SB2765 • 2026

RELATING TO CONDOMINIUMS.

Housing

Active

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

Sponsor: KEOHOKALOLE, CHANG, FUKUNAGA, MORIWAKI, Gabbard, Richards, San Buenaventura
Last action: 2026-04-27
Official status: Received notice of Senate conferees (Sen. Com. No. 761).
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO CONDOMINIUMS.

What This Bill Does

RELATING TO CONDOMINIUMS.
Condominiums; Associations; Rental Income; Foreclosures; Third‑Party Commissioners Clarifies that condominium associations that have obtained title to a unit through foreclosure may retain rental income received prior to the appointment of a commissioner in a subsequent foreclosure, but the association may be required by a court to remit rental income received after the appointment of a commissioner to be held until an order of distribution is entered by the court.
Effective 7/1/3000.
(HD1)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

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

HD1

Hawaii published version HD1

Plain English: SB2765 HD1 THE SENATE S.B.

SB2765 HD1 THE SENATE S.B.
NO.
2765 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII H.D.

SD1

Hawaii published version SD1

Plain English: SB2765 SD1 THE SENATE S.B.

SB2765 SD1 THE SENATE S.B.
NO.
2765 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO CONDOMINIUMS .

Bill History

2026-04-27 H
Received notice of Senate conferees (Sen. Com. No. 761).
2026-04-24 S
Senate Conferees Appointed: Keohokalole Chair; Rhoads Co-Chair; Fukunaga, Awa.
2026-04-20 S
Received notice of appointment of House conferees (Hse. Com. No. 787).
2026-04-20 H
House Conferees Appointed: Matayoshi, Tarnas Co-Chairs; Pierick.
2026-04-10 H
Received notice of disagreement (Sen. Com. No. 564).
2026-04-09 S
Senate disagrees with House amendments.
2026-04-09 S
Received from House (Hse. Com. No. 488).
2026-04-08 H
Passed Third Reading with Representative(s) Iwamoto, Souza voting aye with reservations; Representative(s) Alcos, Garcia, Gedeon, Matsumoto, Muraoka, Pierick, Reyes Oda, Shimizu voting no (8) and Representative(s) Cochran excused (1). Transmitted to Senate.
2026-04-08 H
Reported from JHA (Stand. Com. Rep. No. 1821-26), recommending passage on Third Reading.
2026-04-01 H
The committee on JHA recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Kahaloa, Takayama; Ayes with reservations: Representative(s) Cochran, Garcia; 1 Noes: Representative(s) Shimizu; and 2 Excused: Representative(s) Hashem, Sayama.
2026-03-30 H
Bill scheduled to be heard by JHA on Wednesday, 04-01-26 2:00PM in House conference room 325 VIA VIDEOCONFERENCE.
2026-03-24 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2).
2026-03-24 H
Reported from CPC (Stand. Com. Rep. No. 1340-26) as amended in HD 1, recommending passage on Second Reading and referral to JHA.
2026-03-17 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Lowen.
2026-03-12 H
Bill scheduled to be heard by CPC on Tuesday, 03-17-26 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2026-03-12 H
Referred to CPC, JHA, referral sheet 17
2026-03-12 H
Pass First Reading
2026-03-10 H
Received from Senate (Sen. Com. No. 293) in amended form (SD 1).
2026-03-10 S
Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
2026-03-06 S
One Day Notice 03-10-26.
2026-03-06 S
Reported from JDC (Stand. Com. Rep. No. 3030) with recommendation of passage on Third Reading.
2026-03-03 S
The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2026-02-24 S
The committee(s) on JDC will hold a public decision making on 03-03-26 10:15AM; Conference Room 016 & Videoconference.
2026-02-19 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.
2026-02-19 S
Reported from CPN (Stand. Com. Rep. No. 2392) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.
2026-02-13 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, Lamosao, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.
2026-02-05 S
The committee(s) on CPN has scheduled a public hearing on 02-13-26 9:30AM; CR 229 & Videoconference.
2026-01-30 S
Referred to CPN, JDC.
2026-01-26 S
Passed First Reading.
2026-01-23 S
Introduced.

