Condo Regulatory 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!

Condo Regulatory-Related Bills Evaluation

Bill Consolidation:

• HB 890 & HB 837: Both bills propose the establishment of an ombudsman’s office but for slightly different scopes (one for condominium associations and one for homeowner associations). These can be merged to create a single ombudsman’s office covering all types of common-interest communities to streamline processes and ensure consistency in dispute resolution and enforcement.

Redundant Bills with Scope for Enhancement:

• HB 632: Prohibits enforcement of de minimis violations and emphasizes the need for clear procedures and notifications, enhancing transparency and fairness in managing minor infractions.
• Enhancement Proposal: Integrate the clear procedural requirements from HB 632 into the broader framework of the consolidated ombudsman office bills (HB 890 & HB 837) to ensure all types of minor violations across different community types are uniformly handled.

Unique Provisions Worth Retaining in Consolidated Legislation:

• HB 835: Imposes a standard of negligence for condo association directors and officers, ensuring they are held to reasonable person standards. This provision should be integrated into the consolidated bill to maintain high standards of accountability.

Specific Enhancements Based on Redundant Bills:

• Unified Dispute Resolution and Oversight Framework: To enhance the legislative framework proposed in HB 890 and HB 837, integrating a State HOA Office under the Consumer Protection Division of the Attorney General’s office into the unified ombudsman’s office. This State HOA Office would have enforcement powers such as fining, removing board members or managers, and bringing legal actions, which go beyond the traditional capabilities of an ombudsman. This integration ensures that the ombudsman’s office not only has the capacity to mediate and report but can also enforce compliance and penalize misconduct effectively. This would provide a more comprehensive solution to address the issues of mismanagement and corruption within homeowner associations, enhancing accountability and protecting homeowner interests more robustly.
• Educational Requirements and Transparency: Ensure that all members of an association board receive mandatory education on their duties and the laws governing associations, as proposed in the individual bills, but under a unified and consistent framework controlled by the ombudsman’s office.

By consolidating these bills into a single comprehensive legislative framework, the law will provide clear, effective governance and oversight of property management professionals and association boards, enhancing accountability and ensuring high standards in the management of community associations. This approach also aids in protecting the interests of condominium owners and ensures their properties are managed by qualified and accountable professionals.

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