A series of bills that lawmakers say will benefit condominium owners, associations, and residents in Hawaii were signed into law in May.

Governor Josh Green and state legislators say the measures take a “significant step toward addressing the housing challenges in Hawaii”, by streamlining processes, enhancing management practices, and increasing accessibility to clean energy programs for condominium communities. However, not all measures are without controversy.

Signed legislation includes:

  • Condos: Meeting and Voting: Act 42. SLH 2024 (HB2315). Clarifies prior statutory language regarding electronic meetings, electronic voting, and mail voting. These may now be authorized via approval at association meetings, or between three and eighteen months prior to the electronic meeting, electronic vote, or mail vote. This Act also repeals language governing machine voting and the use of electronic voting devices.
  • Solar Hui Program: Act 40. SLH 2024 (HB2685). This innovative bill establishes the Solar Hui Program, allowing multi-family residential property owners to invest into a solar fund  to receive installation tax credits and income derived from the sale of energy. This program expands access to clean energy for condominium owners who do not own their roofs, enabling them to benefit from sustainable energy solutions.
  • Commercial Property Assessed Financing (C-PACER): Act 41. SLH 2024 (HB2801).  This bill transitions the administration of the C-PACER program from counties to the Hawaii Green Infrastructure Authority (HGIA), allowing condominium associations to be eligible for commercial property assessed financing. This program will leverage private capital to achieve the state’s clean energy and water goals, harden commercial buildings for resilience, and facilitate affordable housing. Governor Green’s comments on Act 41: “The Solar Hui Investment Fund and the expansion of C-PACER to condominium associations are critical tools in enabling more of our residents to participate in Hawai‘i’s clean energy future,” Governor Green said. “By breaking down financial barriers, we are helping families reduce energy costs and move toward energy independence. These legislative actions represent a significant milestone in our efforts to build a more sustainable and resilient Hawai‘i.”

Senate Bills:

  • Regarding Additional ADUs: Act 39. SLH 2024 (SB3202 SD2). Requires the counties to adopt or amend ordinances to allow for at least two accessory dwelling units (“ADU”), subject to certain restrictions, on all residentially zoned lots. This may result in an expansion of condominiums on Kauai, Maui, and Hawaii counties. At the date of this publication, the City and County of Honolulu forbids the submission of ADUs to condominiums.
  • Deliveries of Certain Documents by Email: Act 44. SLH 2024 (SB2600). Allows for email to be used to deliver certain documents during the initial developer sale of condominium units. Printed copies of the Developer’s Public Report are still mandatory, pursuant to §514B-86(a)(1)(ii), HRS, but supporting documents, including rescission and cancellation notices, may be delivered by email.
  •  Legislative Reference Bureau (LRB) Study and Reports: Act 43. SLH 2024 (SB2726). Requests and funds a study for the Legislative Reference Bureau to examine a multistate approach to various condominium governance issues, such as a condominium ombudsman, licensing individuals who manage condominiums, dispute resolution programs, requirements for owner education at point of sale, and several other topics of interest determined by the Condominium Property Regime Task Force established by Act 189. SLH 2023.
  • Expands who can act as a complainant in a multi-unit building: Act 240. SLH 2024 (SB 2532).  Clarifies that the definition of “dwelling”, as it relates to offenses against property rights, includes multi-unit buildings and connected parking or storage areas that are restricted to residents. Allows the owner of a multi-unit building, an owner of an individual unit, a property manager, or an authorized representative of the condominium association to act as a complainant for the purpose of investigating and prosecuting an offense of burglary in the first degree in a multi-unit building.

Related to Maui County’s Short Term Rental Issues

On May 3, 2024, Governor Green signed Act 017 (SB2919). Regarding Short-Term Rentals
The bill leading up to this act went largely unreported, as it clarified what counties believed they already had authority to implement, until there was a legal challenge on Oahu. Act 17 clarifies the counties’ authority to regulate the time, place, manner, and duration in which uses of land and structures may take place. Clarifies that uses that include the provision of transient accommodations are not considered residential uses and may be phased out or amortized by the counties. Beginning 1/1/2025, expands the scope of the transient accommodations tax law to include certain shelters and vehicles with sleeping accommodations.

However, in the same time frame, Maui County Mayor Richard Bissen proposed Maui County legislation that would phase out vacation rentals in apartment-zoned areas in a unified move with the Lahaina Advisory Team, Lahaina Strong and Maui County Council member Keani Rawlins-Fernandez. If successful, this legislation would potentially return of approximately 7,000 transient vacation rentals (TVRs) to the local housing market, including 2,200 in West Maui. If passed, the bill would go into effect on July 1, 2025, for West Maui and
Jan. 1, 2026, for the rest of the island. The Maui County legislation is still being reviewed through the planning commission and County council as of this writing. We are following the issue, and reviewing input through our professional associations.

Where to Find Additional Legislative Information

The public can review all Acts of the 2024 Legislature on this page, ordered by Act number, with links to the supporting bills and Act document.