2010 Annual Report Real Estate Commission

Real Estate Branch Professional and Vocational Licensing Division

Department of Commerce and Consumer Affairs State of Hawaii

The 2010 Hawaii Real Estate Commission

Trudy I. Nishihara Chair

Oahu, Real Estate Broker

Stanley M. Kuriyama

Vice Chair Oahu, Real Estate Broker

Louis E. Abrams

Chair, Laws and Rules Review Committee Kauai, Real Estate Broker

Frances Allison Torre Gendrano Vice Chair, Laws and Rules Review Committee

Oahu, Real Estate Broker

Carol Mae A. Ball Chair, Education Review Committee

Maui, Real Estate Broker

Annette Aiona

Vice Chair, Education Review Committee Hawaii, Real Estate Broker

Michele Sunahara Loudermilk

Chair, Condominium Review Committee Oahu, Public Member

Mark Suiso

Vice Chair, Condominium Review Committee Oahu, Public Member

Walter Harvey Oahu, Real Estate Broker

The Purpose of the Commission:In summary, the purpose of the Commission: “...the protection of the general public in its real estate transactions.” “...promote the advancement of education and research in the field of real estate for the benefit of the public and those licensed under the provision of this chapter (467, HRS) and the improvement and more efficient administration of the real estate industry.” “...promoting education and research in the field of condominium management, condominium registra-tion, and real estate for the benefit of the public and those required to be registered under this chapter (514A and 514B, HRS).”

The Honorable Neil Abercrombie, Governor, State of Hawaii, Members of the Twenty-Sixth State Legislature and Keali`i S. Lopez, Interim Director, Department of Commerce and Consumer Affairs:

I respectfully present to you the annual report on the status of the Real Estate Commission (“Commission”) for fiscal year (“FY”) 2010. The Commission currently oversees approximately 19,895 licensees statewide, of which, 13,255 hold active licenses. This is a 6.4% increase from a year ago. We also oversee approximately 1,600 condominium associations and

26 condominium hotel operators. The number of condominium units being offered for sale in condominium projects continued to increase in FY10. There were 272 new and conversion project filings as compared to 347 filings in FY09, representing an increase of 7,210 units in new and conversion condominium projects during the fiscal year. The Commission provides information, advice, and education and further acts as a resource for these unit owners throughout the year, on all islands, by way of the Commission’s Outreach Program.

The Commission is a nine-member Governor-appointed body who serve four-year terms comprising of seven industry members, and two public members. The Commission oversees the licensing of real estate salespersons and brokers, including brokerages, and the maintenance and renewal of these licenses every two years. The Commission certifies prelicense education schools and instructors, and is responsible for the development of the prelicensing curriculum for salespersons and brokers. The Commission also registers continuing education providers and certifies continuing education courses, and in the condominium area, registers condominium projects and condominium owner associations. Condominium managing agents are also monitored for compliance with the appropriate laws. The Commission publishes and disseminates reports and participates in court cases involving the real estate recovery fund. There were three cases filed for payment from the fund during FY10. The Commission reviews and approves settlement agreements and disciplinary action cases against licensees who are investigated by the Regulated Industries Complaints Office (“RICO”).

The Commission has three standing committees: the Laws and Rules Review Committee, the Education Review Committee, and the Condominium Review Committee. All are working committees where Commissioners take on leadership roles to work towards accomplishing the Program of Work as described for the fiscal year. Funding for these programs is critical to the Commission in order to achieve the objectives and goals and to maintain the direction of the Commission as set forth by law.

Louis Abrams, Kauai Commissioner and Chair of the Laws and Rules Review Committee, and Vice Chair Frances Gendrano, Oahu Commissioner, have diligently worked to address national and state issues that may impact Hawaii. Act 9 SB 2602 HD1 increased the continuing education requirement for real estate licensees from 10 hours to at least 20 hours per biennium effective January 1, 2011. Act 11 SB 2699 SD1 established a five-year time limit from the date of forfeiture, for individual real estate brokers and salespersons to apply for restoration of their licenses. Previously, there was no time limit for restoration of these licenses.

The Education Review Committee under the leadership of Carol Ball, Maui Commissioner, and Vice Chair Annette Aiona, Big Island Commissioner, worked with the Education Evaluation Task Force, made up of industry volunteers, to produce the Commission’s 2009-2010 mandatory core course, Part B. The mandatory 4-hour core course is now offered over the course of two years, 2-hours each year. This division of the core course was in response to the industry’s request that the course be split to bring licensees current with laws that passed during that year. In addition to the review of relevant legislation passed that directly impacts the real estate licensees, Part A focused on “Personal Transactions” of the real estate licensee, and Part B, offered in June 2010, focused on fair housing with the module, “Don’t Discriminate: Fair Housing in Diverse Communities.”

The Commission’s Online Real Estate Continuing Education System (“Online CE System”), implemented in August 2008, continues to improve the ease and convenience of offering, registering, and reporting of continuing education-related requirements for both the licensee and the continuing education provider. In its second successful year, real estate licensees are more familiar with the Online CE System and are able to easily track their own CE history.

Condominium Review Committee Chair, Michele Loudermilk, Oahu Commissioner and Public Member, and Vice Chair Mark Suiso, Oahu Commissioner and Public Member initiated the task of rule-making for Hawaii Revised Statutes, Chapter 514B, the recodified law for condominiums. This process is still on-going. The committee continues to review the feasibility of providing online condominium registration. The Hawaii Condominium Bulletin, a quarterly publication of the Commission, went “green” resulting in a savings in hard-copy printing and distribution costs. All bulletins are available on the Commission’s website.

Along with Commissioners Walter Harvey, Oahu broker, and Vice Chair of the Commission, Stanley Kuriyama, Oahu broker, the Commission is a hardworking and committed group, seeking to meet the challenges of tough economic times and a constantly evolving real estate industry, as well as embracing current changes that impact today’s real estate licensee and consumer. The Commission is grateful to the members of the Education Evaluation Task Force, the Ad Hoc Committee on Consumer-Broker Relationships, and the Ad Hoc Committee on Condominium Education and Research, who unselfishly contribute their time and effort, and are committed to maintaining, as well as improving, the professional standards of the real estate industry and condominium communities.

With the help and support of the Director of the Department of Commerce and Consumer Affairs (“DCCA”), Lawrence Reifurth, and interim Director, Ronald Boyer, Licensing Administrator Noe Noe Tom, Acting Licensing Administrator Celia Suzuki, the Regulated Industries Complaints Office, the Department of the Attorney General, and Supervising Executive Officer, Neil Fujitani, and the Real Estate Branch staff, the Commission will continue to take strides forward to improve the quality of its real estate licensees, and their ability to serve consumers.

Respectfully submitted,

Trudy I. Nishihara ® Chair

Real Estate Commission Real Estate Branch

Professional and Vocational Licensing Division Department of Commerce and Consumer Affairs

State of Hawaii

Ronald Boyer, Director Rodney A. Maile, Deputy Director

Celia C. Suzuki, Acting Licensing Administrator

Real Estate Branch:

Neil K. Fujitani, Supervising Executive Officer Jon Ellis Pangilinan, Executive Officer

Karyn Takahashi, Secretary Imelda Roberson, Office Assistant

Diane Choy Fujimura, Senior Real Estate Specialist Amy Endo, Real Estate Specialist

David Grupen, Real Estate Specialist Vacant, Office Assistant Vacant, Office Assistant

Cynthia Yee, Senior Condominium Specialist Cheryl Leong, Condominium Specialist

Benedyne Stone, Condominium Specialist Tammy Norton, Secretary

Jon Gasper, Office Assistant Louise Tadaki, Office Assistant

Glecy Seminuk, Office Assistant

335 Merchant Street, Room 333 Honolulu, Hawaii 96813

Telephone: (808) 586-2643 Web: http://www.hawaii.gov/hirec

Email: hirec@dcca.hawaii.gov

Copyright: Hawaii Real Estate Commission 2010. All rights reserved. Funded by the Real Estate Education Fund and the Condominium Education Trust Fund and provided as an educational service to real estate licensees and the condominium community. This publication is designed to provide general information on the subject matters covered and is not a substi-tute for professional services to address specific situations. If legal advice or other expert assistance is required, please seek the services of a competent professional. This material can be made available for individuals with special needs. Please call the Senior Real Estate Specialist at (808) 586-2643 to submit your request.

1 LawsandRulesReviewCommitteeReport 7-11 FY 2010 Program of Work 8 Chart 1 Recovery Fund - Notices 9

Chart 2 Recovery Fund - Claims Paid 9 FY 2011 Program of Work 11

2 AdministrativeActions 12-13 Table 1 Administrative Actions 12

Chart 3 Disciplinary Actions 12 Chart 4 Administrative Actions - Sanctions 13

Chart 5 Disciplinary Actions By Activity 13

3 RegulatedIndustriesComplaintsOffice(RICO) 14-17 Chart 6 RICO Complaints 14 Chart 7 Statutory Violations 15 Chart 8 Rules Violations 15

4 EducationReviewCommitteeReport 18-26 FY 2010 Program of Work 18 Table 2 Real Estate Licensing Examination 18 Chart 9 Licensing Examination Candidates 19 Chart 10 Inquiries and Applications 20 Chart 11 Website Hits 20 Chart 12 New Real Estate Licenses Issued 24 Table 3 Current Real Estate Licensees 25 Chart 13 Real Estate Licensees - By Island 25 Chart 14 Total Real Estate Licensees 26 FY 2011 Program of Work 26

5 CondominiumReviewCommitteeReport 27-43 FY 2010 Program of Work 28 Chart 15 Condominium Advice, Education, and Referral 28 Chart 16 Condominium Governance Mediations 30 Chart 17 Condominium Association Registration 31 Chart 18 CMA and CHO Registration 32 Chart 19 Developer’s Public Reports Effective Dates Issued 35 Chart 20 Number of Condominium Apartments 35 Chart 21 New Residential Projects - By Size 36 Table 4 Condominium Project Filings 36 FY 2011 Program of Work 38

6 FundInformation 43-45 Real Estate Education Fund 43 Real Estate Recovery Fund 44 Condominium Education Trust Fund 45

TableofContents

LAWSANDRULESREVIEWCOMMITTEE(LRRC)REPORT TheLRRC,forfiscalyear2010,ledbyChairLouisAbramsandViceChairFrancesGendrano,hadanactiveyearwithlegislation,reactiveissues,licensingprograms,andrecoveryfundadministration.

Act 9 (SLH 2010) SB No. 2602 HD1–Increasesthecontinuingeducationrequirementforrealestatelicenseesfromtentoatleasttwentyhoursinatwo-yearperiod.

Act 11 (SLH 2010) SB No. 2699 SD1–Establishestimeslimitstorestoreforfeitedindividualrealestatebrokerandsalespersonlicenses.

Act 36 (SLH 2010) SB No. 2910 HD1–Prohibitsaforeclosingmortgageeormortgageewhoacquiresapropertyfromrequiringthatabuyerpurchasetitleinsuranceorescrowservicesfromanyparticularvendorasaconditionofsale.

Act 44 (SLH 2010) HB No. 1927 HD2 SD1–Amendstheowner-builderlawby:(1)Allowinganexemptionforthesaleorleaseofapropertybyanownerbuilderpriortotheexpirationoftheone-yearprohibitionperiodintheeventofhardship;(2)Definingwhenaconstructionorimprovementiscompleted;(3)Exemptingimprovementspursuanttoanapprovedbuildingpermitwheretheestimatedvaluationasreflectedinthebuildingpermitislessthan$10,000;(4)Establishingfinesforthefailureofanowner-buildertocomplywiththerequirementssetforthinthedisclosurestatementprovidedtotheowner-builderbythecounty.

Act 49 (SLH 2010) SB No. 2921 SD1 HD1–Requiresanypersonoperatingasanescrowdepositoryastopropertylocatedwithinthisstatetobeacorporationlicensedbythecommissioneroffinancialinstitutionstodoso.

Act 53 (SLH 2010) HB No. 2197 HD1 SD1–Givesboardsofdirectorsauthoritytoinstallorallowtheinstallationofsolarenergyorwindenergydevicesonthecommonelementsofcondominiums.

Act 91 (SLH 2010) SB No. 2643 SD1 HD1 CD1–Extendsthegeneralexcisetaxexemptionsforcondominiumcommonexpensespaidbymanagers,submanagers,andsuboperators,andforhotelemployeeexpensespaidbyhoteloperatorsandtimeshareprojectsthroughDecember31,2013andfurtherclarifiesthatthemaximumallowabletaxexemptionpercalendaryearis$400,000.

Act 100 (SLH 2010) SB No. 2937 SD1 HD1 CD1–Exemptsdisclosureofgovernmentrecordsinresponsetoduplicaterequestsfromasinglerequestor,providedthattheagencytowhichtherequestwasmadesatisfiesspecifiedrequirements.

Act 169 (SLH 2010) HB No. 2288 HD1 SD2 CD1–Prohibitstheimpositionoffeesforafuturetransferofrealpropertywithexceptions.

Act 201 (SLH 2010) SB No. 2817 SD1 HD1 CD1–RequireseveryprivatehomeownersassociationorentitytoreviserulesbyJuly1,2011,thatshallnotimposeconditionsorrestrictionsthatrenderasolarenergydevicemorethan25percentlesseffective;increasethecostofinstallation,maintenance,andremovalofasolarenergydevicebymorethan15percent;oruntilJune20,2015,requireanencumbranceontitlebecauseoftheplacementofthesolarenergydevice.

Act 207 (SLH 2010) HB No. 2283 HD2 SD1 CD1–Requiresgovernmentpurchaserstofollowethicalprinciplesinmattersrelatingtoprocurement.

LawsandRulesReviewCommitteeReport�LawsandRulesReviewCommitteeReport�

� LawsandRulesReviewCommitteeReport

Special Subcommittees

ForFY2010,thetwosubcommitteesandadhoccommitteeswereasfollows:

SubcommitteeonApplicantswithCriminalandOtherLegalBackgroundIssues-TheCommission’ssubcommitteeresearchedanddiscussedinformationreceivedfromotherStatesthathaveimplementedacriminalbackgroundreviewprogramofallrealestatelicensingapplicants.Thesubcommitteedesirestofurtherdiscussandworkwiththeumbrellaorganizationonthisissue.

AdHocCommitteeonConsumer-BrokerRelationships–TheAdHocCommitteedecided,afterreviewingallmaterialsandalengthydeliberation,thattheCommissionshouldrefrainfrommakinganyrulechanges.

Licensing

ForFY2010,thetotalnumberoflicenseesincreasedto19,�95ascomparedto1�,�0�inFY2009.The1,1��increaseinlicenseesrepresentsanapproximately6%increaseoverthepreviousfiscalyear.Thenumberofrealestatelicenseeshasalwaysbeencyclical,withtheall-timehighof26,090licenseesin1990andthelowestcountinthepast20yearsof13,033licenseesin1999.

Real Estate Recovery Fund

TheCommissionisthetrusteeoftheRealEstateRecoveryFund,whichisintendedtoprovideameasureofcompensationtoconsumersinjuredbythefraud,misrepresentation,ordeceitofrealestatelicensees.OneoftheprimarystatutoryrequirementsforobtainingpaymentfromthefundisnotifyingtheCommissionofthefilingofacourtactionthatmayresultinpaymentfromthefund.

DuringFY2010,theCommission

receivednotificationforaclaimonthefundinthreecases.Thiswasa�2.3%decreasefromtheFY2009noticesreceived(SeeChart1).AlsoinFY2010,therewasonepaymentoutoftherecoveryfund.Sinceitsinceptionin196�,therecoveryfundhaspaidoutovertwomilliondollars(SeeChart2).

FY 2010 PROGRAM OF WORKLaws and Rules Review Committee

Real Estate Recovery Fund–TheCommissionadministeredthestatutoryrequirements,contractswithconsultantattorneys,noticeofclaims,courtordersforpayouts,disseminationofinformation,financialresponsibilitiesofthefund,recordsmanagement,andthedevelopmentofreports.

Real Estate Licensing, Registration & Certification Administration – The Commissionadministeredthelicensing,registration,andcertificationrequirements,includingapplicationsreviewandupdates,policies,procedures,appeals,subpoenas,andrequestsforrecordsundertheOfficeofInformationPractices,laws,rules,andprocedures.

Advice, Education, and Referral–Staffrespondedandprovidedinformationtoinquiriesreceivedviatelephone,walk-ins,faxes,written,emails,andthroughtheCommission’swebsite;printedanddistributedCommission-developedinformation;andrespondedtoinquiriesfromgovernmentofficialsandmedia.

Rule Making, Chapter 99–TheCommissionstudied,evaluated,researched,anddevelopedruleamendmentsforsubmissiontotheformalrulemakingprocess.

Meetings–TheCommission,withsupportfromstaff,administeredthemonthlycommitteemeetings,aswellassubcommitteeandadhoccommitteemeetings.Licensing Renewals–Staffcontinued

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Fiscal YearClaims Paid ($) 25,000 25,000 0 105,411 0 0 0 0 11,065 31,555 10,402

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LawsandRulesReviewCommitteeReport9

implementationofthepaperlessrenewalsystem.

Legislative and Government Participation–TheCommissionparticipatedinthelegislativesessions;providedbriefingsandactedasaresourcetoLegislators,governmentofficials,andstaff;researchedandsubmittedtestimonyonbillsandresolutions,includingoraltestimony;andassistedLegislatorsandgovernmentofficialsinrespondingtothecommunity.

Interactive Participation with Organizations–TheCommission,aswellasstaff,continuedactiveparticipationwiththeARELLO(AssociationofRealEstateLicenseLawOfficials),local,PacificRim,national,andinternationalorganizationsandgovernment

agenciesfortheexchangeofinformationandconcerns,sharingofeducationalandresearchefforts,jointprojectsofmutualconcern,training,etc.

Legislative Acts and Resolutions – The Commissionreviewed,reported,anddevelopedsummariesonallrelatedActsandresolutions;implementedrequirementsofdirectly-relatedActsandresolutions.

Neighbor Island Outreach –TheCommissionheldoneCommitteemeetingonKauaibutwasfurtherprohibitedfromtravelingtoneighborislandsitesduetobudgetaryconstraints.

Review of Services and

CHART1.RecoveryFund-Notices

CHART2.RecoveryFund-ClaimsPaid

10 LawsandRulesReviewCommitteeReport

Organization–Staffanalyzedandinitiatedstepstoimprovetheservicesprovided;tostreamlineforeffectivenessandefficiency;andamendmentstolaws,rules,forms,system,staffing,equipment,reorganization,etc.ItconductedmeetingsandexchangeswithLicensingBranchpersonnel.

Application Processing and Forms–Staffstudiedandevaluatedtheprocessingofapplications,evaluatedandamendedformsandinstructions,andassistedinmainframecomputerprogrammingissues.Staffalsostudied,reportedon,andcontinuedresearchingotherelectronic/computerizedmethodstoimproveapplicationprocessing.

ARELLO National Disciplinary Action Data Bank–StaffcontinuedparticipationintheARELLONationalDisciplinaryActionDataBanktoassistinthebackgroundreviewofapplicantsandconsumerprotectioneffortsinotherjurisdictions.

Case Law Review Program–TheCommissionmonitored,collected,andreportedoncaselaw,disciplinaryactions,judgmentsanddecisionsonHawaiicourtcases,federalcourtcases,andotherStates’courtcases.TheCommissionfurtherstudiedmaterialcasestobeconsideredfortheRealEstateBulletinandthewebsite.

Rule Making, Chapter 53, Fees – The Commissionmonitored,reviewed,researched,andmaderecommendationsonruleamendmentsforfeesthroughcoordinationwiththeLicensingAdministrator.

Commissioners Education Program–StaffresearchedandprovidedreferencematerialstoCommissionersandconductedperiodicworkshopsforallCommissioners.

Division and Department Programs – The CommissioncoordinatedandworkedwithPVLD,DCCA,andothersonprogramsofmutualconcern,throughajointprogramwith

ERCandCRC.

HUD/ARELLO Fair Housing Agreement – TheCommissionadministeredthetermsoftheagreementandcoordinatedanyreviewbyHUDofficials,participatedwithARELLO’sFairHousingCommittee,andworkedwithARELLOonthetermsoftheagreement.

Condominium Hotel Operator Registration–Staffadministeredthelicensing,registration,andcertificationrequirements,includingapplicationsreview,policies,procedures,appeals,subpoenas,andrequestsforrecordsunderOIP.StaffcontinuedtheadministrationoftheregistrationprogramandwiththeLicensingBranchsinceactiverealestatebrokersareexemptfromtheregistrationandfidelitybondrequirements.ThisfiscalyeartheCommitteeregistered26CHOs.

RICOreceives,investigatesand

LawsandRulesReviewCommitteeReport11

FY2011PROGRAMOFWORKLaws and Rules Review Committee

RealEstateRecoveryFundRealEstateLicensing,Registration,& CertificationAdministrationCondominiumHotelOperatorRegistrationAdvice,Education,andReferralRuleMaking,Chapter99SubcommitteesMeetingsLicensingRenewalLegislativeandGovernmentParticipationInteractiveParticipationwithOrganizationsLegislativeActsandResolutionsNeighborIslandOutreachReviewofServicesandOrganizationApplicationProcessingandFormsARELLONationalDisciplinaryActionDataBankCaseLawReviewProgramRuleMaking,Chapter53,FeesCommissionersEducationProgramDivisionandDepartmentProgramsHUD/ARELLOFairHousingAgreement

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No. of Licensees 38 27 38 23 12 25 35 36 37 22 42

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No. of Licensees Disciplined - By CategoryGeneral Brokerage 17Property Management 1DUI Conviction 1Other 22Taxes 1

Total 42

Licenses Revoked 10Licenses Suspended 2Licenses Fined 37

Total fines $49,500Licenses Subject to Other Sanctions 0

FY 2010 Administrative Actions

12 AdministrativeActions

ADMINISTRATIVEACTIONSTable1.AdministrativeActions Disciplinary Actions

TheCommissiontookdisciplinaryactionagainst42licenseesinFY2010.Thiswasa91%increaseoverthe22licenseesdisciplinedinFY2009.Chart3provideshistoricalinformationonthenumberoflicenseesdisciplined.

Finestotaling$49,500wereassessedagainst3�ofthelicensees.Ninelicenseeshadtheirlicensesrevoked.Table1andChart4providedetailsondisciplinaryactionsandChart5showsthedistributionbythetypeofrealestateactivityinvolvedinthecase.Ofnote,thenumberoflicenseesfinedin2010,totalling3�,increased106%comparedtolastyear’stotalof1�.

CHART3.DisciplinaryActions(FY2000-2010)

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Licenses Revoked 8 4 7 6 4 6 4 7 7 9 10

Licenses Suspended 0 1 3 0 1 0 1 2 0 6 2

Licenses Fined 29 26 23 20 6 21 33 42 34 18 37

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Other53%

DUI Conviction2%

Property Management2%

General Brokerage41%

Taxes2%

AdministrativeActions13

CHART4.AdministrativeActions-Sanctions(FY2000-2010)

CHART5.DisciplinaryActionsByActivity(FY2010)

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14 RegulatedIndustriesComplaintsOffice(RICO)

REGULATEDINDUSTRIESCOMPLAINTSOFFICE(RICO)

CHART6.RICOComplaints(RealEstateFY1999-2009)

prosecutescomplaintsagainstrealestatelicenseesforviolationsoflawsandrules.Complaintshavefluctuatedoverthepasttenyearswitha5.4%decreasein2010.RICOreceived159realestatecomplaintsinFY2010,comparedto16�inFY2009.RefertoChart6.

Onehundredandfortyfourofthecomplaintsarepending,while15havebeenclosed.Oftheclosedcomplaints,therewasinsufficientevidenceinonecase,warningletterswereissuedinninecases,prioractiontakenintwocases,andtwocaseswereclosedforrecordpurposesonlyasRICOwasunabletoproceed. Charts�and�showthenumberofcasesinwhichspecificprovisionofthelaworrule

wereviolatedorallegedtobeviolated.TheallegationsarebasedonRICOcomplaints.Theviolationsfoundoradmittedshowthenumberofdisciplinaryactioncasesinwhichthelicensee(s)admittedorthehearingsofficerfoundaviolationofaspecificruleorlaw.Indisciplinaryactionsthatareconcludedbysettlementagreement,thereoftenisnoadmissionofviolations.

RegulatedIndustriesComplaintsOffice(RICO)15

Chart7.StatutoryViolations(HRSCh.467and436B)

Chart8.RulesViolations(Chapter99,HAR)

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16 RegulatedIndustriesComplaintsOffice(RICO)

StatutoryViolations(HRSCh.467and436B)§46�-1.6Principalbrokershallhavedirectmanagement

andsupervisionofthefirmanditslicensees.§46�-� Licensesrequiredtoactasarealestatebrokeror

salesperson.§46�-�(a)(�) Nolicense,registration,orcertificateunderthis

chaptershallbeissuedtoanypersonwithatradename,partnership,limitedliabilitycompany,orcorporationthatisnotcurrentlyregisteredwiththebusinessregistrationdivisionofthedepartmentofcommerceandconsumeraffairs;providedthatnorealestatesalesperson’slicenseshallbeapprovedorissuedwithatradename.

§46�-9(a) Everyapplicantforissuanceofarealestatelicense,registration,orcertificateunderthischaptershallfileanapplicationwiththecommis-sioninaformandsettingforththeinformationasmaybeprescribedorrequiredbythecommis-sion,andshallfurnishanyadditionalinformationbearingupontheissuanceofthelicense,registra-tion,andcertificateasitrequires.Inthecaseofapartnershiporcorporation,anygeneralpartnerorofficerthereofmaysigntheapplicationonbehalfoftheapplicant.Thecommissionmayprescribedeadlinesforthesubmissionofapplications.

§46�-13 Licenseeshalldeliveracopyoftheagreementorcontracttothepartiessigningitatthetimethesignatureisobtained.

§46�-14(1) Makinganymisrepresentationconcerninganyrealestatetransaction.

§46�-14(2) Makinganyfalsepromisesconcerninganyrealestatetransactionofacharacterlikelytomisleadanother.

§46�-14(3) Pursuingacontinuedandflagrantcourseofmis-representation.

§46�-14(5) Acceptanceofanycommissionorothercom-pensationfortheperformanceofanyoftheactsenumeratedinthedefinitionsetforthinsection46�-1ofrealestatesalespersonfromanypersonotherthantherealestatesalesperson’semployerortherealestatebrokerwithwhomtherealestatesalespersonassociatesor,beingarealestatebro-kerorsalesperson,compensatesonenotlicensedunderChapter46�toperformanysuchact.

§46�-14(6) Salespersonactingorattemptstoactasarealestatebrokerorrepresentsorattemptstorep-resentanyrealestatebrokerotherthantheoneemployedorassociatedwith.

