Sunday, July 31, 2005

Ekimoto & Morris Open New Law Firm

Richard S. Ekimoto's Picture We're happy to announce the formation of Ekimoto & Morris, A Limited Liability Law Company. Richard S. Ekimoto, a principal with Elisha Ekimoto & Harada and John A. Morris, Of Counsel with Ashford & Wriston will be forming a new law firm on August 1, 2005. The law firm will practice in the area of condominium and community association law. Elisha Ekimoto & Harada will cease to practice law as of July 31, 2005. Richard is a member of the prestigious College of Community Association Lawyers with a national reputation. John was Hawaii's first condominium specialist. John A. Morris' Picture

Arlette S. Harada, also a principal with Elisha Ekimoto & Harada will be Of Counsel to Ekimoto & Morris. Gordon M. Arakaki, an associate with Ashford and Wriston and Sandy S. Ma, an associate with Elisha Ekimoto & Harada will be associates with the firm. Gordon was the Recodification Attorney for the Hawaii Real Estate Commission and Sandy was a trial attorney for the Equal Employment Opportunity Commission.

Tobie Laimana and Nancy Bonilla staff at Ashford & Wriston and Melanie Sunada, John Forney, Stacey Wada and Margie Oyama, staff at Elisha Ekimoto & Harada will be joining the new firm.

Ekimoto & Morris will be located in the offices in which Elisha Ekimoto & Harada are currently located. Our address, phone numbers and website will be:

1132 Bishop Street, Suite 902
Honolulu, Hawaii 96813-2830
(808) 523-0702 (phone)
(808) 538-1927 (fax)
hawaiicondolaw.com

Emails at Ekimoto & Morris will be the first initial and last name of the recipient followed by "@hawaiicondolaw.com."













Monday, July 25, 2005

What is leased fee interest?

The technical definition of "leased fee interest" is the Fee Simple interest in real property encumbered by a lease. Many people confuse "leased fee interest" and "fee simple interest". If you own 100% of the interest in real property, you own the real property in fee simple. The owner of real property in fee simple can do many things with the property including selling the property, mortgaging the property or leasing the property. If the owner of real property in fee simple leases the property on a long term lease, the real property is divided into two parts: (1) leasehold interest; and (2) leased fee interest. The lessee owns the leasehold interest. The leasehold interest is the right to use the property for the term of the lease and the obligation to pay rent during the term. There are other obligations created by the lease. The leased fee interest is the right to receive rent during the lease term and the right to receive the property at the end of the lease term (reversion). The owner of the leased fee interest does not have the present right to use the property. The leased fee interest is less than the fee simple interest.

Thursday, July 21, 2005

Hawaii Federal District Court Affirms City Council's Lease Rent Repeal

On June 24, 2005, I reported on a hearing held by Judge Ezra in a lawsuit involving the repeal of the Mandatory Conversion law by the City and County of Honolulu by Ordinance 05-001.

The case arose because apartment owners in the middle of the condemnation process were prevented by the City from continuing the process. The Honolulu Honolulu Star-Bulletin has reported that Judge Ezra has ruled on the case, denying the challenge. Judge Ezra stated that:
The fair and wise decision, from the perspective of the city, would have been to draft the repeal of Chapter 38 so as to allow those leaseholders ... who have begun in good faith the process of conversion to be grandfathered in.
Despite this, Judge Ezra ruled that the City acted within its legal limits in prohibited these leaseholders from completing the Chapter 38 process.

Chair of House Committee for Condo Legislation to Resign

Representative Ken Hiraki announced his intention to resign from the Hawaii State Legislature to become a lobbyist for Hawaiian Telcom. Representative Hiraki is currently the Chair of the House Protection & Commerce Committee which hears most of the Hawaii Community Association Legislation. A new Chair will be appointed by the House Leadership. The new Chair will probably not be as familiar with condominiums and planned communities as Representative Hiraki.

Wednesday, July 13, 2005

Sexual Orientation and Gender Identity Discrimination in Real Property Transactions Bill Signed by Governor

On June 29, 2005, I reported on HB1715 relating to sexual orientation and gender identity discrimination in real property transactions. The Governor had notified the Legislature that she was considering vetoing the bill. In her message announcing her intent to veto the bill, she stated:
The bill poses complex issues of application and enforcement given the ambiguous and vague nature of its language and fails to provide the public, renters, buyers, sellers, property owners, or the courts with an objective standard to determine if discrimination has occurred in the housing marketplace.
There was an issue whether this bill could be legally vetoed by the Governor because of a typo in the notice of intent to veto the Bill. However, on July 11, 2005, the Governor signed the bill and it became Act 214 effective on July 11, 2005.

A related bill, HB1450, relating to sexual orientation and gender identity discrimination in employment was also on the Governor's list of bills she is considering for veto. On July 11, 2005, the Governor vetoed the bill. The Legislature did not vote to override the veto.

Fee Conversion Tax Credit Bill Vetoed

On June 29, 2005, I reported on HB1554 relating to a tax credit for Leased Fee Conversions. The Governor has notified the Legislature that she is considering vetoing the bill. In her message announcing her intent to veto the bill, she stated:
This bill provides a tax credit for one person in that it excludes from taxable income 50% of the capital gains realized, not to exceed $75,000 in the aggregate for all taxpayers. In effect this amounts to a tax credit of $5,438 ($75,000 x 7.25%), providing an incentive for virtually only a single seller to sell their leased fee interest.
On July 11, 2005, the Governor formallyvetoed the bill. The legislature did not vote to override the veto.


Saturday, July 02, 2005

Hawaii Bankruptcies Spike

On May 9, 2005, I posted a FAQ on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The article stated a spike of bankruptcies might occur because individuals would be trying to beat the October 17, 2005 effective date for many of the provisions of the new bankruptcy law. After October 17, 2005, it will be more difficult for individuals to have their debts discharged in bankruptcy. Yesterday, the Honolulu Star-Bulletin reported that bankruptcy filings spiked in Hawaii in the second quarter of 2005. This is the first quarter after adoption of the new bankruptcy law on April 20, 2005.