COM 0458.003 1996-1998 - Laserfiche WebLink

Home

t ~ 3. Transfer of Houses to the Occupants Immediately/Transfer Lots to the Occupants Upon Subdivision (Alternative 3). The third alternative is for each Camp to be transferred from Hamakua Sugar to Hamakua Housing. Hamakua Housing would thin immediately transfer the Houses to the Occupants, so that the occupants would-own the personal property, but not the real property. At the same time, Hamakua Housis nq would enter into sales-agreements with the Occupants to transfer the I.ats to the Occupants upon the subdivision of the Lots. Once the subdivision process is completed, Hamakua Housing would convey the Lots to the Occupants and would convey the common areas to a nonprofit corporation formed for each Camp. a. Advantages. (1) Landlord/Tenant. The Residential Landlord-Tenant Code applies to the rental of dwelling units, which are defined as structures which are used as a home, residence oz sleeping. glace. Since the Houses will be conveyed to the Occupants, there will be no rental cf dwelling units involved. Thus, Hamakua Housing will not be subject to the Residential Landlord-Tenant Code. See also discussion above. (2) Control. Hamakua Housing will retain title to the i.ots which will allow it to complete the subdivision grocess. See also discussion above. (3) Cansi.deration. Since the Lots ~+ill still be owned , by Hamakua Housing until the subdivision process is Complete, Hamakua Housing may be able to charge a monthly fee to the Occupants. Instead of rent, thfs fee could be characterized as payment for the purchase of the Property. See discussion above. b. Disadvantages. (1) Tax. See discussion above. There may be more of a severance pay issue under this alternative since the Houses mill be immediately conveyed to the Occupants and a contract fcr .*e conveyance of the Lots wi12 be immediately executed. EjCt~I'16t? ~~1'f~~vu~~