STAND. COM. REP. NO. 756-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1513

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1513 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to provide further funding for the Condominium Loan Program by authorizing the issuance of reimbursable general obligation bonds.

Your Committee received testimony in support of this measure from the Hawaiʻi Green Infrastructure Authority; Palehua Townhouse Association; Hawaii Council of Community Associations; and one individual. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs and Hawaii Insurers Council.

Your Committee finds that, due to issues in the global insurance industry and recent increases in catastrophic weather events around the world, there have been unprecedented insurance premium rate increases for condominium associations. Many of these condominium associations are also seeing increased insurance premiums due to the aging buildings that make up the condominium projects and the associated repairs and maintenance issues, which are often significant.

Your Committee further finds that to address this problem, Act 296, Session Laws of Hawaii 2025 (Act 296), was enacted, which, in part, established the Condominium Loan Program to provide qualified condominium associations who are unable to qualify for loans from traditional lenders with long-term, fixed rate financing for maintenance or repair projects. This measure provides additional capital for the Condominium Loan Program.

Your Committee has amended this measure by:

(1) Changing the appropriations to unspecified amounts;

(2) Requiring the reimbursable general obligation bonds to be released in four tranches;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $7,000,000 out of the Hurricane Reserve Trust Fund; a reimbursable general obligation bond issuance amount of $50,000,000; and an appropriation amount of $50,000,000 out of the Condominium Loan Revolving Fund to implement the Condominium Loan Program.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1513, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1513, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

SCOT Z. MATAYOSHI, Chair