HI HB117

Establishes that failure to maintain the minimum required replacement reserves fund balance may constitute a violation of fiduciary duty by condominium board members and officers

Requires condominium associations to maintain a replacement reserves fund balance of at least a specified percentage of the project's tax-assessed value (exact percentage left blank in bill)

Provides an exception if the association assesses sufficient amounts to add a specified percentage of tax-assessed value to reserves annually (exact percentage left blank in bill)

Allows board members to avoid liability by documenting disagreement in writing or rescinding violating conduct within 45 days of the initial violation

Takes effect September 1, 2025