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Bill

SB 1372

RELATING TO CONDOMINIUM ASSOCIATION'S OPERATING BUDGET.

2025 Regular Session Introduced by Ron Kouchi

Bill SB 1372 enhances financial management for condominium associations, ensuring adequate reserve funds and budget transparency to protect unit owners' interests.

Carried over to 2026 Regular Session.
#condominiumassociations #reservefunds
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Bill Summary · SB 1372

Summary of Bill SB 1372: Relating to Condominium Association's Operating Budget

Overview

Bill SB 1372 aims to address the operating budgets of condominium associations, specifically focusing on the management and allocation of reserve funds. The bill was introduced on January 21, 2025, and has undergone several legislative actions, including deferrals by the committee on Commerce, Consumer Protection, and Health (CPN).

Purpose and Intent

The primary intent of SB 1372 is to enhance the financial management practices of condominium associations. By establishing clearer guidelines for operating budgets and reserve funds, the bill seeks to ensure that these associations maintain adequate financial resources for maintenance and emergency repairs, thereby protecting the interests of unit owners.

Key Provisions

While the specific provisions of the bill are not detailed in the provided information, typical provisions in similar legislation may include:

  • Reserve Fund Requirements: Establishing minimum reserve fund levels that condominium associations must maintain.
  • Budget Transparency: Mandating that associations provide detailed budget reports to unit owners, ensuring transparency in financial operations.
  • Funding Guidelines: Outlining how reserve funds should be allocated and used, potentially including restrictions on expenditures.

Impact

The bill would primarily affect condominium associations and their members. Key impacts may include:

  • Financial Stability: Improved financial practices could lead to greater stability for condominium associations, reducing the likelihood of special assessments or financial shortfalls.
  • Informed Unit Owners: Enhanced transparency in budgeting may empower unit owners to make informed decisions regarding their investments in condominium properties.

Legislative Timeline

  • January 21, 2025: Bill SB 1372 was introduced and passed its First Reading.
  • January 27, 2025: The bill was referred to the CPN committee for further consideration.
  • January 31, 2025: A public hearing was scheduled for February 5, 2025, at 10:00 AM in Conference Room 229 and via videoconference.
  • February 5, 2025: The CPN committee deferred the measure until February 7, 2025, at 9:46 AM.
  • February 7, 2025: The CPN committee again deferred the measure.

Related Legislation

SB 1372 has a companion bill, HB 1053, which may address similar issues regarding condominium associations and their financial management.

Conclusion

Bill SB 1372 represents an effort to strengthen the financial governance of condominium associations, ensuring that they are better equipped to manage their operating budgets and reserve funds. As the bill progresses through the legislative process, its provisions and potential impacts will become clearer, particularly in relation to the needs of condominium owners and associations.

Compiled from official sources — confirm details with the bill’s official record.

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