H.R.S. §§ 514B-1 et seq. (Hawaii Condominium Property Act)
Yes
Reserve study required for condominiums; update at least every 3 years
None
No statutory minimum funding percentage, but reserve study must include a recommended funding plan that the board is required to follow or document reasons for deviation
Yes
Annual budget must include current reserve balance, reserve study findings, and recommended annual contribution. Disclosure to all unit owners is required.
No
No legislative change after Surfside
Annual budget must include current reserve balance, reserve study findings, and recommended annual contribution. Disclosure to all unit owners is required.
Fannie Mae requires HOA to allocate at least 10% of assessments to reserves or demonstrate a 10% funding ratio. FHA requires similar. Low reserve funding can block unit sales and refinancing.
Fannie Mae requirement
Minimum 10% of assessments allocated to reserves, or a demonstrated 10% funding ratio. Associations below this threshold may face loan-level pricing adjustments or deal failure.
FHA requirement
Similar 10% minimum allocation. FHA-backed financing unavailable for units in HOAs that do not meet the threshold, reducing the buyer pool and depressing values.
LotWize helps self-managed HOA boards stay on top of reserve contributions, annual budget preparation, and state-mandated reserve planning — without hiring a property management company.
Start 14-Day Free TrialThis page provides general legal information about Hawaii HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Hawaii HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.