Questions about Condominium HOAs and condo law are common. We’ve gathered some of the most frequently asked questions regarding HOA board and the laws governing them. The Hawaii Department of Commerce and Consumer Affairs (DCCA), Real Estate Commission (REC) administers certain parts of the Condominium Property Acts, including Chapters 514A and 514B. The REC also has limited authority over condominium association of units of owners (AOUOs) governed by HRS, chapter 514B.
I’m a new board member, where do I start getting educated?
Congratulations on getting elected or appointed to the board! Your job as a board member is the vital task of helping run the association through informed and educated decisions. The Hawaii Real Estate Branch (“Branch”) has a wealth of knowledge to assist you in familiarizing yourself with the issues. We also understand that not everyone has hours to spend getting educated.
On the Resources for Condominium Owners, Boards of Directors & Associations page, look for the Ⓑ symbol. The B circled in red signifies a brochure that board members should read to quickly get up to speed on important condominium association issues. These are quick 1-2 minute reads on various topics such as fiduciary duty, agents of the association, the business judgment rule, owner and board member rights and responsibilities, and other key information. This office recommends reading through the various brochures on the website beyond those marked with the Ⓑ symbol when you have time. In addition, the Branch has an award winning series of 15 short videos – all 5 minutes or less – which you can watch to become familiar with common condominium association topics. The Branch also hosts much more technical and in depth educational material as well, when you have more time to become educated.
Where can I find a copy of the condominium law and rules?
A free electronic copy of the condominium law is available here.
A free electronic copy of the condominium rules is available here.
Printed copies are available for mailing, but with a current fee of 25 cents per page for printed copies after the first complimentary copy. Please email the office at hirec@dcca.hawaii.gov for printed copy requests.
I believe a board member has a conflict of interest. Can this member be removed?
“Conflict of interest” means an issue in which a director has a direct personal or financial interest not common to other members of the association. HRS § 514B–125(a). A director shall not vote at any board meeting on any issue in which the director has a conflict of interest. A director who has a conflict of interest on any issue before the board shall declare the nature of the conflict before any vote on the issue, and the minutes of the meeting shall record that a disclosure was made.
If you believe a board member has a conflict of interest that prevents this member from representing the interests of the association, you may attempt removal of the board member from the board pursuant to HRS § 514B–106(f). If this is not successful, you may submit the dispute to mediation or arbitration or hire a private attorney. Keep in mind that an important tenet of condominium law is “majority rule.” A majority of owners must support efforts at the removal and replacement of a board member in accordance with any provisions in your bylaws regarding the removal and replacement of directors. If removal and replacement is to occur at a special meeting, then the requirements of HRS § 514B-121(b) must also be met.
Can a board increase my maintenance fees?
Yes. The board must notify owners in writing of any maintenance fee increases at least thirty days prior to any increase. HRS, § 514B-144(h). However, HRS § 514B-148(e) states that except in emergency situations, or with the approval of a majority of the unit owners , a board may not exceed its total adopted annual operating budget by more than twenty percent during the fiscal year to which the budget applies. HRS § 514B-148(h) defines “emergency situation.” If a dispute arises with regard to a maintenance fee increase, you may resolve it through mediation or arbitration, or by consulting with a private attorney.
I believe my board used proxy ballots illegally. What steps can I take?
The use of proxy ballots is governed by HRS § 514B-123. Should you believe proxies are invalid, e.g., invalid on their face pursuant to HRS § 514B -123, or illegally solicited, you may submit your concern to mediation or arbitration, or consult with a private attorney.
Does HRS 514a or 514b apply to my condominium association?
Condominium governance falls under HRS chapter 514B. Certain sections of HRS chapter 514B apply automatically to all condominium associations, regardless of whether the condominium was developed prior to the implementation of HRS chapter 514B on July 1, 2006. Therefore, while you may live in a condominium association that was created under HRS chapter 514A, HRS chapter 514B will govern your condominium project. These automatically-applying provisions are: HRS §§ 514B-3 (to the extent definitions are necessary in construing any of the following provisions), -4, -5, -35, -41(c), -46, -72 and the whole of Part VI (Management of Condominiums).
HRS chapter 514A, has been formally repealed on January 1, 2019, pursuant to Act 181, SLH 2017. Read more about the repeal here.
A copy of HRS Chapter 514B is available here.
Does the condo law require condominium associations to have a managing agent?
There is no section within Chapter 514B, HRS, that requires an association of unit owners (AOUO) to have or hire a third party managing agent. However, should the declaration or bylaws of a project require a managing agent, then the AOUO would be mandated to follow the governing documents and have a managing agent. Declarations and bylaws may be amended to either add or remove any requirement for a managing agent pursuant to §§514B-32(a)(11), 108(e), and 109(d), HRS.
Large numbers of condominium projects of varying sizes in Hawaii self-manage.
Must the board provide notice to the owners of an association/board meeting?
Yes. Not less than 14 days prior to any association meeting, the secretary or person specified in the bylaws shall cause notice to be hand delivered, sent prepaid by United States mail to the mailing address of each unit, or the address designated in writing by the unit owner or, at the option of the owner by electronic mail to the electronic mailing address designated in writing by the owner. HRS § 514B-121(c).
Notice of all board meetings must be posted in a prominent location within the project at least 72 hours before a meeting, or simultaneously with notice to the board. HRS § 514B-125(e). The notice must include a list of business items expected to be on the meeting agenda.
For both association and board meetings, review your declaration and bylaws for any additional requirements.
Who do I call for issues with renters?
The Hawaii Residential Landlord/Tenant Code Handbook is published by the State of Hawaii, Office of Consumer Protection. If you wish to purchase a copy of the handbook, it is available at the Department of Commerce and Consumer Affairs in the King Kalakaua Building at 335 Merchant Street in the Cashier’s office on the third floor and also at the Office of Consumer Protection, 235 South Beretania Street, Room 801. The handbook costs $2.00 and may also be purchased by mail. Send a written request to: The Cashiers Office; Department of Commerce and Consumer Affairs; Post Office Box 541; Honolulu, HI 96809. Checks are to be made payable to the Department of Commerce and Consumer Affairs.
If you have further questions about obtaining a handbook or questions about the Landlord/Tenant Code itself, call the Office of Consumer Protection’s Residential Landlord/Tenant Hotline at 586-2634 Monday through Friday, 8 am to 12 noon.
For a complete copy of the Hawaii Residential Landlord/Tenant Code, you may go to any public library’s reference section and photocopy Chapter 521 of the Hawaii Revised Statutes. You will also find it on our website www.hawaii.gov/dcca/ocp.
