HB2162 • 2026

RELATING TO CONDOMINIUMS.

Active

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

Sponsor: SAYAMA, ILAGAN, KILA, KUSCH, LOWEN, MARTEN, OLDS, TAKENOUCHI, TAM, WOODSON
Last action: 2026-01-30
Official status: Referred to CPC, JHA, referral sheet 5
Effective date: Not listed

Plain English Breakdown

The exact amount of the fine for board members is not provided in the official source material.

Rules for Condominium Associations

This bill requires condominium associations in Hawaii to save at least ten percent of their yearly income into a replacement reserve fund, allows the Real Estate Commission to enforce this rule, and lets unit owners report violations.

What This Bill Does

Requires condominium associations to deposit at least ten per cent of all revenues for each fiscal year, except estimated replacement reserve assessments, into the total replacement reserves fund.
Allows the Real Estate Commission to enforce the minimum deposit requirement.
Permits unit owners to file complaints with the commission if an association does not comply.

Who It Names or Affects

Condominium associations in Hawaii
Unit owners of condominiums

Terms To Know

replacement reserve fund: A special savings account for a condominium association to save money for future repairs and replacements.
Real Estate Commission: The government agency that oversees real estate rules in Hawaii, including those related to condominiums.

Limits and Unknowns

Does not affect rights and duties that matured before the bill becomes law.
Details about fines for board members are not fully specified.

Bill History

2026-01-30 H
Referred to CPC, JHA, referral sheet 5
2026-01-28 H
Introduced and Pass First Reading.
2026-01-26 H
Pending introduction.

Official Summary Text

RELATING TO CONDOMINIUMS.
Condominiums; DCCA; Replacement Reserves; Condominium Associations; Boards of Directors; Enforcement; Penalty
Requires a condominium association to deposit at least ten per cent of all revenues for each fiscal year, except for estimated replacement reserve assessments, into the total replacement reserves fund of the association. Requires the Real Estate Commission to enforce the minimum deposit requirement and allows unit owners to file complaints with the Commission. Holds board members who fail to comply with the minimum deposit requirement personally liable and subject to a fine.

Current Bill Text

Read the full stored bill text

HB2162

HOUSE OF REPRESENTATIVES

H.B. NO.

2162

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to condominiums
.

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

����
SECTION
1
.
�
Section
514B-148, Hawaii Revised Statutes, is amended as follows:

����
1.
�

By amending subsection (b) to read:

����
"(b)
�
The
association shall deposit at least ten per cent of all revenues for each fiscal
year, except for estimated replacement reserve assessments, into the total
replacement reserves fund of the association.
�
The association shall
further
assess
the unit owners to either fund a minimum of fifty per cent of the estimated
replacement reserves assessments

or
fund one hundred per cent of the estimated replacement reserves assessments

when using a cash flow plan; provided that
a new association need not collect estimated replacement reserves assessments

until the fiscal year that begins after the
association's first annual meeting.
�
For
each fiscal year, the association shall collect the amount assessed to fund the
estimated replacement reserves assessments

for that fiscal year, as determined by the association's plan."

����
2.
�
By
amending subsection (g) to read:

����
"
(g)
�
Any
unit owner shall have standing to bring an action alleging a violation of this
section against an association that the unit owner is a member of, and may seek
an injunction to enforce compliance with this section by the association's
board[
.
]
; provided that if a board fails to deposit the minimum ten
per cent into the total replacement reserves fund as required under subsection
(b):

����
(1)
�
The commission shall enforce the minimum deposit;

����
(2)
�
The unit owner may file a complaint with the
commission in lieu of enforcing the minimum deposit through an action; and

����
(3)
�
Each board member who is found to have failed to
deposit the minimum ten per cent into the total replacement reserves fund shall
be held personally liable and subject to a fine of
$ .

����
In any proceeding to enforce
compliance, a board that has not prepared an annual operating budget and
reserve study shall have the burden of proving it has complied with this
section."

����
SECTION 2.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Condominiums;
DCCA; Replacement Reserves; Condominium Associations; Boards of Directors;
Enforcement; Penalty

Description:

Requires a
condominium association to deposit at least ten per cent of all revenues for
each fiscal year, except for estimated replacement reserve assessments, into
the total replacement reserves fund of the association.
�
Requires the Real Estate Commission to
enforce the minimum deposit requirement and allows unit owners to file
complaints with the Commission.
�
Holds
board members who fail to comply with the minimum deposit requirement
personally liable and subject to a fine.

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