RELATING TO COMMON INTEREST COMMUNITIES.

Housing

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: KONG
Last action: 2026-01-26
Official status: Referred to CPC, referral sheet 1
Effective date: Not listed

Plain English Breakdown

The bill does not provide details on enforcement mechanisms.

Clarifying Rules for Community Association Managers in Hawaii

This bill clarifies the roles of community association managers and updates definitions related to managing agents, condominiums, cooperative housing corporations, and homeowners associations.

What This Bill Does

Defines a 'community association manager' as an individual responsible for contracted management and oversight of cooperative housing corporations, condominium associations, or homeowners associations.
Updates the definition of 'managing agent' to include community association managers.

Who It Names or Affects

Community association managers
Cooperative housing corporation owners and residents
Condominium owners and residents
Homeowners association members

Terms To Know

community association manager: An individual responsible for the contracted management and oversight of a cooperative housing corporation, condominium association, or homeowners association.
managing agent: A person or company retained as an independent contractor to manage the operation of property.

Limits and Unknowns

The bill does not specify how these changes will be enforced.
It is unclear if this bill will pass into law.

Bill History

2026-01-26 H
Referred to CPC, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-16 H
Prefiled.

Official Summary Text

RELATING TO COMMON INTEREST COMMUNITIES.
Community Association Managers; Managing Agents; Condominiums; Cooperative Housing Corporations; Homeowners Associations
Clarifies that a community association manager is an individual who is the managing agent responsible for the contracted management and oversight of a cooperative housing corporation, condominium association, or homeowners association. Amends the definition of "managing agent" to include a community association manager.

Current Bill Text

Read the full stored bill text

HB1586

HOUSE OF REPRESENTATIVES

H.B. NO.

1586

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to common interest communities
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Section 421I-1, Hawaii Revised Statutes, is
amended to read as follows:

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"[
[
]�421I-1[
]
�
Cooperative
housing corporation; defined.
]
Definitions.
�
As used in this chapter, unless [
otherwise
indicated by the context, "corporation"
]
the context otherwise
requires:

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"Community association
manager" has the same meaning as defined in section 514B-3.

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"Corporation"
means a
cooperative housing corporation that:

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(1)
�
Has
one and only one class of stock outstanding;

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(2)
�
Allows
each tenant shareholder to occupy a dwelling unit for dwelling purposes solely
by reason of the tenant shareholder's ownership of stock in the corporation;

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(3)
�
Does
not allow a shareholder to receive, either conditionally or unconditionally,
any distributions from the corporation except when there is a complete or
partial liquidation of the corporation; provided that this paragraph does not
apply to earnings and profits of the corporation; and

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(4)
�
Has
eighty per cent or more of the gross income for the taxable year in which taxes
are paid or incurred pursuant to 26 United States Code section 216(A) derived
from tenant shareholders.

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"Managing agent" has the same
meaning as defined in section 514B-3.
"

����
SECTION 2.
�

Section 421J-2, Hawaii Revised Statutes, is amended by adding two new
definitions to be appropriately inserted and to read as follows:

����
"
"Community association
manager" has the same meaning as defined in section 514B-3.

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"Managing agent" has the same
meaning as defined in section 514B-3.
"

����
SECTION 3.
�

Section 514B-3, Hawaii Revised Statutes, is amended as follows:

����
1.
�

By adding a new definition to be appropriately inserted and to read:

����
"
"Community association
manager" means a person responsible for the contracted management and
oversight of a community association, including a condominium or homeowners
association.
"

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2.
�

By amending the definition of "managing agent" to read:

����
"
"Managing
agent" means any [
person
]
contracted company or community
association manager
retained, as an independent contractor, for the purpose
of managing the operation of the property."

����
SECTION 4.
�

Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

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SECTION 5.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Community
Association Managers; Managing Agents; Condominiums; Cooperative Housing
Corporations; Homeowners Associations

Description:

Clarifies
that a community association manager is an individual who is the managing agent

responsible for the contracted management and oversight of a cooperative
housing corporation, condominium association, or homeowners association.
�
Amends the definition of "managing
agent" to include a community association manager.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.