Hawaii advocates push for condo owner protections and ombudsman office

In a recent meeting held by the Senate Committee on Transportation and Culture and the Arts in Hawaii, significant concerns regarding condominium associations and homeowner protections were raised. The discussions highlighted the financial burdens faced by homeowners and the need for stronger regulatory measures to address misconduct within these associations.

One homeowner, who testified about their experience, revealed that their reserve fees had doubled, resulting in a deficit of nearly $15,000 per unit. This financial strain was compounded by a lack of repairs to common elements since 2018, raising questions about compliance with IRS regulations regarding excess membership income. The homeowner urged legislators to take action against what they described as a predatory industry, emphasizing the need for protections for over 100 units in their community.

Greg Maseikian, an advocate for condominium owners, echoed these sentiments, pointing out the widespread misconduct and corruption within condominium associations and their management companies. He highlighted the challenges homeowners face in enforcing their rights, often requiring costly legal action. Maseikian called for the establishment of an ombudsman’s office to oversee condominium associations, arguing that existing laws need effective enforcement to truly protect residents.

The committee also discussed House Bill 70, which aims to shift the burden of proof regarding budget and reserve studies to associations that fail to comply with existing requirements. While some opposition was noted, the committee members expressed a willingness to consider simpler legislative solutions that could effectively address these issues.

Additionally, the meeting touched on House Bill 420, which seeks to clarify the statute of repose for construction defect claims. This bill proposes to repeal the two-year limitation for such actions and outlines specific requirements for claimants, including compliance with the Contractor Repair Act.

The discussions during this meeting reflect a growing recognition of the challenges faced by condominium owners in Hawaii. As the committee continues to deliberate on these measures, the outcomes could significantly impact homeowner protections and the accountability of condominium associations in the state. The next steps will involve further examination of the proposed bills and potential amendments to ensure they effectively address the concerns raised by residents.