§46�-14(�) Failingtoaccountformoneysbelongingtooth-ers.

§46�-14(�) Conductconstitutingfraudulentordishonestdealings.

§46�-14(10) Permittingacorporateofficeroremployeewhodoesnotholdarealestatebroker’slicensetohavedirectmanagementofthebrokeragebusi-ness.

§46�-14(13) Violatingthischapter,chapters4�4,514A,514B,514E,or515,orsection516-�1,ortherulesadoptedpursuantthereto.

§46�-14(15) Comminglingthemoneyorotherpropertyofthelicensee’sprincipalwiththelicensee’sown.

§46�-14(16) Convertingotherpeople’smoneystothelicens-ee’sownuse.

§46�-14(1�) Thelicenseeisadjudicatedinsaneorincompe-

tent.§46�-14(1�) Failingtoascertainanddiscloseallmaterialfacts

concerningeverypropertyforwhichthelicenseeacceptstheagency,sothatthelicenseemayfulfillthelicensee’sobligationtoavoiderror,misrep-resentation,orconcealmentofmaterialfacts;providedthatforthepurposesofthisparagraph,thefactthatanoccupanthasAIDSorAIDSRe-latedComplex(ARC)orhasbeentestedforHIV(humanimmunodeficiencyvirus)infectionshallnotbeconsideredamaterialfact.

§46�-14(20) Failuretomaintainareputationfororrecordofcompetency,honesty,truthfulness,financialintegrity,andfairdealing.

§46�-20 Falsestatement.§46�-30(b) Allcondominiumhoteloperatorsshallregister

withthecommissionasasoleproprietor,partner-ship,limitedliabilitycompany,orcorporationandshall...

§436B-16(a) Eachlicenseeshallprovidewrittennoticewithinthirtydaystothelicensingauthorityofanyjudg-ment,award,disciplinarysanction,order,orotherdetermination,whichadjudgesorfindsthatthelicenseeiscivilly,criminally,orotherwiseliableforanypersonalinjury,propertydamage,orlosscausedbythelicensee’sconductinthepracticeofthelicensee’sprofessionorvocation.Alicenseeshallalsogivenoticeofsuchdeterminationsmadeinotherjurisdictions.

§436B-19(1) Failuretomeetormaintaintheconditionsandrequirementsnecessarytoqualifyforthegrantingofalicense.

§436B-19(2) Engaginginfalse,fraudulent,ordeceptiveadvertising,ormakinguntruthfulorimprobablestatements.

§436B-19(5) Procuringalicensethroughfraud,misrepresenta-tion,ordeceit.

§436B-19(6) Aidingandabettinganunlicensedpersontodirectlyorindirectlyperformactivitiesrequiringalicense.

§436B-19(�) Professionalmisconduct,incompetence,grossnegligence,ormanifestincapacityinthepracticeofthelicensedprofessionorvocation.

§436B-19(�) Failuretomaintainarecordorhistoryofcompe-tency,trustworthiness,fairdealing,andfinancialintegrity.

§436B-19(9) Conductorpracticecontrarytorecognizedstandardsofethicsforthelicensedprofessionorvocation.

§436B-19(12)Failuretocomply,observe,oradheretoanylawinamannersuchthatthelicensingauthoritydeemstheapplicantorholdertobeanunfitorimproperpersontoholdalicense.

§436B-19(13)Revocation,suspension,orotherdisciplinaryactionbyanotherstateorfederalagencyagainstalicenseeorapplicantforanyreasonprovidedbythelicensinglawsorthissection.

§436B-19(14)Criminalconviction.§436B-19(15)Failuretoreportdisciplinaryactionwithinthirty

daysofthedisciplinarydecision.§436B-19(1�)ViolationsofChapter46�,HRS,oranyotherrule

ororderofthelicensingauthority.§436B-2�(b) Anyperson,whoengagesinanactivityrequiring

RegulatedIndustriesComplaintsOffice(RICO)1�

RulesViolations(Chapter99,HAR)

alicenseissuedbythelicensingauthorityandwhofailstoobtaintherequiredlicense,orwhousesanyword,title,orrepresentationtoinducethefalsebeliefthatthepersonislicensedtoengageintheactivity,otherthanacircumstanceoffirstinstanceinvolvingtheinadvertentfailuretorenewapreviouslyexistinglicense,shallbeguiltyofamisdemeanorandbesubjecttoafineofnotmorethan$1,000orimprisonednotmorethanoneyear,orboth,andeachday’sviolationshallbedeemedaseparateoffense.

§16-99-2 Definitions.§16-99-3 Conduct.§16-99-3(a) Licenseeshallfullyprotectthegeneralpublicin

itsrealestatetransactions.§16-99-3(b) Licenseeshallprotectthepublicagainstfraud,

misrepresentation,orunethicalpracticesintherealestatefield.

§16-99-3(d) Thelicenseeshallrecommendthattitlebeexam-ined,surveybeconducted,orlegalcounselbeobtainedwhentheinterestofeitherpartyrequiresit.

§16-99-3(e) Thebrokershallkeepinspecialbankaccounts,separatedfromthebroker’sownfunds,moneyscomingintothebroker’spossessionintrustforotherpersons,suchasescrowfunds,trustfunds,clients’moneys,rentaldeposits,rentalreceipts,andotherlikeitems.

§16-99-3(f) Licenseeshallseethatfinancialobligationsand commitmentsareinwriting.

§16-99-3(g) Licenseeshallnotacquirepropertywithoutmakingthetruepositionknowninwritingtotheowner.

§16-99-3(i) Thebrokeragefirmshallnotsubmitoradvertisepropertywithoutwrittenauthorization,andinanyofferingthepricequotedshallnotbeotherthanthatagreeduponwiththeownerastheofferingprice.

§16-99-3(l) Alicenseeshallnotplaceanysignoradvertise-mentindicatingapropertyisforsale,rent,lease,orexchangewithoutthewrittenauthorizationoftheownerorsellerandapprovaloftheprincipalbrokerorbrokerincharge.

§16-99-3(p) Licenseeshallnotactasabroker,broker-sales-person,orsalespersonformorethanonebroker-agefirmexceptthatthissubsectionshallnotapplytothosesituationsasdescribedinsubsec-tion(o).

§16-99-3(u) Thelicenseeshallnotaddormodifythetermsofapartytoatransactionwithoutwrittenconsentof

alltheparties.§16-99-3(v) Thelicenseeshallnotconvertotherpeople’s

moneytothelicensee’sownuse.§16-99-3(w) Violationofanypartofthischaptermaybecause

forrevocationorsuspensionoflicense.§16-99-4(a) Everybrokeragefirmthatdoesnotimmediately

placeallfundsentrustedtothebrokeragefirminaneutralescrowdepository,shallmaintainatrustfundaccountinthisStatewithsomebankorrecognizeddepository,whichisfederallyinsured,

andplaceallentrustedfundstherein.Thetrustfundaccountshalldesignatetheprincipalbrokerastrusteeandalltrustfundaccounts,includinginterestbearingaccounts,shallprovideforpay-mentofthefundsupondemand.

§16-99-4(b) Everybrokeragefirmshallretainforatleastthreeyearsrecordsofalltrustfundswhichthebroker-agefirmhasreceived.Allrecordsandfundsshallbesubjecttoinspectionbythecommissionoritsrepresentative.Thethree-yearrequirementshallbeforrealestatelicenselawpurposesonly.Thebrokeragefirmmayberequiredtokeeprecordsforalongerperiodoftimeforotherpurposes.

§16-99-4(g) Receivedpropertytobeheldintrustforthebenefitofthedepositor,andorforthebenefitofthirdpersons,shallbereceivedonbehalfofthesalesperson’sorbroker-salesperson’sprincipalbrokerorbrokerincharge,andshallbedeliveredimmediatelybythenextbusinessdayafterre-ceipttothesalesperson’sorbroker-salesperson’s

§16-99-4(h) Theprincipalbrokerorbrokerinchargeshallnotcommingleclient’sfundswithothermoneys.

§16-99-4(i) Asalesperson,broker-salesperson,oremployeeshallnothandletrustpropertiesinanywaywithouttheexpresswrittenauthorizationoftheperson’sprincipalbrokerorbrokerincharge.

§16-99-5(a)(1)Reportingchangewithintendaysofchangeinthelicensee’slegalname,residenceaddress,andmailingaddress.

§16-99-� Thebiennialrenewalfeeandcompletedrenewalapplicationshallbesubmittedonorbeforethecommissionprescribeddeadline.Unlessrenewed,allrealestatelicensesexpireattheendofeveryevennumberedyear.Whentherenewaldeadlinefallsonanon-workingday,renewalfeespaidbymailshallbeconsideredaspaidwhendueiftheenvelopebearsapostmarkofnolaterthanthefirstworkingdaythereafter.Failuretosubmitacompletedrenewalapplicationandfailuretopaytherenewalfeewhendue,orifthecheckisnothonoredbythebankforwhateverreason,shallconstituteautomaticforfeitureoflicense.Theprincipalbrokershallseetoitthatalllicenseesarecurrentlylicensedatalltimesduringemploy-mentorassociation.

§16-99-11(a) Advertisements.§16-99-11(c) Disclosureoflicensee’sstatus(active/inactive)in

alladvertisingandpromotionalmaterial.§16-99-11(e) Licensee’sname-advertisingandpromotions.§16-99-11(f) Iftheaddressofanyunregisteredplaceofbusi-

nessisincludedinadvertisingmaterials,thenthestreetaddressoftheprincipalplaceofbusinessorthebranchoffice,asthecasemaybe,shallbeincludedandrespectivelyidentifiedassuch.

1� EducationReviewCommitteeReport

EDUCATIONREVIEWCOMMITTEE(ERC)REPORT

Table2.RealEstateLicensingExamination

Specialists’ Office for the Day – The Specialists’OfficefortheDayprovidesstaffwithanopportunitytomeetinpersonwithlicensees,applicants,prospectivelicensees,andmembersofthepublic.AnadditionalbenefitwhenthesessionsareheldatthelocalBoardofREALTORS®’officesistheopportunitytoexchangeinformationwiththestaffandmembershipofthelocalBoards.Becauseofbudgetaryconstraintsinfiscalyear2010,arealestatespecialistwasallowedtotraveltoKauaiforoneneighborislandsSpecialists’OfficeoftheDay.

Neighbor Island Outreach–TheCommissionheldoneCommitteemeetingonKauaibutwasfurtherprohibitedfromtravelingtoneighborislandsitesduetobudgetaryconstraints.Themeetings,whenheld,affordneighborislandlicensees,governmentofficials,andinterestedpartiesanopportunitytoattendandparticipateinthecommitteemeetings.

Instructor’s Development Workshop – The CommissioncontractedwiththeHawaiiAssociationofREALTORS®toco-sponsoranInstructor’sDevelopmentWorkshop(IDW)duringthe2009-2010biennium.“T3–TrainingTrainerstoTrain”waspresentedonthemajorneighborislandsinFebruaryandMarch2010,andasecondroundoftheworkshopwasagainpresentedinJulyandAugust2010onOahu.

Continuing Education (CE)–Duringthefiscalyear,therewere92newlyapprovedCEcourses,adecreasefromthe193approvedCEcoursesinthepreviousfiscalyear.Twentyofthecourseswerenationalcourses.ThereweretwonewlyapprovedCEproviders.CEprovidersoffered�56classesto11,�1�participants,ascomparedtothepreviousfiscalyearof1,09�classesofferedto35,501participants.

Real Estate Licensing Examination – PSI continuedofferingtestingatleastfivedaysaweekincludingSaturdayinHonolulu,twiceamonthonMauiandtheBigIsland,andonceamonthonKauai.AsshowninTable2andChart9,thenumberofexaminationcandidatesincreased20.5%overthelastfiscalyear.StaffperiodicallymonitorstheexaminationadministrationoneachislandtoassurefacilitiesandprocedurescomplywithPSIandCommissionpolicies.

Therewere2�1applicationsapprovedforequivalencytotheuniformsectionoftheexaminationtocandidateslicensedinanotherstatewhopassedthatstate’suniformsectionoftheexamination.Thisrepresentsa0.�3%decreasefromthelastfiscalyear’stotalof2�3approvals.

Interactive Participation with Other Organizations–TheCommissioncontinueditsparticipationineventssponsoredbylocalandnationalorganizations.Duetobudgetaryconstraints,Commissionersandstaffparticipatedinalimitednumberoflocalandnationalevents.Onanationallevel,the

TheERC,forfiscalyear2010,undertheleadershipofChairCarolMaeBallandViceChairAnnetteAiona,continuedtoaddressimportantandvariededucationissues.

FY2010PROGRAMOFWORK

FY 2009 FY 2010 % ChangeBrokers Tested 583 562 -3.6%Salespersons Tested 1638 2114 29.1% Total Tested 2221 2676 20.5%

Brokers Passed 186 197 5.9%Salespersons Passed 910 728 -20.0% Total Passed 1096 925 -15.6%

% Brokers Pass 31.9% 35.1%% Salespersons Pass 55.6% 34.4%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

*

0

1,000

2,000

3,000

4,000

5,000

6,000

No

. of

Can

did

ates

Fiscal Year

Brokers Salespersons Total

Brokers 224 304 269 409 516 1,022 714 957 735 583 777

Salespersons 1,504 1,744 2,158 3,012 3,458 4,283 4,838 3,306 2,884 1,638 3285

Total 1,728 2,048 2,427 3,421 3,974 5,305 5,552 4,263 3,619 2221 4062

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

EducationReviewCommitteeReport19

CHART9.LicensingExaminationCandidates(FY2000-2010)

CommissioncontinueditsactiveparticipationwiththeAssociationofRealEstateLicenseLawOfficials(ARELLO)andtheRealEstateEducatorsAssociation(REEA).Participationinnationalorganizationsoffersanopportunitytolearnaboutthelatestissues,trends,andsolutionsintheindustry,andinotherjurisdictions.

