HB807 • 2026

RELATING TO CONDOMINIUMS.

Budget

Active

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

Sponsor: MATAYOSHI, CHUN, KAHALOA, KITAGAWA, LA CHICA, LEE, M., MARTEN, OLDS, SAYAMA, TAM, TARNAS, TODD
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill text does not provide specific details on how condominium associations will be selected for eligibility or what maintenance or repair projects beyond fire safety measures, pipes, and roofs are eligible under the loan programs.

Condominium Loan Program and Loss Reserves

This bill establishes programs to provide low-cost loans for condominium associations' maintenance and repair needs, and requires annual reports to the Legislature.

What This Bill Does

Establishes a Condominium Loan Program that provides qualified condominium associations with low-cost financing or refinancing for maintenance or repair projects.
Creates a Condominium Loan Loss Reserves Program to encourage lenders to offer loans at competitive rates by providing financial protection against losses.
Requires the Hawaii Green Infrastructure Authority to submit annual reports detailing the progress of the loan programs and fund balances to the Legislature.

Who It Names or Affects

Condominium associations that need financing or refinancing for maintenance or repairs.
Financial institutions participating in the loan loss reserves program to provide loans at competitive rates.
The Hawaii Green Infrastructure Authority responsible for administering these programs.

Terms To Know

Qualified Condominium Association: A condominium association that meets specific eligibility requirements set by the authority.
Participating Financial Institution: A financial institution involved in the loan loss reserves program to provide loans at competitive rates and terms.

Limits and Unknowns

The bill does not specify how condominium associations will be selected for eligibility.
It is unclear what specific maintenance or repair projects beyond fire safety measures, pipes, and roofs are eligible under the loan programs.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment adds a new chapter to Hawaii Revised Statutes that establishes a loan program for condominium associations to help with maintenance and repairs.

Adds definitions for terms related to the condominium loan program, such as 'Authority', 'Condominium association', and 'Financial institution'.
Establishes powers for the Hawaii Green Infrastructure Authority to contract with financial institutions and adopt rules for the loan program.
Creates a condominium loan revolving fund in the state treasury to provide loans and credit enhancements for maintenance or repair projects.
Sets conditions for loans, including requirements that condominium associations increase their replacement reserves over the term of the loan.

The amendment text is incomplete and does not fully explain all aspects of the program's implementation details.

HD2

Hawaii published version HD2

Plain English: The amendment adds a new chapter to Hawaii Revised Statutes that establishes a financing program for condominium associations, including loans and credit enhancements through reserve accounts.

Adds definitions for terms related to the condominium loan program.
Establishes powers of the Hawaii Green Infrastructure Authority to contract with community development financial institutions and adopt rules.
Creates a condominium loan revolving fund within the state treasury to provide low-cost financing or refinancing for maintenance or repair projects in condominiums.
Sets conditions for loans, including requirements that condominium associations increase their replacement reserves over the term of the loan.

The amendment text is incomplete and does not fully explain all aspects of the program, such as specific eligibility criteria and interest rates.

SD1

Hawaii published version SD1

Plain English: The amendment adds new provisions to Hawaii Revised Statutes to establish a condominium loan program and reserve fund, providing low-cost financing for maintenance or repairs in condominium projects.

Establishes the Hawaii Green Infrastructure Authority's power to contract with community development financial institutions (CDFIs) and adopt rules under chapter 91.
Creates a condominium loan revolving fund within the state treasury to provide loans and credit enhancements for qualified condominium associations.
Specifies that loans can be used for fire safety measures, pipe repairs or replacements, roof repairs or replacements, and other maintenance or repairs deemed eligible by the authority.
Requires participating CDFIs to establish reserve accounts funded by the revolving fund to cover potential loan losses.

