HB117

Hawaii HB117 amends condominium association rules regarding replacement reserves and fiduciary duties.

Hawaii HB117 amends the Hawaii Revised Statutes to modify condominium association rules. It requires associations to assess unit owners to fund replacement reserves, either a minimum of fifty percent or one hundred percent if using a cash flow plan. The bill also stipulates that any failure to meet these requirements by the board may be considered a breach of fiduciary duty. Additionally, it mandates that the replacement reserves fund balance must be at least a certain percentage of the project's tax-assessed value. The changes take effect on September 1, 2025.