Category: Real Estate

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/

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.

Humpback Research in Hawaii

Posted on by JUDY HOWARD

No, this is not a humpback and has nothing to do with humpback research in Hawaii.  I was just looking for a picture to post, and remembered I took this for my daughter a few months back.  This elderly ewe was named Panda, and she lived to be about 13 because my daughter absolutely insisted that I take her to the vet when we spotted her as a newborn, wriggling on the grass in the pasture, abandoned by her mother.  She was one of a pair, and definitely got the short end of the stick.  She was less than half her brother’s size, and hideously misshapen because he had taken so much room in the womb!  The vet didn’t think much of her chances, but we brought her in and my daughter bottle fed her, and she lived to a ripe old age!  I love bottle fed lambs, and the sheep they become, because they are as friendly as dogs.  As with all sheep that I’ve ever been around, they have a very calming influence on me.  For that reason alone, they are worth the effort it takes to keep them healthy!


The humpbacks have left for the 2018/2019 season.

There were far fewer of them this year, and no one yet knows why. I hope that the humpback research in Hawaii will help to solve this mystery. I did not get a chance to get out on the water to listen to their songs, but I’ve done so in the past and know that it is a peak experience. For whatever reason, listening to recordings does not compare. Perhaps it is the fact that I’m not sitting quietly in a canoe of kindred souls, in what has to be one of the most beautiful places on earth, but I think it is more than that. I don’t think the recordings capture the sound as faithfully as I would like. Here’s a link to the Jupiter Research Foundation archive of humpback songs recorded off of Pauko: http://jupiterfoundation.org/whale-song-archive-hawaii

The Jupiter Research Foundation is a non-profit organization that is devoted to helping the humpbacks, and is seeking to build a center in Kawaihae harbor.

The organization has been in existence for quite a while, and actually live-streams whale songs from the Pauko Bay Area from mid-January till mid-March. They also have a webcam that provides views of the waters of Pauko Bay and parts of the Alenuihaha Channel. It is only operational during whale season, but it’s a great resource during that time period: http://jupiterfoundation.org/webcam. They have looked at many alternatives to increase their research facilities, and have identified Kawaihae Harbor as the most promising. Here’s a newspaper article about them: https://www.westhawaiitoday.com/2019/03/26/hawaii-news/marine-research-center-proposed-for-kawaihae-harbor/

The article does not say whether the proposed center will be open to the public, but the environmental assessment does. There will be no visitors’ center, but escorted school field trips may be permitted.

If you are really interested, the Environment Assessment produced as part of their attempt to build a facility at Kawaihae is an excellent read!

It is really well-written, gives an excellent overview of the history of the area and another marine research facility that will some day be built in Pauko, and describes some of the truly amazing inventions The Jupiter Foundation has already designed and implemented that have helped in the study of Humpbacks. Here’s a link: http://oeqc2.doh.hawaii.gov/EA_EIS_Library/2019-03-23-HA-DEA-Marine-Science-Center-at-Kawaihae-Harbor.pdf