HB 890 Summary

• Establishes an Ombudsman's Office for Condominium Associations within the Department of Commerce and Consumer Affairs to investigate complaints, resolve disputes, and enforce compliance with condominium laws and governing documents.

• Creates the position of Ombudsman (requiring Hawaii bar admission and experience in real estate/condominium law) and Complaints and Enforcement Officers to conduct investigations and issue decisions on disputes without requiring legal representation.

• Allows unit owners and associations to request dispute intervention and resolution through the ombudsman's office as an alternative to mediation and arbitration, with nominal filing fees not exceeding $100.

• Prohibits special assessments related to disputes from being collected until the ombudsman completes investigation and renders a final decision; if the decision favors the unit owner, all improperly assessed fees and legal costs must be reversed.

• Funds the ombudsman's office through the condominium education trust fund (raising the annual per-unit fee from $1.50 to $12.50) and appropriates general revenue funds for fiscal years 2025-2026 and 2026-2027; effective January 1, 2026.