Ronnie Margolis, Kauai Realtor®, ABR, RA - On Top of the Aloha Beat

Homeowners who have ADU permits to build additional structures, but have not had the ways or means to act upon it, got a reprieve from the County of Kauai last Friday. Draft Bill 2322, which was passed by a 4-0 vote by the council’s Planning Committee Wednesday, would push the deadline for obtaining building permits for ADUs — formerly referred to as “‘Ohana Units” — from Dec. 15 of this year until the same date in 2014, but the extension would only apply to those who already have a facilities clearance form in hand or submitted, and would not open the process up to any new applicants, council members said.

Mayor Carvalho is expected to sign the bill into law shortly. This five year extension will more than likely according to local sources, be the final extension of this bill.

Read the full story in this week's Garden Island newspaper.

A separate bill that would allow previously existing TVRs (Transient Vacation Rentals) to continue on ag land until the government concludes its Important Ag Lands study was deferred, at the request of the Office of the County Attorney, until Nov. 10.

Many people who travel to Kauai seek a retreat on the North Shore in remotes places like Hanalei and Wainiha. Some tourists have heard that Poipu is the dry sunny side of the island and Poipu is where many vacation rentals and hotels are, so that's where they stay. BUT, what about the West Side? Today's Garden Island paper has an editorial piece that will give you a little insight into Kauai's west side and what we mean when we talk about the west side of Kauai.

Where does west Kaua‘i begin, and what does that geographical reference include?

If you’re talking to Rhoda Libre-Hayton, who chairs the Kaua’i Westside Watershed Council, it encompasses the area referred to as the Kona District of this island.

The trek is definitely “down-home, country-style, and rural-to-the-max” as one can eventually get all the way to Polihale if one stays at sea-level or if one opts to head up for higher ground to the Koke‘e mountains, the crown jewel of Na Pali Coast. In turn, west Kaua‘i is a mixture of honored traditions and innovative transitions as well as being a series of random delights that range from serene to spectacular.

POLIHALE BEACH at Kauai's west end - Awesome ocean and beach

Read the full Kauai west side introspective here

This past Saturday, the Princeville hotel reopened as the St. Regis Hotel of Princeville. According to senior management, 96% of the previous staff has returned and has been receiving training over the last couple of weeks to understand the St. Regis brand, the top of the food chain for the Starwood Hotel Group. Over 1000 people viewed the hotel over the weekend during this soft opening and Kama Aina rates are in effect for local residents.

The hotel even boasted that they Had their first wedding this weekend. The hotel has been redone replacing the old marble floors with coconut wood floors, Koa, and african woods throughout. The formal grand opening of the hotel is scheduled for October 1st this Thursday. I hope to attend and will report back to you with what I learn.

This photo of the St. Regis lobby shows you the coconut wood floors, and solid Koa columns. What amazing woodwork. The background looks rendered to me, but I'll take some photos when i get up there this week.

Today's paper had a thoughtful article by Walter Lewis commenting on the appeals process regarding the valuation of Walter's property on Kauai. It is really quite a dichotomy to be a real estate professional whose success is somewhat tied to the work of appraisers who in this market are more conservative than ever. More often than in prior years contracts are cancelled due to a property not appraising for the contract price. At the same time, the county has raised the assessed value of most condos on the island. And despite the fact that the market has corrected 15-20% in most neighborhoods, island-wide the assessed value is only down 3%.

As Walter Lewis pointed out,
This year was a banner year for the number of appeals by Kaua‘i taxpayers with nearly 1,000 filing exceptions to the amounts of their assessments. Steve Hunt, who is handling over half of the appeals, informed me that in over 15 percent of the cases that he was given, adjustments were made to the assessments, certainly an improvement from the taxpayer’s standpoint from the 2 percent rate that has been applicable in Board of Review hearings.

Read Walter's entire commentary here:

I spent time with a condo owner earlier in the week who did not achieve as good of results as Walter. In her condo complex in Princeville, the value of the land went up significantly. The county boasted that their new system had succeeded in creating a better balance of values between buildings and land. I find it hard to believe that the assessors can raise the value in such a declining market.

Another comment Walter makes:

Property taxes provide over 60 percent of the revenue for our county and are essential for its financing. But fairness to taxpayers is also fundamental and the 2 percent success rate for taxpayers in the Board of Review process is disquieting.

When the county releases its new assessments for 2010, there is certain to be a problem if values actually rise again. The county not only needs to consider it's balance sheet, but also the fiscal wellness of it's citizens too.

This diagram below over simplifies the Short Sale Process. It's important to know that any one of these stages can take weeks to occur. The main point of this post is so that you understand the Short Sale Process and temper your expectations with the knowledge that the timeline is pretty much out of your (and everyone else's) control. A great exercise in surrender, that's what I'd say.

One thing to note. With many banks these days, the loan modification department and short sale department are one and the same. This means the these folks are swamped. As one Home Rescue consultant described it to me, "Imagine your local Costco totally empty. And all there is are desks and piles of paper. That is what some of the bank's short sale/loan mod departments look like.  The grey box in the center of the diagram can take months. It can take months to even get a response from the bank and then if the price offered has to be renegotiated you can go back around in that circcle for quite some time.

Wanna know more about Kauai short sales. Wanna know about great buying opportunities here on Kauai. I can send you a list of all the ofreclosure and short sales. Just drop me a note or check my blogs frequently.