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March Updates



 

KHON 2 recently reported that a Maili homeowner owes $18,000 to Hawaiian Electric (HECO) to pay for street lights on Halemauliha Place. According to the story, HECO claims the street is owned by the homeowners; the City & County of Honolulu denied the street was dedicated to the City.


How could this have happened?


According to HECO, the developer of the subdivision probably forgot to dedicate the street and streetlights to the City. Since this was not done, the street and street lights are owned by the homeowner.


Looking at the property history, the home was built in 2000 by Kaui Kai Homes Inc. Kaui Kai Homes Inc is a dissolved entity that was registered to Harold Johnson Sr., Harold Johnson Jr., and Michael Schwinn. Kaui Kai Homes Inc sold the property to Kaahea Family in 2000. The Kaahea Family sold the property to the Wailehua Family on October 29, 2020. The Wailehua Family sold the house to the current owner on December 12, 2020.


There are so many unanswered questions. If the street and street lights were not dedicated to the City in 2000, did the previous owners of the property get the same type of letter from HECO? Why did it take HECO so long to figure this out? Is HECO sending the same letter to the previous owners of the home?


What is concerning is the property has been sold to different owners and this could be the first time that someone (HECO) discovered the street and street lights were not dedicated to the City. More so, looking at this from a Realtor's perspective, the purchase process is setup so the buyer can do his/her due diligence. However, these checks-and-balances have obviously failed.


First, you would think the developer would have a checklist to ensure the street and street lights were dedicated to the city. Second, since the developer did not dedicate the street and street lights to the city, should the street have shown up on the preliminary title report? Interestingly, the street has a separate parcel ID than the subject property. Third, if a survey was done, should the street have shown up on the report?


We are assuming that not dedicating the street and street lights to the City was a honest mistake by the developer. However, we can really go down the rabbit hole if start wondering if someone knew about this and did not properly disclose to the next owner. Nevertheless, I am curious how this situation will be resolved.


Will the owners title insurance policy be triggered? Will HECO work with the developer, owner, and the City to find an amicable solution? Or will the homeowner lawyer-up and start suing?


For Lease


We are helping a local non-profit to lease out three commercial spaces at Kohina at Hoopili. All three spaces are side-by-side to. The landlord is asking for a base rent of $5/square foot via triple net lease. In addition, the landlord has filed for permits to add basic infrastructure into all three units. Are you looking to start a business in a growing community? Here is your opportunity!


Click on the hyper links to view the marketing fact sheets: Unit #5001 , Unit #5002 , Unit #5003


Home Maintenance

When we purchased our unit, the previous owner was not proactive in their home maintenance. Unfortunately, there were termites in the bedroom door and the owners did not treat it. While we were in contract, the seller hired a vendor to spot treat. After we closed, my wife and I hired another vendor to spot treat.


Just the other week, I noticed some termite droppings under the base boards. I called a termite vendor and he informed me this could have been old droppings. Just to be safe, my wife and I decided to spot treat the base board.


First, I drilled a handful of holes into the base board. Second, I spot treated with a termite foam. This, I patched the holes with spackle. And lastly, I sanded and painted.


This was an easy repair and I was able to do it quickly.


Ramblings

Bill 7

We need more affordable housing. One solution to creating more housing is using Bill 7. Bill 7 allows a developer to build taller, wider, and denser. The goal was to create more affordable rentals quicker. However, with rising land and construction costs, very few people have taken advantage of Bill 7.


Many will argue Starbucks killed the office market and COVID-19 was the nail in the coffin. Interestingly, Douglass Emmett repurposed a Class A office building in downtown Honolulu into a residential apartments.


Koa Ridge and Hoopili

Koa Ridge and Hoopili cannot build new inventory fast enough. Both projects have lotteries throughout the year and there is a line out the door! If these projects were built decades ago, would we have our current housing shortage?


Thankfully, I was able to help a client purchase a re-sale Hoopili home in 2021. In addition, just a few weeks ago, I was able to help another client purchase a BRAND NEW home at Koa Ridge.


Entering a housing lottery can be difficult. However, the process is streamlined. One benefit is you have an equal chance against the other buyers. Another benefit is the price is fixed. Have you submitted an offer on a market property? If so, I will not be surprised if your offer was countered at a higher price.


Upcoming Listing

We will be listing a single-family home near our office. Be on a lookout for more details.


Stay safe and healthy.


-Roda