Safety & Maintenance 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!

Safety & Maintenance-Related Bills Evaluation

Bill Consolidation:

• HB353, HB590, HB807, HB885, and HB336 address different aspects of condominium safety, insurance, and financing, demonstrating overlaps in objectives aimed at enhancing resilience and financial accessibility for condominium associations and owners.

Redundant Bills with Scope for Enhancement:

• HB353 and HB885 both propose financial incentives for property fortification against disasters, highlighting a potential redundancy in funding and administrative processes.
• HB590 and HB885 overlap in requiring insurance companies to provide discounts for risk mitigation efforts by condominium associations, suggesting a consolidation could streamline these incentives.

Unique Provisions Worth Retaining in Consolidated Legislation:

• HB807’s establishment of a condominium loan program is unique and complements the other bills by providing direct financial support for upgrades, distinct from insurance-based incentives.
• HB336’s focus on the associations’ duties to repair, offering a direct regulatory approach on maintenance obligations, should be retained as it addresses immediate health and safety concerns not covered by the other bills.

Specific Enhancements Based on Redundant Bills:

• Consolidate HB353 and HB885 under a single framework that aligns tax incentives and insurance premium discounts, ensuring comprehensive coverage for all types of fortification efforts.
• Integrate the insurance discount programs from HB590 and HB885 into a unified policy that covers a broader range of risk mitigation activities, potentially expanding eligibility and simplifying compliance for associations.

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Why Act Now?

1. Historical Disasters and Insurance Challenges:
   • Reference the impact of Hurricane Iniki in 1992, which was the most powerful hurricane to strike Hawaii in recorded history, causing billions of dollars in damage, including significant impacts to condominium properties. This event underlines the necessity for robust building codes and disaster-preparedness measures.
   • The Maui wildfires in 2023 exacerbated the insurance market conditions by increasing the premiums and deductibles for condominium owners, stressing the need for legislative intervention to stabilize insurance costs and ensure affordability.
2. Previous Legislative Responses:
   • Past legislative efforts, such as the establishment of the Hawaii Hurricane Relief Fund in the aftermath of Hurricane Iniki, aimed to provide insurance relief to homeowners when the private insurance market withdrew from Hawaii. This shows a precedent for government intervention in stabilizing insurance markets in times of crisis.
   • Legislation requiring sprinkler systems in high-rise buildings following deadly fires in other regions (e.g., the Marco Polo fire in Honolulu in 2017) demonstrates the legislature’s responsiveness to specific safety issues impacting condominium residents.
3. Economic and Social Impacts:
   • Economic studies post-disasters in Hawaii have shown that recovery is faster and less costly in communities where buildings were made to higher safety standards, justifying the upfront investment in disaster resilience as proposed in the bills.
   • The ongoing housing crisis in Hawaii makes it imperative to protect existing housing stock through maintenance and safety upgrades, as losing homes to disasters exacerbates homelessness and economic instability.
4. Insurance Market Fluctuations:
   • Historical reluctance by insurance companies to cover high-risk areas without legislative mandates has led to periods of insurance scarcity, driving up costs for condominium owners and risking financial ruin for many in the event of a disaster. Legislative action to mandate and incentivize risk mitigation measures can stabilize the market.
5. Climate Change Considerations:
   • With the increasing frequency and severity of storms due to climate change, as seen in the shifting hurricane patterns in the Pacific, there is an urgent need to adapt building codes and insurance frameworks to manage these evolving risks effectively.

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