Hawaii • Special assessment notice

Special assessment from your Hawaii condo — is it really an insurance bill?

Hawaii special assessments increasingly trace back to one thing: a property-insurance market in crisis after the 2023 Maui wildfires. Understanding whether your assessment is funding reserves, repairs, or an insurance spike is the first step.

The short answer

In Hawaii the board can levy regular assessments with 30 days' notice (HRS 514B-144), and larger specials usually need a member vote per the bylaws. Post-Lahaina, the biggest driver is insurance: master premiums and deductibles are soaring. Hawaii does require reserves funded to at least 50% of the study. CondoSignal reads your notice against HRS 514B. Free.

Hawaii at a glance

Regular-assessment notice

30 days

HRS 514B-144.

Reserve funding floor

≥ 50%

Of the study's replacement costs (HRS 514B-148).

Super-lien

6 months

Priority over the first mortgage.

Resale certificate

Not mandated

Request the documents directly.

Who can levy it

Under HRS 514B-144 the board levies regular assessments (operating and reserve) with at least 30 days' notice. Special assessments for unexpected costs don't have a statutory owner-vote requirement, but most bylaws require a member vote above a threshold — so your governing documents control. There's no statewide cap on the amount.

The reserve floor

Hawaii is stricter than most states on reserves: HRS 514B-148 requires a study updated at least every three years and funding at no less than 50% of the study's estimated replacement costs (or 100% under the cash-flow method). That reduces surprise reserve assessments — but it doesn't cover the insurance gap that's driving today's bills.

Insurance-driven assessments

With few admitted insurers willing to write Hawaii condos and master deductibles for named storms or earthquake running 2–5% of insured value, associations are special-assessing to cover premium spikes and coverage gaps. An assessment tied to insurance is now common — and a sign to look closely at the master policy and whether it even covers wind.

Your rights in Hawaii

Hawaii owners get 30 days' notice of regular assessments and a reserve regime funded to at least 50% of the study (HRS 514B-144/-148); larger specials usually require a member vote per the bylaws. None of this is legal advice — confirm against HRS 514B and Hawaii counsel.

What to check

  • Determine whether the assessment funds reserves, repairs, or insurance.
  • Check the bylaws for any member-vote threshold on specials.
  • Compare the reserve balance to the 50% study floor.
  • Read the master policy for wind coverage and the deductible.
  • Confirm the master isn't reliant on surplus lines (admitted carriers declined).
  • For a Honolulu high-rise, check fire-safety compliance.

Sources

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Hawaii-licensed professional.

FAQ

Frequently asked questions

Not sure what your documents are really telling you?

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