Condo Special Assessments in Hawaiʻi: Why Fees Are Spiking — and What to Do If You Can't Pay

If your condo association recently announced a special assessment of several thousand dollars — or your monthly maintenance fee suddenly jumped — you're not alone, and it's probably not mismanagement. Across Oʻahu, insurance costs have driven association budgets into a corner, and boards are passing the bill directly to owners.

Why this is happening now

Property insurers have sharply raised premiums for Hawaiʻi condo and HOA master policies in recent years, and in some cases pulled back from covering older buildings entirely. Associations that budgeted a certain amount for insurance can suddenly find their renewal quote two or three times higher — sometimes more. When the regular budget can't absorb that jump, the board has two basic tools: raise monthly maintenance fees, or levy a one-time special assessment. Many associations are doing both.

What a special assessment actually is

Unlike your regular monthly maintenance fee, a special assessment is a one-time (or short series of) charge the association bills owners to cover a specific, unbudgeted cost — insurance premium shortfalls, a major repair, a reserve study shortfall, or compliance work. It's usually due in a lump sum or over a short number of installments, and it's separate from — and in addition to — your regular fees.

What happens if you can't pay it

This is the part that catches owners off guard. A special assessment is treated the same as unpaid regular dues under Hawaiʻi law — which means it can lead to a lien on your property, and in some cases, HOA lien foreclosure, even if your mortgage is completely current. Learn more about how HOA lien foreclosure works in Hawaiʻi →

What you can do

• Ask your board for a payment plan. Many associations will allow assessments to be paid in installments rather than a lump sum, especially if you ask before you miss a payment.
• Review the assessment notice and meeting minutes. Associations are generally required to follow specific notice and voting procedures. Understanding the basis for the assessment can help you know what questions to ask.
• Check your own insurance situation. Some owners can offset part of the increase with an HO-6 condo policy adjustment — worth a call to your own insurance agent.
• Talk to your mortgage lender if the cost is unmanageable. An unexpected assessment is a real financial hardship, and some of the same tools used for mortgage trouble — like understanding your options early — apply here too.
• Don't ignore it. Assessments that go unpaid accumulate interest and late fees quickly, and the path to a lien can move faster than people expect.

If you're thinking about selling because of rising fees

Some owners, especially those on fixed incomes, are deciding that rising insurance-driven costs make staying in their unit unsustainable long-term. If that's a decision you're weighing, it helps to understand your full timeline and options before anything is decided for you — not after a lien is already in motion.