What kind of club is Milolii Beach Club Association II?
It is not a “club”. It is a homeowner’s association. The word “club” is part of the association name.

What is a homeowner’s association?
It is a non-profit corporation registered with the State and managed by a duly elected Board of
Directors. Its purpose is to maintain all common areas and to govern the community in accordance
with the provisions of the legal documents; the Declaration of Covenants and Restrictions, Bylaws
and Articles of Incorporation. The governing legal documents for the association may be viewed
online at our website: www.milolii.org. The corporation is financially supported by all members of the
homeowner’s association. Membership is both automatic and mandatory.

What is the Declaration of Covenants and Restrictions?
The Declaration of Covenants and Restrictions is the governing legal document that set up the
guidelines for the operation of our subdivision as a non-profit corporation. The Declaration of
Covenants and Restrictions was recorded in the Bureau of Conveyances in 1967 and is referenced
in the deed to your property. The Declaration of Covenants and Restrictions for the association
may be viewed online at our website: www.milolii.org.

What are the Bylaws?
The Bylaws are the guidelines for the operation of the non-profit corporation. The Bylaws define the
duties of the various offices of the Board of Directors, the membership voting rights, required
meetings and notices of meetings, and the principal office of the Association, as well as other
specific items that are necessary to run the Association as a business. The Bylaws for the
association may be viewed online at our website: www.milolii.org.

What is the Board of Directors?
The Homeowner’s Association is a corporation and therefore a governing body that is required to
oversee its business. The Board of Directors are elected by the homeowners, or as otherwise
specified in the Bylaws. The limitations and restrictions of the powers of the Board of Directors are
outlined in the Association governing documents found on our website.

Are there any other rules?
Most associations have developed Rules and Regulations as provided for in the Declaration and
adopted by the Board of Directors. Rules are established to provide direction to the homeowners
for common courtesies with regard to parking, abandoned vehicles, pets, pools and generator use
hours, etc. Rules and guidelines are set up to maintain the aesthetic value of and integrity of the
community on behalf of all owners, and hopefully protect the market value of your investment as
well. Violations of rules may result in action by the Board of Directors and, if not corrected, a fine.
The Board is presently drafting Rules and Regulations for our subdivision.

Since we have not yet adopted Rules and Regulations for our subdivision, what can I do
if I am having a problem with a neighbor?
Until Rules and Regulations are adopted, the Board does not have the responsibility or authority to
intervene on your behalf. However, if residents cannot resolve a situation between themselves, you
may contact the association manager at (808) 328-0481 or miloliimanager@yahoo.com who will
direct you to the proper agency.

Do we have a design committee?
No.

Why do owners have to pay annual assessments?
Upkeep of the 7.5 miles of private roads and common areas in our subdivision are the financial
responsibility of the Association. The Association is comprised of all property owners. Therefore,
annual assessments are required to fund these costs and others necessary to run the Association.

How often are annual assessments raised?
Under our present Declaration, the membership may vote to raise the annual assessments every
three (3) years. If raised, the assessment remains at that amount for the next three (3) years. At the
2008 annual meeting the annual assessments were raised to $200 per year per property effective
beginning 2009 through 2011. The annual assessment will be up for review at the 2011 annual
meeting.

My lot is undeveloped? Why do I have to pay the same amount as those with homes on
their property? I do not live in Hawaii and have not visited my property for years.
The Association’s governing documents do not differentiate between those owners who choose to
develop their property and those owners who do not and live elsewhere. The annual assessment is
the same for each owner.

I heard some lots are exempt from annual assessments?
That is incorrect. All lots in the subdivision are subject to and a part of the Association. Please refer
to your deed. If you wish more information on this subject, please go the website www.milolii.org and
see the detailed explanation included in the 2008 annual letter under “Angie’s Page”.

What happens if I do not pay my assessment?
Payment of the common area repair costs and operational budget are dependent upon timely
receipt of the assessments due from each property owner. If payment is not received by the due
date, in this case March 1st of each year, a $10 late charge as well as 12% interest per annum will
begin to accrue. Further collection procedures are in place (i.e, recording a lien against the
property as well as filing a small claims court action). If you are having financial difficulty, please
contact the association manager at (808) 328-0481 or miloliimanager@yahoo.com for payment
arrangements.

Does the Association have general liability insurance? If so, why?
Yes. The Association has 7.5 miles of private roads and a 6 acre park parcel. Unless we restrict
public use of our 7.5 miles of private roads, which is not practical, if a non-owner
was somehow injured on our private roads, the Association as a whole could have legal exposure.
Maintaining general liability insurance is an essential part of managing this Association. Please
note, this general liability insurance does not cover individual member’s property. It is strongly
suggested that members obtain an individual insurance policy for their property.

Does the Association have regular meetings? If so, are all members invited?
Yes we have regular meetings. All members are invited to participate. A calendar indicating meeting
dates, times and location is sent out each year with the annual packet. You may also view the
calendar on the website.

Where can I read minutes from previous meetings?
Minutes are posted on the website on the page entitled “Documents”.

Does the association have annual meetings?
Yes we do. The meeting is held usually in the first quarter of each year depending on when we
reach a quorum.

What is a quorum?
The definition of a quorum is: the minimum number of members who must be present or by proxy at
a meeting for association business to be legally conducted. In order for our Association to hold its
annual meeting with one notice, we must receive 549 proxies back prior to the scheduled meeting.
A quorum is critical for the Association to conduct its annual business for the next fiscal year. If
members do not send back their proxies a second or third mailing is sometimes necessary which is
very costly to the Association.