The amendment text is extensive and includes many detailed rules that are not fully explained in this summary.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-04-01 S
The committee on WAM deferred the measure.
2025-03-27 S
The committee(s) on WAM will hold a public decision making on 04-01-25 10:01AM; Conference Room 211 & Videoconference.
2025-03-21 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2025-03-21 S
Reported from CPN (Stand. Com. Rep. No. 1337) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2025-03-19 S
The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Richards.
2025-03-14 S
The committee(s) on CPN deferred the measure until 03-19-25 10:00AM; Conference Room 229 & Videoconference.
2025-03-07 S
The committee(s) on CPN has scheduled a public hearing on 03-14-25 9:30AM; Conference Room 229 & Videoconference.
2025-03-06 S
Referred to CPN, WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 288).
2025-03-04 H
Passed Third Reading as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.
2025-02-28 H
Forty-eight (48) hours notice Tuesday, 03-04-25.
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 1008) as amended in HD 2, recommending passage on Third Reading.
2025-02-21 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 3 Excused: Representative(s) Lee, M., Alcos, Ward.
2025-02-19 H
Bill scheduled to be heard by FIN on Friday, 02-21-25 12:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-14 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Garcia voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).
2025-02-14 H
Reported from CPC (Stand. Com. Rep. No. 675) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-11 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and Excused: none.
2025-02-07 H
Bill scheduled for decision making on Tuesday, 02-11-25 2:00PM in conference room 329 VIA VIDEOCONFERENCE.
2025-02-05 H
The committee(s) on CPC recommend(s) that the measure be deferred.
2025-02-03 H
Bill scheduled to be heard by CPC on Wednesday, 02-05-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to CPC, FIN, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO CONDOMINIUMS.
Hawaii Green Infrastructure Authority; Condominiums; Condominium Loan Program; Condominium Loan Loss Reserves Program; Reports; Appropriations ($)
Establishes the Condominium Loan Program to provide condominium associations with low-cost financing, or refinancing for previously obtained loans, for maintenance or repair projects. Establishes the Condominium Loan Loss Reserves Program to incentivize lenders to provide loans at competitive rates and terms to condominium associations for the purpose of allowing condominium associations to make necessary maintenance or repairs. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/3000. (SD1)

Current Bill Text

Read the full stored bill text

HB807

HOUSE OF REPRESENTATIVES

H.B. NO.

807

THIRTY-THIRD LEGISLATURE, 2025

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.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

financing for condominiums

Part I
.
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DIRECT FINANCING

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-1
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Definitions.
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As used in this chapter, unless the context
clearly requires otherwise:

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"Authority"
means the Hawaii green infrastructure authority as established under section
196-63.

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"Condominium
association" has the same meaning as association as defined under section
514B-3.

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"Condominium
project" has the same meaning as project as defined under section 514B-3.

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"Financial
institution" includes a bank, trust company, banking association, savings
and loan association, mortgage company, investment bank, credit union, or
nontraditional financial institution.

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"Loan"
includes a line of credit.

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"Qualified
condominium association" means a condominium association that meets the
eligibility requirements under section -6 and the rules
adopted by the authority.

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"Participating
financial institution" means a financial institution participating in the condominium
loan loss reserves program.

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"Reserve
account" means an account established in a participating financial
institution on approval of the authority in which money is deposited to serve
as a reserve to reimburse the financial institution for losses on loans
enrolled in the condominium loan loss reserves program.

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Powers; rulemaking.
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In addition to any other powers authorized by
law, the authority may:

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(1)
�
Contract with any financial institution for
services, including servicing or administering loans pursuant to this part;

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(2)
�
Adopt rules pursuant to chapter 91 to
effectuate this chapter, including but not limited to rules relating to:

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(A)
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Determinations
of any other maintenance or repairs that qualify for financing or refinancing
under this chapter;

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(B)
�
The
establishment of interest rates chargeable by the authority for direct loans
under this part and by the participating financial institutions for loans under
part II;

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(C)
�
The
establishment of restrictions on the terms, maturities, collateral, and other
requirements not inconsistent with this part;

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(D)
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Procedures
for validating a qualified condominium association's compliance with the
obligation to increase its replacement reserves balance;

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(E)
�
Determinations of eligibility of a financial
institution to participate in the condominium loan loss reserves program;

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(F)
�
Eligibility participation criteria for loans
issued by an eligible financial institution to a qualified condominium
association; and

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(G)
�
The authorization of a consortium of financial
institutions to participate in the condominium loan loss reserves program
subject to condominium loan loss reserves program guidelines.

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�
-3
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Condominium loan program.
�
There is established within the authority the
condominium loan program to provide qualified condominium associations with low-cost
financing, or refinancing for loans previously obtained, for maintenance or
repair projects in accordance with this part.

