HOUSE OF REPRESENTATIVES	H.B. NO.	803
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to condominium reserve requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 514B-148, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The budget required under section 514B‑144(a) shall include at least the following:

(1) The estimated revenues and operating expenses of the association;

(2) Information as to whether the budget has been prepared on a cash or accrual basis;

(3) The total replacement reserves of the association as of the date of the budget;

(4) The estimated replacement reserves the association will require to maintain the property based on a reserve study performed by the association; provided that the reserve study shall [be]:

(A) Include the estimated costs of fire safety equipment or installations that meet the requirements of a life safety evaluation required by the applicable county for any building located in a county with a population greater than five hundred thousand;

(B) Be reviewed by an independent reserve study preparer; [provided further that the reserve study shall be] and

(C) Be reviewed or updated at least every three years;

(5) A general explanation of how the estimated replacement reserves are computed;

(6) The amount the association must collect for the fiscal year to fund the estimated replacement reserves; and

(7) Information as to whether the amount the association must collect for the fiscal year to fund the estimated replacement reserves was calculated using a per cent funded or cash flow plan. The method or plan shall not circumvent the estimated replacement reserves amount determined by the reserve study pursuant to paragraph (4)."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Condominium; Fire Safety Equipment; Fire Safety Installation; Replacement Reserves

Description:

Requires condominiums to include the estimated cost of fire safety equipment or installations as part of their estimated replacement reserves.

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