Yes, for condominiums. HRS § 514B-148 requires every Hawaii condominium association's budget to include replacement reserves based on a reserve study, which must be reviewed by an independent reserve study preparer at least every three years (a requirement added by Act 62 of 2022, effective January 1, 2023). Hawaii is also one of the few states with a funding mandate: associations must assess owners to fund at least 50% of estimated replacement reserves, or 100% when using a cash flow plan.
Verified against the statute 2026-07-06
Condominium associations governed by HRS Chapter 514B. Planned community associations under HRS Chapter 421J (non-condo HOAs) have no comparable statutory reserve-study or minimum-funding mandate, though their governing documents may impose one.
The reserve study underpins each annual budget and must be reviewed annually as part of budgeting; a study not prepared by an independent reserve study preparer must be reviewed by an independent preparer at least every three years (Act 62, 2022, effective January 1, 2023).
HRS § 514B-148(b) requires associations to assess owners to fund a minimum of 50% of the estimated replacement reserves, or 100% of estimated replacement reserves when the budget uses a cash flow plan — one of the strictest statutory funding floors in the country. Components with estimated expenditures over $10,000 require separate designated reserves; smaller items may be aggregated.
The annual budget or budget summary distributed to owners must disclose estimated revenues and operating expenses, whether the budget is cash- or accrual-basis, the reserve balance and required reserve assessments, the identity, qualifications, and potential conflicts of interest of the reserve study preparer, any components omitted from the study with justification, and planned assessment increases projected over thirty years. A board that fails to prepare the budget and reserve study bears the burden of proving compliance in an enforcement proceeding.
Requires budgets to include replacement reserves based on a reserve study; studies not prepared by an independent preparer must be reviewed by an independent reserve study preparer no less than every three years. Subsection (b) requires funding a minimum of 50% of estimated replacement reserves, or 100% under a cash flow plan. Amended through 2025 (c 157, §2).
Re-fetched HRS § 514B-148 from the Hawaii Legislature's official mirror (data.capitol.hawaii.gov; the canonical www.capitol.hawaii.gov URL returns 403 to automated fetches but is the correct official citation and works in browsers), confirming the reserve-study basis for budgets, the independent-preparer review at least every three years, the 50%/100% cash-flow funding rule in subsection (b), the $10,000 separate-designated-reserve threshold, the preparer identity/qualifications/conflicts and 30-year projection disclosures, and amendment through L 2025, c 157, §2. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Hawaii. Report an issue.
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