STAND. COM. REP. NO. 889

Honolulu, Hawaii

RE: S.B. No. 1601

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 1601, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

beg leave to report as follows:

The purpose and intent of this measure is to provide financing options for condominium maintenance and repair projects.

More specifically, this measure:

(1) Establishes the Condominium Loan Program and the Condominium Loan Loss Reserves Program within the Hawaii Green Infrastructure Authority;

(2) Establishes the Condominium Loan Revolving Fund;

(3) Requires annual reports to the Legislature; and

(4) Appropriates moneys into and out of the Condominium Loan Revolving Fund.

Your Committees received written comments in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii Green Infrastructure Authority, Hawaii Bankers Association, and two individuals.

Your Committees received written comments on this measure from the Department of Budget and Finance.

Your Committees find that more than half of all condominium buildings in the State were built before 1980, and many of those buildings now require major systems replacements, upgrades, and retrofits, all of which are costly and complex. Completion of this necessary work will enhance a project's insurability and promote unit owners' access to secondary mortgage financing. Your Committees further find that this measure will enable the Hawaii Green Infrastructure Authority to provide financing to condominium associations for essential repairs and maintenance and offer loss reserves protection to community development financial institutions that make competitive loans to condominium associations for repairs and maintenance.

Your Committees have amended this measure by:

(1) Limiting the term of a loan made from the Condominium Loan Revolving Fund to no more than twenty years;

(2) Establishing that no new loans shall be issued from the Condominium Loan Revolving Fund after June 30, 2027;

(3) Repealing the measure on June 30, 2047;

(4) Requiring that any remaining funds in the Condominium Loan Revolving Fund on June 30, 2047, shall lapse to the general fund; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1601, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1601, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair