Association Governance

Kihei Villages operates as a self-governed Association of Apartment Owners under Hawai‘i Revised Statutes Chapter 514B. The Association is administered by a Board of Directors elected from among the ownership.

The information below is provided to help owners better understand how the Association operates and how governance functions within the community.

 

 

 

Directors serve as fiduciaries for the Association and oversee the financial, operational, and risk-management responsibilities of the community.

Board service is a position of stewardship focused on protecting the long-term stability and financial health of the Association.

 

 

• Act in good faith

• Exercise reasonable care

• Place the interests of the Association above personal interests

• Follow the governing documents and Hawai‘i law

 

 

• Adopting annual operating budgets

• Monitoring financial reports

• Overseeing reserve planning

• Approving contracts and expenditures

• Ensuring assessments are levied and collected appropriately

 

 

• Insurance procurement and renewal

• Risk mitigation policies

• Maintenance planning designed to reduce liability exposure

• Compliance with evolving insurance requirements

 

 

• Maintenance of common elements

• Long-range capital improvement planning

• Major repair and replacement projects

• Vendor selection and contract oversight

 

 

• Adopts policies and resolutions

• Enforces governing documents

• Conducts properly noticed meetings

• Makes decisions by majority vote of the Board

 

 

While all directors vote as members of the Board, operational direction is communicated through the President acting on behalf of the Board.

 

Operations are carried out through:

 

Managing Agent

The professional management company retained by the Association to assist with administration, accounting, and operational coordination.

 

Property Manager (Kihei Villages employee)

Responsible for day-to-day on-site oversight and coordination of property operations.

 

Vendors & Contractors

Service providers engaged by the Association to perform maintenance, repairs, and specialized work.

 

 

• Attend a minimum of four board meetings per year

• Review meeting materials in advance

• Participate in discussion and deliberation

• Vote on Association matters at noticed meetings

 

 

 

It is not:

• Acting independently on behalf of the Association

• Directing vendors or management outside Board action

• Exercising decision-making authority outside meetings

• Advancing personal agendas

• Replacing professional management

No single director may bind the Association or issue direction unless authorized by majority vote of the Board at a properly noticed meeting.

The Board acts collectively, and directors are expected to respect this governance structure at all times.

 

 

 

 

The Board oversees the financial, operational, legal, and risk-management responsibilities of the Association, including budgets, insurance, contracts, maintenance planning, and policy implementation.

 

 

Directors attend at least four meetings per year, review materials in advance, and participate in discussion and voting.

 

Association actions are taken by majority vote at duly noticed meetings.

 

 

No specific professional background is required. Directors must act in good faith and fulfill fiduciary duties under HRS Chapter 514B.

 

No.

Day-to-day operations are handled by the managing agent, the property manager employed by the Association, and contracted vendors, operating under Board direction communicated through its President.

 

 

Owners interested in learning more about board service may contact the Board through the Association website.

 

 

 

An Association of Apartment Owners must maintain an active Board of Directors in order to conduct the business of the community.

Without a functioning Board, the Association cannot properly:

• Adopt budgets

• Maintain insurance coverage

• Authorize repairs and contracts

• Oversee reserve planning

• Provide governance oversight

If an Association becomes unable to govern itself due to the absence of a functioning board, Hawai‘i law allows a court to appoint a receiver.

A receiver is a court-appointed third party who may assume authority to operate the Association, including financial and operational decisions. The costs associated with receivership are typically borne by the Association.

Maintaining active homeowner participation in governance helps ensure that decisions affecting the community remain within the control of the ownership rather than outside parties.