STAND. COM. REP. NO. 3507

Honolulu, Hawaii

RE: H.B. No. 1824

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1824, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to allow small condominium associations to waive the requirement for the reserve study to be reviewed by an independent reserve study preparer if a majority of unit owners at a meeting approve the waiver and certain other requirements are met, but prohibit associations from waiving this requirement for consecutive three‑year periods.

Your Committee received testimony in support of this measure from one individual.

Your Committee received testimony in opposition to this measure from the Hawaii Legislative Action Committee of the Community Associations Institute and Associa.

Your Committee received comments on this measure from the Hawaiʻi Real Estate Commission.

Your Committee finds that independent reserve study reviews for condominium associations required under existing law are intended to enable financial transparency, long‑term planning, and protection against unexpected special assessments. Your Committee further finds, however, that mandatory reviews may impose a disproportionate cost burden on small associations, diverting resources from maintenance and repair. This measure would provide flexibility by authorizing condominium associations with fewer than twenty units to waive the triennial third-party review under certain conditions.

Your Committee has amended this measure by:

(1) Inserting language to clarify that a condominium association's building or buildings shall be no more than two stories as a condition of the authorization to waive the requirement for a review by an independent reserve study preparer; and

(2) Amending section 1 to reflect its amended purpose.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1824, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1824, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair