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HB2453
HOUSE OF REPRESENTATIVES
H.B. NO.
2453
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:
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SECTION 1.
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The legislature finds that longstanding
issues within Hawaii's condominium associations continue to result in
unwarranted assessments, fines, legal fees, and retaliation against owners.
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Act 189, Session Laws of Hawaii 2023,
established the condominium property regime task force to examine these
problems and recommend improvements related to disputes, board governance, and
enforcement.
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The task force issued its
formal report in December 2023.
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Through
Act 43, Session Laws of Hawaii 2024, the legislature engaged the legislative
reference bureau to conduct a comparative study of condominium laws in selected
states, including California, Delaware, Florida, Massachusetts, and Nevada, which
was published in November 2025.
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This
study highlighted that several states operate condominium ombudsman offices or
similar enforcement mechanisms; however, it did not include a review of Hawaii's
own condominium laws.
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The legislature further finds that
Hawaii's current framework for addressing condominium disputes is inadequate.
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Without meaningful reform, condominium owners
risk continued exposure to unnecessary litigation, escalating legal costs, and
the potential loss of their homes.
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Stronger
consumer protections are urgently needed to ensure that associations, boards,
and managing agents comply with governing documents and the requirements of
chapter 514B, Hawaii Revised Statutes.
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The legislature therefore finds that
establishing an ombudsman's office for condominium owners and associations is
necessary to support consumers, improve condominium-related dispute resolution,
and enhance accountability within the State's condominium governance system.
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The purpose of this Act is to:
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(1)
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Establish an
ombudsman's office for condominium owners and associations in the department of
commerce and consumer affairs to assist condominium owners and association
boards with dispute assistance and resolutions pertaining to violations of
governing documents and state laws; and
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(2)
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Fund
the
ombudsman's office for condominium owners and associations via a small increase
in the registration fees every registered condominium association pays
biennially to the condominium education trust fund.
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SECTION 2.
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Chapter 514B, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:
"
Part .
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OMBUDSMAN'S office for condominium owners and
associations.
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514B-
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Ombudsman's office for condominium owners and
associations; established.
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(a)
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There is established within the department
of commerce and consumer affairs an ombudsman's office for condominium owners
and associations.
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The office shall be
headed by the ombudsman for condominium owners and associations, who shall be
appointed by the governor with the advice and consent of the senate.
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(b)
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The ombudsman shall have been admitted to practice law before the Hawaii
supreme court, have at least five years of practical experience, and shall have
extensive experience in Hawaii real estate, condominium association law, and
conflict and alternative dispute resolution.
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�514B-
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Personnel; salary; benefits.
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(a)
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The ombudsman shall employ professional and clerical staff as necessary
for the efficient operation of the ombudsman's office.
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The ombudsman shall appoint one additional
person who has been admitted to practice law before the Hawaii supreme court as
staff.
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(b)
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Personnel and administrative costs of the ombudsman's office shall be
funded by the condominium education trust fund.
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�514B-
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Ombudsman; powers and duties.
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(a)
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The
ombudsman shall:
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(1)
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Have the power to
establish rules pursuant to chapter 91 for the operation of the office,
including receiving and processing complaints and requests for dispute
intervention and resolution and conducting investigations;
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(2)
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Act as a liaison
between unit owners, boards, board members, association management, managing
agents and their employees, and other affected parties;
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(3)
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Act as a neutral
resource for the rights and responsibilities of unit owners, associations,
boards of directors, board members, managers, and any affected parties to
encourage and facilitate voluntary meetings with and between these entities;
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(4)
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Assist unit owners
in understanding their rights and the processes available to them according to
the laws and rules governing condominium associations;
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(5)
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Respond to general
inquiries, make recommendations, and give guidance as necessary to assist unit
owners and boards;
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(6)
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Receive written
requests for dispute intervention and resolution;
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(7)
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Investigate and
assist in resolving disputes brought by unit owners, associations, boards, and
board members; and
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(8)
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Maintain publicly
available data that is updated quarterly on inquiries and complaints received
by the office.
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(b)
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The decisions or recommendations of the ombudsman shall be nonbinding
but may be admissible in court if the decisions or recommendations are not
followed.
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�514B-
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Request for dispute intervention and
resolution.
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A unit owner or
association, by its board members, who is a party to a dispute involving the
interpretation or enforcement of an association's governing documents,
including the condominium's declaration, bylaws, and house rules, this chapter,
or any other law the association is obligated to follow, may submit to the
ombudsman's office a written request for dispute intervention and resolution
setting forth the facts forming the basis of the dispute."
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SECTION 3
.
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Section 514B-71,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:
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"(a)
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The commission shall establish a condominium
education trust fund that the commission shall use for educational
purposes.
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Educational purposes shall
include financing or promoting:
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(1)
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Education and
research in the field of condominium management, condominium project
registration, and real estate, for the benefit of the public and those required
to be registered under this chapter;
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(2)
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The improvement
and more efficient administration of associations;
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(3)
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Expeditious and
inexpensive procedures for resolving association disputes;
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(4)
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Support for
the
ombudsman's office for condominium owners and associations established
pursuant to part ;
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[
(4)
]
(5)
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Support for mediation of condominium
related disputes; and
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[
(5)
]
(6)
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Support for voluntary binding
arbitration between parties in condominium related disputes, pursuant to
section 514B-162.5."
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SECTION
4
.
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Section
514B-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:
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"(a)
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Each project or
association with more than five units shall pay to the department of commerce
and consumer affairs:
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(1)
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A condominium education trust fund fee within
one year after the recordation of the purchase of the first unit or within
thirty days of the association's first meeting, and thereafter, on or before
June 30 of every odd-numbered year, as prescribed by rules adopted pursuant to
chapter 91; [
and
]
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(2)
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Beginning with the July 1, 2015, biennium
registration, an additional annual condominium education trust fund fee in an
amount equal to the product of $1.50 times the number of condominium units
included in the registered project or association to be dedicated to supporting
mediation or voluntary binding arbitration of condominium related
disputes.
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The additional condominium
education trust fund fee shall total $3 per unit until the commission adopts
rules pursuant to chapter 91.
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On June 30
of every odd-numbered year, any unexpended additional amounts paid into the
condominium education trust fund and initially dedicated to supporting
mediation or voluntary binding arbitration of condominium related disputes, as
required by this paragraph, shall be used for educational purposes as provided
in section 514B-71(a)(1), (2), and (3)[
.
]
; and
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(3)
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Beginning with the July 1, 2027, biennium,
an additional annual condominium education trust fund fee of $2.50 to be
dedicated to supporting the
ombudsman's office for condominium
owners and associations established pursuant to part .
"
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SECTION 5.
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There is appropriated out of the condominium
education trust fund the sum of $
or so much thereof as may be necessary for fiscal year 2026-2027 for the
administrative costs associated with the establishment of the ombudsman's
office for condominium owners and associations within the department of
commerce and consumer affairs, including the hiring of necessary staff.
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The sum
appropriated shall be expended by the department of commerce and
consumer affairs for the purposes of this Act.
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SECTION 6.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 7.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
DCCA;
Condominiums; Condominium Associations; Ombudsman's Office for Condominium
Owners and Associations; Condominium Education Trust Fund; Appropriation
Description:
Establishes
the Ombudsman's Office for Condominium Owners and Associations within the
Department of Commerce and Consumer Affairs.
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Increases the biennial Condominium Education
Trust Fund fee by $2.50 a year to pay for the ongoing costs of the Ombudsman's
Office.
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Appropriates funds from the
Condominium
Education Trust Fund
for
establishment of the Ombudsman's Office.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.