HAR §16-119.4-2. chapter 205, HRS, including section 205-4

6, HRS, where applicable. Any submitted promotional plan may include a general statement to the effect that the structures and uses are those as allowed by the county when accompanied by a listing of such structures and uses in compliance with all applicable state and county land use laws and chapter 205, HRS, including section 205- 4.6, HRS, where applicable; (2) A statement that the project complies with chapter 205, HRS, including section 205-4.6, HRS, where applicable; (3) A verified statement as required by section 514B-52(b), HRS, signed by a county official no more than nine months immediately prior to the developer's submission of the project registration application and developer's public report; (4) A sample copy of any applicable farm dwelling agreement, except for spatial units, unless exempted by other law; and (5) Such other documents and information as required by the commission. (f) The documents and information required by this section shall be submitted to the commission organized, bound, tabbed, and typed in not less than ten-point type, one-point lead, and with a table of contents and listing of all exhibits. [Eff MAR 26 2026 ] (Auth: HRS §§514B-6, 514B-61) (Imp: HRS §§467-7, 514B-3, 514B-5, 514B-32, 514B 33, 514B-34, 514B-45, 514B-51, 514B-52, 514B-54, 514B-57 (A), 514B-81, 514B-83, 514B-84, 514B-86, 514B-87, 514B-89, 514B-90, 514B-91, 514B-92, 514B-93, 514B-96, 514B-98, 514B-108, 514B-134) §16-119.4-2 Content of developer's public report. (a) The contents of a developer's public report and exhibits and any amendments thereto prepared by a developer, developer's agent, or prose 119.4-9 §16-119.4-2 developer shall be written in plain language at a level to be easily understood by a prospective purchaser or purchaser no higher than a twelfth-grade reading level. A developer shall use the Flesch Reading Ease Formula or any generally accepted reading ease readability formula to determine the readability level of the contents of its developer's public report and exhibits and any amendments. (b) A developer shall include in its developer's public report and any amendments thereto, the information, disclosures, documents, and exhibits as required by this section, chapter 514B, HRS, chapters 16-119.1 through 16-119.8, and any commission prescribed form and checklist. The commission prescribed form or checklist and any amendments thereto shall be made available online at the commission's webpage. At minimum, a developer's public report and any amendments thereto shall include the following: (1) The documents, disclosures, and information concerning the condominium property regime or project as submitted to the commission pursuant to section 16-119.4-1 herein; (2) The documents and information concerning the condominium property regime or project as required by sections 514B-54, 514B-83, and 514B-84, HRS, as applicable, this section, as otherwise may be specified by chapter 514B, HRS, chapters 16-119.1 through 16-119.8, and the commission; (3) Any material facts, pertinent facts, material changes, omitted information, documents, and disclosures relating to the condominium property regime or project, including any updates; (4) All information, documents, and disclosures required to be included under the heading "Special Attention - Significant Matters" on the commission prescribed form of the developer's public report as may be amended in accordance with subsection (e). "Special Attention - Significant Matters" includes 119.4-10 r u §16-119.4-2 any information that may impact the condominium property regime or project, unit, or both, or is required to be included in the developer's public report that should be conspicuously brought to the attention of the prospective purchaser or purchaser. "Special Attention - Significant Matters" shall be conspicuously disclosed on the first few pages ~f the developer's public report, and may be fully explained or discussed elsewhere in the commission approved developer's public report form; and (5) All other information, documents, and disclosures which the developer deems necessary to include in the developer's public report. (c) The commission may establish a list of all information, documents, and disclosures required to be included in the developer's public report under the heading "Special Attention - Significant Matters". The developer shall provide the required information, documents, and disclosures by subject headings together with a summary of the disclosure, and shall provide, if any, an expanded written explanation of the disclosures elsewhere in the developer's public report referenced by page and paragraph number next to the subject headings. Any subject heading used by the developer shall provide a prospective purchaser or purchaser adequate notice of the nature of the information, documents, and disclosures. (d) The commission's list of all information, documents, and disclosures required to be included in the developer's public report that are deemed "Special Attention - Significant Matters" shall not be construed to be an exhaustive list, constitute the commission's approval or disapproval of the condominium property regime or project, or constitute the commission's