The Ko'olani condominium tower located in Kakaako on the island of Oahu was completed only six years ago by Miami-based real estate developer Crescent Heights. However, residents and the owners association are still fighting to get several construction defects and problems fixed including severe water leaks, uneven air conditioning and algae growing on the roof.In 2007, the owners association took the developer through arbitration. After a three year process, arbitrator Keith Hunter of Dispute Prevention & Resolution Inc. awarded the residents a total of $12.4 million to repair about 40 defect claims. A state judge confirmed the award. However attorneys hired by the developer and sub contractors continue to fight in court over who is to be held liable for the amount, and the association has not seen the money.
Two years ago each of the building's 370 residents were assessed by the owners association $13,000 each to replace waterlines to their units. A new special assessment of approximately $3,600 per unit was requested this year to cover new legal costs. Owners who wish to sell their unit are experiencing difficulty since new prospective buyers have a hard time obtaining bank financing due to the unresolved defect liability.
