SB 1601 Summary

• Establishes the Condominium Loan Program within the Hawaii Green Infrastructure Authority to provide qualified condominium associations with low-cost financing or refinancing for maintenance and repairs including fire safety, pipes, roofs, and other approved projects.

• Creates the Condominium Loan Loss Reserves Program to incentivize community development financial institutions to offer competitive loans to condominium associations by establishing state-funded reserve accounts to cover loan defaults.

• Limits direct loans to associations that have received at least one decline letter from a financial institution and require full replacement insurance coverage; loan terms capped at 20 years with no new loans issued after June 30, 2027.

• Establishes a Condominium Loan Revolving Fund to be funded by loan repayments, legislative appropriations, interest earnings, and fees; requires annual reporting to the Legislature and independent audits.

• Sunsets the program on June 30, 2047, with any remaining fund balance reverting to the general fund; effective date is July 1, 2050.