Advice, Education, and Referral–Staffcontinuedtofieldanenormousnumberoftelephone,walk-in,writteninquiries,faxes,andemails.Forrealestate,thefiscalyearproduced12,635telephoneinquiries;�20walk-ininquiries;10,596applications,writteninquiries/requests,faxes;and11,52�emails.SeeChart10.

Website Hits–TheCommission’swebsite,www.hawaii.gov/hirec,isavailablesevendaysa

week,24hourseachdayforinformation,forms,andapplications.Thewebsitehasprovidedwellover2�0,304realestateandcondominiumrelatedhits.DuetoachangeintheprogramadoptedbytheStateInformationSystemsandCommunicationsOffice,somepreviouslycollectedwebstatsarenolongeravailable.SeeChart11.

Publications–TheCommissioncontinuedtopublishtheHawaiiRealEstateBulletininatraditionalnewsletterformatthatwasmailedtoallcurrentlicensees,legislators,governmentofficials,ARELLOjurisdictions,andotherinterestedparties.ItwasalsoavailableinelectronicformatontheCommission’swebsiteatwww.hawaii.gov/hirec. TheCommissionalsopublishedaquarterlynewsletter,SchoolFiles,exclusivelyforthe

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

No. o

f Hits

Hits 679,159 296,279 319,232 108,704 270,220 280,304

FY 05 FY 06 FY 07 FY 08* FY 09 FY 10

*WebstatsavailablefortheperiodofJanuary11throughJune30,200�only

20 EducationReviewCommitteeReport

CHART10.InquiriesandApplications(FY2002-2010)

2002 2003 2004 2005 2006 2007 2008 2009 2010

0

10,000

20,000

30,000

40,000

50,000

60,000

No.

of R

eque

sts

Fiscal Year

E-mail 1,052 3,889 4,695 7,499 8,886 13,193 12,648 14,950 11,528

Walk-ins 2,185 1,417 768 904 807 996 594 436 820

Applications / written requests 11,343 14,753 15,137 17,574 17,439 18,985 17,037 12,910 10,596

Telephone calls 20,184 18,864 15,050 19,738 16,478 20,995 14,999 14,576 12,635

Total 34,764 38,923 35,650 45,715 43,610 54,169 45,278 42,872 35,579

2002 2003 2004 2005 2006 2007 2008 2009 2010

CHART11.WebsiteHits

EducationReviewCommitteeReport21

realestateeducationcommunity.Itprovidedschools,instructors,andcontinuingeducationprovidersinformationonadministrativeprocedures,changesinlicensinglaws,andotherarticlesrelevanttothedeliveryofrealestateeducation.AswiththeBulletin,SchoolFileswaspublishedinprintandinelectronicformat.

IncontrasttotheBulletinandSchoolFiles,theCommission’sAnnualReportisprimarilyanelectronicpublication.AlimitednumberofprintedcopiesweredistributedtotheLegislatureandtotheGovernor.InterestedlicenseesandmembersofthepubliccoulddownloadandprintthereportfromtheCommission’swebsite.

Continuing Education Core Course – The Commissionresearchedanddevelopeditscorecourseonlawupdate,rulesupdate,andpersonaltransactionsandfairhousingforthelicensingbienniumandprovidedrecommendationsonthefutureofthecorecourse.

Salesperson Curriculum and Resources – The salesperson’scurriculumcontinuedtobeofferedinbothaliveclassroomandonlineformat.

Broker Curriculum and Resources – The broker’scurriculumcontinuedtobeofferedinbothaliveclassroomandonlineformat.

Advice, Education, and Referral–Staffcontinuedtoprovideadvice,education,andreferraltoapplicants,licensees,governmentofficials,consumers,public,organizations,includingtheresearch,reproductionofmaterialsandmailings.Itdevelopedadistributionsystemofeducationalandinformationalproductsforeachprincipalbrokerandbroker-in-charge.StaffalsopublishedanddistributededucationalandinformationalmaterialsandprovidededucationalmaterialthroughtheCommission’swebsite.

Administration of Prelicense EducationProgram, Schools and Instructors – The Commissionprovidedadministrativereview

andanapprovalprocessforapplications,disseminatedinformationregardingrenewalsandcertification,andprovidedappropriaterecordsmanagement.Itcoordinatedtheinstructor’sexaminationprogramwithitstestadministrator,PSI,andadministeredanevaluationsystemofschoolsandinstructors.Staffresearched,developed,printed,anddistributedthequarterlySchoolFiles,anewsletterforeducators.ThiswasajointprogramwiththeContinuingEducationProgram.

Administration of Examinations – The Commissionadministeredtherealestatelicensingexaminationprogram,includingcontractadministrationwithitstestadministrator,PSI,andprovidedinformationregardingtheexamprocess,reviewedamendmentstotestcandidatebooklets,evaluatedperiodicexaminationreportsandkeptabreastofdailyexams.TheCommission,alongwithPSI,conductedaTestDevelopmentWorkshopandanEducatorsForuminDecember2009.

Administration of Continuing Education Program, Providers, and Instructors – The Commissionadministeredthecontinuingeducationprogramincludingtheregistrationofproviders,certificationofcoursesandprovidedtimelyinformationandrecordsmanagement,asappropriate.Itresearched,developed,printed,anddistributedthequarterlySchoolFiles.StaffupdatedtheOnlineRealEstateContinuingEducationwebsiteasneeded.

Administration of Continuing Education Elective Courses–TheCommissionprovidedadministrativeinformationtoelectivecourseprovidersandlicensees,assistedprovidersinsubmissions,reviewedsubmittedapplications,reviewedsubmittedcurriculum,maderecommendations,andassistedwithrecordsmanagement.TheOnlineRealEstateContinuingEducationsystemcontinuestoproviderealestatelicenseeswiththeability

22 EducationReviewCommitteeReport

toviewthenumberofCEhoursrequiredandearnedforthecurrentlicensingperiod,theirCEhistory,andtheabilitytosearchforfutureCEcoursesbeingofferedbyapprovedCEproviders.Realestatelicenseesarealsoabletoaccessandreprinttheirowncoursecompletioncertificatesforthecurrentandpreviousbienniums,whereas,formerlythiswasdonebytheCEproviders.Additionally,realestateprincipalbrokersandbrokers-in-chargewereabletomonitorandviewthecurrentCEhours,CEhistory,andlicensestatusofalllicenseesassociatedwiththebrokerage.Thesystemwasupdateddaily.

Education Evaluation Task Force (EETF)–TheCommission’sEETFreviewed,recommended,assistedindevelopment,updates,andadministrationofeducation-relatedprojectsandcontinuingeducation.TheEETFconductedthreemeetingsduringthefiscalyear:March3,April6,andMay26,2010.TheEETFassistedinthedevelopmentoftheCommission’s2009-2010CoreCourse(PartsAandB).

Meetings and Symposium –TheCommission,withstaffsupport,planned,coordinated,andconductedmonthlyEducationReviewCommitteemeetings.

Annual Report and Quarterly Bulletin–Staffresearched,developedanddistributedtheCommission’sAnnualReport.Staffresearched,edited,printed,anddistributedthequarterlyRealEstateBulletin;andcontinuedcontractadministrationwithconsultantandprocurementcodemanagement.

Real Estate Education Fund (REEF)–TheCommissionmaintainedandreviewedthebudget,finance,andrecordsforREEF;preparedquarterlyandannualfinancialstatements;preparedannualandbiennialbudgets;andadministeredfundinvestmentprograms,includingcontractadministrationandprocurementcodemanagement.

Interactive Participation with Organizations–TheCommissionactivelyparticipatedwithlocal,PacificRim,nationalandinternationalorganizationsandgovernmentagenciesfortheexchangeofinformationandconcerns,sharingofeducationalandresearchefforts,jointprojectsofmutualconcern,andtraining.

Real Estate Seminars–TheCommissioncontractedwiththeHawaiiAssociationofREALTORS®toprovideastatewideseminarduringthe2009-2010bienniumforrealestatelicenseesand/orconsumersthroughacontractor,viasubsidy,sponsoring,assisting,orco-sponsoring.

Legislative Participation, Research, and Report–TheCommissionresearched,participated,andreportedonrequestsbytheLegislature,includingresolutions,agreements,andissuesofmutualconcern.

Evaluation and Education System for CE and Prelicensing Instructors, Courses, Providers, and Schools–TheCommissionadministeredanevaluationsystemofprelicensingandcontinuingeducationinstructors.

Real Estate Specialist Office for the Day–Duetobudgetaryconstraints,theRealEstateSpecialistsdidnotsetupofficeatRICOneighborislandofficesandothermeetingsitestoprovideadvice,education,andreferrals.

Prelicensing Education Equivalency Administration–TheCommissionadministeredapplicationsforprelicensingeducationequivalencies,includingconsultationwithARELLO.

Uniform Section Equivalency of Prelicensing Examination–TheCommissionadministeredapplicationsontheequivalencytotheuniformpartoftheexambasedonpassageoftheuniformpartofanotherstate’sexam.

EducationReviewCommitteeReport23

New Technology Program and Real Estate Commission Website–Staffadministeredanin-housenetworkcomputersystemincoordinationwithDCCA’sInformationSystemscoordinator.Staffalsoconductedin-housetraining,attemptedthecoordinatedofthepurchaseofcomputerhardwareandsoftware,anddevelopeddatabaseprogramming.

Records Management–Staffevaluated,planned,reorganized,andimplementedacentralized,consistent,userfriendly,computerizedglossaryofexistingandfuturerecordsandfiles.

Information Distribution System–Staffresearched,developed,andimplementedacentralizedinformationdistributionsystemforalltheeducationproductsproducedbytheCommission.Staffstandardizedpoliciesandproceduresfordistribution,purchasing,copyright,specificpermissioncopyingorgenericpermissioncopyingofbrochures,reports,andvideotapes.

New Salesperson and New Broker Start-up Kits–Staffpackagedanddistributedstart-upkitstonewlylicensedsalespersonsandbrokers.

Cooperative Education, Research, and Administration Program–TheCommissionactivelyparticipatedandsponsoredcooperativeeducation,research,andadministrativeprogramsforthoseindividuals,branches,divisions,departmentpersonnel,andtheAttorneyGeneral’sOfficethatprovideddirectorindirectservicestotheCommissionorwerepartofarealestate-relatedprogram.

Division and Department Programs – The CommissioncoordinatedactivitiesandprogramsofmutualconcernwithPVLDandDCCA.

Staff and Commissioners Development–StaffdevelopedandtrainedstaffandCommissionersforbetter

administrationoftherealestateprograms.Commissioners,aswellasstaff,participatedintrainingandeducationalopportunitiesprovidedbyREEA,ARELLO,CAI,CLEAR,andotherorganizations.

Real Estate Reference Library – The Commissionsubscribedandpurchasedrealestatereferencematerialsforpublicreview.

0

500

1000

1500

2000

2500

Broker (Corp, Part, LLC)Broker (Individual)Salesperson

Broker (Corp, Part, LLC) 61 81 88 126 106 130 131 132 119 116 104

Broker (Individual) 78 107 138 128 201 344 214 294 232 211 201

Salesperson 971 968 1111 1278 1887 2148 2244 1672 1559 863 759

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

24 EducationReviewCommitteeReport

Licensees

New Licenses

ThenumberofnewlicensesissuedinFY2010decreased10.6%overthepriorfiscalyear.DuringFY2010,1,064newlicenseswereissued.Individualbrokerlicensesdecreasedby4.�%,newsalespersonlicensesdecreasedby12.5%,andnewentitylicensesdecreasedby10.3%.RefertoChart12.

Current Licenses

Theoverallnumberofcurrentrealestatelicensesincreased6.4%bytheendofFY2010.InFY2010,activelicensesdecreased.9%overlastyear,whileinactivelicensesincreased1�.9%.Therewasa.4%decreaseofactivelicensesonMaui,a.4%decreaseonKauai,a1.6%decreaseonHawaii,a1.6%increaseonOahu,anda2.1%increaseonMolokai.TherewasnochangeontheislandofLanai.RefertoTable3,Charts13and14.

