Community Associations refers to the organizations that manage and operate common property for the owners of a condominium, planned community and residential cooperative. In Hawaii, condominiums are governed by Hawaii Revised Statutes Chapter 514B. Condominiums are the most common for of community association in Hawaii. In a condominium, all the members own the common areas jointly while each member owns their own apartment.

Planned Communities are governed by Hawaii Revised Statutes Chapter 421J. In Planned Communities, the association is normally a Nonprofit Corporation and the corporation owns the common property. Each of the members own their lots.

Residential cooperatives are normally governed by Hawaii Revised Statutes Chapter 421I. In a residential cooperative, the cooperative is normally a corporation that owns or leases the Project. Each shareholder has the right to lease or sublease an apartment from the cooperative.

What is Familial Status Discrimination? The Federal Fair Housing Act introduced “familial status discrimination” in 1988. Lawmakers chose to use the term “familial status discrimination” rather than the more easily understood term “discrimination against families with minor children”. Under the Federal Fair Housing Act, it is illegal to discriminate against families with minor children in housing.

Byron R. Hanke and I wrote a book called, Design Review: How Community Associations Maintain Peace & Harmony. AmazonCAI

The book is a short description of the architectural review process in layman’s terms. It covers design review authority, guidelines &procedures, facilitating compliance, and how Federal laws affecting design review. I should mention that the authors do not receive any royalties and the proceeds from the book go to the Community Associations Institute.

Design review is the process by which a community association regulates the overall appearance of the Project. The purpose of design review is to maintain, protect and enhance property values and to regulate changes which are otherwise detrimental to the community.

The technical definition of “leased fee interest” is the Fee Simple interest in real property encumbered by a lease. Many people confuse “leased fee interest” and “fee simple interest”. If you own 100% of the interest in real property, you own the real property in fee simple. The owner of real property in fee simple can do many things with the property including selling the property, mortgaging the property or leasing the property. If the owner of real property in fee simple leases the property on a long term lease, the real property is divided into two parts: (1) leasehold interest; and (2) leased fee interest. The lessee owns the leasehold interest. The leasehold interest is the right to use the property for the term of the lease and the obligation to pay rent during the term. There are other obligations created by the lease. The leased fee interest is the right to receive rent during the lease term and the right to receive the property at the end of the lease term (reversion). The owner of the leased fee interest does not have the present right to use the property. The leased fee interest is less than the fee simple interest.