Does the association have a neighborhood watch program?
Yes we do. If you are interested in being a part of the neighborhood watch, please contact the
association manager at (808) 328-0481 or miloliimanager@yahoo.com.

If I want to serve on a committee, how do I find out what committees are active and how I
can get involved?
Please contact association manager at (808) 328-0481 or miloliimanager@yahoo.com for
information.

Where does the subdivision begin and what are the lot sizes?
The Milolii Beach Lots subdivision begins approximately 1.3 miles down Milolii Road at Maunaloa
Avenue. Milolii Road is a county maintained road. Properties located on Milolii Road past Maunaloa
Avenue are also included in our subdivision. The properties are all approximately one (1) acre.
Driving down Milolii Road towards the ocean you will come to Ewalu Street on your right. These
properties near the ocean (which we affectionately refer to as “the flats”) are all included in the
subdivision. The properties near the ocean range from 11,000 sq. ft. to 7,500 sq. ft. Our
subdivision has 915 member owned properties, 7.5 miles of private roads and a currently
undeveloped 5.987 acre park parcel.

If my property abuts to Milolii Road, a county maintained road, why do I have to pay
annual assessments to maintain the 7.5 miles private roads? I do not use those 7.5 miles
of private roads or the park.
The Declaration and your deed states that each lot has an easement right over all of the Common
Property, which is defined as the streets and the parking areas and any other property devoted to
the common use and enjoyment of the owners. This easement right means owning a lot in our
subdivision gives owners a right to use the common areas. It also means the lots are subject to the
Declaration whether or not a member chooses to make use of the common properties. In our case,
the 7.5 miles of private roadways and park are the common elements of the Association and each
of the owners has an "easement" over the roadways for use, whether or not the specific lot has
direct access to the roadway and whether or not an owner chooses to utilize the road. The 7.5
miles of private roads are the common elements owned by the Association, and as such the repairs
need to be funded by all of the lot owners. Under a strict interpretation of the community
documents, the Association has the obligation to maintain and repair the common roadways. The
lot owners are liable to pay, through its Association, pursuant to the Declaration, an annual fee and
a capital improvements fee for improvements to the "Common Properties". These Common
Properties include the "streets" which are intended for the common use and enjoyment. Each of the
lot owners, i.e. members of the Association, pursuant to Article IV of the Declaration has an
easement for the enjoyment in and of the Common Properties, which easement, under the
Declaration, shall be appurtenant to and shall pass title with and to "every lot". There are no
exceptions as to whether or not an owner gets the easements; all lots get the easements pursuant
to the recorded instruments. There are no exceptions, either, to the requirements, duties and
obligations or the rights of use and enjoyment for the 7.5 miles of private roadways within the
subdivision.

What is the zoning in Milolii Beach Lots Subdivision?
Milolii Beach Lots Subdivision is zoned Agricultural.

Will all of the 7.5 miles of private roads ever get paved?
Certainly. We currently have a road committee who evaluates the 7.5 miles of private roads every
year and makes paving recommendations to the Board based on critical need. The main criteria the
road committee looks at is whether emergency equipment can reach a member’s property should
the need arise. The current philosophy is to initially pave all critical components then systematically
overlay all roads with new, hot asphalt. Additionally, the Board is looking at other funding
possibilities which could result in all of the roads being paved at once.

How can I find out what is going on in our subdivision?
The best way is to attend meetings? However, if you live out of the area, the minutes of the
meetings are posted on the website: www.milolii.org. Comprehensive informational packets are
mailed out following each Annual Meeting to all members as well.

I do not know where my lot is, but I have the TMK. Can you help me locate it on a map?
Of course. Please contact the association manager at (808) 328-0481 or miloliimanager@yahoo.
com. There is also a link from our website to the County website where you can access the TMK
maps. Please see under the “Resource Page” State and County Offices/Maps-TMK Maps.

How do I get a mailbox? How can I get deliveries at my property?
The US postal service does not deliver to individual lots in our subdivision. There are some places
available at the top of Milolii Road where a box could be placed. Some residents have combined
efforts to purchase a large locking mailbox which accommodates sixteen (16) residents. If you have
interest in collectively purchasing another locking cluster mailbox, for assistance please contact
association manager at (808) 328-0481 or miloliimanager@yahoo.com. You may also rent a post
office box from the surrounding community post offices, (i.e. Ocean View, Honaunau, Captain Cook
and Kealakekua). In order to receive home deliveries from UPS and/or Federal Express, you will
need to contact the County Planning Department at (808) 961-8288 with your TMK (Tax Map Key)
number to be assigned a physical address. Please note, you cannot be assigned a “physical”
address until you pull a permit for construction.

Are there any property tax breaks for residents of Hawaii?
The County of Hawaii does offer property tax breaks to residents if you meet the criteria. Please
contact the tax department for the County of Hawaii @ (808) 327-3540 to see if you qualify.

I want to sell my property? Can you tell me how much it is worth?
We do not have that information. However, on the association’s website: www.milolii.org there is a
page called “Resources” where you will find links to some real estate companies who may be able
to assist you.

I heard coqui frogs on my property? What should I do?
The coqui frog infestation in some areas of this island is an out of hand problem. The area where
our subdivision is located typically is quite dry so we have been spared. However occasionally in
the upper lots, we will hear a coqui frog. The Association owns a sprayer and also has chemicals
which members are welcomed to use. Contact the association manager at (808) 328-0481 or
miloliimanager@yahoo.com for further information.
FREQUENTLY ASKED QUESTIONS