representation that all material facts or all material or pertinent changes or both concerning the condominium property regime or the project have been fully or adequately and accurately disclosed. The list does not relieve a developer from 119.4-11 3 6 2 6 §16-119.4-2 the developer's responsibility to disclose material facts, material and pertinent changes, and other relevant information in the developer's application for registering the condominium project and in preparing the developer's public report and any amendments thereto. (e) At a regularly scheduled monthly meeting of the commission or its standing subcommittee meeting, the commission may approve or amend the inclusion of any additional information, documents, and disclosures that a developer shall include or disclose in the "Special Attention - Significant Matters" page of the developer's public report. (f) A "phased project" means any project that contemplates an incremental plan of development or where two or more projects are intended to be completed at different times. Each phase shall be separately registered with the commission. A "phasing plan" means a description of and schedule for developing the project in increments or phases. The contents of a developer's public report for a phased project shall include, but are not limited to, the following disclosures: (1) Whether the phases will be developed on: (A) One subdivided lot; or (B) Separately subdivided lots; (2) Whether the phasing plan contemplates: (A) One declaration covering all phases within a project or a separate declaration for each phase and subsequent merger of the phases; and (B) Any reduction of units for any phase and the addition of units to another phase. (3) Whether the merger of the phases will be: (A) An ownership merger where the common interests of all units are adjusted as each phase is added and the common facilities of the merged phases are administered by one association of unit owners; or 119.4-12 §16-119.4-2 (B) An administrative merger where the common interests of units are not adjusted as phases are merged, and a formula is provided for sharing of certain common expenses in each of the merged phases and one association of unit owners is created to administer the common elements of the merged phases; (4) Whether an adjustment will be made to each unit owner's common interest, common profits and expenses, and replacement reserves; (5) Whether there will be an association of unit owners for each phase or one master association of unit owners for the whole project or both, and if there will be more than one association of unit owners, how each will function in relation to each other; (6) Whether there will be a master planned community association for the subdivision of which the project is part and the unit owners' rights and obligations; (7) Whether site work and improvements for the project will be undertaken in their entirety at the onset of construction of the project or in phases, and whether improvements to be built in future phases will be an integral part of improvements built in earlier phases; (8) Whether any utilities, facilities, or amenities that will be built in future phases will also be for the benefit of unit owners in earlier phases, and what assurances, if any, the developer will provide for the completion of such utilities, facilities, and amenities; (9) For a phased project on a single subdivided lot, the way future expenses for developing the land and improvements will be allocated and paid; and 119.4-13 3 6 2 6 §16-119.4-2 (10) Whether the developer reserves the right to add, delete, reconfigure, or redesign future phases, the time limitations that apply to the developer's exercise of such reservation, and the anticipated impact on unit owners when the developer exercises such reservation. (g) The contents of a developer's public report for a conversion project shall include, but are not limited to, the following disclosures: (1) Building limitations, restrictions, conditions on rebuilding, and non-conforming structures or uses; (2) County, state, and federal permitting requirements, if any, including but not limited to, water use agreements, conditional use permits, existing use permits, development agreements, coastal zone management permits, and private agreements; (3) All information submitted with the application as required by section 16-119.4- l(d) and all disclosures relating thereto; and (4) And any other applicable disclosures and information. (h) The contents of a developer's public report for a project in an agricultural district shall include, but are not limited to, the following disclosures: (1) A specific statement describing how the structures and uses anticipated by the developer's promotional plan comply with all applicable state and county land use laws including section 205-4.6, HRS; (2) All information submitted with the application as required by section 16-119.4- l(f) and all disclosures relating thereto; and (3) Any other applicable disclosures and information. 