SB1372 allows Hawaii condominium associations to borrow from replacement reserves for operating expenses.

SB1372 addresses the financial strain on condominium associations due to rising insurance premiums. It allows associations to borrow from replacement reserves for operating expenses, provided written notice is sent to unit owners and fifty percent of the common interest consents. The bill also prohibits borrowing for expenses benefiting board members and officers, and for repairs within a year. It mandates that any borrowing proposal include a restoration schedule and justification for using reserves. The bill takes effect upon approval.

SB1372 allows Hawaii condominium associations to borrow from replacement reserves for operating expenses.

SB1372 addresses the financial strain on condominium associations due to rising insurance premiums. It allows associations to borrow from replacement reserves for operating expenses, provided written notice is sent to unit owners and fifty percent of the common interest consents. The bill also prohibits borrowing for expenses benefiting board members and officers, and for repairs within a year. It mandates that any borrowing proposal include a restoration schedule and justification for using reserves. The bill takes effect upon approval.