By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Under Hawaiʻi law (HRS §514B-148), Maui condo associations must fund at least 50% of estimated replacement reserves, or 100% under a 30-year cash flow plan, and disclose reserve figures in the annual budget summary. New state condo rules (HAR 16-119) took effect in 2026, and a state repair loan program for associations is on hold as of October 2026.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and South Maui condos are a big part of my work. When I review a condo with a buyer, Maui condo reserves are one of the first things I look at, because underfunded reserves often turn into special assessments. Here’s what Hawaiʻi law requires, what changed in 2025 and 2026, and what I’d check before you buy.

What does Hawaiʻi law require for condo reserves?

Hawaiʻi requires each condo association to adopt an annual operating budget and fund reserves for major repairs and replacements. Under HRS §514B-148, the association must fund at least 50% of its estimated replacement reserves assessments, or 100% if it uses a cash flow plan, which must be at least a 30-year projection.

The budget summary owners receive must show, among other things:

• The current reserve balance and the reserves required
• Who prepared the reserve study, with their qualifications and any conflicts of interest
• Components left out of the reserve study
• Planned assessment increases over the 30-year period
• Any shortfall from the prior year and how much will be collected
• Whether the association uses the percent-funded or cash flow method

A 2025 amendment requires that summary to stand on its own, without referring readers to other parts of the budget. The statute also says a reserve study not prepared by an independent preparer must be reviewed by one at least every three years. And the board generally can’t exceed the adopted operating budget by more than 20% without owner approval, except in an emergency.

What changed in Hawaiʻi condo law in 2025 and 2026?

Three changes matter for buyers:

Change	What it does	When
Act 157 (SLH 2025)	Lets any unit owner seek a court order requiring the association to comply with reserve rules; protects good-faith reserve estimates from liability	Approved June 3, 2025
New HAR chapters 16-119.1 to 16-119.8	Replace former condo rules (HAR 16-107); reserves now in HAR 16-119.6	Promulgated March 26, 2026
Act 100 (SLH 2026)	Lets small associations (fewer than 20 units) waive the independent reserve-study review by majority vote, not in consecutive periods	2026 session

These are summarized in the State’s Hawaiʻi Condominium Bulletin (September 2026 issue), published by the Real Estate Commission.

What is Hawaiʻi’s condo association loan program, and is it open?

It’s a state program that can lend to condo associations for repairs that make buildings more insurable, but it’s currently on hold. Created by Act 296 (SLH 2025) and launched in May 2026 by the Hawaiʻi Green Infrastructure Authority (HGIA), it was funded with $20 million in reimbursable general obligation bonds.

Eligible projects include fire sprinklers and other fire safety measures, pipe repair or replacement, and roof repair or replacement. Associations had to show at least one loan denial from a lender and agree to carry full replacement property and hurricane insurance after the work. As of October 2026, HGIA’s program page says “The Condominium Association Loan Program is currently on hold,” while also noting commitments may be made through June 30, 2027 based on funding availability.

The same Act 296 reopened the Hawaiʻi Hurricane Relief Fund to condo associations in 2025. As of April 3, 2026, the fund reported 97 policies issued, per Star-Advertiser reporting.

Why do reserves and special assessments matter so much on Maui right now?

Because insurance and repair costs have hit association budgets hard, and those costs land on owners. Hawaii News Now reported in August 2026 that Āina Nalu in Lahaina, a 189-unit complex, had about 20% of the coverage needed for a rebuild estimated at more than $200 million, leaving owners to cover the gap.

A building with thin reserves has fewer options when a roof, plumbing system or insurance renewal comes due. That usually means a special assessment or a big jump in monthly dues. For a buyer, that’s a cost you inherit. My guide to the hidden cost of insurance when buying a Maui home covers the insurance side.

This is general information, not tax or legal advice. Confirm with a CPA or Hawaiʻi attorney.

My Take: What I’m Telling Condo Buyers and Sellers

For buyers, I treat the association’s documents as part of the price. Before your due diligence period ends, read the current budget summary, the most recent reserve study, the last 12 months of board minutes and the association’s insurance summary. Look for the percent funded, any component the study left out, planned dues increases, and any mention of roofs, plumbing, spalling or insurance renewals in the minutes. If something’s unclear, ask the managing agent in writing.

Financing adds another layer. Lenders review condo projects, and reserve levels and deferred maintenance can affect eligibility. I covered that in my post on Fannie Mae and Freddie Mac condo rule changes.

For sellers, gather your association documents before you list. If a special assessment is approved or under discussion, buyers will want to know early, and it’s better to price for it than to renegotiate in escrow.

Frequently Asked Questions

How much do Hawaiʻi condo associations have to keep in reserves?
At least 50% of estimated replacement reserves assessments, or 100% under a cash flow plan with a 30-year minimum projection, under HRS §514B-148.

How often must a Maui condo association update its reserve study?
The statute requires a reserve study not prepared by an independent preparer to be reviewed by one at least every three years. Small associations may waive that review under Act 100 (SLH 2026), with limits.

Is the state condo association loan program open?
As of October 2026, HGIA lists it as on hold. Associations are directed to contact HGIA.

Can a condo owner force the association to fund reserves?
Since Act 157 (SLH 2025), a unit owner can seek a court order requiring compliance with the reserve statute. Talk with a Hawaiʻi attorney about your situation.

Ask Benjamin

If you’re comparing Maui condos and want a second set of eyes on reserves, budgets and minutes, I’m happy to help. I’m Benjamin Finnerty. Call or text 808-481-9748 or email benjamin@the808team.com.

Sources: HRS §514B-148; Act 157 and Act 296, Session Laws of Hawaiʻi 2025; Hawaiʻi Condominium Bulletin (June and Sept. 2026), DCCA Real Estate Commission; Office of the Governor (May 11, 2026); HGIA Condominium Association Loan Program page (Oct. 2026); Star-Advertiser (April 2026); Hawaii News Now (Aug. 2026).