STAND. COM. REP. NO. 1509

Honolulu, Hawaii

RE: H.B. No. 70

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 70, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require budget summaries to contain all required information without referring the reader to other portions of the budget; and

(2) Clarify the ability to enforce compliance with budget summary and replacement reserves requirements and provides that an association has the burden of proving compliance.

Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS, Community Associations Institute Hawaii, Hawaii First Realty, and five individuals.

Your Committee received testimony in opposition to this measure from the Palehua Townhouse Association, Honolulu Tower Association of Apartment Owners, and eleven individuals.

Your Committee received comments on this measure from one individual.

Your Committee finds that condominium owners are entitled to disclosure of information about the replacement reserves maintained by a condominium association in which they own a unit. Additionally, the Legislature recently passed Act 62, Session Laws of Hawaii 2022, which requires a budget summary with additional details to be prepared on the financial condition of an association. This measure will further enhance transparency and provide both owners and prospective purchasers with valuable insights into the association's financial health by requiring these budget summaries to contain all required information.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 70, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair