Hawaii 2026 Regular Session

Hawaii Senate Bill SB2368

Introduced
1/21/26  

Caption

Relating To Planned Community Associations.

Impact

Should SB2368 pass, it will amend Chapter 421J of the Hawaii Revised Statutes. This amendment clarifies the steps necessary for an association's dissolution, including requirements for timelines, asset management, settling of liabilities, and the appointment of a termination trustee. Crucially, it allows members to take control and manage their association's dissolution without being unduly hindered by existing administrative structures, empowering community members, and potentially fostering better governance.

Summary

SB2368 relates to the governance of planned community associations in Hawaii. The bill introduces a legal process for members of such associations to dissolve their entity through a formal plan of dissolution. Specifically, it requires the approval of at least 67% of the votes from association members, validation by a court, and consent by all lien holders of the property associated with the community. This legislative change is critical as it provides a structured pathway for residents to disband associations that may no longer serve their interests effectively.

Contention

There may be resistance from those who benefit from existing associations or worry that dissolution could lead to mismanagement of community assets or disputes among members. The requirement for court approval may also prompt concern regarding the clarity and fairness of the dissolution process—a factor that could delay member initiatives. Furthermore, existing boards may face challenges in the transition phase, particularly in adapting to new responsibilities and maintaining the care of resources until all affairs are resolved.

Companion Bills

No companion bills found.

Previously Filed As

HI SB793

Relating To Homeowner Associations.

HI HB630

Relating To Common Interest Communities.

HI HB837

Relating To Homeowner Associations.

HI SB1498

Relating To Common Interest Communities.

HI HB631

Relating To Common Interest Communities.

HI HB475

Relating To Common Interest Ownership Communities.

HI SB24

Relating To Limited-profit Housing Associations.

HI SB1103

Relating To Community Districts.

HI HCR26

Requesting The State Health Planning And Development Agency And Department Of Health To Hold A Public Meeting For All Certificate Of Need Applications For Any Proposed Special Treatment Facility In Neighborhoods With Community Associations.

HI SCR25

Requesting The State Health Planning And Development Agency And Department Of Health To Hold A Public Meeting For All Certificate Of Need Applications For Any Proposed Special Treatment Facility In Neighborhoods With Community Associations.

Similar Bills

NJ S4104

Establishes procedure to dissolve common interest community by constituent homeowners.

IA HF501

A bill for an act relating to school districts, including by modifying provisions related to school district dissolution proposals and election dates for school district mergers, consolidations, or dissolutions.

DE HB353

An Act To Amend Title 8 Of The Delaware Code Relating To The General Corporation Law.

IN HB1684

Irretrievable breakdown of marriage.

NY S09347

Provides for local input for the dissolution of a fire district by requiring the governing body of the fire district enact a resolution calling for a referendum on the proposed dissolution by the electors in the fire district.

NY A10557

Provides for local input for the dissolution of a fire district by requiring the governing body of the fire district enact a resolution calling for a referendum on the proposed dissolution by the electors in the fire district.

NH SB303

Directing the commissioner of the department of education to compile a report on the effects of the dissolution of the United States Department of Education on New Hampshire and its residents.

MO HB2397

Modifies requirements for a dissolution of a public water supply district