HAR Chapters 119.1 through 119.8 – Condominiums (effective 3/26/26)

CHAPTER 119.3

CONDOMINIUMS - PROJECT REGISTRATION

§16-119.3-1 Name of the condominium or project §16-119.3-2 Unit sale and project registration §16-119.3-3 Effective dates; developer's public reports; owner builder exemption §16-119.3-4 Copies of developer's public reports §16-119.3-5 Bulk sale; portion of developer's inventory §16-119.3-6 Filing of parking plan §16-119.3-7 Lost or destroyed plans §16-119.3-8 Method of computing percentage of common interest §16-119.3-9 Metes and bounds description §16-119.3-10 Method of computing floor area §16-119.3-11 Filing of other documents §16-119.3-12 Signature on an application for registration; developer's public report; other documents §16-119.3-13 Amendments to the developer's public report §16-119.3-14 Annual report §16-119.3-15 Spatial units §16-119.3-16 Registering new units §16-119.3-17 Cooperatives

119.3-1

362 6

§16-119.3-1

§16-119.3-1 Name of the condominium or project. Unless otherwise permitted by law, the name or proposed name of any condominium or project submitted for registration in accordance with chapter 514B, HRS, and chapters 16-119.1 through 16-119.8 shall not be substantially like any name registered with the business registration division of the department and any name used by a condominium or project registered with the commission. The developer shall certify to the commission that the developer has conducted a search of the name or proposed name and that the public records of the commission and the business registration division of the department do not indicate that the name or proposed name is: (1) Registered with the business registration division; (2) Currently used by a condominium or project registered with the commission; and (3) Substantially like a name registered with the business registration division of the department and any name used by a condominium or project that is registered with the commission. Use of a commission registered name for purposes other than the condominium or project constitutes a false or misleading statement in violation of section 514B-94, HRS. [Eff MAR 26 2026 ] (Auth: HRS §514B-61) (Imp: HRS §514B-94)

§16-119.3-2 Unit sa1e and project registration. (a) The project registration requirements of parts IV and V, as well as other related registration parts of chapter 514B, HRS, apply to the sale of units in a project for the first time to the public. These requirements do not apply to resale of units in a project after sale of units for the first time to the public. Parts IV and V, as ~ell as other related registration parts of chapter 514B, HRS, apply to sales of units subsequent to a bulk sale, transfer, or conveyance to a co-developer (including a co-tenant)

119.3-2

3 62 6

§16-119.3-3

and to sale of units to the public following the dispositions of the units made pursuant to sections 514B-51(b) (1), 514B-51(b) (3), and 514B-81(b), HRS. (b) A project is deemed registered with the commission when the commission: (1) Determines that the developer has submitted all the documents and information concerning the project and the condominium property regime as required by sections 514B-54, 514B-83, and 514B-84, HRS, as applicable, and as otherwise required by the commission; and (2) Issues an effective date for the developer's public report. The commission may consult with private consultants pursuant to section 514B-64, HRS, in making the required determinations. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: part IV and part V of chapter 514B, HRS)

§16-119.3-3 Effective dates; deve1oper's pub1ic reports; owner bui1der exemption. The commission shall not issue an effective date for those units included in the project registration application that are subject to the provisions of the owner builder exemption of chapter 444, HRS, except the commission may issue an effective date for any units included in the developer's public report because of an eligible unforeseen hardship as determined by the contractor's license board pursuant to section 444-2.5, HRS. Upon the expiration of the owner builder one-year moratorium and prior to offering any units for sale that were the subject of an owner builder exemption, the developer shall amend the developer's public report and obtain an effective date for an amendment ol,1A~n2-wn21f2ied developer's public report. [Eff ] (Auth: HRS §514B-61) (Imp: HRS §§514B-51, 514B-54, 514B-56, 514B-57, 514B-58, 514B-59)