CHART12.NewRealEstateLicensesIssued

Maui15.10%

Hawaii12.76%

Oahu59.08%

Kauai7.07%

Mainland/Foreign5.63%

Molokai0.27%

Lanai0.09%

Oahu Hawaii Maui Kauai Molokai Lanai Other TotalActive

Broker 1,932 483 453 213 14 3 60 3,158Salesperson 4,641 932 1,190 514 22 5 130 7,434Sole Proprietor 748 162 109 67 5 1 3 1,095Corporation, Partnership, LLC 975 225 248 110 6 3 1 1,568

Total Active 8,296 1,802 2,000 904 47 12 194 13,255

Inactive

Broker 308 58 59 31 0 0 201 657Salesperson 3,108 661 923 462 7 6 718 5,885Corporation, Partnership, LLC 42 17 22 9 0 0 8 98

Total Inactive 3,458 736 1,004 502 7 6 927 6,640

Active and Inactive

Broker 2,240 541 512 244 14 3 261 3,815Salesperson 7,749 1,593 2,113 976 29 11 848 13,319Sole Proprietor 748 162 109 67 5 1 3 1,095Corporation, Partnership, LLC 1,017 242 270 119 6 3 9 1,666

Total 11,754 2,538 3,004 1,406 54 18 1,121 19,895

EducationReviewCommitteeReport25

CHART13.RealEstateLicensees-ByIsland

Table3.CurrentRealEstateLicensees-ByLicenseTypeandIsland(July2010)

0

5,000

10,000

15,000

20,000

25,000

30,000

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010

End of Fiscal Year

No.

of L

icen

sees

Corp/Part/LLCBrokersSalespersons

26 EducationReviewCommitteeReport

FY2011PROGRAMOFWORKEducation Review Committee

ContinuingEducationCoreCourseSalespersonCurriculumandResourcesBrokerCurriculumandResourcesAdvice,Education,andReferralAdministrationofPrelicenseEducationProgram,Schools,andInstructorsAdministrationofExaminationsAdministrationofContinuingEducationProgram,Providers,andInstructorsAdministrationofContinuingEducationElectiveCoursesEducationEvaluationTaskForce(EETF)MeetingsandSymposiumAnnualReportandQuarterlyBulletinRealEstateEducationFund(REEF)NeighborIslandOutreachInteractiveParticipationwithOrganizationsRealEstateSeminarsLegislativeParticipation,Research,andReportInstructor’sDevelopmentWorkshop

•••••

••

•

••••••••

•

EvaluationandEducationSystemforContinuingEducationandPrelicensingInstructors,Courses,Providers,andSchoolsRealEstateSpecialistOfficefortheDayRealEstateSpeakershipProgramPrelicensingEducationEquivalencyAdministrationUniformSectionEquivalencyofPrelicensingExaminationTechnologyandWebsiteRecordsManagementInformationDistributionSystemNewSalespersonandNewBrokerStart-upKitsCooperativeEducation,Research,andAdministrationProgramDivisionandDepartmentProgramsStaffandCommissionersDevelopmentRealEstateReferenceLibrary

•

•••

•

••••

•

•••

CHART14.TotalRealEstateLicensees

CondominiumReviewCommitteeReport2�

CONDOMINIUMREVIEWCOMMITTEE(CRC)REPORT Forfiscalyear2010,undertheleadershipofChairMicheleLoudermilkandViceChairMarkSuiso,theCRC,continuedwiththeimplementationchallengesofChapter514B,HawaiiRevisedStatutes(HRS),includingthechallengesofnewlegislation.Duringthissameperiod,theCRCcon-tinuedwiththeadministrationoftheoriginalcondominiumlaw,Chapter514A,HRS,aswellasotherplannedprogramsofwork.

TheCRCisaCommissionstandingcommitteethatholdsmonthlypublicmeetingsinwhichcondominiumissuesarepresented,discussed,examined,andconsidered.Itisaworkingcommitteethathandles“nutsandbolts”issues.Developers,apartmentowners,boardsofdirectors,condominiummanagingagents,attorneys,educators,researchers,governmentofficials,andotherswithcondo-miniumconcernsparticipateatthemeetings.TheresponsibilitiesoftheCRCinclude:registrationofcondominiumprojectsbydevelopers;condominiumassociationregistrations;andgovernance,educa-tionandresearchprograms,inclusiveoftheprogramsfundedundertheCondominiumEducationTrustFund(CETF).

ThelawallowstheCommissiontoexpendmoniesfromtheCETFfundsforeducationalpur-poseswhichincludefinancingorpromoting:

Educationandresearchinthefieldofcondominiummanagement,condominiumprojectregistration,andrealestate,forthebenefitofthepublicandthoserequiredtoberegisteredunderthischapter;Theimprovementandmoreefficientadministrationofassociations;andExpeditiousandinexpensiveproceduresforresolvingassociationdisputes.

TheCommissionmayuseanyandallmoneysintheCETFforpurposesconsistentwiththeabove.Additionally,thelawrequirestheCommissiontosubmittothelegislatureannually:(1)asum-maryoftheprogramsfundedduringthepriorfiscalyearwithfundsfromtheCETF;(2)theamountofmoneyinthefund;(3)acopyofthebudgetforthecurrentfiscalyear,includingsummaryinformationonprogramswhichwerefundedoraretobefunded;(4)astatementofwhichprogramsweredirectedspecificallyattheeducationofcondominiumowners;(5)summaryinformationonprogramsthatwerefundedoraretobefundedandthetargetaudienceforeachprogram;and(6)abudgetforthecurrentfiscalyearthatincludesalineitemreflectingthetotalamountcollectedfromcondominiumassocia-tions.AsnotedinthisreportmanyofthefundedprogramsforthisfiscalyearandmanyofthefundedprogramsforthenextfiscalyearhavebeenmodifiedinpartorpostponedinresponsetotheState’scurrenteconomicchallengesandbudgetaryconstraints.

1.

2.3.

20022004

20062008

2010

0

5000

10000

15000

20000

25000

30000

Fiscal Year

Walk Ins Written Requests/Applications Emails Calls Total

Walk Ins 1229 1395 1480 1473 1551 1388 1322 874 875

Written Requests/Applications 12449 12217 9819 7027 9461 12535 11035 8566 8300

Emails 1259 1819 1812 2487 2940 1890 2394 4295

Calls 11387 10971 9050 8064 8863 8157 7014 6459 5783

Total 27067 25842 22168 18376 22362 25020 21261 18293 19253

2002 2003 2004 2005 2006 2007 2008 2009 2010

2� CondominiumReviewCommitteeReport

Chart15.CondominiumAdvice,Education,andReferral

FY2010PROGRAMOFWORKNOTE: Thetextthatisboldedareformattersthatweredirectedspecificallyattheeducationofcondominiumowners(althoughmanyothersalsobenefittedfromtheeducation).

Condominium Laws and Education–Concur-rentlywiththeadministrationofChapter514A,HRS,theCommissionparticipatedinthelegis-lativeprocesstofine-tuneChapter514B,HRS,effectiveJuly1,2006,andtheimplementationofthisnewlaw.Withthehelpofstakeholderorganizationsandvolunteers,theCommissioncontinuedthedevelopmentandrefinementofappropriatenewandamendedforms(includingwebbasedonlinefillableforms),instructions,informationalsheets,proceduresandevaluativeprocesses,curriculum,materials,handouts,andpowerpointpresentationsforuseinstatewideeducationalefforts.TheCommissioncontin-uedwithstatewidepromotionanddeliveryofCommission-subsidizedseminars.InMay,theCommissionsponsoredaseminarbasedonitstwonewinformationalbooklets,“Condominium

PropertyRegimes:OwnerRightsandResponsi-bilities”and“CondominiumPropertyRegimes:BoardMembersPowersandDuties”.Twenty-sevenpeopleattendedthisfree2½hoursemi-narintheStateCapitolAuditoriumpresentedbyaprocuredpractitionerofcondominiumlaw.Oahu’sPEGaccessprovider,Olelo,videotapedthepresentationandplansweremadetorebroadcastthepresentationonOlelo.Sucheducationaleffortsaretargetedtoinformandeducatethoseimpactedbythenewcondomini-umlaw,namely,thecondominiumunitowners,boards,managingagents,residentmanagers,developers,realestatelicensees,theirrespectiveattorneys,prospectivecondominiumpurchasers,andthegeneralpublic.

PursuanttoSubchapter5ofChapter201,Title16,HawaiiAdministrativeRules,theCRCissuedthreeinformalnon-bindinginterpreta-tionsoftheprovisionsofChapter514B,HRS,andmadethemavailabletointerestedpartiesdirectlyandonlineattheCommission’sweb-

CondominiumReviewCommitteeReport29

Condominium Apartment Owners on the Commission

ThefollowingmembersoftheRealEstateCommissionarecondominiumowner/occupants:

Carol Mae Ball Walt Harvey

ThefollowingmembersoftheRealEstateCommissionarecondominiumowners:

Annette Aiona Mark Suiso

site.InimplementingChapter514B,HRS,theCRClooksforwardtothecontinuingsupportofthecondominiumgovernanceanddevelopmentcommunities,attorneysspecializingincon-dominiumlaw,theHawaiiStateBarAssocia-tion-RealPropertySection,andtherealestateindustry.Tothesecommittedorganizationsandgroups,theCommissionextendsabigMahalo.

Inaddition,withthehelpofstakeholderorga-nizationsandvolunteers,theCommissionwillcontinuetoreviewandamendexistingCom-mission-developededucationalmaterials,newandamendedforms,instructions,informationalsheets,proceduresandevaluativeprocessesandexploredeliveryofeducationalseminarsvideopresentedontheCommission’swebsite.

Advice, Education, and Referral–TheCom-missionrespondedandprovidedinformationtoinquiriesfromthecondominiumcommunity,developers,consumers,licensees,governmentofficials,organizations,interestedpartiesandthepublic,viatelephone,walk-ins,faxes,writ-tencorrespondence,emails,theCondominiumBulletinandthroughtheCommission’swebsite.SeeChart15.

Condominium Project and Developer’s Public Reports–Staffcontinuedtheimple-mentationandadministrationofthecondo-miniumprojectregistrationprogram,pursuanttoChapters514Aand514B,HRS.Withthehelpofstakeholderorganizations,volunteers,othergovernmentalagencies,andinterestedattorneys,theCommissioncontinueditsevalua-tionanddevelopmentofnewprocesses,records,forms,informationdocumentsandrules.Staffcontinuedworkingwithprocuredconsultantstoassistwithcondominiumproject-relatedtasks.Itcontinuedtomakedeveloper’spublicreportsavailableforpublicviewingandcopyingtodiscviatheCommission’swebsite.TheCommis-sioncontinuedtostudyandresearchtheformu-lationofacomprehensiveevaluationsystemontheprojectregistrationandreviewprocess,includingtheuseofevaluationformsbydevel-

opersandattorneys.Staffcontinuedtoresearchandstudyaplanfortheelectronicadministra-tionofcondominiumprojectfiles,includingthescanningofdocumentsonCDs.Inresponsetolegislativeresolutionsin2009urgingtheCom-missiontoconsiderthefeasibilityofacceptingonlinecondominiumprojectregistrationfilings,theCommissiontookearlystepstowardsthisend.TheCommissioncontinueditsworkofprocuringandcontractingwithcondominiumconsultantstoassisttheCommissionwiththeadministrationofregisteringcondominiumproj-ectsandissuingofeffectivedatesfordevelop-er’spublicreports,whichreportsaremandatedtoconductsalesofcondominiumunits.

Hawaii Condominium Bulletin–TheCom-missioncontinuedtheresearch,development,publicationanddistributionofaquarterlybulle-tintoallregisteredassociationsandcondomini-ummanagingagents(CMAs).DuringFY2010,incontinuingeffortsto“gogreen”,theCommis-sioninitiatedtheexclusiveonlinedistributionoftheCondominiumBulletin.Staffcontinuedtheprocurementcodemanagementandadministra-tionofthecontractwithconsultantsassistinginthedesign,layout,editingandprintingofthebulletin.

0

5

10

15

20

25

30

35

Total Number of Requests

Mediation Center of the Pacific Inc. 28 9 16 4 10 33 21 18

Mediation Services of Maui Inc. 16 14 5 1 7 17 9 8

Kauai Economic Opportunity Inc. 3 3 1 0 0 1 2 2

Big Island Mediation Inc. dba West HawaiiMediation Services

0 0 2 1 5 0 2 1

Ku'ikahi Mediation Center 0 0 0 0 0 0 0 1

2003 2004 2005 2006 2007 2008 2009 2010

30 CondominiumReviewCommitteeReport

Condominium Mediation and Arbitration Program–TheCommissioncontinuedtosubsidizemediationprogramsonfourislandsandworkwithvariousmediationproviders,includingtheMediationCenterofthePacificonOahutoprovideeducationalseminarsaboutalternativedisputeresolutionandmediationforboardsofdirectors,apartmentownersandCMAs.StaffcollectedstatisticalinformationforeducationandAnnualReportpurposes(SeeChart16).Additionally,thispastfiscalyearcontinuedtheavailabilityofevaluativemedia-tionasanadditionaloptiontoconsumersforcondominiumdisputeresolution.DuringFY2010,theCommissionrenewedcontractswithmediationprovidersforanadditionalyear.StaffupdatedtheCommissionmediationbrochuretoreflectchangesinthelawandfordistributiontothecondominiumcommunityontheCommis-sionwebsite.

Condominium Dispute Resolution Pilot Program–StaffcontinuedtoassisttheAd-ministrativeHearingsOfficeineducationandawarenessprogramsregarding“condominiumcourt.”Thispilotprogramwasextendedbythe2009LegislatureandwillendonJune30,2011.

