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Senate committee advances a package of condominium reforms, retreats on mandatory arbitration
Summary
Multiple condominium bills were heard March 24; committee members passed several measures with amendments that limit certain waiver options for reserve studies, clarify electronic voting and proxies, and remove mandatory binding arbitration from an ADR bill while adopting mediation and appeal‑process changes.
The Hawaii Senate Commerce and Consumer Protection Committee considered and advanced multiple condominium‑related bills on March 24, taking testimony from association representatives, the judiciary and resident testifiers and adopting a package of amendments meant to balance management oversight and homeowner protections.
Measures discussed included HB 276 (developer reporting exemptions for very small homeowner developments), HB 1678 (cumulative voting clarifications), HB 1679 (authority for electronic meetings and voting), HB 1824/18xx (reserve study waiver for small associations) and HB 1897 (consolidating alternative dispute resolution procedures for condominium disputes).
Testimony from the Real Estate Commission and community association representatives generally supported many of the measures with suggested amendments; Jonathan Billings of the Community Associations Institute warned that a compliant level‑3 reserve study for a 20‑unit complex could cost roughly $2–$3 per unit per month when amortized, and urged caution on waiver rules. Greg Maseikian, appearing online, opposed several bills as written and urged stronger protections against weaponized proxy voting and clearer, codified safeguards for electronic voting integrity.
On alternative dispute resolution, the judiciary (Jessica Orr) filed written comments and Phil Nerney of CAI signaled support for provisions. The committee adopted amendments to HB 1897 that remove mandatory binding arbitration, retain facilitative mediation as a subsidized option, adopt Real Estate Commission and judiciary requested clarifications (including fee‑waiver procedures and appeal timing tied to association bylaws), and incorporate a ‘betterment clause’ consistent with a related senate bill. The chair noted further working‑group discussion on fines and collection issues but said the committee would keep the measure moving to provide statutory improvements while working through details.
Several condominium bills were passed with amendments or defective effective dates. Committee members noted the condominium property regime task force is still reviewing an LRB study, and at least one senator voiced opposition to moving ahead before the task force completes its work.
The committee’s package seeks to strike a balance between reducing burdens on small associations and preserving third‑party oversight and dispute resolution options for owners, while deferring some questions to working groups and future reports.