119.3-3

'V 3 62 6

§16-119.3-4

§16-119.3-4 Copies of developer's public reports. Within thirty days of the issuance of an effective date for a developer's public report, amendment, or amended developer's public report, the developer shall provide the commission with copies of the public report, amendment, or amended public report at no charge. The commission shall determine the number of copies. [Eff MAR 2 6 2026 (Auth: HRS §514B-61) (Imp: HRS §§514B-54, 514B-56, 514B-57)

§16-119.3-5 Bulk sale; portion of developer's inventory. (a) A bulk sale includes the sale or transfer in bulk of all or a portion of the developer's entire inventory to a purchaser who is a developer with a transfer, assignment, or conveyance of any or all the developer's reserved rights to change, alter, or modify the condominium property regime or project. (b) A bulk sale shall not have a single unit as remaining inventory. Any remainin~ inventory must include two or more uni ts. [Eff MAR 2 6 2026 ] (Auth: HRS §§237-43, 514B-51) (Imp: HRS §514B-81)

§16-119.3-6 Filing of parking plan. The parking plan shall comply with county codes and ordinances, federal, state, and commission requirements, and specify whether each stall is for a compact, parallel parking compact, tandem, or regular size vehicle, including disability accessible, and covered or uncovered. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-33, 514B-57)

§16-119.3-7 Lost or destroyed plans. For an existing structure, where the plan of the building or buildings filed pursuant to section 514B-34, HRS, is lost or destroyed, the commission may accept a site

119.3-4

3626 _

§16-119.3-10

plan, floor plan of each floor, and elevation plan along with an as-built certificate of a Hawaii- licensed architect or engineer. [Eff MAR 2 6 2026 (Auth: HRS §514B-61) (Imp: HRS §514B-34)

§16-119.3-8 Method of computing percentage of common interest. At the time of submitting an application for registration of a project, the developer shall submit a written explanation of the method or formula used in computing the percentage of common interest appurtenant to the condominium units. [Eff MAR 2 6 ?026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-32, 514B-33, 514B-37)

§16-119.3-9 Metes and bounds description. Limited common element areas with no visible demarcations, physical boundaries, or permanent or structural monuments, including roads, walls, fences, and parking stall striping shall be described in the condominium map by metes and bounds or clear, measured, dimensioned boundaries. [Eff MAR 26 2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-32, 514B-33)

§16-119.3-10 Method of computing f1oor area. The floor area of the unit shall be computed and reported in the declaration and developer's public report as net living area. The reported net living area of the enclosed portion of the unit shall be a reasonable representation. Net living area of a unit shall be measured from the interior surface of the unit perimeter walls and shall exclude any area occupied by a load bearing structure. In a double construction wall, the perimeter wall means the inside double wall. Lanais, patios, storage areas, or garages that are considered part of the unit shall be

119.3-5

3 62 6

§16-119.3-10

computed and reported separate from the enclosed net living area. Boundaries of units shall minimally be described in accordance with section 514B-35, HRS. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-32, 514B-33, 514B-34, 514B-35, 514B-54)

§16-119.3-11 Filing of other documents. The commission may require filing of other documents, papers, data, and information to complete the condominium registration file. [Eff MAR 2,; 20?ft l (Auth: HRS §514B-61) (Imp: HRS §§514B-51', 514B-54, 514B-56, 514B-57, 514B-103)

§16-119.3-12 Signature on an application for registration; developer's public report; other documents. (a) Subject to the penal ties of section 514B-69, HRS, the developer shall sign the project registration application, including the questionnaire, the developer's public report, any amendments to the developer's public report, and other documents as required by chapter 514B, HRS. Where there is more than one fee owner or lessor submitting the land to the condominium property regime, all the fee owners or lessors shall sign the project registration application, including the questionnaire, the developer's public report, any amendments to the developer's public report, and other documents as required by chapter 514B, HRS, and the commission. Fee owners or lessors may execute a power of attorney permitting one or more co-owners or co-lessors to sign on their behalf. (b) A person with any other right, title, or interest in the land electing to subordinate that person's interest to the condominium property regime, other than a lender, shall also sign the developer's public report, any amendments to the developer's public report, and other documents as required by chapter 514B, HRS, and the commission indicating that

