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 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

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