STAND.
COM. REP. NO. 675
Honolulu, Hawaii
, 2025
RE: H.B. No. 807
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 807 entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"
begs leave to report as follows:
The purpose of this measure is to provide condominium associations with financing options by:
(1) Establishing the Condominium Loan Program to provide low-cost financing, or refinance previously obtained loans, for maintenance or repair projects; and
(2) Establishing the Condominium Loan Loss Reserves Program to incentivize private lenders into providing loans at competitive rates and terms.
Your Committee finds that, due to issues in the global insurance industry and recent increases in catastrophic weather events around the world, there have been unprecedented insurance premium rate increases for condominium associations. Many of these condominium associations are also seeing the increased insurance premiums due to the aging buildings that make up the condominium projects and the associated repairs and maintenance issues, which are often significant. This measure provides two avenues for condominium associations to receive funding for much needed insurance and repairs.
Your Committee has amended this measure by:
(1) Clarify that the financial institutions that may participate in the Condominium Loan Loss Reserves Program are community development financial institutions;
(2) Amending the criteria for determining a condominium association's eligibility for the programs to be a condominium association that:
(A) Has received at least one letter from a financial institution declining its eligibility for a loan to address maintenance or insurance coverage issues; and
(B) Has obtained full replacement insurance coverage or intends to do so as a condition of any financing received; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 807, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 807, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
|
|
|
____________________________ SCOT Z. MATAYOSHI, Chair |