Official Summary Text

RELATING TO CONDOMINIUMS.
Condominiums; Associations; Rental Income; Foreclosures; Third‑Party Commissioners
Clarifies that condominium associations that have obtained title to a unit through foreclosure may retain rental income received prior to the appointment of a commissioner in a subsequent foreclosure, but the association may be required by a court to remit rental income received after the appointment of a commissioner to be held until an order of distribution is entered by the court. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

SB2765

THE SENATE

S.B. NO.

2765

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:

����
SECTION 1.
�
The legislature finds that condominiums are a
significant and valuable housing resource in Hawaii, especially with limited
space available for new development.
�
The
structure of condominium ownership requires each owner to share in the total
cost of maintaining common areas such as building exteriors, landscaping, and
recreation rooms, in addition to paying insurance premiums.
�
All owners pay for such maintenance through
payment of their share of common expense assessments.

����
The
legislature further finds that it is crucial that condominium associations be
able to secure timely payment of common expense assessments to provide services
to all residents of a condominium community.

����
The
legislature notes that increasing delinquencies, related enforcement expenses,
and lengthy delays in the judicial foreclosure process exacerbate the financial
burden on association owners.

����
The
legislature further finds that associations are treated differently from other
parties that acquire title through foreclosure, and that this treatment burdens
association members who pay their share of common expense assessments on
time.
�
In particular, associations that
have acquired title to a unit through a judicial or nonjudicial foreclosure
face additional administrative and financial burdens of accounting for rental
income.

����
The
legislature further notes that many associations do not obtain "excess
rental income" as defined by section 514B-146(n), Hawaii Revised Statutes.
�
However, in cases where another lienholder is
foreclosing on a unit acquired by an association, associations with excess
rental income are also unfairly burdened by the requirement to disgorge
"excess rental income" received prior to the appointment of a
commissioner in a subsequent foreclosure.

����
Accordingly,
the purpose of this Act is to clarify that condominium associations that have
acquired title through foreclosure may retain rental income received prior to
the appointment of a commissioner, provided that the association may be
required by a court to remit rental income received after the appointment of a
commissioner.

����
SECTION

2
.
�
Section
514B-146, Hawaii Revised Statutes, is amended by amending subsection (n) to
read as follows:

����
"
(n)
�
After any judicial or nonjudicial foreclosure proceeding in which the
association acquires title to the unit, any [
excess
] rental income
received by the association from the unit [
shall
]
may
be [
paid
to existing lien holders based on the priority of lien, and not on a pro rata
basis, and shall be applied to the benefit of the unit owner.
�
For purposes of this subsection, excess
rental income shall be any net income received by the association after a court
has issued a final judgment determining the priority of a senior mortgagee and
after paying, crediting, or reimbursing the association or a third party for:

����
(1)
�
The
lien for delinquent assessments pursuant to subsections (a) and (b);

����
(2)
�
Any
maintenance fee delinquency against the unit;

����
(3)
�
Attorney's
fees and other collection costs related to the association's foreclosure of the
unit; or

����
(4)
�
Any
costs incurred by the association for the rental, repair, maintenance, or
rehabilitation of the unit while the association is in possession of the unit
including monthly association maintenance fees, management fees, real estate
commissions, cleaning and repair expenses for the unit, and general excise
taxes paid on rental income;

provided that the lien for delinquent assessments

under paragraph (1) shall be paid, credited, or reimbursed first.
]
used
for the benefit of the association; provided that a court may require that rental
income received after the appointment of a commissioner in a subsequent
foreclosure shall be remitted to the court-appointed commissioner.
"

����
SECTION
3.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

����
SECTION
4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
5.
�
This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

Condominiums;
Associations; Rental Income; Foreclosures; Third‑Party Commissioners

Description:

Clarifies
that condominium associations that have obtained title to a unit through
foreclosure may retain rental income received prior to the appointment of a
commissioner in a subsequent foreclosure; provided that the association may be
required by a court to remit rental income received after the appointment of a
commissioner.

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