RELATING TO CONDOMINIUMS.
SB2837 makes broad changes to Hawaii’s condominium association election and records rules, with a particular focus on board elections. The bill repeals statutory proxy voting for condominium board elections and replaces it with direct owner voting by mail, electronic transmission, or in-person ballot procedures. It also revises quorum and election-validity rules, requires two notices of election, sets deadlines for candidate intent statements and ballot submission, prohibits write-in candidates, and establishes runoff-election procedures and penalties for improper voting or ballot forgery.
The bill also expands the Real Estate Commission’s enforcement authority over condominium election-related violations. It expressly authorizes investigations, court actions for injunctive relief, cease-and-desist orders, and civil and criminal penalties tied to violations of the condominium chapter and commission rules. In addition, it imposes new duties on board members, including a written certification requirement after election or appointment affirming familiarity with governing documents and fiduciary obligations, with automatic suspension for noncompliance.
Beyond elections, SB2837 makes related changes to condominium governance and records access. It updates special meeting rules, electronic and mail voting authority, budget and audit disclosure requirements, and owner access to association records. Several provisions replace requirements for a “duly executed and acknowledged affidavit” with a simpler written certification when owners request membership lists or other records for association-related purposes. The bill also clarifies that certain board actions may constitute fiduciary-duty violations and preserves existing rights and liabilities that accrued before the act’s effective date.
The overall sentiment reflected in the bill text is strongly supportive of reforming condominium elections to make them more direct, transparent, and resistant to proxy abuse. The findings section states that proxy voting has reportedly been used by incumbent directors and managing agents to entrench long-serving boards, and the bill’s stated purpose is to improve fairness and confidence in association governance. No committee transcript or recorded vote is provided, so there is no additional evidence of opposition or support beyond the bill’s own framing.
The main point of contention implied by the measure is the elimination of proxy voting in board elections, which would significantly change how many associations have historically conducted elections. Supporters are likely to view the bill as an anti-entrenchment and election-integrity measure, while opponents could argue that it reduces flexibility, may burden owners who cannot attend meetings, and increases administrative complexity. The bill also gives the Real Estate Commission stronger enforcement tools, which may raise concerns among associations and managers about regulatory oversight and penalties.
SB2837 would amend multiple provisions of chapter 514B, Hawaii Revised Statutes, governing condominium associations. Its most significant legal effect is to repeal proxy-based voting for condominium board elections and replace it with a ballot-based election framework, while also revising quorum, notice, candidate qualification, runoff, and ballot-handling rules. It would also expand the Real Estate Commission’s authority to investigate, enjoin, issue cease-and-desist orders, and assess penalties for election-related violations, and it would add new fiduciary-duty and certification requirements for board members. Several record-access provisions would be updated to require written certifications instead of affidavits, affecting owners’ access to association membership lists and election documents.
The bill’s stated purpose and findings reflect a reform-oriented, pro-transparency sentiment. It is framed as a response to alleged proxy abuse and long-term board entrenchment, and it seeks to promote fairer elections, stronger owner participation, and more accountable governance. Because there are no committee transcripts or votes provided, the broader legislative sentiment cannot be measured from debate or roll call history, but the text itself indicates clear support for tightening election rules and reducing proxy-driven control.
The central controversy is the bill’s repeal of proxy voting in condominium board elections. Proxy voting has been a longstanding mechanism for participation in many associations, so eliminating it could be seen as improving election integrity or, alternatively, as limiting participation for owners who cannot vote in person or by mail/electronic means. Another likely point of contention is the bill’s expansion of enforcement powers and penalties for the Real Estate Commission, which may be viewed as necessary oversight by some and as increased regulatory exposure by others. Associations, managing agents, and incumbent boards may also object to the new notice, ballot, certification, and record-disclosure requirements as administratively burdensome.