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SB2035
THE SENATE
S.B. NO.
2035
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 the Hawaii
supreme court recently issued a summary disposition order interpreting existing
law relating to condominiums to require managing agents to make available to
unit owners sufficiently detailed financial information and other records
relating to the private resale of units, such as a project information form
(Form RR105C) and a statement of account (SOA).
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Caven v. Certified Mgmt, Inc. dba Associa Hawaii
, 156 Hawaii 401,
575 P.3d 491 (2025).
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The order further
provides that the statutorily mandated disclosures are not limited to
pre-existing documents, and if they are made available to the unit owner
electronically or for download through an internet site, they are to be
provided at no cost to the unit owner or the owner's authorized agent.
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Id.
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Because forms used for private sales transactions are for the
use and benefit of the parties to the sale and not for the benefit of the
association, the legislature believes that these forms are not
"association documents" as interpreted by the Hawaii supreme court,
and that it is unfair to pass on the cost of providing non-association
documents for a private sales transaction to all unit owners in an association,
thus increasing association costs for condominium unit owners.
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Accordingly,
the purpose of this Act is to clarify that an association's or managing agent's
obligation to make available, at no cost to unit owners, sufficiently detailed financial
information and disclosures related to resale of units is limited to
pre-existing documentation and does not include the provision of documentation
or forms used to facilitate private sales transactions that are not already maintained
by the association.
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SECTION
2
.
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Section
514B-152, Hawaii Revised Statutes, is amended to read as follows:
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�514B-152
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Association records; generally.
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The
association shall keep financial and other records sufficiently detailed to
enable the association to comply with requests for information and disclosures
related to resale of units[
.
]
; provided that a request to provide a
document that is not already in existence, or to complete a form, for the
purpose of facilitating a specific resale transaction, shall be made available
to the owner or the owner's authorized agent subject to reasonable fees for
administrative costs associated with handling the request pursuant to section 514B-105(d).
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Except as otherwise provided by law, all
financial and other records shall be made available pursuant t
o section
514B‑154.5
for examination by any
unit owner and the owner's authorized agents.
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Association records shall be stored on the island on which the
association's project is located; provided that if original records, including
but not limited to invoices, are required to be sent off-island, copies of the
records shall be maintained on the island on which the association's project is
located.
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SECTION 3.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.
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SECTION
4.
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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
5.
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This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
Condominiums;
Association Records; Resale Transactions; Costs
Description:
Authorizes
condominium associations and managing agents to charge reasonable costs for
administrative services related to providing documentation not already in
existence or preparing forms to facilitate a private sales transaction.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.