HB837 Summary

• Establishes an ombudsman's office for homeowner associations within the Department of Commerce and Consumer Affairs to address disputes involving condominiums, cooperative housing corporations, and planned community associations.

• Creates an ombudsman position (requiring Hawaii bar admission and experience in real estate and dispute resolution) with authority to investigate complaints, issue binding decisions, and remove board members for willful misconduct.

• Requires board members of all homeowner associations to complete educational classes and obtain certificates within three months, with refresher training every three years.

• Replaces mandatory mediation and arbitration procedures with a formal dispute intervention process through the ombudsman's office, with complaints and enforcement officers and contested case hearings presided over by the ombudsman.

• Establishes an ombudsman's office special fund and imposes assessments on cooperative housing corporations and planned community associations; increases condominium education trust fund fees from $1.50 to $12.50 per unit annually to support the ombudsman's office.