HI SB1046

Managing agents must notify each unit owner and the Real Estate Commission in writing when a condominium association they manage fails to comply with budget and replacement reserves requirements under Section 514B-148

The notification requirement applies only to managing agents whose contracts include budgetary and replacement reserve responsibilities and authority to correspond with unit owners

Reserve studies not prepared by an independent reserve study preparer must be reviewed by one at least every three years; managing agents with industry reserve study designations are not considered to have conflicts of interest for this purpose

Associations must assess unit owners to fund either a minimum of 50% of estimated replacement reserves or 100% when using a cash flow plan

Effective date: July 1, 2050