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HI SCR186
Concurrent Resolution
AI Summary
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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 to cover all perils at 100% of replacement cost value.
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Identifies approximately 2,000 condominium associations in Hawaii representing nearly 200,000 units and over 350,000 residents, with hundreds facing insurability challenges and costly repairs.
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Cites that hundreds of condominium associations cannot meet the 100% replacement cost coverage requirement, making them ineligible for mortgage financing and reducing property marketability.
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Notes that associations unable to obtain full coverage must purchase expensive secondary insurance policies, imposing significant financial hardship on unit owners through special assessments.
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Directs transmission of certified copies to the Federal Housing Finance Agency Director, Fannie Mae President and CEO, and Freddie Mac CEO.
Legislative Description
Requesting The Federal Housing Finance Agency To Direct Fannie Mae And Freddie Mac To Repeal Or Reduce The Minimum Insurance Requirements In Guide Section 4703.2, Requiring Condominium Master Insurance Policy Coverage For All Perils In An Amount Equal To One Hundred Percent Of The Replacement Cost Value Of The Project's Improvements.
Condominiums
Last Action
Referred to EIG, CPN.
3/12/2025