Requesting The Auditor To Conduct An Audit Of The Real Estate Commission's Oversight Of Real Estate Management Entities Under Chapter 514b, Hawaii Revised Statutes, And Make Recommendations To Improve The Effectiveness Of The Commission's Oversight Of Real Estate Management Entities And Related Issues.
If implemented, the resolution could yield improvements in the oversight processes of the Real Estate Commission, particularly concerning nonjudicial foreclosures, the enforcement of condominium bylaws, and the transparency of financial practices within managed properties. The audit will examine whether current regulations are sufficient and if statutory changes may be necessary to enhance the Commission's oversight abilities. Furthermore, the resolution calls for identifying measures to improve the relationship between homeowners, real estate management entities, and boards overseeing property governance.
SCR187 is a Senate Concurrent Resolution from the 2025 Legislative session in Hawaii, aimed at enhancing the oversight capabilities of the Real Estate Commission regarding real estate management entities operating under Chapter 514B of the Hawaii Revised Statutes. The resolution expresses concern over current gaps in enforcement and oversight that may undermine effective governance in condominium regimes, which constitute a significant portion of the state's housing market. The resolution seeks to address these concerns through a comprehensive audit requested from the state's auditor, focusing on the Real Estate Commission's practices and policies.
Major points of contention surround issues such as the use of unlicensed contractors for condominium-related work and the imposition of fines that may not align with established bylaws. Stakeholders have voiced frustration over improper enforcement practices, lack of access to pertinent documents, and conflicts of interest due to the appointment of industry personnel to governing boards. The resolution emphasizes the necessity for more effective mediation processes and equitable dispute resolutions to alleviate the financial strain on homeowners caused by forced civil actions. The expected outcomes of the audit and subsequent recommendations could lead to legislative amendments aimed at better protection for residents within these communities.