Hawaii Condo Special Assessments: Deal Killer or Negotiation Tool?

A special assessment does not automatically make a Hawai‘i condo a bad investment — or an impossible sale.

What matters is why the assessment exists, how much it costs, what work it funds, how the association plans to pay for the project, and whether another financial surprise could be waiting behind it.

In this video, I explain how buyers and sellers should think about special assessments in Hawai‘i condominium transactions.

Roofs age. Plumbing systems fail. Concrete requires repair. Insurance premiums rise. Fire- and life-safety improvements cost money. Sometimes an association faces an expense that ordinary maintenance fees and existing reserves cannot comfortably absorb.

The important questions are therefore not simply, “Is there a special assessment?”

Ask instead:

• Has it actually been approved, or is it only being discussed?
• What is the total project cost?
• What is this unit’s share?
• Is payment due in a lump sum or installments?
• What exactly is being repaired or improved?
• How strong are the association’s reserves?
• Is additional borrowing—or another assessment—possible?
• How could the assessment affect financing, resale and negotiations?

For sellers, preparation matters. Gather association notices, budgets, reserve information, board minutes and the payment schedule before a buyer discovers the issue halfway through due diligence.

For buyers, a large assessment is not automatically a reason to walk away. A clearly defined, properly planned capital project may be very different from an association with unresolved financial uncertainty.

Bad news disclosed early becomes part of the negotiation. Bad news discovered late becomes the story.

For Hawai‘i residential, condominium, luxury and investment real estate:

Jason Wong (PB), MBA
President & Principal Broker
Island Dragonfly, LLC

JasonWong.us
IslandDragonfly.com

2026 legal update: Act 100, SLH 2026 created a limited reserve-study review exception for certain qualifying small condominium associations. General information only. Special-assessment obligations, disclosures, financing and payment responsibilities are fact- and contract-specific. Consult appropriate legal, tax, insurance, lending, escrow/title and association professionals.

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