106, HB117, HB630, HB631, HB632, HB807, HB849, HB850, HB1311, HB1313: Focus on different aspects of transparency and fairness, from dispute resolution, financial accountability, board member education, and voting procedures. These can be consolidated into a single governance framework bill to ensure comprehensive coverage of governance issues.

Specific Enhancements Based on Redundant Bills:

• Unified Governance Framework: Create a detailed set of guidelines for board conduct, financial management, and dispute resolution that draws from all the consolidated bills.
• Mandatory Education and Transparency: Ensure all board members undergo mandatory education as outlined in HB1313, and that all financial activities are transparent as suggested by HB807 and HB849.
• Enhanced Voting and Dispute Resolution Mechanisms: Incorporate advanced voting systems and dispute resolution mechanisms from HB850 and HB106 to foster a more democratic and fair community environment.

Historical Legislative Review for Urgent Action

Upon examining historical legislative efforts we targeted condominium-related bills aimed to protect owners which failed to pass, this provides crucial context for why these current bills are necessary and urgent.

1. Recodification Efforts: Over the decades, there have been attempts to recodify Hawaii’s condominium law to address the complexities and inefficiencies of the existing laws. The focus has been on enhancing consumer protection, providing more flexibility in condominium governance, and ensuring fair management practices. Efforts have often cited the outdated and inconsistent nature of prior laws, suggesting a need for a framework that better accommodates modern real estate practices. 2007 Condo Bulletin ​
2. Failed Bills: Specific bills that have attempted to address these issues in the past often stalled or did not pass. For example, efforts to amend restrictive covenant laws and the broader legal framework governing condominiums have faced significant challenges in the legislative process. These failed attempts highlight the resistance to change and the complexities involved in balancing various stakeholder interests​. 2018 What Passed & Failed!
3. Public Policy Considerations: The prevalence of condominium ownership in Hawaii, which represents a significant portion of the state’s housing, underscores the importance of these legislative efforts. There has been a recognized need for laws that support the fair and efficient functioning of condominium communities, which are crucial for maintaining the quality of life for a large number of Hawaii’s residents. ​ 2003 Final Reprot to the Legislature – 2016 Fighting HOA, Condo foreclosure injustice in Hawaii

These historical challenges in passing reformative legislation emphasize the pressing need for a unified and strong regulatory approach, such as the proposed State HOA Office, which could provide the necessary authority to enforce regulations effectively and protect homeowners. This historical context supports the urgency for new legislation that can overcome the shortcomings of past attempts and offer real solutions to ongoing problems in condominium governance in Hawaii.

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