Opinion: More Hawaii HOA Rates to Increase in 2025

Photo bySpenser SembratonUnsplash

Governor Green signed an emergency proclamation and issued a press release on August 7th, 2024, to address the rising condominium insurance cost in Hawaii. The emergency proclamation facilitates the need for homeowner associations in condominium buildings that can't get insurance to purchase building insurance.

Here is what the emergency proclamation plans to do. (source)

Allows loans to be made to the Hawaiʻi Hurricane Relief Fund (HHRF) and the Hawaiʻi Property Insurance Association to facilitate the issuance of hurricane and property insurance policies to condo associations

Allows HHRF to issue hurricane insurance policies for large condominium buildings and set its own coverage limits

Many condominium and townhouse owners have seen an increase in their maintenance fees by 325% with one month's notice. The emergency proclamation will help address the symptoms but not the cause.

How will the Governor help decrease or maintain the interest rates for many condo and townhouse owners?

Many Hawaii condo and townhouse owners will face the inevitable. The insurance rates will increase in the next few months. Also, many will be given only a few months' notice to pay, for example, the current $900 to $2700 monthly maintenance fee.

KHON News reported that many homeowners in Mililani have seen their maintenance fees increase by up to 325%.

Some will be forced to sell their condominium and return to renting or move in with relatives. However, they will be forced to choose between paying maintenance fees and mortgages or paying for a monthly food allowance.

Governor Green's emergency proclamation doesn't address the issue of lowering rates. Hawaii will see the same fate as many states across the country. Insurance rates for many condominium and townhouse owners will increase in the following months.

Places like Mililani are the start of an increase in insurance rates that will pass through Hawaii because there is no plan to lower the condo insurance rates in Hawaii.

Final Thoughts

If you're a condo or townhouse owner, find out if your building's master policy is current and fully covered. If not, expect your maintenance fee to increase. It will get worse because many will wake up one morning and find out their maintenance fee will increase by 600 %—1000 % in 30 days.