THE SENATE	S.R. NO.	130
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

SENATE RESOLUTION

 

 

Urging the real estate commission to develop policies and programs to INFORM AND educate condominium ASSOCIATION owners and board members of CERTAIN MATTERS TO PROMOTE THE efficient administration of condominium associations.

 

 

        WHEREAS, the unit owners of a condominium comprise its association and have duties and powers outlined in section 514B   104, Hawaii Revised Statutes (HRS), and must comply with their association's governing declaration, bylaws, house rules, and policies; and

 

        WHEREAS, each year, association unit owners elect board members to manage their condominium's operations; pay assessments for the operation, repair, and maintenance of their condominiums; and fund reserves for deferred maintenance; and

 

        WHEREAS, boards of condominium associations are governed by chapter 514B, HRS, requiring that they follow their association's governing documents in managing condominium operations; repairing and maintaining their condominiums; assessing unit owners when needed; and facilitating capital improvements; and

 

        WHEREAS, as condominiums age, repair and maintenance costs also increase, which may impact association unit owners through increased maintenance fees and special assessments; and

 

        WHEREAS, the imposition of increased maintenance fees and special assessments can create discord and conflict between the association unit owners and their boards and managing agents, resulting in frustration, hostility, and dissension; and

 

        WHEREAS, section 514B-71, HRS, requires the Real Estate Commission--a commission administratively attached to the Department of Commerce and Consumer Affairs that has oversight of condominiums--to establish the Condominium Education Trust Fund to promote, among other things, education and research in condominium management, the improvement and more efficient administration of associations, and the expeditious and inexpensive resolution of association disputes; now, therefore,

 

        BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that the Real Estate Commission is urged to develop policies and programs to inform and educate condominium association unit owners and board members of the following:

 

        (1)   Effective condominium governance practices, including the importance of maintaining open and frequent communication;

 

        (2)   The purpose of governing documents and how they guide condominium management;

 

        (3)   The respective obligations of unit owners and board members;

 

        (4)   The interplay between regular assessments, reserves, capital improvements, and special assessments;

 

        (5)   Any other matters related to the effective administration of associations; and

 

        (6)   Dispute resolution processes, including the mechanics of mediation and arbitration; and

 

        BE IT FURTHER RESOLVED that the Real Estate Commission is requested to use the Condominium Education Trust Fund for the purposes of developing the educational policies and programs requested herein; and

 

        BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chair of the Real Estate Commission and Director of Commerce and Consumer Affairs.

 

 

 

	OFFERED BY:	_____________________________

Report Title:  

Real Estate Commission; Department of Commerce and Consumer Affairs; Condominiums; Educations; Condominium Boards; Duties