REQUESTING THE FEDERAL HOUSING FINANCE AGENCY TO DIRECT FANNIE MAE AND FREDDIE MAC TO REPEAL OR REDUCE THE MINIMUM INSURANCE REQUIREMENTS IN GUIDE SECTION 4703.2, REQUIRING CONDOMINIUM MASTER INSURANCE POLICY COVERAGE FOR ALL PERILS IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE REPLACEMENT COST VALUE OF THE PROJECT'S IMPROVEMENTS.

HCR 172 is a Hawaii House concurrent resolution requesting the Federal Housing Finance Agency (FHFA) to direct Fannie Mae and Freddie Mac to repeal or reduce the insurance requirement in Guide Section 4703.2. This provision currently mandates that condominium master insurance policies cover all types of damage for 100% of the replacement cost of a project's improvements. The resolution argues this rule forces Hawaii condominium associations (representing nearly 200,000 units) to pay for expensive secondary insurance to meet the requirement, increasing financial burdens on associations and unit owners. The requested change would lower insurance costs by allowing coverage below 100% of replacement value.