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What costs do condo association assessments in Hawaii generally cover?

Hawaii condo association fees generally cover maintenance of an association’s common areas such as entrances, reception areas, community rooms, patios, landscaping, swimming pools, elevators, tennis courts, ponds and campus gardens. Some regular association fees also cover items like water, electricity and even property tax. Most condo associations in Hawaii make a clear distinction between routine maintenance and renovation. Swimming pool maintenance would most likely be covered by regular association assessments. Swimming pool renovation or replacement may call for a special assessment. Always refer to your association bylaws and governing documents to determine what applies to your particular circumstance.

What is considered a special assessment in Hawaii?

HOA and Condo special assessments in Hawaii are one-time charges that pertain to costs which fall outside the scope of usual and customary operations and maintenance. New roof installation, construction of common areas, exercise facility installation or a swimming pool installation are examples of items that most likely fall into special assessment circumstances. Lawn cutting, general landscaping and snow plowing are examples of services that typically do not fall into the special assessment category. When special assessments run into high dollar amounts, the assessment may be divided into multiple smaller payments to make the expense more bearable for owners.

Can you write off Hawaii condo assessments on your income taxes?

Hawaii condo assessments are typically a consolidation of various costs which may include maintenance, utilities, water usage, and sometimes even property taxes. Elements of a Hawaii condo assessment can normally be written off, such as property taxes, may be eligible for a tax write-off. Personal, non-deductible elements which do not normally quality for a write-off, such as water, electricity or maintenance are likely not eligible for a write off when they are part of association assessments in Honolulu. One should always review association by-laws and governing documents, as well as consult with a tax professional to determine if an expense is eligible for a tax write-off.

Does condominium insurance cover assessments in Hawaii?

Condominium insurance generally does not cover assessments in Hawaii. There may be some policies that cover a very narrow scope of special assessments, but in most cases, assessments are not covered by condo insurance.

What happens when an owner fails to pay association assessments in Hawaii?

If the owner of property governed by an association in Hawaii does not pay the required association assessments, as well as any special assessments, the association may take legal action against the delinquent owner. The extent of the association’s authority is determined by the association’s bylaws, governing documents and state statutes. Association recovery actions may include late fees, liens and even foreclosure if the owner falls far enough into arrears with the association. The reason associations in Hawaii take action against delinquent owners is because the subsequent shortfall in total assessment collections affects all of the other community members. Common areas, maintenance and services may suffer due to lack of funds. As a result, a Hawaii condominium association may have to collect a special assessment to cover the deficit caused by the delinquent owner(s). Shared benefits require shared financial responsibility.