Condo Facts:

Metering Of Utilities In Condominiums

The purpose of Act 18 (2012) was to permit a condominium board of directors to authorize the installation of meters to measure utility use by individual units, as long as the condominium association bears the cost of installing the meters. This act is intended to help older condominium projects in Hawaii that often have only a single meter measuring utility consumption for all units in the project by eliminating any approval requirements and spending limits contained in the declaration or bylaws. In that way, those associations can ensure utility expenses are based on the individual units’ actual use, rather than charged as a common expense. The legislature found that wasteful or excessive utility use results in higher costs for the association when utility costs are paid for as a common expense. Moreover, the legislature determined that charging for utilities as a common expense created clear unfairness.