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-4
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Condominium loan revolving fund.
�
(a)
�

There is established in the state treasury the condominium loan
revolving fund, into which shall be deposited:

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(1)
�
Moneys received as repayment of loans and
interest payments as provided in this chapter;

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(2)
�
Appropriations made by the legislature to the
condominium loan revolving fund; and

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(3)
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All interest and investment earnings credited
to the assets of the fund.

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(b)
�
Moneys in the condominium loan revolving fund
shall be expended by the authority for:

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(1)
�
The purposes of providing loans and credit
enhancements in accordance with this part; and

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(2)
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Paying administrative costs of the condominium
loan program.

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-5
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Loans; limitations and conditions.
�
(a)
�
Loans
under this chapter shall be for financing, or refinancing previous loans that
were used for, the following maintenance or repairs in a condominium project:

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(1)
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Installing, repairing, or replacing fire
sprinklers or other fire safety measures;

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(2)
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Repairing or replacing the pipes;

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(3)
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Repairing or replacing the roof; or

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(4)
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Any other maintenance or repairs the authority
deems qualified for the loans.

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(b)
�
The loan agreement shall require that the qualified
condominium association increase its replacement reserves fund balance over the
term of the loan and terms.

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-6
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Loans; eligibility.
�
The authority may make loans directly to
condominium associations that:

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(1)
�
Are unable to secure full replacement value
insurance at reasonable rates; or

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(2)
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Cannot obtain sufficient funds at reasonable
rates from private lenders independently.

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-7
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Annual reports.
�
The authority shall submit a report to the
legislature no later than twenty days prior to the convening of each regular
session that details the progress of the condominium loan program, aggregate
data on the loans issued under this part, and the balance of the condominium
loan revolving fund
.

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-8
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Gifts and grants.
�
The authority may accept gifts, grants, and
donations from any source for the purposes of this chapter.

PART II.
�
CREDIT ENHANCEMENT THROUGH LOAN LOSS RESERVES

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�
-11
�
Condominium loan loss reserves program.
�
(a)
�
There
is established within the authority the condominium loan loss reserves program
to incentivize lenders, in accordance with this part, to provide loans at
competitive rates and terms to condominium associations for the purpose of
allowing condominium associations to make necessary maintenance or repairs.

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(b)
�
The authority shall use moneys in the
condominium loan revolving fund to make deposits into a participating financial
institution's reserve account in an amount specified by this part to be a
source of moneys the participating financial institution may receive as
reimbursement for losses attributable to loans in the condominium loan loss
reserves program.

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�
-12
�
Participating financial institutions; reserve
account.
�
(a)
�
To participate in the condominium loan loss
reserves program, an eligible financial institution shall enter into a
participation agreement with the authority that sets out the terms and
conditions under which the authority will make contributions to the
institution's reserve account and specifies the criteria for a loan to qualify
as a loan under this part.

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(b)
�
On approval by the authority and after a
financial institution enters into a participation agreement with the authority,
the authority shall establish a reserve account at a participating financial institution
making a loan under this part and deposit an amount equal to five per cent of
the original loan amount.
�
The reserve
account shall be used by the authority to cover any losses arising from a
default of the loan made by the institution under this part or as otherwise
provided by this part.

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(c)
�
When a participating financial institution
makes a loan enrolled in the condominium loan loss reserves program, the
institution shall pay to the authority a fee equal to fifty basis points of the
amount deposited into the reserve account to support the loan, which the authority
shall deposit into the reserve account, and annually thereafter.
�
The participating financial may recover from
the borrower all or part of the amount the institution is required to pay under
this subsection in any manner agreed to by the institution and borrower.

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(d)
�
For each loan under this part made by a participating
financial institution, the institution shall provide executed loan documents to
the authority, within the period prescribed by the authority, including the
amount of fees received from the borrower.

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�
-13
�
Loans.
�

(a)
�
Except as otherwise provided
by this chapter, the authority shall not determine the recipient, amount, or
interest rate of a loan under this part or the fees or other requirements
related to the loan.

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(b)
�
To qualify as a loan under this part, a loan
shall:

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(1)
�
Be made to a condominium association;

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(2)
�
Meet the limitations and conditions under section
‑5; and

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(3)
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Meet other criteria established by the
authority by rules adopted pursuant to chapter 91.