Condominium Association Registration – The Commissionadministeredthecondominiumassociationregistrationprogram,includingareviewofsubmittedapplicationsandtheassess-mentofCommissionregistrationpoliciesandprocedures.Italsoconsideredappeals,subpoe-nas,andrequestsforrecordsunderOfficeofInformationPracticesrulesandprocedures.ForFY2010,theCommissioncontinueditsbiennialcondominiumassociationregistration.Inthisnon-registrationyear,theCommissioncontin-uedtoprocesslateregisteringcondominiumassociationsforatotal,throughJune2010,of1,634condominiumprojects,representing

Chart16.CondominiumGovernanceMediations

Condominium Association Registration FY 2000 - 2010

1,200

1,300

1,400

1,500

1,600

1,700

No. o

f Reg

ister

ed A

ssoc

iatio

ns

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

No. o

f Apa

rtmen

ts Re

giste

red

No. of Registered Associations No. of Apartments Represented

No. of Registered Associations 1,389 1,419 1,439 1,456 1,469 1,501 1,546 1,565 1,601 1,629 1,634

No. of Apartments Represented 116,750 118,209 133,276 134,444 135,708 138,334 142,171 145,124 151,238 153,856 154,625

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CondominiumReviewCommitteeReport31

Chart17.CondominiumAssociationRegistration

154,625condominiumunits,registeredwiththeCommission.Inaddition,theCommis-sioncontinuedtheimplementationofanonlineregistrationprocessandtomakeavailableontheCommissionwebsitealistofallassociationcontactinformation(SeeChart1�).TheCom-missionalsorespondedtorequestsforlistsofpet-friendly,leaseholds,andNeighborIsland-specificcondominiumassociations.

Condominium Seminars and Symposiums–TheCommissioncontinuedtoproduceseminarsforthecondominiumcommu-nityutilizingCommissionstaff,procuredpro-viders,andvolunteerfacultyofrepresentativesfromthecondominiumgovernance,develop-ment,andrealestatecommunity.TheCommis-sioncontinuedtoadministerCETFsubsidiesforCommission-approvedseminars,includingthefollowingforFY2010:

LegislativeUpdate July16,2009BudgetBusters August20,2009WhyNobodyLikes You–Maui October16,2009WhyNobodyLikes You–Oahu October1�,2009

•••

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2010Annual Meetings January30,2010AgingBuildings March11,2010ABCs May15,2010BoardDo’sand Don’ts May20,2010TheEffective1Hour BoardMeeting June1�,2010

TheCommissionexploredelectronicpublicationofconsumerbrochures.

InMay2010theCommissionsponsoredafreeseminarbasedontheCommission’snewestcon-dominiuminformationalbooklets.TheseminarwasheldattheStateCapitolAuditoriumandpresentedbyaprocuredcondominiumeducationprovider.

Ad Hoc Committee On Condominium Education and Research–TheCRCcontin-uestoadministerthisvolunteergroupwhichreviews,recommendsandassistsinthedevel-opment,updateandadministrationofcondo-miniumeducation-relatedprojects.TheCom-missionexpandedtheadvisorygroup’sfocustoincluderecommendationsforaCommissionfive

•

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•

0

20

40

60

80

100

120

140

No. o

f regis

trants

CHOs 119 123 123 17 17 16 19 19 24 19 26CMAs 110 100 115 0 0 0 0 0 0 0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

32 CondominiumReviewCommitteeReport

yeareducationalstrategicplanforcondominiumeducation.Thisfiscalyear,withtheassistanceofprocuredcondominiumconsultants,theCommissioncompletedtheupdateoftwo1991Commissionbrochures“CondominiumOwnersRightsandResponsibilities”andthe“Condo-miniumBoardMembersPowersandDuties”,toprovideconsistencywithHRS,Chapters514Aand514B.ThebookletsweremadeavailableonlineandatselectedStateofHawaiilibrarysiteshousingcondominiumreferencelibrarymaterials.

Condominium Managing Agents Registration–StaffreviewedpoliciesandproceduresforregistrationandrespondedtorequestsforrecordsunderOIPrulesandproce-dures.SeeChart1�.

Rule Making, Chapter 107–TheCommissioninitiatedtherulemakingprocessduringthisfis-calyear.ItsolicitedcommentsfromstakeholdergroupsandinterestedpartiesandbegantheprocessofdraftingnewrulesforHRS,Chapter514B.

Meetings–TheCommissioncontinuedtoplan,coordinate,andconductmonthlyCRCmeetingsandincludethescheduleofmeetingsandagen-dasontheCommission’swebsite.CRCmeet-

Chart18.CMAandCHORegistration

ingsareopentothepublicandareameansforthecondominiumconsumertobecomeknowl-edgeableabouttheissuesfacingtheCRC.

Government and Legislative Participation and Report–TheCommissionparticipatedinallaspectsofthelegislativeprocess,includ-ingresearching,respondingto,andreportingonrequestsfromtheLegislatureandreviewingresolutions,agreements,andissuesofmutualconcern.Inadditiontoresearching,preparing,andpresentingtestimonyonanumberofcondo-miniumbillsthatwoulddirectlyandindirectlyaffectcondominiums,staffassistedtheCRCinmonitoringandtrackingallcondominiumrelat-edbillsgeneratedintheHouseandSenate.TheCommissionresearched,developed,anddistrib-uteditsAnnualReporttotheLegislatureontheCETFprogramandfunds,anduponcompletion,postedthereportontheCommission’swebsite.

Legislative Acts and Resolutions–TheCom-missioncontinuedwithitsreview,reporting,anddevelopmentofsummariesonallrelatedActsandresolutionsandimplementedrequire-mentsofActsandresolutionsdirectlyaffectingcondominiumsinHawaii.TheenactmentofnewlawsattheendofthefiscalyearimpactedtheCRC’sAdvice,EducationandReferralprogramofworkitem.Condominiumboard

CondominiumReviewCommitteeReport33

members,apartmentowners,managingagentsandinterestedothersinquiredaboutthefollow-ingnewlaws:

ACT 53 (SLH 2010) HB 2197, HD1, SD1–Givesboardsofdirectorstheau-thoritytoinstallorallowtheinstallationofsolarenergyorwindenergydevicesonthecommonelementsofcondominiums.

ACT 201 (SLH 2010) SB 2817, SD1, HD1, CD1–RequireseveryprivatehomeownersassociationorentitytoreviserulesbyJuly1,2011,thatshallnotimposeconditionsorrestrictionsthatrenderasolarenergydevicemorethan25percentlesseffective;increasethecostofinstallation,maintenance,andremovalofasolarenergydevicebymorethan15percent;oruntilJune20,2015,requireanencumbranceontitlebecauseoftheplacementofthesolarenergydevice.

ACT 169 (SLH 2010) HB 2288, HD1, SD2, CD1–Prohibitstheimpositionoffeesforafuturetransferofrealproperty.Specifiesexceptions.SunsetsJune30,2015.

ACT 89 (SLH 2010) SB 910, SD1, HD2, CD1 –TransfershomelessprogramsandserviceswithinthedepartmentofhumanservicesbyrelocatingthestatehomelessprogramsfromtheHawaiipublichous-ingauthoritytothebenefit,employment,andsupportservicesdivision.(AmendsChapters514Aand514B,HRS,toex-emptChapter346,HRS,fromcertaincondominium-relatedrequirements.)

TheCommissionalsocontinuedthepreparationforprintinganddistributionofunofficialcopiesofChapters514Aand514B,HRS,withcurrentamendments,viaitswebsiteandhardcopieswherefundswereavailable.

•

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•

Interactive Participation with Organizations –TheCommissioncontinuedactiveparticipationwithlocalorganizationsandgovernmentagenciesfortheexchangeofinformationandconcerns,sharingofeduca-tionandresearchefforts,andjointprojectsofmutualconcern,training,throughattendance,andparticipationatlocalmeetings,includingCAIHawaii,HCAAO,HICCO,CondominiumCouncilofMaui,IREM,andtheHawaiiStateBar.Participationwithagenciesandorganiza-tionsincludededucationalprogramsonChapter514B,HRS.Participationwithregional,na-tional,andinternationalagenciesandorganiza-tionsincludingPacificRim,CAI,ARELLO,andZenkauren(Japan)werepostponeddueinparttothecurrent,budgetaryconstraints,andtravelrestrictions.

Neighbor Island Outreach–Duetobudgetaryconstraintsthisfiscalyear,theCommissionwaslimitedtooneneighborislandmeetingontheislandofKaua`i.TheCommissionwillresumeitsscheduleofregularneighborislandmeetingsassoonasbudgetaryconstraintsarelifted.

Condominium Education Trust Fund (CETF)–TheCommissioncontinuedtoadmin-istertheCETFfundsforeducationaleffortsdur-ingthisfiscalyear.TheCommissionprepared,maintained,andreviewedquarterlyandannualfinancialstatements,budgetandfinancerecordsforbotheducationalfunds,andadministeredthefundsinvestment.TheCommissionalsoplannedandworkedwiththeDCCAtoincreasethebudgetforfundingtheCommission’seduca-tionaleffortsfortheimplementationofChap-ter514B,HRS,andforadditionaleducationalprogramssubjecttorevenueprojections.

Consumer Education–TheCommissioncompletedthedevelopmentandpublicationoftwonewbooklets,“CondominiumPropertyRegimes:OwnersRightsandResponsibili-ties”and“CondominiumPropertyRegimes:BoardMembersPowersandDuties”.Incon-nectionwiththenewbooklets,theCommission

34 CondominiumReviewCommitteeReport

sponsoredafreeseminarforthecondominiumcommunitypresentedbyaprocuredoutsideconsultant.Olelo,(Oahu’sPEGaccess)video-tapedtheseminarforrebroadcast.Developmentandfinalizationofthenewbookletspostponedadditionalresearchofaconsumereducationprogramtargetingprospectivepurchasersofcondominiumunitsandnewownersofcondo-miniumunitsoninitialprojectsalesandresales.However,thisprogramwillcontinueaspartoftheCRCEducationalAdvisoryGroup’sfiveyeareducationalstrategicplanforcondominiumeducation.

Rule Making, Chapter 53, Fees–TheCom-missionmonitored,reviewed,researched,andrecommendedspecificruleswhichwouldincreasethecondominiumdevelopers’andunitowners’contributionstotheCETFtoaddresstheCETF’sprojectedbudgetshortfalls,antici-patedtobeginasearlyasfiscalyear2012.TheCommissioncontinueddiscussingandcoordi-natingthesefeerecommendationsandrelatedamendmentswiththeLicensingAdministrator.

CPR Project Workshop and Meetings – The Commission’s12condominiumconsultantscontinuedtoassisttheCommissioninreviewingcondominiumprojectregistrationdocuments.TheCommissionconducteditsannualinforma-tionalsessionforthecondominiumconsultantsprovidingtheconsultantsanopportunitytocometogetherandsharetheirideasforfacili-tatingtheprocessingofcondominiumprojectdocuments. Condominium Specialists Office for the Day–Duetobudgetaryconstraintsthisfiscalyear,theCommissionwaslimitedtooneneigh-borislandmeetingontheislandofKaua`i.Nootherneighborislandvisitscouldbemadeaspartofthisprogramduringthisfiscalyear.

Condominium Speakership Program–Sub-jecttoStategovernmentapprovalsandpriori-ties,theCommissionhonorsrequeststoprovideaspeaker,resourceperson,orparticipantina

functionrelatedtocondominiumeducation,thecondominiumlawandrelatedissues,andcon-dominiumprojectregistration.Thisprogramallowsstafftoeducatethegeneralpublicandcondominiumownersinparticular,aboutthecondominiumlaw.

Technology and Website–TheCommissioncontinuedtooperateitswebsiteforpublicinter-actionandeducation.Itmaintainedandupdatedtheelectronicstorageofmaterialsprovidingonlineaccesstothepublicofthedeveloper’spublicreports,condominiumassociationregis-trationdataandotherinformation.PursuanttoChapter514B,HRS,theCommissioncontinuedtopostandmakeavailablethenewdeveloper’spublicreportformandotherrelatedformsform-fillableanddownloadable.Theformswereevaluatedandamendedtomeetthecontinuingimplementationchallenges.TheCommissioncontinuestoworktowardsitslong-rangegoalofprovidingallcondominiuminformationonlineandtostudythefeasibilityofprovidingassocia-tionswithacentraldepositoryforallgoverningdocumentsonthewebsite,includingminutesofassociationmeetings.

Case Law Review Program–TheCommis-sioncontinuedtomonitor,collectandreportonstateandfederallawjudgmentsanddecisions,administrativedecisions,andpoliciesandproce-dures;reportongovernanceandprojectdevel-opmentcases;andevaluatecasesforinclusionintheCondominiumBulletin.

Start-up Kit for New AOUOs and New CMAs –Commissionstaffdistributedstart-upkitstonewlyregisteredAOUOs,whichincludedunofficialcopiesofChapters514Aand514B,HRS,copiesofadministrativerulesforChap-ters514Aand514B,HRS,guidesforbudgetandreserves,boardsofdirectors,condominiumownersandpastcondominiumbulletins.

