FREQUENTLY ASKED QUESTIONS



Question:    What kind of club is Milolii Beach Club Association II?

Answer:    It is not a “club”.  It is a homeowner’s association.  The word “club” is part of the association name.

Question:    What is a homeowner’s association?

Answer:    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.

Question:    What is the Declaration of Covenants and Restrictions?

Answer:    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.  

Question:    What are the Bylaws?

Answer:    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.

Question:    What is the Board of Directors?

Answer:    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.

Question:    Are there any other rules?

Answer:    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 if not corrected.  The Board adopted Rules and Regulations for our subdivision in March of 2018.

Question:    What can I do if I am having a problem with a neighbor?

Answer:    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.  

Question:    Do we have a design committee?

Answer:    No.

Question:    Why do owners have to pay annual assessments?

Answer:    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.  

Question:    How often are annual assessments raised?

Answer:    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 2011 annual meeting the annual assessments were raised to $275 per property.  However, the $75 increase will take effect in $25 increments over the three year period beginning 2012 through 2014 ($225 due March 1, 2012, $250 due March 1, 2013 and $275 due March 1, 2014).  At the 2014 Annual Meeting in order to complete the road and park projects the members voted to raise the dues to $300 to take effect for 2015-2017.  At the 2017 Annual Meeting the membership voted for the annual assessment to remain at $300 for years 2018, 2019 and 2020.

Question:    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.

Answer:    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 property.  

Question:    I heard some lots are exempt from annual assessments?

Answer:    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 detailed information on this subject, please call the manager and it will be provided.

Question:    What happens if I do not pay my assessment?

Answer:    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 a court action is filed and we are successful obtaining a judgment, your property could be sold to satisfy the judgment. If you are having financial difficulty, please contact the association manager at (808) 328-0481 or miloliimanager@yahoo.com for payment arrangements.  

Question:    Does the Association have general liability insurance?  If so, why?

Answer:    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 general commercial liability insurance does not cover individual member’s property.  It is strongly suggested that members obtain an individual insurance policy for their property.

Question:    Does the Association have an annual meeting?  If so, are all members invited?

Answer:    Yes we have an annual meeting scheduled in the first quarter of each year depending on when we reach a quorum.  All members are invited to participate.  The meeting date, time and location are sent out each year with the annual packet.  You may also view the date on the website.  

Question:    Where can I read annual minutes from previous meetings?

Answer:   Minutes are posted on the website on a secure page for members only.  Please go to the "Home Page".  You will find a tab on the left side of the page where you may register for access to meeting minutes.


Question:    What is a quorum?

Answer:    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.

Question:    Does the association have a neighborhood watch program?

Answer:    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.  

Question:    If I want to serve on a committee, how do I find out what committees are active and how I can get involved?

Answer:    Please contact association manager at (808) 328-0481 or miloliimanager@yahoo.com for information.

Question:    Where does the subdivision begin and what are the lot sizes?

Answer:    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 5.987 acre park parcel.
 
Question:    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.

Answer:    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.

Question:    What is the zoning in Milolii Beach Lots Subdivision?

Answer:    Milolii Beach Lots Subdivision is zoned Agricultural.

Question:    Will all of the 7.5 miles of private roads ever get paved?

Answer:    The Board evaluates the 7.5 miles of private roads every year and was based on critical need first – then following a master plan.  The main criteria the Board looked at is whether emergency equipment can reach a member’s property should the need arise.  The philosophy was to initially pave all critical components then systematically overlay all roads with new, hot asphalt.  The board is pleased to announce that in summer of 2018all roads in the subdivision will be paved at least 12' wide.  Plans to widen egress and ingress roads will continue in 2018.

Question:    How can I find out what is going on in our subdivision?

Answer:    The best way is to attend the annual meeting?  However, if you live out of the area, the minutes of the annual and other meetings are posted on the website: www.milolii.org.  Comprehensive informational packets are mailed out following each Annual Meeting to all members as well.  The Board encourages members to read all materials forwarded. 

Question:    I do not know where my lot is in the subdivision.  Can you help me locate it on a map?

Answer:    Of course.  You will find all maps to our subdivision at www.milolii.org.  Please click on the “Maps Tab” on the Home Page.  You will need your TMK number or Lot number to locate your particular parcel. If you do not know your TMK or Lot, please contact miloliimanager@yahoo.com or (808) 328-0481 for assistance.  You will find instructions how to locate your property under the “Map Tab”.

Question:    How do I get a mailbox?  How can I get deliveries at my property?

Answer:    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 or 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. 

Question:    Are there any property tax breaks for residents of Hawaii?

Answer:    The County of Hawaii does offer property tax breaks to residents if you meet the various criteria.  Please contact the tax department for the County of Hawaii @ (808) 323-4880 to see if you qualify.

Question:    I want to sell my property?  Can you tell me how much it is worth?

Answer:    We do not have that information.  However, on the County of Hawaii Tax site you can find sales data for our community and commmunities nearby.  If need help locating the information, feel free to contact the manager at 328-0481.

Question:    I heard coqui frogs on my property?  What should I do?
       
Answer:    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.