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(c)
�
For a line of credit to qualify for
participation in the condominium loan loss reserves program, a line of credit
shall:

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(1)
�
Be an account at a financial institution under
which the financial institution agrees to lend money to a qualified condominium
association from time to time to finance one or more projects that are
authorized by this chapter; and

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(2)
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Contain the same restrictions, to the extent
possible, that are placed on a loan that is not a line of credit.

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(d)
�
A loan under this part may be sold on the
secondary market under conditions as may be determined by the participating
financial institution with the consent of the authority.

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(e)
�
When enrolling a loan in the condominium loan
loss reserves program, a participating financial institution may specify an
amount to be covered under the condominium loan loss reserves program that is
less than the amount allowed under section -12(b).

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�
-14
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Limitations on state contribution to reserve
account.
�
The maximum aggregate
amount the authority may retain on deposit in a reserve account shall not
exceed per cent of the aggregate outstanding principal
balance of enrolled loans.
�
On a regular
basis, no less than annually, the authority shall withdraw from a reserve
account the amounts in excess and deposit that amount into the condominium loan
revolving fund.
�
A withdrawal of money
authorized under this section shall not reduce an active reserve account to an
amount that is less than the aggregate amount allowed under this section.

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State's rights with respect to reserve
account.
�
(a)
�
All of the money in a reserve account
established under this part is property of the State.

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(b)
�
The State is entitled to earn interest on the
amount of contributions made by the authority, borrower, and participating
financial institution to a reserve account under this part.
�
On a regular basis, no less than annually, the
authority shall withdraw from a reserve account the amount of the interest
earned by the State.
�
The authority shall
deposit the amount withdrawn under this section into the condominium loan
revolving fund.

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(c)
�
The authority shall withdraw from the participating
financial institution's reserve account the total amount in the account and any
interest earned on the account and deposit the amount into the condominium loan
revolving fund when:

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(1)
�
A financial institution is no longer eligible
to participate in the condominium loan loss reserves program or a participation
agreement entered into under this part expires without renewal by the authority
or institution; and

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(2)
�
The financial institution has no outstanding
loans under this part.

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-16
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Participating financial institution's annual
reports.
�
A participating financial
institution shall submit an annual report to the authority.
�
The report shall:

����
(1)
�
Provide information regarding outstanding principal
balance of the loans under this part, loan losses, and any other information on
loans under this part the authority considers appropriate;

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(2)
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Include a copy of the institution's most
recent financial statement; and

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(3)
�
Include information regarding the condominium
associations with loans under this part.

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Authority's annual report; audits.
�
(a)
�

The authority shall submit to the legislature an annual status report on
the condominium loan loss reserves program's activities.

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(b)
�
The condominium loan revolving fund shall be
audited at least annually by a firm of independent certified public accountants
selected by the authority and provide the results of the audit to the
department and legislature.

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-18
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State liability prohibited.
�
The State shall not be liable to a
participating financial institution for payment of the principal, the interest,
or any late charges on a loan made under this part."

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SECTION
2
.
�
There
is appropriated out of the general revenues of the State of Hawaii the sum of $
or so much thereof as may be necessary for fiscal year 2025-2026
and the
same sum or so much thereof as may be necessary for fiscal year 2026-2027
to be deposited into the condominium
loan revolving fund.

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SECTION
3
.
�
There
is appropriated out of the condominium loan revolving fund the sum of $
or so much thereof as may be necessary for fiscal year 2025-2026
and the
same sum or so much thereof as may be necessary for fiscal year 2026-2027
to implement the condominium loan
program.

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The sums appropriated shall be expended by
the Hawaii green infrastructure authority for the purposes of this Act.

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SECTION 4.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Hawaii
Green Infrastructure Authority; Condominiums; Condominium Loan Program; Condominium
Loan Loss Reserves Program; Appropriation

Description:

Establishes
the Condominium Loan Program to provide condominium associations with low-cost
financing, or refinance previously obtained loans, for maintenance or repair
projects.
�
Establishes the Condominium
Loan Loss Reserves Program to incentivize lenders into providing loans at
competitive rates and terms to condominium associations for the purpose of
allowing condominium associations to make necessary maintenance or repairs.
�
Appropriates funds.

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