Hawaii House Bill HR23

Hawaii 2025 Regular Session

• Introduced: 2/24/25
• Refer: 3/14/25
• Report Pass: 3/25/25
• Refer: 3/25/25
• Report Pass: 4/3/25
• Passed: 4/3/25

Caption

Requesting The Auditor To Conduct A Sunrise Analysis Of Condominium Association Managers.

Impact

This resolution seeks to provide a framework for potentially regulating condominium association managers more effectively. Currently, while managing agents are required to be licensed, there is no formal requirement for them to possess requisite knowledge pertaining to the laws and rules governing condominium associations. This gap has led to reports of poor management practices such as managers suppressing concerns raised by board members. The proposed analysis aims to address these issues by examining the necessity of establishing a certification requirement for these managers, thereby enhancing accountability and standards within the industry.

Summary

House Resolution 23 (HR23), introduced in the Thirty-third Legislature of Hawaii in 2025, aims to request the Auditor to conduct a sunrise analysis of condominium association managers. The resolution highlights the significant role that condominium associations and their management play in the state's real estate scene, with approximately 1,826 associations managing over 173,000 units. This request for analysis underscores the need for better oversight and understanding of the management practices in these associations, especially as they are largely self-governed under existing state law.

Sentiment

The sentiment around HR23 appears to be cautiously optimistic, as it highlights a proactive step towards addressing deficiencies in condominium management oversight. Supporters may view the resolution as a necessary move to protect the interests of unit owners and improve governance within condominiums. However, it could also face scrutiny regarding the implications of additional regulations on existing management practices, with concerns about potential pushback from those currently operating without stringent requirements.

Contention

Notably, the contention surrounding HR23 arises from the balance between regulatory oversight and the autonomy of condominium associations. Some stakeholders may argue that imposing strict regulations could hinder the self-governing nature of these associations. In contrast, proponents of the resolution argue that enhanced regulation could lead to fairer practices and greater transparency, thus ultimately benefiting the residents. The resolution's eventual outcome may influence how condominium associations operate and manage their affairs going forward, as well as whether further legislative measures become necessary.