Building Management Hawaii - (Page 51)
Trapped in the Web of Act 326
HOA proactivity urged amid flurry of new regulations
BY BRUCE HOWE
R
ecent media coverage of short-term
rentals in residential areas renews
the interest in Act 326-Transient
Accommodations. The primary
purpose of this law, which became
effective on July 1, 2012, is to enforce
the obligation of persons who use
their apartments for transient vacation
purposes to pay taxes to the state, but
it also contains provisions requiring
owners to report certain information to
the association and for the association
to report that information to the state
Department of Taxation through the
department's website.
The Community Associations
Institute (CAI) opposed Act 326
because it forces associations, whether
condominium, coop or community, to
do the government's job and because
its requirements are largely redundant
since operators were already required
to report the same information to the
tax department.
The act not only addresses the
obligation of operators of transient
accommodations to provide
information to the association, but it
also requires operators of transient
accommodations to do other things,
such as to:
1) designate a local contact on the
same island where the transient
accommodation is located;
2) include the name and phone
number of the local contact for the
transient accommodation in any
transient accommodation contract
or written rental agreement; and
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association must be notified of the
change within 60 calendar days after
the change and must report that change
to the department within 60 days.
Act 326 provides that any
person who willfully fails to supply
the above information shall be
subject to the penalties, other than
imprisonment, provided under HRS,
Section 231-35 (i.e., fines against
individuals of up to $25,000 and
fines against corporations, including
Associations, of up to $100,000).
All associations should have
made their initial reports in a timely
manner prior to May 1, 2014. They
BMH
February-March 2015
51
CodEs & rEgulAtions
3) prominently post the name and
phone number of the local contact
in the transient accommodation.
The act also provides that the
"registration identification number
shall be provided on a website or
by online link and displayed in all
advertisements and solicitations
on websites regarding transient
accommodations for which the
registration number is issued."
If a unit is used for transient
accommodations as defined in 326,
the owner and/or the operator of
the transient accommodation must
provide certain information to
the association, which, in turn, is
required to provide information to
the department by Dec. 31 of each
year. The reporting requirements
were delayed several times to allow
the department to get its electronic
reporting system up and operating,
but all initial reports were to
have been filed by April 30, 2014.
Subsequently, if there is any change
in the information provided, the
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Table of Contents for the Digital Edition of Building Management Hawaii
Editor’s Note: Energy Management
Insider’s Guide to Picking a Security Company for Your Property
Industry News
Dealing with Graffiti and Glass Damage
Hawaii’s High-Tech Roofing Products
Building and Management Expo Set
Installing New & Improved Windows
Window Film Cuts Glare, Energy Bills
Reassessing Hurricane Preparedness
An ESA Can Deliver Peace of Mind
Checking a Building’s Energy Score
Managing PV Energy Consumption
The Ultimate Energy-Efficient Building
What to Know About Chiller Plants
New Trends Emerge in HVAC Systems
Walk-throughs Vital to Engineers
Trapped in the Web of Act 326
Faces: The IREM Banquet
Building Management Hawaii
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