H.B. 2801 Summary

• Consolidates administration of commercial property assessed financing (C-PACER) programs under the Hawaii Green Infrastructure Authority, repealing county authority to administer such programs.

• Enables condominium associations with six or more units to participate in C-PACER financing, with the association (not individual unit owners) serving as the borrower.

• Establishes that C-PACER financing assessments are secured by a governmental lien with priority over all liens except property taxes and other governmental assessments, billed and collected directly by the authority rather than through property tax bills.

• Clarifies that individual residential condominium units remain ineligible for C-PACER, and requires lender consent from mortgage holders before a C-PACER assessment can be imposed on commercial property.

• Amends condominium law (Chapter 514B) to allow condominiums to finance capital improvements through C-PACER and to treat C-PACER assessment costs as common expenses, with effective date of July 1, 2024.