§514A-40  Final reports.  (a)  No
effective date shall be issued by the commission for a final public report
prior to completion of construction of the project, unless there is filed with
the commission:



(1)  A statement showing all costs involved in completing
the project, including land payments or lease payments, real property taxes,
construction costs, architect, engineering, and attorneys' fees, financing
costs, provisions for contingency, etc., which must be paid on or before the
completion of construction of the project;



(2)  An estimate of the time of completion of
construction of the total project;



(3)  Satisfactory evidence of sufficient funds to
cover the total project cost from purchasers' funds, equity funds, interim or
permanent loan commitments, or other sources;



(4)  A copy of the executed construction contract;



(5)  Satisfactory evidence of a performance bond
issued by a surety licensed in the State of not less than one hundred per cent
of the cost of construction, or such other substantially equivalent or similar
instrument or security approved by the commission;



(6)  If purchasers' funds are to be used for
construction, an executed copy of the escrow agreement for the trust fund
required under section 514A-67 for financing construction, which expressly
shall provide for:



(A)  No disbursements by the escrow agent for
payment of construction costs unless bills are submitted with the request for
disbursements that have been approved or certified for payment by the project
lender or an otherwise qualified financially disinterested person; and



(B)  No disbursements from the balance of the
trust  fund after payment of construction costs pursuant to paragraph (A) until
construction of the project has been completed and the escrow agent receives satisfactory
evidence that all mechanics' and materialmen's liens have been cleared, unless
sufficient funds are set aside for any bona fide dispute;



(7)  A parking plan to include designated residence
parking stalls and guest parking, if any, exclusive of assignment to individual
apartments, if parking stalls are to be considered limited common elements;



(8)  A copy of the disclosure statement required by
section 514A-62(f)(3) if an effective date for a contingent final public report
has been issued by the commission and the report has not expired; and



(9)  A declaration subject to the penalties set forth
in section 514A-49(b) that the project is in compliance with all county zoning
and building ordinances and codes, and all other county permitting requirements
applicable to the project, pursuant to section 514A-1.6.



(b)  No effective date shall be issued by the
commission for a final public report for a project that includes one or more
existing structures being converted to condominium status unless there is filed
with the commission all items required under subsection (a) and:



(1)  A statement signed by an appropriate county
official that the project is in compliance with all zoning and building
ordinances and codes applicable to the project, and specifying, if applicable:



(A)  Any variances which have been granted to
achieve such compliance; and



(B)  Whether the project contains any legal
nonconforming uses or structures as a result of the adoption or amendment of
any ordinances or codes;



(2)  A statement by the declarant, based upon a report
prepared by an independent Hawaii registered architect or engineer, describing
the present condition of all structural components and mechanical and
electrical installations material to the use and enjoyment of the project; and



(3)  A statement by the declarant of the expected
useful life of each item reported on in paragraph (2) or a statement that no
representations are made in that regard; provided that this paragraph and
paragraph (2) apply only to apartments that may be occupied for residential use
and have been in existence for five years or more.



(c)  No effective date shall be issued by the
commission for a final public report until the developer, pursuant to section
514B-72, has paid into the condominium education trust fund established under
section 514B-71 a nonrefundable fee of $5 for each apartment in the project. 
Fees required by this subsection shall be subject to adjustment as prescribed
by rules adopted by the director of commerce and consumer affairs pursuant to
chapter 91. [L 1977, c 98, pt of §2; am L 1977, c 193, §3; am L 1979, c 93, §2;
am L 1986, c 295, §2; am L 1989, c 285, §2; am L 1991, c 44, §10; am L 1997, c
40, §24 and c 135, §8; am L 2000, c 251, §4; am L 2009, c 129, §3]



 



Note



 



  Section 514A-1.6 referred to in subsection (a)(9) is
repealed.