Bill
SB 1601
Hawaii creates a state-backed Condominium Loan Program to help associations fund major repairs (fire safety, roofing, plumbing) via direct loans and loan-loss reserves.
Note on source material
- The provided document appears to combine three different measures, each titled “SB 1601,” from different states. This summary summarizes all three items and focuses on the substantive measure that dominated the text (a Hawaii bill establishing condominium financing), while briefly noting the unrelated Arizona and Illinois items.
Purpose and intent
- Establish a new statutory chapter that creates a state-backed program to help condominium associations obtain financing for major maintenance and repair projects (e.g., fire-safety systems, plumbing, roofs) through (1) direct loans from the Hawaii Green Infrastructure Authority and (2) credit enhancement using loan-loss reserve accounts at participating community development financial institutions (CDFIs).
Key provisions
- Creates definitions and authorizes the Hawaii Green Infrastructure Authority (the “authority”) to operate the program, adopt rules, and contract with financial institutions/CDFIs.
- Part I — Direct financing
- Establishes a Condominium Loan Program and a Condominium Loan Revolving Fund (funded by loan repayments, legislative appropriations, interest, and program fees).
- Eligible uses: installing/repairing fire sprinklers or other fire safety measures, pipe repairs/replacement, roof repairs/replacement, and other authority‑approved maintenance/repairs.
- Loan agreements must require condominium associations to increase their replacement-reserve balances over the loan term.
- Loans limited to maximum 20-year terms. No new loans may be issued after June 30, 2027 (SD2).
- Authority may make direct loans when private financing is unavailable at reasonable rates or when associations cannot secure full replacement-value insurance at reasonable rates.
- Annual reporting to the Legislature on program progress and fund balance (first report due prior to the 2027 session).
- Part II — Credit enhancement via loan-loss reserves
- Authority may deposit funds into reserve accounts at participating CDFIs to reimburse losses on enrolled loans and thereby incentivize lenders to offer competitive loans.
- Participation requires a formal agreement; participating institutions pay program fees (amounts and percentages referenced in the text are truncated/missing in the provided document).
- The revolving fund may be used to create reserve accounts and cover program costs.
- Authority may accept gifts, grants, and donations.
Who is affected
- Condominium associations in Hawaii (especially associations with large unfunded maintenance needs).
- Community development financial institutions and other participating lenders.
- Hawaii Green Infrastructure Authority (program administrator).
- State finances to the extent of legislative appropriations and use of revolving fund resources.
Notable missing or incomplete details
- Several numeric specifics in the provided draft (e.g., percentages for reserve deposits and fees) were truncated and not available in the text supplied.
Who is affected: Arizona Secretary of State / America250 commission; fiscal impact = $500,000 plus 5 FTE in FY 2025–2026.
If you want, I can:
- Pull the complete, enrolled Hawaii SB 1601 (SD2) text to extract the missing percentage/fee figures and provide a line-item fiscal/operational impact analysis.
- Produce a version of this summary focused only on the Hawaii measure suitable for legislative briefing.
Compiled from official sources — confirm details with the bill’s official record.
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