HB1053

Hawaii HB1053 regulates how condominium associations can use their replacement reserves and borrow funds for operating expenses.

Hawaii HB1053 modifies how condominium associations can use their replacement reserves and borrow funds for operating expenses. The bill allows associations to borrow or reallocate funds from the replacement reserves fund for operating expenses if written notice is sent to all unit owners and owners representing at least fifty percent of the common interest consent. The bill also mandates that any borrowing or reallocation of funds must include a schedule for restoring the funds within a year and statements on the necessity of using the reserves for other than their designated purpose.