Living in Hawaii is a lot like living in other states, with people working, shopping, socializing, and paying association fees. Of course, there’s the added benefit of beautiful beaches and a laid-back vibe. In Hawaii, there are three main types of community associations: condominiums, planned communities, and cooperatives. Each has its own rules and structures, but this article will focus on condominiums—how they’re run and the laws that apply to them.
The Association of Apartment Owners (AOAO)
Every condo development in Hawaii is required to have an Association of Apartment Owners (AOAO), which is the group of owners who manage and maintain the property. These associations are regulated by Hawaii Revised Statute (HRS) Chapter 514B, and “apartment” refers to the individually owned units within the condo. The owners in a condo community work together to oversee the upkeep of the property. While the condo board handles leadership duties, they may choose to hire a management company to help with daily operations.
For buildings with 100 or more units, the members must elect a board with at least 9 members unless the bylaws have been changed to allow for fewer. If 70% or more of the unit owners don’t live in the building, the board can be reduced to as few as 5 members. This change can happen with written consent from a majority of owners or a vote at a meeting. For smaller buildings with fewer than 100 units, a minimum of 3 board members is required.
All unit owners are expected to follow the condo’s rules, declarations, and bylaws. Members also pay fees that go toward maintaining common areas, paying staff, insurance, and building reserves. Some condos may even include utilities like electricity and Wi-Fi in these fees.
AOAO vs. AOUO
While “AOAO” is commonly used, you may also see “AOUO” (Association of Unit Owners) in newer documents. There’s no difference between the two terms, except that the newer term refers to “unit owners” rather than “apartment owners,” in line with updated Hawaii statutes.
Condo Regulations
Condominium regulations fall under Hawaii Revised Statute (HRS) Chapter 514B, but some condos are also incorporated under Chapter 414D, the Hawaii Nonprofit Corporation Act. In addition to state law, each condo community has its own governing documents, like declarations, bylaws, and rules, which set expectations for the owners.
Some condos are part of a larger planned community and may have a master association overseeing multiple properties. In these cases, condo owners pay both condo fees and dues to the master association and are expected to follow both sets of rules.
Association Meetings
Condo associations are required to hold at least one meeting each year, with special meetings called if needed. Notice of these meetings must be given at least 14 days in advance, and the agenda must include important details like any proposed amendments to the bylaws or the removal of board members. Meetings are usually held on the condo property or within Hawaii, but in special circumstances, like a natural disaster, they can be held outside the state.
Registration and Fees
By law, condo communities with more than 5 units must register with the Real Estate Branch (REB) every two years. This registration helps the state keep track of condo communities and provides valuable information to the Legislature. Registration also allows associations to take legal action when necessary.
Condo fees in Hawaii are notably high compared to other states, with the average being $762 per month as of 2021. This is due to the high cost of maintaining older buildings, staff expenses, and insurance premiums. Hawaii’s risks for hurricanes and floods also drive up insurance costs.
Conclusion
In Hawaii, the AOAO or AOUO is the governing body responsible for managing and maintaining a condominium community. Like in other states, each condo has its own set of rules that owners must follow. While members pay fees, they benefit from services like property maintenance and access to shared amenities like gyms or community rooms, which help maintain property values and enhance the overall living experience.
