RELATING TO CONDOMINIUMS.

SB2301

THE SENATE

S.B. NO.

2301

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).
�
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 or preparing 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 keep records sufficiently
detailed to enable compliance with requests for information and disclosures
related to resale of units at no cost is limited to providing pre-existing
documentation and does not include the completion or provision of documentation
or forms used to facilitate private sales transactions that are not already in
existence at the time of request.

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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
�
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 no association or managing agent shall
be required to provide a document that is not already in existence, or to
complete any form, for the purpose of facilitating any specific resale
transaction.

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Except as otherwise provided by law, all
required

financial and other records shall be made available pursuant to 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

Description:

Exempts
condominium associations and managing agents from 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.