119.4-14 3 6 2 6 §16-119.4-2 (i) A developer's public report shall also include information about whether a reserve study was done in accordance with section 514B-148, HRS, and chapters 16-119.1 through 16-119.8 in arriving at the estimate of reserve funds necessary to maintain the condominium project. This information shall be specifically included on a developer prepared exhibit of estimates of initial maintenance fees and estimates of maintenance fee disbursements on a commission approved form. (j) Persons who prepare the developer's public report for a project, including the attorney for the developer and any agent of the developer who is a non- attorney for the developer, shall include in the developer's public report the person's name and identity as an "agent". A developer and a developer's agent shall also provide a business address, business electronic mail address or a designated public electronic mail address, and business phone number. A prose developer who prepares without the help of a Hawaii-licensed attorney or designated agent the registration application, information, and documents for registering a condominium project pursuant to chapter 514B, HRS, and chapters 16-119.1 through 16-119.8, shall also provide the information required by chapters 16-119.1 through 16-119.8 and the commission and identify the developer as a prose developer. (k) An exhibit of a summary of a sample sales contract and an escrow agreement shall at minimum include provisions and conditions consistent with the requirements of sections 514B-45, 514B-86, 514B-88, 514B-90, 514B-91, 514B-92, 514B-93, and 514B-98, HRS, and other applicable requirements of chapter 514B, HRS. (1) If the developer elects to use a completion deadline connected to the expiration of any time after the sales contract becomes binding pursuant to section 514B-89, HRS, the developer shall notify purchasers in writing of a date certain for the completion date within 30 days of the expiration of any time when the sales contract becomes binding. 119.4-15 3626_-' §16-119.4-2 (m) Where applicable, all the following documents shall be listed in the developer's public report as documents a prospective purchaser or purchaser should review before signing the sales contract: (1) Farm dwelling agreement; (2) Subdivision covenants, conditions, and restrictions; (3) State and county water use agreements; (4) Copies of any comments and documents from any state, county, or federal government agency about the project; (5) Master association declaration and bylaws; (6) Co-tenancy agreements; (7) Agricultural dedication; (8) Shoreline management agreement; (9) Special management area permit; (10) Conditional use permit; (11) License agreements, such as trademark or branding agreements; and (12) Other related agreements the developer or commission deem necessary. The commission may request that the developer include in the developer's public report a summary of any of the related documents and any other requirements of chapter 514B, HRS, chapters 16-119.1 through 16-119.8, and the commission. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: §§514B-45, 514B-57(A), 514B-81, 514B-83, 514B-84, 514B-86, 514B-88, 514B-89, 514B-90, 514B-91, 514B-92, 514B-93, 514B-98, 514B-148) §16-119.4-3 Delivery of developer's public report. Items specified in section 514B- 86(a) (1) (A) (ii), HRS, shall be deemed delivered concurrently and separately provided to a prospective purchaser or purchaser with the developer's public report on the day printed copies are delivered to the prospective purchaser or purchaser or the day the developer makes a download of the required documents available to a prospective purchaser or purchaser who 119.4-16 §16-119.4-4 has elected in a separate writing to receive the required documents other than as printed copies as provided in section 514B-86 (a) (1) (A) (ii), HRS. [Eff MAR 2 6 2026 ] (Auth: HRS §514B-61) (Imp: HRS §514B-86) §16-119.4-4 Use of purchaser deposits to pay project costs. (a) "Cost of construction", "construction costs", "costs that are required to be paid in order to complete the project", and "other incidental expenses of the project" include those costs enumerated in sections 514B-92 and 514B-93, HRS, and include permitting fees, personnel costs, professional services costs, and any increases in such c6sts that are required to be paid or anticipated to be paid to complete the construction of the project. Any "cost of construction", "construction costs", and "costs that are required to be paid to complete the project" that have been paid are excluded from "costs". The project's architect or engineer and general contractor shall respectively certify payment of the amount of work completed and paid for. (b) "Availability of sufficient funds" to pay all costs required to be paid to complete the project as used in sections 514B-92 (b) (3) (A) and 514B- 93 (b) ( 3) (A) , HRS, includes: (1) Interim or permanent loan commitments for financing construction costs and costs that are required to be paid to complete the project showing all parties have agreed to the loan and the loan amount. If there is a single agent, all parties shall agree in writing to the named single agent; (2) Equity funds identified and earmarked specifically for the project; (3) Purchaser's escrowed deposits as evidenced by a signed escrow agreement indicating the amount deposited in escrow; and (4) Other funds as required by the commission as evidenced by a signed escrow agreement 119.4-17