HB2453

SECTION 1. The legislature finds that longstanding issues within Hawaii's condominium associations continue to result in unwarranted assessments, fines, legal fees, and retaliation against owners. Act 189, Session Laws of Hawaii 2023, established the condominium property regime task force to examine these problems and recommend improvements related to disputes, board governance, and enforcement. The task force issued its formal report in December 2023. Through Act 43, Session Laws of Hawaii 2024, the legislature engaged the legislative reference bureau to conduct a comparative study of condominium laws in selected states, including California, Delaware, Florida, Massachusetts, and Nevada, which was published in November 2025. This study highlighted that several states operate condominium ombudsman offices or similar enforcement mechanisms; however, it did not include a review of Hawaii's own condominium laws.

The legislature further finds that Hawaii's current framework for addressing condominium disputes is inadequate. Without meaningful reform, condominium owners risk continued exposure to unnecessary litigation, escalating legal costs, and the potential loss of their homes. Stronger consumer protections are urgently needed to ensure that associations, boards, and managing agents comply with governing documents and the requirements of chapter 514B, Hawaii Revised Statutes.

The legislature therefore finds that establishing an ombudsman's office for condominium owners and associations is necessary to support consumers, improve condominium-related dispute resolution, and enhance accountability within the State's condominium governance system.

The purpose of this Act is to:

(1) Establish an ombudsman's office for condominium owners and associations in the department of commerce and consumer affairs to assist condominium owners and association boards with dispute assistance and resolutions pertaining to violations of governing documents and state laws; and

(2) Fund the ombudsman's office for condominium owners and associations via a small increase in the registration fees every registered condominium association pays biennially to the condominium education trust fund.

SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . OMBUDSMAN'S office for condominium owners and associations.

§514B- Ombudsman's office for condominium owners and associations; established. (a) There is established within the department of commerce and consumer affairs an ombudsman's office for condominium owners and associations. The office shall be headed by the ombudsman for condominium owners and associations, who shall be appointed by the governor with the advice and consent of the senate.

(b) The ombudsman shall have been admitted to practice law before the Hawaii supreme court, have at least five years of practical experience, and shall have extensive experience in Hawaii real estate, condominium association law, and conflict and alternative dispute resolution.

§514B- Personnel; salary; benefits. (a) The ombudsman shall employ professional and clerical staff as necessary for the efficient operation of the ombudsman's office. The ombudsman shall appoint one additional person who has been admitted to practice law before the Hawaii supreme court as staff.

(b) Personnel and administrative costs of the ombudsman's office shall be funded by the condominium education trust fund.

§514B- Ombudsman; powers and duties. (a) The ombudsman shall:

(1) Have the power to establish rules pursuant to chapter 91 for the operation of the office, including receiving and processing complaints and requests for dispute intervention and resolution and conducting investigations;

(2) Act as a liaison between unit owners, boards, board members, association management, managing agents and their employees, and other affected parties;

(3) Act as a neutral resource for the rights and responsibilities of unit owners, associations, boards of directors, board members, managers, and any affected parties to encourage and facilitate voluntary meetings with and between these entities;

(4) Assist unit owners in understanding their rights and the processes available to them according to the laws and rules governing condominium associations;

(5) Respond to general inquiries, make recommendations, and give guidance as necessary to assist unit owners and boards;

(6) Receive written requests for dispute intervention and resolution;

(7) Investigate and assist in resolving disputes brought by unit owners, associations, boards, and board members; and

(8) Maintain publicly available data that is updated quarterly on inquiries and complaints received by the office.

(b) The decisions or recommendations of the ombudsman shall be nonbinding but may be admissible in court if the decisions or recommendations are not followed.

§514B- Request for dispute intervention and resolution. A unit owner or association, by its board members, who is a party to a dispute involving the interpretation or enforcement of an association's governing documents, including the condominium's declaration, bylaws, and house rules, this chapter, or any other law the association is obligated to follow, may submit to the ombudsman's office a written request for dispute intervention and resolution setting forth the facts forming the basis of the dispute."

SECTION 3. Section 514B-71, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The commission shall establish a condominium education trust fund that the commission shall use for educational purposes. Educational purposes shall include financing or promoting:

(1) Education and research in the field of condominium management, condominium project registration, and real estate, for the benefit of the public and those required to be registered under this chapter;

(2) The improvement and more efficient administration of associations;

(3) Expeditious and inexpensive procedures for resolving association disputes;

(4) Support for the ombudsman's office for condominium owners and associations established pursuant to part ;

[~~(4)~~] (5) Support for mediation of condominium related disputes; and

[~~(5)~~] (6) Support for voluntary binding arbitration between parties in condominium related disputes, pursuant to section 514B-162.5."

SECTION 4. Section 514B-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each project or association with more than five units shall pay to the department of commerce and consumer affairs:

(1) A condominium education trust fund fee within one year after the recordation of the purchase of the first unit or within thirty days of the association's first meeting, and thereafter, on or before June 30 of every odd-numbered year, as prescribed by rules adopted pursuant to chapter 91; [~~and~~]

(2) Beginning with the July 1, 2015, biennium registration, an additional annual condominium education trust fund fee in an amount equal to the product of $1.50 times the number of condominium units included in the registered project or association to be dedicated to supporting mediation or voluntary binding arbitration of condominium related disputes. The additional condominium education trust fund fee shall total $3 per unit until the commission adopts rules pursuant to chapter 91. On June 30 of every odd-numbered year, any unexpended additional amounts paid into the condominium education trust fund and initially dedicated to supporting mediation or voluntary binding arbitration of condominium related disputes, as required by this paragraph, shall be used for educational purposes as provided in section 514B-71(a)(1), (2), and (3)[.]; and

(3) Beginning with the July 1, 2027, biennium, an additional annual condominium education trust fund fee of $2.50 to be dedicated to supporting the ombudsman's office for condominium owners and associations established pursuant to part ."

SECTION 5. There is appropriated out of the condominium education trust fund the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the administrative costs associated with the establishment of the ombudsman's office for condominium owners and associations within the department of commerce and consumer affairs, including the hiring of necessary staff.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2453
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII