Category: Waimea Agriculture and Ranches

Photo voltaic In Hawaii

Posted on by JUDY HOWARD
Photo Voltaic in Hawaii-no utility lines here!

Photo Voltaic in Hawaii? You have options!

Interested in photo voltaic in Hawaii? Hawaii is well situated for those wishing to turn the sun’s energy into electricity. Even if you chose to live in an area which is frequently cloudy-like my home-you can live a fairly normal life without being tied into the electrical grid. Or, if you live in a spot that is served by HELCO, the electric company, you may be able to tie into the grid. Here’s where to find more information about tying into the grid: https://www.hawaiielectriclight.com/products-and-services/customer-renewable-programs

Living off grid

I have been living off grid for over twenty years. The technology has improved a great deal in that time. I have a basic system, and an excellent photo voltaic technician, and the experience is almost invisible on most days. I don’t use as much power as some other households might consume, and every once in a while I am completely stumped when my system stops working, but I am happy living off grid

There are much fancier systems, in much fancier homes! Some seem as though they would require an electrical engineering degree (or an on-site technician) to keep working properly. I think that in any off-grid home, the occupant must have an interest in at least the general theory of how the various components operate.

Grid tie ins

HELCO has gone through several iterations of its grid-tie in program, with each becoming less generous than the previous one. I recently sold a small house in Luala’i, Waimea, that had 20 photo voltaic panels and a monthly utility bill of $22. That home had the benefit of an older contract with HELCO, and the occupants could use almost any conceivable amount of electricity and still not owe more than the base amount.

At times, HELCO suspends new contracts altogether. This seems silly, since Hawaii has set of goal of 100% clean energy by 2045 http://www.hawaiicleanenergyinitiative.org/

There is a plausible explanation, however. There was such a rush to photo voltaics that the remaining customers were left shouldering too great a share of the overhead costs. I don’t think the utility chose the best solution-discourage photo voltaic-but that is the path they have chosen.

Ready? Not so fast!

Many people dream of building a home in the middle of some gorgeous pasture, with views to the ocean and space to roam. Photo voltaic systems play a part in many of those dreams. Some think they might rent out cottages on the land to generate some additional income. Hawaii has recently clamped down on vacation rentals, see http://livinginwaimea.com/2019/03/30/hawaii-county-restricts-vacation-rentals/

There are also other restrictions on land use in agriculturally zoned areas, see http://livinginwaimea.com/2018/10/12/hawaii-county-agricultural-land-use-restrictions/

Photo voltaic in Hawaii, yes! Maybe with a few more draw backs than you would like, but it is definitely feasible in Hawaii. Generating income from vacation rentals on agricultural land, nope. Building multiple dwellings on agricultural land, almost certainly not. Getting the benefit of the very low assessed value on agricultural lands without actively engaging in an agricultural, probably not for long! The County audits use, and will change your property tax classification if it does not find agricultural use. See http://livinginwaimea.com/2019/03/29/kohala-ranch-property-taxes/

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.

Hawaii County land use restrictions for agriculturally zoned land.

Posted on by JUDY HOWARD

It is beautiful, but it is not for everyone!

Hawaii County is a place of great beauty and vast open spaces.  But it is also a place where the goals of food self-sufficiency and diversified and sustainable economic growth are taken seriously. At the moment, the County is heavily dependent on tourism, which leaves us in a precarious position when visitor numbers drop for any reason.  We also import an appalling percentage of our food, which leaves us vulnerable to vagaries of labor strikes and natural disasters.

Land zoned for agricultural use, Hawaii County.
Hawaii County and the State restrict use of agriculturally zoned lands

Agricultural lands receive favorable tax treatment.

First and foremost, the property taxes on land in agriculture are much lower than those on land used for residential purposes.  The actual rate is higher for some agricultural land than it is for some residential land, but the assessed values to which those rates are applied results in significantly lower taxes.  Grazing land, in particular, is assessed at about $10,000/acre for non-dedicated land, and is currently taxed at $9.35/$1000.  Homeowner rates are currently $6.15/$1000 of assessed value, but the land and improvements are assessed at market value. Also, those low homeowner rates apply only to primary residences, not to second homes or homes held for income or investment.  Rates are available here: http://www.hawaiipropertytax.com/tax_rates.html

So what constitutes an agricultural use, and where is County land use policy headed?

You can access a handy chart showing the permissible uses of land zoned in various ways here: http://www.hiplanningdept.com/wp-content/uploads/2017/09/Permitted-Uses-Table-091917.pdf

Some of the uses listed in the chart don’t do much to increase food production.  There is obvious value in keeping land in agricultural use, in the sense that it is much easier to later convert open land to food production than it is to restore land that has been used for residential, commercial or industrial purposes so that it can be safely used for such production.  But given the growing emphasis the State is placing on a diversified economy and food self-sufficiency, it is reasonable to expect increasing restrictions on use of agriculturally productive land for purposes other than food production and commercial agriculture.  The days during which a developer could easily purchase a pasture, get it rezoned and subdivided, and build and sell houses, are gone.

Current restrictions on use of agriculturally zoned land.

Even now, the number of dwellings, and the type of occupants of dwellings, are restricted on some agricultural lands.  Some lands are governed by the State Land Use Commission, and lands classified as less productive are subject to County regulation.  This is a huge topic, and while I could post links to every source that would need to be consulted in order to make a determination as to the governing body and restrictions on a given parcel, I instead advise anyone considering a purchase of agriculturally zoned land in Hawaii County to consult with the Hawaii County Planning Department.  Have the TMK of the parcel you are considering, and a planner should be able to outline for you all of the permitted and prohibited uses for that land.  See also http://livinginwaimea.com/2019/03/29/kohala-ranch-property-taxes/

Don’t plan on paying for your agricultural land purchase by selling agricultural goods!

If you want to make a profit on agriculture in Hawaii, your options are even more limited.  Some crops do reasonably well in some years, but given the cost of land, it is very difficult to thrive as a farmer or rancher in Hawaii, year in and year out.  Nonetheless, there are quite a few ranchers and farmers here.  Why?  Because even though it is very hard work, it is also endlessly interesting and occasionally very rewarding!

Horse keeping in Hawaii

Posted on by JUDY HOWARD
Horses at top of property

Horse keeping in Hawaii is not always fun.  On the day I took this picture I had already been searching for a while.  I was sopping wet because the rain had started unexpectedly.  I had gone out without rain gear. I had just about concluded that I’d missed the horses standing under trees near the barn, when I did one last visual sweep toward the top of the property. You can barely see them in this picture, but the white spot just above the center of the picture is one of them.  They weren’t exactly stuck, but they were reluctant to come down a steep slope.   I had to go up and halter the lead mare, then negotiate with her for a while before we agreed on a path toward the barn.

Keeping horses at pasture is better for them-and usually works out well for me, since they tend to make their way back toward the barn at feeding time.

Horses heading down to barn
On a good day, they come down on their own

But it doesn’t always work out.

I keep two horses in at night. One because she is ancient and frail, and if I keep her in she burns fewer calories shivering and eats 10 pounds of senior, which helps keep the weight on her. I have to shut her in or she’ll chose to go out and lie down, and she was getting very skinny. I feed her a combination of alfalfa pellets and Purina Senior, available at Waimea Feed Supply https://www.yellowpages.com/kamuela-hi/feed-store , and Nutrena Senior Safe Choice, available at Animal Health in Waimea https://www.yellowpages.com/kamuela-hi/feed-store and Alfalfa Hay and Cubes in Pauuilo https://www.manta.com/c/mmqmk71/alfalfa-hay-cubes

I combine the three feeds when all are available because there are many times when one or more are not available, and I want her to be able to transition easily to whatever I have for her.

The other I keep in because she has chronically bad feet, and the best way I’ve found of keeping her feet in decent shape is to allow them to dry out every night. Plus, the two horses keep each other company, so they don’t get upset when the rest of the herd heads back out after feeding.  If it weren’t for the needs of those two horses, I would have let them all stay out last night!

I supplement all my horses with some alfalfa, a scoop a day of Platinum Performance, plus free choice Hawaii Horse Minerals.  The latter is especially important because our grasses have a component that binds with calcium, making it unavailable for the horses to metabolize.  The Hawaii Horse Minerals boosts the amount of calcium available to horses, so that their calcium/phosphorus ratio remains healthy.  The Horse Minerals are available at Animal Health in Waimea and, I believe, Alfalfa Hay and Cubes in Pauuilo.

Where’s the best place on the Island to keep horses?  Without questions, Waikii Ranch.  The climate is about perfect-cool and dry.  They have extensive riding trails, an arena, and a polo field.  It is difficult to get through the design review process, and expensive to build, so if you can find something already built that suits you, that may be a smarter option.  Here are some current listings: https://judy.hawaii.elitepacific.com/results-gallery/?hood=3374528&sort=importdate&status=A