10 West Hawaii Real Estate | August 4, 2017 GAC Update Hawaii Association of Realtors released the 2017 Post-session Legislative update, and were pleased to report 3 of 4 of the top Priority Issues for homeowners passed. One priority was to fix an existing law to ensure that Hawaii maintains its National Flood Insurance Program (NFIP) eligibility. An existing law, Hawaii Revised Statutes (HRS) 46-88, provided broad exemptions from building permit and code requirement for certain types of agricultural building and structures. This conflicted with State and County agreements with the Federal Emergency Management Agency (FEMA) to maintain floodplain management regulations. FEMA warned the state of Hawaii that it had until July 31, 2017, to fix the law or it would suspend Hawaii’s eligibility with the NFIP. Also, Hawaii would lose certain forms of its federal disaster assistance in the event of an emergency declared by the President of the United States. This House Bill, 1418, SD 1, fixed the law to ensure Hawaii did not lose its NFIP participation by; Establishing that HRS 46-88 does not exempt any new or existing agricultural buildings, structures, appurtenances, or other development from local, state, or federal floodplain management development standards. Requiring an owner or occupier intending to use the building code and permit exemption, to provide notice to the appropriate county agency of the final as-built size, type, and location of the proposed building. The agency must determine whether a building permit is necessary for floodplain management compliance. The second victory is the requirement for Appraisal Management Companies (AMC) to be registered. HB 50, CD1, establishes and funds a registration program within the Department of Commerce and Consumer Affairs (DCCA) for AMC’s. This will become effective January 1, 2018. Funding is effective July 1, 2017. Individual states have until August 18, 2018, to conform to the minimum standards set by the federal Dodd-Frank Wall Street Reform Act. An AMC would be barred from providing appraisal management services for federally related real estate transactions in that State, unless a federally regulated depository institution owns the AMC. Finally, the Hawaii Association of Realtors (HAR), helped empower the counties in the fight against invasive species, thus giving counties the tools for eradication that had been previously only available to the State. 10% of invading species will prove to be harmful to Hawaii’s economy and environment. HB606, CD1, authorizes counties, through their employees or authorized agents, to enter private property to control or eradicate invasive species and pests. Previously, only the State could seek a court order to deal with uncooperative owners of infested properties. The fourth priority was to increase County oversight on Land Use by increasing the acreage requirement from 15 to 50 acres before district boundary amendments must be approved by the State Land Use Commission instead of the counties. While there were various bulls proposed on this issue, none of the bills received a hearing. HB 209, CD 1, is the only bill opposed by the Hawaii Association of Realtors that passed. This bill increases the income tax rates to pay for a low-income renter’s credit, renewed food/excise tax credit, and a new non-refundable earned income tax credit based on 20% of the Federal Earned Income Tax Credit. This increase starts at incomes of $150,000. HB 1244, CD 1, passed the legislature. This Bill requires upgrade, conversion, or sewer connection of all cesspools in the State before 2050. Property owners may apply to the Department of Health (DOH) for an exemption, such as small lot size, topography, poor soil, or accessibility. SB 119, CD 1, establishes a cap of 8% on late rent payment fees, applicable to all new rental agreements and renewals entered on or after the effective date of November 1, 2017. HB 1009, CD 1, exempts residence or occupancy in a structure or on a property directly controlled, owned, or managed by the Hawaii Public Housing Authority from the requirements of the Landlord Tenant Code. HB 530, CD 1, the Hawaii Housing Finance and Development Corporation (HHFDC) down payment loan assistance program has been inactive due to funding and outdated programmatic constraints. This measure updates and modernizes the program. SB 611, CD 1, extends the prohibitions on the county requirements for automatic fire sprinkler systems in one and two family detached dwelling units and nonresidential aqua cultural structures located outside urban areas. SB 911, CD 1, provides additional financing assistance for affordable housing rental projects by increasing the Hula Mae Multi-Family Revenue Bond authorization amount from $1 billion to $1.5 Billion. SB 584, CD 1, allows an extended or Hanai family member to act as a comortgagor in assisting a qualified resident to secure a mortgage to purchase a dwelling unit from the HHFDC. HB 451, CD 1, allows a lessee with an interest in Hawaiian Home Lands to will that interest to a spouse, children, grandchildren, brothers or sisters, who are at least 1/32 Hawaiian. Note: Effective upon approval of the Governor of Hawaii AND with the consent of the United States Congress. HB 192, CD 1, expands the law on planned community associations to apply to certain homeowner’s associations. Clarifies that if a proxy is a standard proxy form authorized by an association, and the proxy is returned with no box checked or more than one box checked, the proxy shall be counted for quorum purposes only. HB 832, CD 1, specifies that condominium boards may be in violation of fiduciary duty for violating the mediation and arbitration requirements of the condominium law. Allows association member participation in board meetings pursuant to rules established therefore. Requires board meeting notices to list items on the meeting agenda. Requires final drafts of meeting minutes to be available within 30 days after the meeting. SB 292, CD 1, repeals chapter 514A, of the Hawaii Revised Statutes, relating to condominium property regimes and ensures that all condominiums in the State are governed under chapter 514B, of the Hawaii Revised Statutes. SB 369, CD 1, prohibits associations of apartment owners, boards of directors, managing agents, resident managers, unit owners, and persons acting on behalf of associations or unit owners from retaliating against a unit owner, board member, managing agent, resident manager, or association employee who files a complaint; acts in furtherance of a complaint, report or investigation of an alleged violation of the State’s condominium laws or a condominium’s governing documents; or exercises or attempts to exercise any right as a unit owner. SB 396, CD 1, clarifies public records by amending the procedure for clearing titles by adding a reference to recorded assignments of leases and rents for which the underlying debt has been fully paid or satisfied. SB1227, SD 2, makes permanent the affirmation requirement and form that is filed by an attorney on behalf of a mortgagee who is seeking to foreclose on a residential property under a judicial foreclosure action. HB 575, CD 1, establishes a process for the re-leasing or re-negotiation of a lease for public lands classified as commercial or industrial use near the end of the life of the lease. Permits DLNR to extend public land leases to school or government entities without recourse to auction, with certain exceptions. HB 2, CD 1, Authorizes tiny homes of less than 500 square feet for farm workers in agricultural districts on the island of Hawaii. The County Council may adopt ordinances for the oversight of tiny homes, as defined in this Act. For further information on specific bills, including the bills that died in this legislative session, visit http:// konarealtors.com.
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