State profile
Hawaii
Hawaii ties the reserve study directly to the condo budget: every association's annual budget must set replacement reserve assessments based on a reserve study, and a study not prepared by an independent preparer must be reviewed by one at least every three years. Boards must fund at least 50% of the study's assessments — or 100% under a 30-year cash-flow plan — and cannot fund less. A 2025 law gave any unit owner standing to sue for compliance, a 2026 law let small associations waive one review cycle by majority vote, and the Real Estate Commission's rules effective March 2026 added the percent-funded formula and annual-update mechanics.
Update every
3 yrs
Site visit
Not required
Applies to
All condos; ≤5-unit & nonresidential may opt out
What your board must do
01Base the budget's estimated replacement reserves assessments on a reserve study performed by or on behalf of the association (HRS §514B-148(a)(5)), and disclose in every budget summary the preparer's identity, qualifications, and conflicts, any omitted components, planned increases over the 30-year plan, and any prior-year underfunding and its impact ((a)(6)).
02If the study was not prepared by an independent reserve study preparer — anyone holding a reserve study certification from an industry organization ((h)) — have it reviewed by one at least every three years. Since Act 100 (June 2026), associations under 20 units in buildings of no more than two stories may waive one three-year review period by majority vote at a noticed meeting — recorded, disclosed, and never two consecutive periods.
03Assess owners to fund at least 50% of the estimated replacement reserves assessments, or 100% when using a cash flow plan — a minimum 30-year projection that may not assume special assessments or loans except in emergencies (§514B-148(b), (h)). Governing documents may require more than 50%, never less ((f)).
04Keep separate designated reserves for each part of the property whose capital expenditure or major maintenance exceeds $10,000 ((c)(2)), and state in the budget whether funding uses a percent-funded or cash flow method — the method may not circumvent the study's assessment amount ((a)(8)).
05Follow the Real Estate Commission's reserve rules effective March 26, 2026 (HAR ch. 16-119.6) — the full-replacement-reserve formula (replacement cost times the asset's age over its useful life), both parts of the study updated annually, borrowed funds not counted toward statutory reserves, and no back-loading of the 30-year funding plan.
06Know the enforcement and scope rules — any unit owner has standing to sue the association and seek an injunction (§514B-148(g), Act 157 of 2025), while good-faith reserve estimates carry immunity ((d)). The chapter reaches every condo regardless of creation date (§514B-21); only all-nonresidential condos and those with five or fewer units may opt out of this part through their declaration or bylaws (§514B-101(b)).
Quick answers
- Does Hawaii require a reserve study?
- Reserve study required. Yes. Hawaii ties the reserve study directly to the condo budget: every association's annual budget must set replacement reserve assessments based on a reserve study, and a study not prepared by an independent preparer must be reviewed by one at least every three years. Boards must fund at least 50% of the study's assessments — or 100% under a 30-year cash-flow plan — and cannot fund less. A 2025 law gave any unit owner standing to sue for compliance, a 2026 law let small associations waive one review cycle by majority vote, and the Real Estate Commission's rules effective March 2026 added the percent-funded formula and annual-update mechanics.
- How often must a Hawaii reserve study be updated?
- Update interval: 3 yrs. Site visit: Not required.
- What must a Hawaii association disclose about reserves?
- Detailed reserve summary in every budget. Applies to: All condos; ≤5-unit & nonresidential may opt out.
Statutes
Last statutory change Jun 2026 · Page reviewed Sep 2026 · Not legal advice