119.3-6

3 62 6

§16-119.3-13

person's subordination and consent to the creation of the condominium property regime and registration of the condominium project. Any recorded document joining in or subordinating a person's ~nterest to the declaration shall also be submitted to the commission as part of the project registration application. (c) Where the developer is a person or entity other than the fee owner or lessor, the person or entity shall submit evidence indicating the fee owner's or lessor's consent and agreement to the creation of the condominium property regime and the project registration and sale. Evidence includes an executed declaration, power of attorney, or agreement between the developer and fee owner or lessor authorizing the developer to create and register the project with the commission and the sale of units in the condominium property regime or project. (d) The developer's name and signature on the developer's public report shall be the same name as the signatory to the executed declaration or in the name as otherwise specifically allowed by a duly executed notarized power of attorney, entity resolution, or other document. (e) The required signatures may be obtained on separate additional signature pages of the developer's public report provided that each signatory makes the same required declarations as reg~ired by the commission approved form. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-31, 514B-52, 514B-54)

§16-119.3-13 Amendments to the developer's public report. (a) Within thirty days of any changes, material or pertinent or both, to the information and documents included in or omitted from the developer's public report, the developer shall submit to the commission an amendment to the developer's public report or an amended developer's public report clearly reflecting and disclosing the changes contained in or omitted from the developer's

119.3-7

§16-119.3-13

public report together with such supporting information as may be required by the commission. (b) Unless the commission determines otherwise, a developer shall: (1) Include in an amendment no more than two material changes or no more than five pertinent changes to a developer's public report. If there are more than two material changes or five pertinent changes, a full amended developer's public report is required; (2) Submit a full amended developer's public report following the submittal of two consecutive amendments unless the amendment or amendments pertain solely to updating the name and address of the project or the address, electronic mail, and telephone number of the developer's agent if that agent relocates or changes its name where the agent remains the same legal entity or both. A full amended developer's public report is a restated developer's public report including all amendments. A developer may elect to submit a full amended developer's public report in lieu of an amendment; and (3) Submit with any amendment a title report dated not more than forty-five days prior to the date of filing of any proposed amendment with the commission. A developer may request that an administrative review be conducted by commission staff to determine that a proposed amendment does not warrant the submission of a current updated title report. Examples warranting the non- submission of a current updated title report include but are not limited to the correction of typographical errors, non- substantive errors, or both. (c) If the current updated title report reflects no further encumbrances against title, the developer shall include language in the amendment or amended

119.3-8

2

§16-119.3-13

developer's public report that there are no further encumbrances against title. (d) In determining whether a prospective purchaser or purchaser cannot easily ascertain, determine, or understand the changes included or added by any proposed amendment or included in any amended developer's public report, the commission may consider the totality of the factors as set forth in this subsection. (e) Amendments made to a developer's public report for a project containing any existing structures being converted to condominium status which may be occupied for residential use and that have been in existence for five years or more shall include at minimum the following disclosures: (1) Any outstanding notices of uncured violations of any building, plumbing, and electrical codes and of any other federal, state, and county regulations received or known to the developer within the last six months prior to the submission of the amendment. The update shall include but not be limited to information discovered by a developer's review of relevant federal, state, and county records; and (2) The estimated cost of curing any building, plumbing, and electrical codes and other federal, state, and county regulations or violations. (f) Any amendment shall be read together with a previous developer's public report or read by itself as an amended developer's public report. The developer shall provide notice to the prospective purchaser or purchaser and the principal broker of any amendments made to the developer's public report. [Eff MAR 26 2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-52, 514B-54, 514B-56, 514B-57, 514B-61, 514B-83)

