Author: JUDY HOWARD

Realtor, lawyer, rancher, farmer, off-grid for 20+ years

Moving to Hawaii. Will I be disappointed?

Posted on by JUDY HOWARD
Waipio Valley camp fire. Photo by Sarah Anderson

What if I don’t love living in Hawaii?

“What if I don’t like it?” This is a very valid concern. Moving to Hawaii is expensive! Not everyone is happy here, and you should do everything you can to make sure this is the right place for you.

Come multiple times, and stay in as many places on the Island as possible.

This is not as easy as it used to be, because of the new restrictions on vacation rentals. See http://livinginwaimea.com/2019/03/30/hawaii-county-restricts-vacation-rentals/ But if you can’t stay in as many parts of the Island anymore, at least make sure you spend as much time visiting each area as possible. Moving to Hawaii is a big deal, and it’s worth investing time and money to make sure it’s right for you.

Many people say, though, that while the place matters, it is the people they fall in love with.

I hear this again and again: the people here are so friendly and helpful. I am a bit surprised, because I think there are more unfriendly people here than there were 50 years ago, but I guess it’s all relative. Compared to many places on the mainland, the people here are wonderful.

If you come with an open heart, you are likely to be treated with aloha.

There are always exceptions-people who are so bitter or angry that they won’t give you a chance. But if you treat the people you meet with kindness and respect, most will repay you with the aloha our Islands are known for.

Some nuts and bolts information on moving to Hawaii.

There are many sources of information about moving to Hawaii, and living here happily once you’ve made that move. Your Realtor is a great source of such information. You should also check out https://portal.ehawaii.gov/residents/newcomers-guide/

Hawaii Vacation Rentals Have New Restrictions

Posted on by JUDY HOWARD
Waipio Valley is a popular tourist destination. Photo by Sarah Anderson
Waipio Valley is a popular tourist destination. Photo: Sarah Anderson

The County of Hawaii has passed a new law. It governs some Hawaii vacation rentals. Only homes located in resort, multi-family or commercially-zoned areas may be used as unhosted vacation rentals. (It’s a little more complicated than that, so if you want the details, look here: http://www.hiplanningdept.com/short-term-vacation-rentals/

While at the County Planning Department site, you might want to note the definitions used in their zoning maps, listed here: http://www.hiplanningdept.com/wp-content/uploads/2017/05/Zoning-Definition.pdf

And then take a look at the maps themselves, available on the same site. The County does not provide a map of the entire Island, showing areas eligible to be used as vacation rentals. This overlay, provided by Hawaii Information Service, the local multiple listing service will give you some idea:

The areas in blue are eligible for use as unhosted vacation rentals

Because of the scale of the map, not every area that is zoned for use as vacation rentals is depicted, but the map gives a sense of how restricted the area is. Your realtor can tell you whether a property you are considering is zoned for vacation rentals.

The law applies only to unhosted vacation rentals, referred to in the draft rules as STVRs (Short Term Vacation Rentals). The law defines an STVR as follows:

“Short-term vacation rental” means a dwelling unit of which the owner or operator does not reside on the building site, that has no more than five bedrooms for rent on the building site, and is rented for a period of thirty consecutive days or less. This definition does not include the short-term use of an owner’ s primary residence as defined under section 121 of the Internal Revenue Code.”

“Building site” is not defined in the law or the draft rules.

The intent of the law is to improve the quality of life of people living in the vicinity of a vacation rental. If the host lives on the same property, vacationers are less likely to become obnoxious to their neighbors. Thus the law’s application to unhosted vacation rentals only.

The exception to the rule.

Homes that were legally operated as vacation rentals in residentially-zoned areas before April 1, 2019, may apply for non-conforming use certificates (NUC) annually. They must also apply for a STVR registration. If both are granted, the property may be used as an STVR. If the Planning Department has received unresolved complaints about a vacation rental the STVR registration and NUC may be revoked or may not be renewed. It is not entirely clear what would happen should a NUC be revoked or not renewed, but it may be that once a property has lost it’s NUC, it would not be able to have it restored.

All unhosted vacation rentals are required to have a “reachable person” 24/7.

The draft rules include many requirements, including hours during which noise will be kept to a minimum, and that all cars will be parked on the property, and also that all owners of Hawaii vacation rentals must designate a person who can be reached within an hour, and who will be on-premises to deal with any complaints within three hours, 24/7! If this requirement is not met, the permit (or permits, in the case of homes in residential areas) will not be renewed.

This new law will affect many people who might want to buy a second home, and use it for vacation rentals to help offset the costs.

The safest and easiest way to comply with the new laws for those wishing to offset costs of a second home is to buy in an area that is resort zoned. Not only will the need for a non-conforming use permit be eliminated, but the availability of reachable persons, as well as the many other service providers that are required to run a successful Hawaii vacation rental, will be much greater. http://yrh.ewp.mybluehost.me/2019/05/30/open-house-the-islands-at-mauna-lani/. Here are some current listings in resort-zoned areas: https://judy.hawaii.elitepacific.com/results-gallery/?hood=3374566&sort=listprice_asc&status=A

Of course there are some properties that have been lawfully operated as vacation rentals in residential areas, and that will be offered for sale from time to time. However, since they require annual renewal of a non-conforming use permit, which may be denied if the planning department finds a history of violation of the law or rules, investing in such a property with the assumption that use as an STVR will continue would be risky.

Kohala Ranch Property Taxes

Posted on by JUDY HOWARD

Kohala Ranch has amazing views, a great climate, and wonderful homes.

As a Realtor, I get many inquiries about Kohala Ranch. People fall in love with the expansiveness of the area, the views. and the climate. The lots are large, ranging in size from about 3 acres on up to about 12 acres, and prices tend to be affordable for the area, although complying with the design rules can make building expensive. There are a number of homes for sale, many of which have luxurious amenities, and the prices are, again, relatively affordable. It is fairly close to Waimea, and both prep schools located there, but it is also far enough away, and private and safe enough, to seem like a wonderful retreat from the daily bustle. https://hawaii.elitepacific.com/results-gallery/?hood=3374513

Kohala Ranch no longer has a dedicated agricultural use classification for property tax purposes.

A couple of years ago, the Kohala Ranch HOA board decided to prohibit cattle grazing on the ranch. That decision led to the revocation of the dedicated agriculture classification for property tax purposes. (The Ranch is still zoned for agriculture uses, so all of the uses that were previously permitted are still permitted by the County.) http://livinginwaimea.com/2018/10/12/land-use-in-agriculturally-zoned-areas-on-the-big-island/

The dedicated agriculture designation reduces the assessed value of land to rock bottom. Thus, even though the tax rate remains the same as other agriculturally-zoned land, it is applied to much lower values, resulting in much lower taxes.

The loss of the dedicated agricultural use classification has increased property taxes on some parcels.

Now the agricultural rate is applied to market value, rather than dedicated agriculture value, unless individual owners have applied for and received non-dedicated agriculture status from the County Real Property Tax office. Under this program, owners must show that they are engaged in ranching or farming. If they can demonstrate such activity, they will be entitled to a much lower assessed value, although not as low as lands in the dedicated agriculture program. Also, the lower assessed value will be limited to the land devoted to the agricultural endeavor-so if you have a pool, tennis court, and pasture for cattle, only the pasture will be entitled to the lower assessed value.

If you don’t want to farm or ranch, you may still qualify for lower taxes if you can qualify as a homeowner.

Another option some owners have pursued is to be classed as homeowner, rather than agriculture, because a) the tax rate is lower and b) property tax increases are limited to no more than 3% a year. In order to qualify for this classification, the property must be the owner’s primary residence.http://www.hawaiipropertytax.com/tax_rates.html

If you are considering a second home, and offering it as a vacation rental to offset some of the costs, you should probably look elsewhere.

The County of Hawaii has just passed a stringent vacation rental bill, and unless a property in Kohala Ranch has a history of lawfully operating as a vacation rental, it will not be a permitted use. See my post:
http://livinginwaimea.com/2019/03/30/hawaii-county-restricts-vacation-rentals/

Kohala Ranch has undergone some changes, but it is still a lovely place to live!

I would be delighted to provide you with more information about properties in Kohala Ranch. You can reach me by phone at (808)885-5588, or by email at judy.howard@elitepacific.com. Aloha.

Cherry Blossom Festival

Posted on by JUDY HOWARD

A friend who recently moved here asked me earlier this week about the Cherry Blossom Festival taking place in Waimea today.

My reaction was that of someone who uses Saturday morning to run errands in town: it’s a nuisance because it snarls traffic and makes finding a convenient parking place nearly impossible.

