Oahu Residential use Dedication

By
Real Estate Agent with Locations, LLC RB - 19772

RESIDENTIAL USE DEDICATION

 

Certain condominium owners may now consider dedicating their properties for Residential Use for a five-year period if their units are being used as a primary residence, or a long-term rental (longer than 30 days at a time).

 

This option will allow the properties that are currently on land zoned as mixed use, hotel, or commercial, and whose Declaration of Condominium or Horizontal Property Regime specifically states that the unit is allowed to be used as residential, to be classified as Residential, and thereby eligible for the historically lower real property tax rate.

 

On June 16, 2017, the Real Property Assessment Division will be mailing out letters and petition forms to approximately 8,000 owners whose properties may qualify for the dedication. If approved, the owner must commit to a five-year dedication, which is automatically renewable for additional five-year periods unless cancelled by either the property owner or the Director of Budget and Fiscal Services.

 

Upon sale or transfer of the dedicated property, the dedication will continue for the remainder of the dedication, but will not be automatically renewed. Once expired, the dedication will be cancelled, and the new owner must file a new petition to dedicate in order to continue with the Residential Classification.

Failure to observe the restrictions will result in a paramount lien upon the property, as well as rollback taxes and penalties.

 

This Residential Use Dedication will replace any previous methods by which condominiums on non-residential zoned lands were allowed to be classified as Residential. Previously approved Declaration Regarding Condominium Use forms are deemed to be invalid. A Home exemption will no longer automatically qualify a property for a classification as Residential.

 

The deadline to file this dedication is September 1, 2017. There will be no grace period or extension.

 Here just names of Few project that will be effected by this new change :

 

ALOHA SURF HOTEL, BAMBOO, BEACH VILLAS AT KO'OLINA, HAWAIIAN MONARCH, ILIKAI APT BLDG, ILIKAI MARINA, ISLAND COLONY, KALAKAUAN, KAPIOLANI MANOR, KUHIO VILLAGE, LUANA WAIKIKI, MEHANA‐AWAKEA, MEHANA‐NANALA, OCEAN VILLAS AT TURTLE BAY RESORT, PACIFIC MONARCH, REGENCY AT BEACHWALK, RITZ CARLTON TOWER, ROYAL ALOHA, ROYAL GARDEN AT WAIKIKI, ROYAL QUEEN EMMA, TRUMP INTL HTL & TWR AT WAIKIKI BCHWLK, WAIKIKI GRAND HOTEL, WAIKIKI SHORES

 

To see LIST OF CONDOMINIUM PROJECTS IMPACTED BY ORDINANCE 17‐13 and  a copy of Petition to Dedicate Property for residential visit

https://www.realpropertyhonolulu.com/whats-new/

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Elena Roud ®  Locations, LLC Fine Home Specialist

808-224-7274

e-mail me: Elena.Roud@LocationsHawaii.com

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Comments (3)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Elena, great post for your homeowners in Oahu, and sounds like a benefit if they don't rent their property out.

Jun 16, 2017 07:27 PM
Elena Roud
Locations, LLC - Honolulu, HI
Realtor, Russian Speaking - Honolulu Homes

  Yes, you are right .. There are some important changes to Oahu Real Property Assessment and owners of some buildings better act fast

 

Jun 16, 2017 07:38 PM
Anonymous
Margaret Lim

Thank you for the information! You're a pro!

Jun 26, 2017 11:45 PM
#3