Records Management–Commissionstaffevaluated,planned,reorganized,andimple-mentedacentralized,consistent,userfriendly,

2004 2005 2006 2007 2008 2009 2010

Conversion Filings

New Project Filings

Total of Apartments Represented - New & ConversionFilings

0100020003000400050006000700080009000

10000110001200013000140001500016000

Numb

er of

Apa

rtmen

ts Re

pres

ented

Conversion Filings 7788 3818 2834 1619 1619 1910 851New Project Filings 2318 11877 8409 9538 7509 4594 6359Total of Apartments Represented -New & Conversion Filings

10106 15695 11243 11157 9128 6504 7210

2004 2005 2006 2007 2008 2009 2010

0

100

200

300

400

500

600

700

800

No.

of d

evel

oper

's p

ublic

repo

rts

Contingent Final 6 7 12 18 27 42 40 26 4 1 0Preliminary 26 41 35 60 59 37 41 8 0 0 0Final 249 191 219 228 290 277 338 133 21 3 4Supplementary 35 51 41 71 52 106 78 95 61 59 43514B Reports 157 271 202 147514B Amend 17 61 85 74Extensions 233 169 178 159 125 150 171 217 162 122 105Annual Reports 41 70 108

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CondominiumReviewCommitteeReport35

Chart20.NumberofCondominiumApartments

Chart19.Developer’sPublicReportsEffectiveDatesIssued

2000

2002

2004

2006

2008

2010

Over 50

16 -- 50

3 -- 15

2 or less

Total

050

100150200250

No. of Units

Fiscal Year

Project Size

Over 50 4 10 12 20 56 64 52 47 27 25 31

16 -- 50 17 12 15 13 30 66 67 65 23 29 31

3 -- 15 26 27 27 42 72 33 37 33 21 21 25

2 or less 17 17 23 28 34 57 70 28 49 38 32

Total 64 66 77 103 192 220 226 173 120 113 119

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

New Projects 2004 2005 2006 2007 2008 2009 2010

Residential 192 219 230 178 146 118 120*No. of Apartments Represented 6274 9334 6203 6582 4249 2928 2842

Commercial and Other 12 25 47 29 37 20 8No. of Apartments Represented 1444 2338 89 2793 3208 1473 3401

Agricultural 29 44 34 42 41 53 31No. of Apartments Represented 70 205 2117 163 52 193 116

Total New Projects 234 288 311 249 224 191 159Total No. of Apartments Represented 2318 11877 8409 9538 7509 4594 6359

Conversions

Residential 116 135 164 157 132 112 89No. of Apartments Represented 1422 2347 1177 903 664 1592 618

Commercial and Other 10 16 14 8 14 4 4No. of Apartments Represented 777 1325 1584 649 894 234 198

Agricultural 51 30 54 45 47 40 20No. of Apartments Represented 119 146 73 67 61 84 35

Total Conversion Projects 177 181 232 210 193 156 113Total No. of Apartments Represented 7788 3818 2834 1619 1619 1910 851

Combined New & Converted Project Filings 411 469 543 459 417 347 272Combined No. of Apartments Represented 10106 15695 11243 11157 9128 6504 7210

36 CondominiumReviewCommitteeReport

Chart21.NewResidentialProjects-BySize

Table4.CondominiumProjectFilings

CondominiumReviewCommitteeReport3�

computerizedglossaryofexistingandfutureeducationalmaterials,records,anddevelopers’publicreportsandfiles.Staffalsomaintainedandupdatedthescanningandelectronicstorageofrecords,includingdeveloper’spublicreports.

Cooperative Education, Research, and Ad-ministrative Program –DuetotheStatebudgetaryconstraints,theCommissiontabledparticipationinandthesponsoringofcoopera-tiveeducationandresearchandadministrativeprogramsforthosepersons,branches,divisions,departmentpersonnel,andtheOfficeoftheAt-torneyGeneralwhichprovidedirectorindirectservicestotheCommissionanditscondo-miniumeducationtrustfundandcondominiumprojectregistrationprogram.

Division and Department Program – The CommissioncontinuedthecoordinationofactivitiesandprogramsofmutualconcernwithPVLD,RICO,andDCCA.

Staff and Commissioners Development – DevelopedmaterialsfortrainingstaffandCommissionerstobetteradministerthecondo-miniumeducationandregistrationprograms.Commissioners,aswellasstaff,participatedintrainingandeducationalopportunitiesprovidedbylocalorganizations.DuetoStatetravelrestrictions,theCommissioncouldnotsponsorasmuchparticipationinREEA,ARELLO,CAI,CLEAR,andothernationalorganizations.

Condominium Reference Library–StaffcontinuedtomaintainacatalogofallpublicreferencematerialsprovidedtoStateLibraries(especiallyinhighlyconcentratedCPRareas)andmediationservicesoffices(neighboris-landsincluded)attheRealEstateBranchofficeandontheCommission’swebsite.Staffalsoupdateditsresearchonthecostofupdatingallcondominiumlibraryreferencematerials.TheCommissionrecommendedtheinclusionoftheseupdatesaspartofanydevelopedfiveyeareducationalstrategicplanforcondominiumeducation.TheCommissioncontinuedtoex-

pendmoniesfromtheCETFtoprovidenationaleducationalinformationandmaterialstocondo-miniumunitowners,developers,andthegeneralpublic.Thisfiscalyear,theCommissionaspartoftheCAIAdoptaLibraryProgram,purchasedandplacedten(10)setsofeducationmaterialsandinformationrelatingtocondominiumgover-nanceinStatePublicLibraries,six(6)onOahu,three(3)onneighborislands,andone(1)setattheCommission’sofficeinitspublicviewingarea.

Thisfiscalyearthefollowingprograms,previouslysummarized,benefitedcondominiumownersand/orweredirectedattheeducationofcondominiumowners:

CondominiumLawsandEducation;Advice,Education,andReferral;HawaiiCondominiumBulletin;CondominiumMediationandArbitrationProgram;CondominiumDisputeResolutionPilotProgram;CondominiumAssociationRegistration;CondominiumSeminarsandSymposium;AdHocCommitteeonCondominiumEducationandResearch;RuleMaking,Chapter10�;Meetings;GovernmentandLegislativeParticipationandReport;LegislativeActsandResolutions;InteractiveParticipationwithOrganiza-tions;NeighborIslandOutreach;ConsumerEducation;CondominiumSpecialistsOfficefortheDay;TechnologyandWebsite;Start-upKitforNewAOUOsandNewCMAs;CooperativeEducation,Research,andAdministrativeProgram;andCondominiumReferenceLibrary.

••••

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•••

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38 CondominiumReviewCommitteeReport

FY2011PROGRAMOFWORKCondominium Laws and Education–Concur-rentlywiththeadministrationofChapter514A,HRS,theCommissioncontinuestofinetuneandimplementChapter514B,HRS,includ-ingcontinuingparticipationinthelegislativeprocess.AcknowledgingtheState’seconomicchallengesandtheeffectofbudgetaryimpactsontheCommission’sprogramofwork,totheextentthatcondominiumeducationfundsareavailable,theCommissionwillcontinuebrief-ings,updates,andpresentationstothecondo-miniumcommunityandincludepresentationsontheCommission’swebsite,andintheCon-dominiumBulletinandtheRealEstateBulletin.Itwillcontinuethedeliveryofstatewidemulti-facetedlowcosteducationalprogramswiththehelpofstakeholderorganizationsandvolunteersonallislands.Inaddition,withthehelpofstakeholderorganizationsandvolunteers,theCommissionwillcontinuetoreviewandamendexistingCommission-developededucationalmaterials,newandamendedforms,instructions,informationalsheets,proceduresandevaluativeprocessesandexploredeliveryofeducationalseminarsvideopresentedontheCommission’swebsite.

Advice, Education, and Referral–Staff,onbehalfoftheCommission,continuestorespondandprovideinformationrelatedtoinquiriesfromthecondominiumcommunity,develop-ers,consumers,licensees,governmentofficials,organizations,interestedothersandthepublic,viatelephone,walk-ins,faxes,writtencorre-spondence,emails,CondominiumBulletinandtheCommission’swebsite.StaffwillpreparefortheprintinganddistributionofCommis-sion-developedinformation,includingcopiesofChapters514Aand514B,HRS,viaitswebsitetoeachregisteredassociationandCMA.TheCommissionwillstudythefeasibilityofagrantprogramforboardofdirectorparticipationinCommission-approvededucationprogramsandmaintainandupdatetheCommissionwebsiteasnecessary.Wheneverpractical,theCommissionwillprovideaforumtopromoteselfgovernance

forownersandassociations.

Condominium Project and Developer’s Public Reports–TheCommissioncontinuestoadmin-istertwocondominiumprojectregistrationpro-grams(Chapters514Aand514B,HRS)andtheongoingadministrationofissuanceofeffectivedatesfordeveloperpreparedpublicreports.Withthehelpofstakeholderorganiza-tions,volunteers,othergovernmentalagenciesandinterestedattorneys,staffcontinuestorefineonlineunalterableform-fillabledeveloper’spublicreportformsandtheevaluationanddevelopment,whereappropriate,ofnewprocesses,records,forms,informationdocuments,andrulesrelatingtocondominiumprojectregistrations.Ifneces-sary,theCommissionwillprocureadditionalcondominiumconsultantstoassistwiththereviewofdocumentsandinformationsubmittedtotheCommissioninconjunctionwithcondominiumprojectregistrations.Staffwillcontinuetocon-ductinformationandorientationsessionsforallnewlyprocuredconsultants.TheCommissionwillcontinuetomonitortheconsultants’perfor-manceofthecontracts.Staffwillalsocontinuetomakethedeveloper’spublicreportsavailableforpublicviewingandcopyingtodiscviatheCom-mission’swebsiteandcontinuetocompileinfor-mationandCommissiondecisionsandmaketheseavailabletotheconsumingpublic,consultantsandotherinterestedpersons.TheCommissioncontinuestostudyandresearchacomprehensiveevaluationsystemontheprojectregistrationandreviewprocesstoincludeconsideringaplanforelectronicadministrationofthedevelopers’publicreports,includingthescanningofdocumentsonCDs.TheCommissionwillalsocontinuetomonitoranylegislationrelevanttocondominiumprojectregistrationforimpactonpoliciesandproceduresuponcondominiumdevelopersandthepublicreportprocess. Hawaii Condominium Bulletin–TheCommis-sioncontinuestheresearch,development,andpublicationofaquarterlybulletin.Italsomain-tainscopiesofthebulletinontheCommission’swebsiteandincludeselectronicdelivery.Staff

CondominiumReviewCommitteeReport39

implementedonlinepublicationanddeliveryduringthisfiscalyear,andcontinuestoresearchthepossiblepublicationofa“developers’refer-encefile,”withconsultantscontributingarticles.TheCommissionwillalsotakeintoconsider-ationtheadditionofanongoingsectioninthebulletindedicatedtoissuesrelevanttocondo-miniumprojectregistrationanddeveloper’sissues,witharticleswrittenbycondominiumconsultants.Staffcontinuestheprocurementcodemanagementandadministrationofthecontractwithaconsultantassistinginthelayout,editingandprintingofthebulletin.

Condominium Mediation and Arbitration Program–TheCommissioncontinuestomoni-torthedeliveryofmediationprograms,includ-ingtheoptionalevaluativemediationprogramaddedlastfiscalyear,andtheannualrenewalofmediationcontracts.StaffcontinuestoworkwiththeMediationCenterofthePacificandotherprocuredproviderstopresenteducationalseminarsaboutalternativedisputeresolutionandmediationtoboardofdirectorsandapart-mentowners.Staffcontinuestocollectinfor-mationandstatisticsforeducationalandAnnualReportpurposes.TheCommissionisstudyingthefeasibilityofCETFfundingofarbitrationforthosepartieseligibleformediation.TheCom-missioncontinuestoworkwithMCPtoupdatetheMCPmediationtraininginstructionmanual.

CDR Pilot Program–TheCommissioncon-tinuestoassistintheadministrationofthepilotprogramandcontinuetoassisttheOfficeofAd-ministrativeHearingswithanyeducationalandawarenessprogramsforcondominiumownersandboardmembers.

Condominium Association Registration – Staffcontinuestoadministertheelectronic/computerizedregistrationofcondominiumas-sociations,includingreviewingandupdating,asnecessary,applicationsforregistration,poli-cies,procedures,appeals.TheCommissionwillrespondtosubpoenasandrequestsforrecordsunderOIP.TheCommissioncontinueslisting

allassociationcontactinformationontheCom-mission’swebsitewithpreprintedlistsavailableuponrequest.TheCommissioncontinuestoresearchandstudythefeasibilityofcompilingabiennialprofileofregisteredassociationsbasedonthedatafieldsgatheredfromtheregistrationinformation.

Condominium Seminars and Symposiums – TheCommissioncontinuestoproducesemi-narsforthecondominiumcommunitythroughprocuredcontractswithvariousprovidersandcontinuestoprocureforadditionalnewprovid-ersonrelevanttopics.Itcontinuestoadminis-terCETFsubsidiesforCommission-approvedseminars.TheCommissionisconsideringproducingaseminaronreserves,especiallythecashflowfundingmethod,incollaborationwithinterestedparties.Staffproactivelyseeksad-ditionalconsultants,especiallyontheneighborislands.TheCommissionwillresearchthepos-sibilityofwebre-broadcastofallCETFsemi-nars.TheCommissioncontinuestheadminis-trationofaCRCeducationaladvisorygrouptoproviderecommendationsandinputabouttheCRCeducationalprograms.

Ad Hoc Committee on Condominium Edu-cation and Research–TheCommissioncon-tinuestheadministrationofthisgroupwhichreviewsandmakesrecommendationsandassistsinthedevelopment,updateandadministrationofcondominiumeducation-relatedprojects.Itcontinuestodeveloparoll-overfiveyearstrategicCETFeducationplanandelectronicconsumers’brochuresforseniors,condominiumowners,andrealestatebrokers.

Condominium Managing Agents Registration–TheCommissioncontinuallyadministersCMAregistrationrequirements,includingreviewofapplicationsforregistra-tion,policies,procedures,appeals,subpoenas,andrequestsforrecordsunderOIP.Itisworkingtowardsdevelopingapaperlessfidelitybondreviewprocess.

