HAR §17-2015-12. Request for arbitration

(a) When a lessee or group of lessees and a lessor or group of lessors cannot agree on a renegotiated lease rent and the lease meets the requirements for arbitration under chapter 519, HRS, either party may request the corporation to arbitrate the renegotiations of lease rent. The request for arbitration shall include the following: (1} Description of the property including its location and tax map key number; (2) Name, address, and business and home telephone numbers, as appropriate, of each party; (3) Name, address, and business and home telephone numbers, as appropriate, of the representative (if any) for each party; {4) Signature sheet with the signatures of the party initiating the request; (5) Copies of all current lease documents applicable to the requested action, and if applicable, copies of any assignment of lease; and , . 'i , (6) Negotiation documents and a Yiatrative statement on the current status of r~negotiations including the last offers of the parties, if available. (b) The party initiating the request for arbitration shall submit its portion of the advance deposit with the filing of the request for arbitration. The responding party shall pay its share of the advance deposit upon notification from the corporation that the lease meets the criteria for arbitration as outlined ~n sections 519-2 or 519-3, HRS. The advance deposit shall be in the form of a cashier's or certified check or money order in the following amounts: 2015-4 §17-20:.s-:2 (1) $1,200 per party participating in the arbitration proceedings for residential lots; or (2) $1,200 per cooperative housing corporation and lessor participating in the arbitration proceedings. (c) If the request for arbitr~tion~90~$}~ot meet the criteria for arbitration, the initiating party shall be entitled to a refund of the advance deposit and the responding party will not be required to pay its portion of the advance deposit. {d) If the request for arbitration meets the criteria for arbitration as outlined in sections 519-2 or 519-3, HRS, and if the parties have paid the advance deposit and the dispute is settled or withdrawn from arbitration before the contract for arbitration is executed among the parties and the arbitrator, or the contract is executed, but before arbitration proceedings commence, the full amount of each party 1 s advance deposit shall be refunded. (e) If the parties settle or withdraw their dispute from arbitration after the contract has been executed, but before the arbitration proceedings commence, the arbitrator shall be compensated with one-fourth of the per diem rate, the cost of which shall be shared equally by the parti'f:f(f~\ :··!f}1e,,'P;~.,fment shall be deducted from the advance deposits m~de by the parties. The balance of the deposits is to be refunded to the parties in equal amounts. (f) If the parties settle or withdraw their dispute from arbitration any time after the arbitration proceedings commence and before the award is rendered, the arbitrator shall refund all of the unexpended portion of the advance deposit to the parties io equal amounts. (g) Fees to cover the arbitration proceedings shall be set by the corporation at a per diem rate which shall be reviewed in conjunction with updating the master list of arbitrators to determine whether any adjustment in the rate amount is warranted. (h) All projected expenses and fees of the arbitration proceedings shall be borne equally by each 2015-5 2 6 1 t §17-2015-12 of the parties as prescribed in chapter 519, HRS, and this chapter. (i) Failure by either party to pay their respective share of the advance deposit and costs of arbitration proceedings, as may be required, shall result in sanctions as set forth in chapter 519, HRS. (Eff NOV 1:, LU04 ] (Auth: HRS §201G-4) {Imp: HRS §§519-2, 519-3) §17-2015-13 Review of application and determination of eligibility. (a) Not later than fifteen working days after receiving a request for arbitration, the administrator shall review the case to determine whether the lease for residential or cooperative housing corporation property satisfies the criteria outlined in sections 519-2 or 519-3, HRS, and this chapter, and the corporation shall notify each party of the corporation 1 s determination. {b) If the corporation finds that the lease does not meet the criteria for arbitration, the corporation shall take no further action. (c) If the corporation determines that the lease does meet the criteria for arbitration, the corporation shall proceed to designate an arbitrator. [Eff NOY 15 2004 ] (Auth: HRS §201G-4) {Imp: HRS §§519-t; 51~-3) §17-2015-14 Selection and designation of an arbitrator and execution of contract. (a) The corporation may appoint an arbitrator from the corporation's staff or may appoint a designee from the private sector to arbitrate the renegotiation of lease rent terms. (b} The corporation shall establish a master list of all persons responding to solicitations for qualification statements who meet the requirements for an arbitrator, as set forth in subsection (c) to arbitrate renegotiation of lease rent cases. Additionally, the corporation shall update its master 2015-6 list of qualified arbitrators each year or at any other time deemed necessary by the corporation. §17-20:s-:...; (c) The requirements for a person to act as an arbitrator to arbitrate renegotiation of lease rent cases shall be as follows: {1) A real estate appraiser who is certified by the State of Hawaii, with a minimum of three years of experience; and (2) At least one of the following: (A) Successful completion of training in arbitration rules and procedures (conducted or sanctioned by the American Arbitration Association; (B) Admission to the panel of the American Arbitration Association; or (C} Performance as an arbitrator in rendering a decision in at least three real property arbitration cases; or (3) A person mutually selected by both parties. (d) If- \the; CV>rr,bration decides to designate an arbitrator from the private sector, the corporation shall furnish each party with an identical list of up to seven qualified arbitrators from the corporation's master list of qualified arbitrators, and each party shall have the right to peremptorily cross off one name. Each party shall then rank the remaining names on the list in the order of preference and shall return the list to the corporation within ten days from the date of the referral for further consideration. The corporation shall assume that each party concurs in the selection of any named arbitrator remaining on their respective lists. (e) The corporation shall review both lists to determine if there is a mutual choice by preference of the proposed arbitrators remaining on the lists. If there is a named arbitrator of mutual choice, that arbitrator shall be selected and appointed by the administrator. · · · • . . . . , / ~- . •l (f} If for some ie~son, the preferred, mutual choice arbitrator is unable to accept the appointment, the corporation shall select and appoint the next mutually ranked arbitrator by preference. If there 2015-7 ·2-6 l 1 2 6 ~\ \ §17-2015-14· is no other mutually ranked choice by preference, the corporation shall make a selection and appointment from the remaining names on the list provided to the parties, and if for any reason an appointment cannot be made from those arbitrators remaining on the list provided to the parties, the corporation may appoint an arbitrator without the referral of an additional list of arbitrators to either party. (g) Within ten calendar days after the selection and appointment of an arbitrator by the administrator, the corporation shall: (1) Notify each party and arbitrator; and (2) Request a written disclosure statement from the selected arbitrator. (h) If, after review of the arbitrator's disclosure statement, the parties have no objections to the selection based on the disclosure statement, the corporation shall prepare and forward the arbitration services contract to each farti and the arbitrator for execution. [Eff NOV 5 2u04 J (Auth: HRS §201G-4) (Imp: HRS §§519-2, 519-3)