STAND. COM. REP. NO. 1353

Honolulu, Hawaii

, 2025

RE: S.B. No. 801

S.D. 1

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 Housing, to which was referred S.B. No. 801, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MANAGING AGENTS,"

begs leave to report as follows:

The purpose of this measure is to require managing agents of residential condominium properties with more than one hundred units located in a county with a population greater than five hundred thousand, to possess a community association manager credential form from a recognized nationwide community association management industry trade group.

Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS; Hawaii First Realty; and six individuals. Your Committee received testimony in opposition to this measure from the Real Estate Commission; Hawaiiana Management Company, Ltd.; and one individual. Your Committee received comments on this measure from the Community Associations Institute, Hawaii Chapter, Legislative Action Committee.

Your Committee finds that the existing qualifications for managing agents of residential properties, particularly in larger condominium buildings, are insufficient to protect associations of apartment owners from the risks associated with inadequate property management expertise. This measure requires that managing agents of residential properties with more than one hundred units in certain counties be certified community association managers, ensuring that these individuals possess the necessary qualifications and experience to effectively manage complex properties and protect the interests of unit owners.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) 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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 801, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 801, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

LUKE A. EVSLIN, Chair