HI HCR172

Urges the Federal Housing Finance Agency to direct Fannie Mae and Freddie Mac to repeal or reduce Guide Section 4703.2, which requires condominium master insurance policies covering all perils at 100% of replacement cost value of project improvements.

Identifies approximately 2,000 condominium associations in Hawaii representing nearly 200,000 units and over 350,000 residents, with hundreds facing challenges meeting current insurance requirements.

Notes that many condominiums cannot obtain affordable mortgage financing because they are ineligible for the 100% coverage requirement, reducing property marketability and requiring expensive secondary insurance policies.

Acknowledges that meeting the requirement forces condominium associations to impose significant special assessments on unit owners to cover additional insurance costs and necessary repairs.

Requires certified copies of the resolution be transmitted to the Director of the Federal Housing Finance Agency, the President and CEO of Fannie Mae, and the CEO of Freddie Mac.