119.3-9

3 62 6

§16-119.3-14

§16-119.3-14 Annual report. (a) The annual report required by section 514B-58, HRS, shall be filed at least thirty days prior to the anniversary date of the effective date of a developer's public report or if amended, at least thirty days prior to the anniversary date of the effective date of the most recent amendment or amended developer's public report. (b) In addition to other information updated and reported pursuant to section 514B-58, HRS, and as required by the commission, a developer shall also update and report that the developer: (1) Has conducted a current search of all relevant county, state, and federal public records, including administrative agency records, and that the respective records currently do not indicate any uncured violations of any building, plumbing, and electrical codes or other violations; (2) Has not received any notice of violations or notice of any county investigation of any uncured building, plumbing, and electrical code violation or other violations; and (3) Does not have any actual knowledge of any unreported building, plumbing, and electrical code violation or other violations. (c) The initial fee for filing an annual report with the commission shall be pursuant to chapter 16-53 and thereafter shall be in an amou~t as adopted in rules by the director. [Eff MAR 2 ti 2026 ] (Auth: HRS §514B-61) (Imp: HRS §514B-58)

§16-119.3-15 Spatial units. (a) A developer shall describe spatial units in any manner that complies with this section, chapter 514B, HRS, and as required by the commission. At minimum, any description of a spatial unit shall specifically comply with the definition of unit as provided in sections 514B-3, 514B-32 (a) (7), and 514B-32 (a) (13), HRS, and any other applicable sections of chapter

119.3-10

3 62 6

§16-119.3-16

514B, HRS, and chapters 16-119.1 through 16-119.8 and include that the unit: (1) Is designated for separate ownership or occupancy, has access to a public road or to a common element leading to a public road, and will have future boundaries in accordance with section 514B-35, HRS; (2) Has a location and dimensions with horizontal and vertical boundaries designated by spatial coordinates with beginning and ending points; (3) Complies with all zoning and building ordinance and codes and all other permitting requirements, including having dimensions not more than county, heights, setbacks, and other requirements; and (4) Complies with any other commission requirements. (b) Any description of any permitted alterations to or replacement of a spatial unit shall include a description as to what could be built or replaced in the spatial unit pursuant to the declaration, county zoning and building permitting, and any applicable federal and state laws. [Eff MAR 2 6 2026 ] (Auth: HRS §§514B-57, 514B-61) (Imp: HRS §§514B-3, 514B-5, 514B-32)

§16-119.3-16 Registering new units. Developers may register new units created by dividing previously existing registered units by amendment or amended developer's public report. These newly created units are subject to the fees set forth in chapter 16-53. Developers shall register new units that are created from previously unregistered property or unregistered units as a new project pursuant to the phasing rules in chapter 16-119. 4 herein. [Eff MAR 2 6 2025 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-Sl, 514B-52, 514B-56)

119.3-11

§16-119.3-17

§16-119.3-17 Cooperatives. Cooperative housing projects converting to condominium status must comply with the registration requirements of parts IV and V, as well as other related registration parts of chapter 514B, HRS, this subsection, and as required by the commission. Such projects are not subject to part V(B) of chapter 514B (sales to owner occupants), HRS, and need not provide a broker listing agreement where: (1) One hundred per cent of the shareholders of record prior to the conversion have agreed to the conversion and will be parties to the submission of the property to the condominium property regime; (2) Upon conversion, the developer will not sell or offer to sell the apartments or units to the public and the developer is not able to sell or offer to sell the apartments or units to the public; (3) Existing shareholders and tenants will continue to reside in the apartments or units; and (4) And upon conversion, the existing tenants are permitted to continue their occupancy of the apartments or units. Furthermore, the developer's obligations to update the developer's public report cease upon conveyance of the condominium units to the former cooperative members who have traded their cooperati~e,,.Rhare for condominium units. [Eff MAKit>2026 ] (Auth: HRS §514B-61) (Imp: HRS §§514B-51, 514B-54, 514B-83, 514B-84)

119.3-12

§16-119.4-1

HAWAII ADMINISTRATIVE RULES

TITLE 16

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS