Winter 2018 Issue 1165 BETHEL STREET , 96813 AWAIIAN PROPERTIES, LTD. Building Relationships That Last H Phone (808) 539-9777 Fax (808) 521-2714 Call (808) 539-9502 to request a proposal

Daniel Kent HAWAIIAN PROPERTIES EXPANDS ITS TEAM Vice President/ Senior Property Manager Hawaiian Properties has added four new property managers to its team. We welcome their contributions as we continue to expand our services and portfolio. Hawaiian Properties proudly manages nearly 200 associations on and more than 50 in Kona.

Selkie Khoo Reyna Susan Assistant Vice Machida DeCorte President/Senior Senior Property Senior Property Property Manager Manager Manager FREE 2018 Annual Board of Directors Mahalo to our sponsors. Seminar in Kona n October 5, Motooka & Rosenberg held their 23rd Annual Community Association Date: Thursday, December 6, 2018 Law Seminar at the Japanese Cultural Center. Below are some of the highlights Time: 11:00 a.m. to 2:00 p.m. Location: Courtyard Marriott King Kamehameha’s Kona Beach Hotel, Kamakahonu Ballroom from the seminar. 75-5660 Palani Road O Kailua Kona, Hawaii 96740 The Impact of Act 195 on a Condominium’s Priority of New Requirements for the Installation of Speakers: Payments Policy and Other Statutory Sections Fire Sprinklers – Bill 69: What you need to know about its requirements & how it By Carol A.L. Rosenberg, Esq. impacts your Association

Milton Motooka Carol Rosenberg Greg Ayau Ron Tsukamaki Keane Muranaka Act 195 affected Hawaii Revised Statutes Chapter 667 regarding By Janelle M. F. Lau, Esq. foreclosures, and Chapter 514B regarding condominiums. 11:00 a.m. – 11:45 a.m. – Check-In, Visit Vendor Tables, Buffet Lunch 11:45 a.m. – 12:00 p.m. – Welcome/Giveaways Bill 69, which became effective on May 3, 2018, 12:00 p.m. – 12:30 p.m. – Milton Motooka and Carol Rosenberg of Motooka and Rosenberg It modified the nonjudicial foreclosure (“NJFC”) process in requires all High Rise Residential Buildings in 1. Cancellation of the Priority of Payments – what it means and how it works (Act 195) Chapter 667, allowing associations to put a NJFC on hold if there Oahu that are not protected throughout by an 2. Pets – Processing requests for reasonable accommodations – do’s & don’ts & what the Association can is an agreed upon payment plan, and then proceed with the NJFC automatic fire sprinkler system to either install an adopt in terms of requirements that the accommodation animals must follow 3. Rogue Board members – when Board members disagree w/the decisions of the majority & attempt to: if the owner defaults on the payment plan. approved fire sprinkler system or complete and a) Undermine the Board by leaking false information to owners pass a Fire and Life Safety Evaluation. b) Harassing staff/contractors/other owners (Continued page ) c) Options for dealing with them on 3 (Continued on page 3) 12:30 p.m. – 12:45 p.m. – Greg Ayau of Bank of Hawaii, The Do’s and Don’ts of Project Financing Premier Sponsor 12:45 p.m. – 1:10 p.m. – Ron Tsukamaki and Keane Muranaka of Atlas Insurance, How do the Master Association Policy and the HO6 Policy work to cover a claim Honolulu Office: 1165 Bethel Street, Honolulu, Hawaii 96813 1:10 p.m. – 1:15 p.m. – Giveaways 1:15 p.m. – 1:35 p.m. – Panel, Q&A Kailua-Kona Office: Honolulu 75-240 Office:Nani Kailua 1165 Drive,Bethel Street,Suite 9, Honolulu, Kailua-Kona, Hawaii Hawaii 96813 96740 1:35 p.m. – 2:00 p.m. – Visit Vendor Tables www.hawaiianprop.com SPACE IS LIMITED. TO RSVP, PLEASE EMAIL [email protected] OR CALL 808-539-9725 (Continued from page 1, Highlights from Community Association Law Seminar) Managers’ Training and Appreciation Luncheon The most problematic effect of Act 195 is that it revises The Fire and Life Safety Evaluation must be conducted by a Chapter 514B by taking away a condominium licensed design professional by May 2, 2021, and the association’s right to adopt a priority of payments plan. Association must pass the Evaluation by May 2, 2024. HRS §514B-105 now requires that all payments made by Hawaiian Properties, Ltd. owners be applied only to common expenses, unless the If your Association intends to install an automatic fire is hosting a FREE training and appreciation luncheon for its owner specifically remits a payment for late fees, legal sprinkler system, the entire building (the common areas and resident, site and general managers. fees, fines and interest owed by the owner. units) must be protected by May 3, 2030.

Date: Wednesday, November 28, 2018 Act 195 also revised HRS §514B-146 to state that “No Time: 11:30 a.m. to 1:30 p.m. unit owner shall withhold any common expense Location: AOAO 801 South St., Building B assessment claimed by the association.” The statute used Bill 69 includes several exceptions where some buildings 801 South Street to require unit owners to pay all assessments claimed by may be exempt from fire sprinkler requirements if they meet the association before the owner could dispute them. Honolulu, HI 96813 certain criteria. Now the owner only needs to pay the common expenses claimed by the association before disputing them. If the Currently, further clarification is needed from the Honolulu The topics that will be discussed are: unit owner disputes amounts other than common Fire Department on the Evaluation matrix so that all licensed Agenda: expenses, the owner is allowed to demand mediation of design professionals will perform the evaluations uniformly. 11:30 a.m. – 11:50 a.m. – Lunch/Networking  Review of Vendor Contracts, those amounts before paying them. The deadline to submit a letter of intent to comply with Bill John Morris Christopher Shea Goodwin of 11:50 a.m. – 11:55 a.m. – Welcome 69 to the Honolulu Fire Department was November 2, 2018. Christopher Shea Goodwin AAL Act 195 took effect on July 1, 2018. It has a sunset date The November 2, 2018 deadline was not extended, so 11:55 a.m. – 12:00 p.m. – Purchasing Hui LLLC of June 30, 2020, so the affected statutes will revert back associations that are required to comply with Bill 69 and 12:00 p.m. – 12:30 p.m. – Christopher Shea Goodwin of  Site/Resident/General to the form in which they read on June 30, 2018 if the have not yet submitted their letter should submit it as soon as Christopher Shea Goodwin AAL LLLC Manager’s Role in the Act is not extended. possible. 12:30 p.m. – 1:00 p.m. – John Morris of Ekimoto & Morris Management and Operation of 1:00 p.m. - 1:20 p.m. – Q&A Panel Condominiums and Other Chris Goodwin 1:20 p.m. – 1:30 p.m. – Giveaways and Closing Remarks Homeowner Associations, John 2018 ANNUAL SEMINAR FOR BOARD OF DIRECTORS Morris of Ekimoto & Morris Hawaiian Properties held their third annual board member seminar on August 15, 2018 at Ala Moana Hotel.

To RSVP, please email [email protected] or call 808-539-9725. John Knorek of Torkildson, Katz, Moore, Hetherington & Harris A.L.C. discussed New Employment Laws and Cases, John Morris of Ekimoto & Morris talked about Board Members Rights and Responsibilities, Legislative Update, and Compliance with the New Fire Sprinkler Ordinance-What Associations Need to Know, and Richard Ekimoto of Ekimoto & Morris spoke about Legal Issues with (Continued from page 1, Highlights from Community Association Law Seminar) Comfort Animals and Medical Marijuana. We strongly believe in education and Got these seminars have been extremely valuable and beneficial to our board members. D&O D&O CLAIMS ARE ON THE RISE IN HAWAII We will be holding another seminar in 2019 and we hope that you will join us. Claims? Sue Savio, Insurance Associates “Everything was great!” “Organized, friendly, great show of vendors. Janet Fuselier, Excellent seminar. Informative speakers.” “Well organized. Vendors were President, Haleiwa Surf Mary Flemmings, President, Ke Noho Kai Townhomes D&O claims are on the rise in Hawaii not a breach of contract claims is $24,000. These large relevant to our needs. Food/ only in the number of claims but in the cost of settlements cause the D&O carriers to increase prizes were wonderful.” settling those claims. The most common types of premiums well beyond what they charge other states. Jennifer Baines, Director, Ihona D&O claim in Hawaii are: Also, these large settlements cause  Breach of Contract insurance companies to not want to write  Bylaw Violation coverage in Hawaii. Two D&O claims  Breach of Fiduciary Duty were discussed involving two different  Non-employment Related condos in Hawaii. Discrimination Basically, the end results to avoiding The average D&O claim in Hawaii claims is to have quality insurance settles for $42,000 after the deductible coverage, keep your agent in the loop, “Just a short note of appreciation to all the staff and nationwide the average D&O claim follow your condo rules treating all of Hawaiian Properties for another great settles for $27,000. The average breach of contract owners fairly and seek advice of your experts seminar this past Wednesday! Everyone takes claim in Hawaii settles for $133,000 while throughout your term as a director. great care, works as a team, and it shows!” nationwide, the average cost to settle Kaimuki Jade Board Member

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