40 CondominiumReviewCommitteeReport

Rule Making, Chapter 107–TheCommissioncontinues,inconjunctionwithavolunteercon-sultant,tostudy,evaluate,research,anddevelopruleamendmentsfortheformalrulemakingprocess.Itcontinuestoreceiverecommenda-tionsfromvariousgroupsinthecondominiumcommunity,communityworkshopparticipants,governmentofficialsandorganizationsregard-ingproposerulesforChapter514A,HRS,andChapter514B,HRS.ThisfiscalyeartheCom-missionwillcontinuetoworktowardscomple-tionofformalrulemakingforChapter514B,HRS,throughthepresentationofproposeddraftrulestotheCRCforconsideration,recom-mendations,andapproval;andinitiationoftheformalrulemakingprocessthereaftertoincludereviewsbytheAttorneyGeneral,DCCA/PVLAdministration,SmallBusinessRegulatoryReviewBoard,LegislativeReferenceBureau,BudgetandFinance,DBEDT,andtheGovernor.

Meetings–TheCommission,withsupportfromstaff,continuestoplan,coordinate,andcon-ductmonthlyCRCmeetings.StaffincludesthescheduleofmeetingsandagendasontheCom-mission’swebsiteandcontinuestomaintainmeetingminutesinPDFandsearchableformat.

Government and Legislative Participation and Report–TheCommissioncontinuestoresearch,participate,andreportonrequestsbytheLegislature,includingresolutions,agree-ments,andissuesofmutualconcern.Itwillalsocontinuetoresearch,developanddistributetheAnnualReporttotheLegislatureonCETFprogramsandfundsandimmediatelyuponcompletion,placeontheCommission’swebsite.

Legislative Acts and Resolutions–TheCom-missionwillcontinuetoreview,report,anddevelopsummariesonallrelatedActsandresolutionsproposedinthe2011legislativesessionandimplementrequirementsofdirectlyrelatedActsandresolutions.Chapters514Aand514B,HRS,willcontinuetobeavailableontheCommission’swebsite.

Interactive Participation with Organizations–TheCommission,aswellasstaff,willcontinueactiveparticipationwithlocalorganizationsandgovernmentagenciesfortheexchangeofinformationandconcerns,sharingofeducationandresearchefforts,jointprojectsofmutualconcern,training,etc.,throughattendance,membershipandparticipationatlocalmeetings,includingCAIHawaii,HCAAO,HICCO,CondominiumCouncilofMaui,andtheHawaiiStateBar.Participationinnational,international,andregionalorganizations,suchasPacificRim,CAI,IREM,ARELLOandZenkauren(Japan),willbesubjecttoapplicablebudgetarycon-straintsgiventheState’seconomicchallenges.

Neighbor Island Outreach–TheCommis-sionwillholdCRCmeetingsatneighborislandsitesincollaborationwiththelocalboards,HAR,condominiumorganizations,etc.,subjecttoapplicablebudgetarycon-straintsandtheState’seconomicchallenges.

Condominium Education Trust Fund (CETF) –TheCommissioncontinuestoadministerthefundsforeducationallydefinedpurposes.TheCommissionprepares,main-tains,andreviewsquarterlyandannualfinan-cialstatements,budgetandfinancerecordsforbotheducationalfunds,andadministersfundinvestment.TheCommissionalsoplansandworkswiththeDCCAtoincreasethebudgetforfundingtheCommission’seducationalef-fortsfortheimplementationofChapter514B,HRS,personnelcompensation,andadditionaleducationalprogramssubjecttorevenuepro-jections.

Consumer Education–TheCommissionisworkingtodevelopaconsumereducationprogramaboutinitialprojectsalesandresalestargetingprospectiveandnewpurchasersofcondominiumunits.Itisconsideringapam-phletorbrochureoncondominiumlivingandgovernanceinconsultationwithrealestate

CondominiumReviewCommitteeReport41

professionals,condominiumboardmembers,condominiumunitowners,anddevelopers.Thisprogramisadministratedaspartofafiveyearcondominiumstrategiceducationplanwhichrollsovereachyear.

Rule Making, Chapter 53, and Fees – The Commissioncontinuestomonitor,review,research,andmakerecommendationsonruleamendmentsforfeesthroughcoordinationwiththeLicensingAdministrator.Itisalsostudy-ingexistingandnewcondominiumservicestodetermineappropriatefeesandamendmentstoChapter53,HawaiiAdministrativeRules.

CPR Project Workshop and Meetings–Staffcontinuestoconductannualinformationses-sionsandforumsforcondominiumconsultantsforpurposesoforientationandinformation.Staffalsocontinuestoplanforfacilitatingforumsforrepresentativesofdevelopers,at-torneys,condominiumconsultants,CMAs,andassociationfocusgroupsregardingtheongoingimplementationofChapters514Aand514B,HRS.

Condominium Specialists Office for the Day–Subjecttoapplicablebudgetarycon-straintsandtheState’seconomicchallenges,theCommissionwillcontinuethesetupofCondo-miniumSpecialistsofficeforthedayatRICOneighborislandofficesandorothersitestopro-videthecondominiumcommunity,developers,governmentofficials,consumerpurchasers,andotherrelatedprofessionalsadvice,education,andreferralwithadvancedpublicity,mailouts,andappointments;uponrequest,includetrain-ingofRICOinvestigators.TheCommissionwillcontinuetofinetuneitsVisitingCondomin-iumSpecialistpilotprogram.

Condominium Speakership Program–Sub-jecttoStategovernmentapprovalsandprioritiesincludinganybudgetaryconstraints,theCom-missionhonorsrequeststoprovideaspeaker,resourceperson,orparticipateinafunctionrelatedtocondominiumeducation,Chapters

514Aand514B,HRS,condominiumissues,andcondominiumprojectregistration.Forexample,inFY2011,theCommissioninitiatedaspeakershipprogramwhereincondominiumspecialistswereavailabletocondominiumas-sociationstoanswerquestionsonthesubjectofthecondominiumlaw.

Technology and Website–TheCommissioncontinuestooperateitswebsiteforpublicinter-actionandeducation.Itmaintainsandupdatestheelectronicstorageofmaterialsprovidingthepubliconlineaccesstothedeveloper’spublicreports,condominiumassociationregistrationdataandotherinformation.PursuanttoChapter514B,HRS,theCommissioncontinuestopostandmakethenewdeveloper’spublicreportformandotherrelatedformsformfillableanddownloadable.Theformsareevaluatedandamendedtomeettheimplementationchallengeswhichsurfacedthroughouttheyear.TheCom-missioncontinuestoconsideritslongrangegoalofprovidingallcondominiuminformationavailableonlineandstudyingthefeasibilityofprovidingassociationsacentraldepositoryforallgoverningdocumentsonthewebsite,includ-ingminutesofassociationmeetings.

Case Law Review Program–TheCommissioncontinuestomonitor,collectandreportonstateandfederallawjudgmentsanddecisions,ad-ministrativedecisions,andpoliciesandproce-dures;reportongovernanceandprojectdevel-opmentcases;andevaluatecasesforinclusionintheCondominiumBulletin.

Start-up Kit for New Associations and New CMAs –Staffcontinuestodistributestart-upkitstonewlyregisteredassociationsandCMAs,includingunofficialcopiesofChapters514Aand514B,HRS,administrativerules,budgetandreservesguide,boardofdirectors’andcondominiumowners’guides,andpastCondo-miniumBulletins.

Records Management–Staffcontinuestoevaluate,plan,reorganize,andimplementa

42 CondominiumReviewCommitteeReport

centralized,consistent,userfriendly,com-puterizedglossaryoftheexistingandfutureeducationalmaterials,records,developers’publicreportsandfiles.Theymaintainandupdatethescanningandelectronicstorageofrecordsincludingminutesanddevelop-er’spublicreports.

Cooperative Education, Research, and Administrative Program–SubjecttoapplicablebudgetaryconstraintsandtheState’seconomicchallenges,theCom-missionactivelyparticipatesandsponsorscooperativeeducation,researchandadmin-istrativeprogramsforthoseindividuals,branches,divisions,departmentpersonnel,andtheAttorneyGeneral’sOfficewhichprovidedirectorindirectservicestotheCommissionanditscondominiumeducationfundsandorcondominiumprojectregistra-tionresponsibilities.

Division and Department Program – The CommissionwillcontinuethecoordinationofactivitiesandprogramsofmutualconcernwithPVLD,RICO,andDCCA.ItwillcoordinatepositionsonChapter436B,HRS,Chapter46�,HRS,withChapters514Aand514B,HRSandmonitorinteractionandeffectofotherregulatorylawsandrulesonChapters514Aand514B,HRS.

Staff and Commissioners Development – StaffcontinuestodevelopandtrainstaffandCommissionersforbetteradministrationofthecondominiumeducationandregistrationprograms.SubjecttoapplicablebudgetaryconstraintsandtheState’seconomicchal-lenges,staffandCommissionersparticipateintrainingandeducationalopportunitiesprovidedbyREEA,ARELLO,CAI,CAIHawaii,CLEAR,andotherorganizations.

Condominium Reference Library–StaffmaintainsandupdatestheCommission’swebsitecatalogofallpublicreferencema-terialsandcontinuestoprovidematerialsto

theStateLibrarySystem,especiallyinhighly-concentratedCPRareas,mediationprovideroffices,andattheRealEstateBranchoffice.Wheneverfeasible,theCommissionwillpro-videinformationinconjunctionwithcondomin-iumlaweducationalprograms.Staffcontinuestoresearchandstudythecostofupdatingandmaintainingallcondominiumlibraryreferencematerials.Staffwillalsocontinuetorecom-mendtheinclusionoftheseupdatesaspartofanydevelopedfiveyearstrategiceducationalplanforcondominiumeducation.

FundInformation-RealEstateEducationFund43

ASSETS I. Operations

Cash Personnel $272,209 In State Treasury $285,184 Supplies 3,799 Short term cash investments 1,000,000 Postage 169

Equipment Rentals/Maintenance 784 Total Assets 1,285,184 Machinery and Equipment 5,859

Books 0LIABILITIES AND FUND BALANCE Total Operations $282,821

Liabilities II. Direct Licensee Education Payables 25,529Fund Balance Real Estate Seminars 0 Reserve for Encumbrances 21,290 Neighbor Islands Outreach 886 Unreserved 1,238,365 Annual Report/Quarterly Bulletin 11,868 Balance 1,259,655 Programs 36,625

Total Direct Licensee Education 49,379Total Liabilities and Fund Balance $1,285,184

III. Indirect Licensee Education

Interactive Participation w/Orgs. 7,332 Staff/Commissioners Development 1,532 Dues & Subscriptions 1,890

Revenues Miscellaneous 0 Fees $68,776 Total Indirect Licensee Education 10,754 Interest (includes Recovery Fund) 1,360 Total Revenues 70,137 Total Expenditures and

Encumbrances $342,954Expenditures 321,664 Excess (deficiency) of revenues over expenditures (251,527)Fund Balance Beginning of Year 1,511,182 End of Year $1,259,655

Revenues and ExpendituresFor the Year Ending June 30, 2010

(Unaudited)

Real Estate Education Fund

FY 2010 Expenditures and Encumbrances(Unaudited)

Fund BalanceAs of June 30, 2010

(Unaudited)

44 FundInformation-RealEstateRecoveryFund

ASSETS Case No. Licensee(s) Amount09-01-247K Robert M. Smith $10,402

Cash Property Network Limited In State Treasury $347,619 Short term cash investments 500,000Investment securities (cost) Total Payments $10,402 Total Assets $847,619

LIABILITIES AND FUND BALANCE

Liabilities Payables $4,078 Investment income included "In State Treasury" and Paid to Real Estate Education Fund 0 Total Liabilities 4,078Fund Balance Reserve for encumbrance 0 Unreserved 843,541 Fund Balance 843,541

Total Liabilities and Fund Balance $847,619

Revenues Fees $50,600Expenditures Operations 19,624 Legal Services 19,841 Claims 10,402 Total Expenditures 49,867Excess (deficiency) of revenues over expenditures 733Fund Balance Beginning of Year 842,807 End of Year $843,541

Revenues and ExpendituresFor the Year Ending June 30, 2010

(Unaudited)

Real Estate Recovery Fund

FY 2010 Recovery Fund Payments

Fund BalanceAs of June 30, 2010

(Unaudited)

FundInformation-CondominiumEducationFund45

ASSETS Personnel $316,791

Cash Supplies 277 In State Treasury $350,045 Postage 923 Short term cash investments 175,000 Equipment Rentals/Maintenance 3,524 Total Assets $525,045 Education and Research 59,422

Equipment for Office 0LIABILITIES AND FUND BALANCE Staff/Commissioner Development 340Liabilities Resource Materials 0 Payables $19,344 Dues & Subscriptions 403Fund Balance Miscellaneous 0 Reserve for Encumbrances 15,389 Unreserved 490,312 Fund Balance 505,701 Total Expenditures and Encumbrances $381,678Total Liabilities and Fund Balance $525,045

Revenues REVENUES Fees - Others $62,253 Fees - AOUO Registration $10,235 Application and Renewal Fees $532,109 Interest income 189 Interest $5,894 Total Revenues 72,677Expenditures 366,289 Total Revenues $538,003 Excess (deficiency) of revenues over expenditures (293,611)

EXPENDITURESFund Balance Beginning of Year 799,312 Personnel $405,893 End of Year $505,701 $405,893

Administrative Expenses* $22,750 Condominium Program of Work* $184,761

$207,511

Total Expenditures and Budget Ceiling $613,404

Condominium Education Trust Fund

CONDOMINIUM EDUCATION FUND

(Unaudited)

Fund BalanceAs of June 30, 2010

(Unaudited)FY 2010 Expenditures and Encumbrances

(Unaudited)

Revenues and ExpendituresFor the Year Ending June 30, 2010

Subtotal

Subtotal

FY 2011 Budget (proposed)