HB252 amends Hawaii’s condominium management law to add a new qualification for managing agents serving residential condominium properties that exceed 75 feet in height. In addition to already being a licensed real estate broker or qualifying corporation, registered with the Real Estate Commission, and maintaining required fidelity bond coverage, a managing agent for these high-rise residential condominiums would also have to have experience in commercial property management.
The bill’s stated purpose is to address concerns that volunteer condominium association boards and unit owners are not adequately protected when managing agents lack the experience needed to oversee large, high-rise properties. The findings section emphasizes that these buildings face standards and operational demands similar to commercial buildings, and that current law does not sufficiently guard against incompetence, negligence, fraud, misrepresentation, or deceit by managing agents or their employees.
Impact
If enacted, HB252 would amend section 514B-132 of the Hawaii Revised Statutes governing managing agents for condominium associations. The practical effect would be to impose an additional licensing/qualification criterion on managing agents for qualifying high-rise residential condominiums, while leaving the existing registration, fee, fidelity bond, reporting, and recovery provisions in place. The bill would therefore narrow the pool of eligible managing agents for certain properties and potentially increase compliance expectations for management firms and associations.
Sentiment
The available context suggests generally favorable support for the bill, with no recorded opposition in the House action provided. It passed second reading as amended in HD 1 and was referred onward without any votes in opposition or reservations, indicating a consensus posture at that stage. The bill’s framing also reflects a protective, consumer-oriented policy rationale focused on condominium owners and volunteer boards.
Contention
The main point of contention implied by the bill text is whether existing requirements for managing agents are sufficient, or whether high-rise condominium management should require specialized commercial property management experience. Supporters appear to be concerned about protecting associations from poor management and financial losses, while any potential critics would likely focus on whether the new requirement is too restrictive, could reduce the number of available managing agents, or may be difficult to define and enforce. No specific objections were recorded in the provided committee materials or vote history.