I realized later that that was a bit too narrow a view and emailed her a link to an article in the West Hawaii News: https://www.westhawaiitoday.com/2018/02/04/hawaii-news/cherry-blossom-festival-puts-nature-heritage-on-display/

The cherry blossoms are beautiful, and there are many cultural activities on offer as well as opportunties to purchase items from street vendors. You can easily make a full day of it, by visiting the Parker School farmers market, where Elite Pacific Properties hosts a tent, as well as the Pukalani Stables market and the one at the charter school.

The Waimea Cherry Blossom Festival is well organized, with plenty of parking and crossing guards where needed. I can just about guarantee everyone will find something delicious to eat and learn something new about the history of Waimea.

So, by all means, take a day and come to Waimea! Discover a little of what this wonderful place has to offer.

A hui hou!


Where can I park when going to the Cherry Festival?

It can get very crowded, and some parking areas are converted to retail stalls for the festival, so parking is at a premium. There is a soccer field just East of the North Hawaii Community Hospital that is dedicated to parking for the event. There are traffic guards in attendance. That’s probably your best bet.

What sort of weather should I dress for?

Bring layers, including something rain proof! It can vary from hot and sunny to cold and rainy from one hour to the next. Bring comfortable shoes, too, since the festival is spread out over a large area.

What else is nearby?

The Festival dominates the town of Waimea, but coming or going, you can stop at one of the many beautiful beaches along the Kohala Coast.

Why I love living in Waimea

Posted on by JUDY HOWARD

It’s the people! There have been many changes in the 50 years during which I’ve lived here or had close family living here, and some of the old community spirit has definitely been diluted. There are many small groups, centered on schools, sports clubs, churches and the like. But there is also still a more community-wide spirit, and it is one of the reasons why I love living in Waimea.

Banding together to find a lost dog’s owners.

For instance, my house guests found this dog late in the day on Christmas Eve. By the time I got up to the gate where he had been lying, reportedly unable to move, my neighbors had leashed him and he was standing quietly by them. He had no collar, and they had already checked around to see if a notice of missing dog or something similar had been left in the area.

They were on their way out, so I took him and put him in a kennel in my barn. The Humane Society and all vet clinics were closed, so I searched Craigslist lost and found to see if anyone was looking for him.

Fellow animal lovers pitch in to help, on Christmas Day!

I also called my friend and a fellow Realtor, Paula Beamer, who I knew had a chip scanner. She agreed to come down on Christmas Day and scan the pup for a chip. No chip.

My neighbors posted notices on facebook and craigslist. That was all we could do until the day after Christmas, except that I emailed a report of having found him, with a photo, to our local Humane Society shelter.http://hihs.org/

Day three, still no sign of the owner.

On the day after Christmas, I checked in with the shelter by phone, to make sure they’d received my email. They had not received any reports of a lost dog that matched the photo and description I provided.

My neighbor let me know that she had received one response to her facebook post, and sent along the picture of the missing dog. We agreed that it was a long shot, but she encouraged the owner of the missing dog to contact me. Meanwhile, Paula posted her own photo and description on a different facebook page, and we kept hoping the owner would call.

The humane society went above and beyond, and found the owner!

I finally got a chance to take the dog to the Humane Society shelter on Friday, just in case their scanner detected a chip that Paula’s scanner had missed. No luck, but the staff took more pictures and let me know what the procedure was for claiming the dog if the owner could not be found. I could not have kept him, but I would have done everything possible to find him an excellent home.

I stopped at the feed store on my way home, and the folks there took more pictures to post to their instagram accounts and send to friends who might recognize the dog.

Late in the afternoon on I got a call from the shelter’s animal control officer. She had gone back through old reports and found one for a dog reported missing 2 weeks ago and 20 miles away! She had contacted the owner, who gave her permission to give me the owner’s contact information. I called, and, finally, bingo!

Ronson is home with his family.

Ronson has been reunited with his loving family, thanks to the efforts of my neighbors, Paula, the folks at the feed store and the staff at the Humane Society. It was all very informal-I was never required to surrender the dog or fill out any forms-and very cooperative. My neighbors even offered to help me pay for the food for the dog!

So that’s why I love living in Waimea. People here see a problem and pitch in to help solve it. Your religion, your politics, the color of your skin, your wealth or your income-none of that matters. All that matters is that you are humble, diligent and honorable. If you are those things, you are treated as a member of this very special community!