If you’ve considered living in a condominium in Maui, you may have seen the initials “CPR.” They’re common here, but not everyone understands what they’re all about.
A condo is similar to an apartment but has more in common with a single-family home. Condos were created to help ease the housing crunch in the state and on each of the Islands and make housing more affordable. Buyers can purchase just a portion rather than an entire piece of land. Additionally, condos are sold as homes and are treated as such, even if they are used as rental property by the owner.
Maui Condominium Property Regime:What It Means
Hawaii was the first state to embrace the concept of multiple owner condominium property. Originally called Horizontal Property Regimes, this allowed property owners to sell space above their land, enabling high-rise condo buildings to be built. In recent years, “condo” has also come to describe property owners selling pieces of their land and increasing the living space with additional buildings.
Each unit in the collective CPR will have a separate tax assessment, so the tax rate for the whole parcel will probably increase. The homeowner who lives on the property can only claim a tax exemption for their individual unit. However, if the homeowner owns more than one unit on the property, they will be assessed at a higher rate.
In Maui, a “condominium” is a type of ownership, not a building or structure. It’s also not the same as subdividing a property and isn’t always limited to developers. Over the last 15 years, homeowners have been “going condo,” turning their residential property into profitable housing options.
A condominium isn’t always a residential property, but it can be a single-family home with an ohana or two or it can be townhomes or other multi-family residences. A condo can also be commercial property, such as an office park or retail “strip mall,” agricultural property, boat slips, or commercial warehouses. The principle is the same: one piece of property with two or more units.
Owners and lessees of a specific property create CPR when they execute and file the declaration, bylaws, condominium map (including floor plans), and master deed or lease with the Bureau of Conveyance or Land Court. The State of Hawaii offers a thorough primer on its website.
There are, as always rules and regulations that both homeowners and developers must follow in order to develop a condo property or turn an existing property into a condo. However, creating a CPR will not determine the types of buildings built, or allow you to circumvent local rules and laws governing building, zoning, and usage restrictions already in place. Additional information is available here.
Homeowners should check with their homeowner’s association as well as local rules before proceeding. You should also discuss your plans with a Maui real estate lawyer who specializes in CPRs to ensure that all laws are followed.
Not A Subdivision
Turning a property into a condo property regime is not the same as a subdivision, which is a single house on an individually owned parcel of land in a neighborhood.
Multiple living spaces on a piece of property will generally involve common areas such as sidewalks, driveways, shared water, etc. This also means that separate water meters are not required.
While the condominium process falls under the State of Hawaii’s real estate division of Consumer Affairs, subdivisions are under the auspices of Maui County. The office that handles condominiums can be reached at the office at (808) 586-2643 to answer your questions.
Plans To Convert To Condominium? Call Pro Draft Today
When you’re ready to begin the process of turning your property into a condominium in Maui, Pro Draft is ready to help with architecture, drawings, blueprints, permits, and to answer all of your questions before the first day of construction.
We work with property owners throughout Maui who decide to subdivide and begin their Condominium Property Regime. We understand the process and what’s involved so we can help make it easier for you.