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HB2239
HOUSE OF REPRESENTATIVES
H.B. NO.
2239
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to condominium associations
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
����
SECTION
1
.
�
Section 514B-71, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:
����
"(a)
�
The commission shall establish a condominium
education trust fund that the commission shall use for educational
purposes.
�
Educational purposes shall
include financing or promoting:
����
(1)
�
Education and
research in the field of condominium management, condominium project
registration, and real estate, for the benefit of the public
, board members,
and those required to be registered under this chapter;
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(2)
�
The improvement
and more efficient administration of associations;
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(3)
�
Expeditious and
inexpensive procedures for resolving association disputes;
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(4)
�
Support for
mediation of condominium related disputes; and
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(5)
�
Support for
voluntary binding arbitration between parties in condominium related disputes,
pursuant to section 514B-162.5."
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SECTION
2
.
�
Section 514B-106, Hawaii Revised Statutes, is
amended to read as follows:
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"
�514B-106
�
Board; powers and duties.
�
(a)
�
Except as provided in the declaration, the
bylaws, subsection (b), or other provisions of this chapter, the board may act
in all instances on behalf of the association.
�
In the performance of their duties, officers and members of the board
shall owe the association a fiduciary duty and exercise the degree of care and
loyalty required of an officer or director of a corporation organized under
chapter 414D.
�
Any violation by a board
or its officers or members of the mandatory provisions of section 514B-161 or
514B-162 may constitute a violation of the fiduciary duty owed pursuant to this
subsection; provided that a board member may avoid liability under this
subsection by indicating in writing the board member's disagreement with [
such
board
]
the board's
action or rescinding or withdrawing the violating
conduct within forty-five days of the occurrence of the initial violation.
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(b)
�
The
board [
may
]
shall
not act on behalf of the association to amend
the declaration or bylaws (sections
514B-
32(a)(11) and 514B-108(b)(7))[
, to
]
;
remove the condominium
from the provisions of this chapter (section
514B-
47)[
,
]
;
or [
to
] elect
members of the board or determine the qualifications, powers and duties, or
terms of office of board members (subsection (e)); provided that nothing in
this subsection shall be construed to prohibit board members from voting
proxies (section
514B-
123) to elect
members of the board; provided further that notwithstanding anything to the
contrary in the declaration or bylaws, the board may only fill vacancies in its
membership to serve until the next annual or duly noticed special association
meeting.
�
Notice of a special association
meeting to fill vacancies shall include notice of the election.
�
Any special association meeting to fill
vacancies shall be held on a date that allows sufficient time for owners to
declare their intention to run for election and to solicit proxies for that
purpose.
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(c)
�
Within
thirty days after the adoption of any proposed budget for the condominium, the
board shall make available a copy of the budget to all the unit owners and
shall notify each unit owner that the unit owner may request a copy of the
budget.
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(d)
�
The declaration may provide for a period of
developer control of the association, during which a developer, or persons
designated by the developer, may appoint and remove the officers and members of
the board.
�
Regardless of the period
provided in the declaration, a period of developer control terminates no later
than the earlier of:
����
(1)
�
Sixty days after conveyance of seventy-five
per cent of the common interest appurtenant to units that may be created to
unit owners other than a developer or affiliate of the developer;
����
(2)
�
Two years after the developer has ceased to
offer units for sale in the ordinary course of business;
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(3)
�
Two years after any right to add new units was
last exercised; or
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(4)
�
The day the developer, after giving written
notice to unit owners, records an instrument voluntarily surrendering all
rights to control activities of the association.
A developer may voluntarily surrender the right to
appoint and remove officers and members of the board before termination of that
period, but in that event the developer may require, for the duration of the
period of developer control, that specified actions of the association or
board, as described in a recorded instrument executed by the developer, be
approved by the developer before they become effective.
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(e)
�
[
Not
]
No
later than the termination of any period of developer control, the
unit owners shall elect a board of at least three members; provided that
projects created after May 18, 1984, with one hundred or more individual
units, shall have an elected board of at least nine members unless the
membership has amended the bylaws to reduce the number of directors; [
and
]
provided further that projects with more than one hundred individual units
where at least seventy per cent of the unit owners do not reside at the project
may
amend the bylaws to reduce the board to as few as five members by
the written consent of a majority of the unit owners or the vote of a majority
of a quorum at any annual meeting or special meeting called for that
purpose.
�
The association may rely on its
membership records in determining whether a unit is owner-occupied.
�
A decrease in the number of directors shall
not deprive an incumbent director of any remaining term of office.
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(f)
�
At any regular or special meeting of the association, any member of the
board may be removed and successors shall be elected for the remainder of the
term to fill the vacancies thus created.
�
The removal and replacement shall be by a vote of a majority of the unit
owners and, otherwise, in accordance with all applicable requirements and
procedures in the bylaws for the removal and replacement of directors and, if
removal and replacement is to occur at a special meeting, section 514B-121(c).
����
(g)
�
A board member of an association shall obtain,
within one year of election to the board, a board training and education course
completion certificate from a course approved by an accredited third-party
organization that is selected by the commission and paid for by funds in the
condominium education trust fund.
"
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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 on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
Condominium
Associations; Board of Directors; Training and Education; Condominium Education
Trust Fund
Description:
Requires
board members of a condominium association to complete a board training and
education course approved by an accredited third party organization, to be
selected by the Real Estate Commission and paid for through funds in the
Condominium Education Trust Fund.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.