Federally Subsidized Flood Insurance Polices to Increase

Homeowners who have flood insurance that is subsidized by the National Flood Insurance Program can expect to see their rates increase as the government agency hopes to reduce a $24 billion deficit.  The massive deficit was created after Hurricane Katrina and Superstorm Sandy swept through the East Coast of the United States several years ago. Under the new bill that was signed into law by President Barack Obama, as many as 1.1 million policyholders across the country would be affected.  It is estimated that 14,000 Hawaii residences will see rate increases.  As a point of comparison, someone who lives on an ocean front property and who is currently paying $1,200 per year for flood insurance would end up paying $3,600 per year in five years and approximately $11,000 per year in 10 years.  Percentage of rate increases will depend on the particular flood zoning for an individuals property.

Source: Honolulu Star Advertiser, 3-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Federal Judges Discuss Appeal Against Honolulu Rail Project

Opponents of the Honolulu Rail Project have filed an appeal with the 9th U.S. Circuit Court of Appeals and are hoping that the three judges who sit on the panel would stop the project in its tracks.  However, during the initial oral arguments, two of the judges questioned if they even have the jurisdiction to make a final ruling in this issue. Observers noted that two of the judges seemed more concerned about the legal procedure and court process than the facts regarding the project itself.

Honolulutraffic.com filed its lawsuit in 2011 and stated that local and federal transit officials violated environmental and historic preservation laws in an effort to get the project approved quickly.  The lawsuit contends that the city did not research better ways to reduce the rail project's impact on the environment and cultural and historical sites.  Honolulutraffic.com argued that development of West Oahu was the main driving force behind the Rail Project and not the reduction of traffic.  Opponents of the Rail Project argue that creating designated vehicle lanes for express buses, car pools and emergency vehicles would reduce reduce traffic congestion more than rail and would also be significantly less expensive.

When Judge Wallace Tashima heard the case in the end of 2012, he ordered that the rail project be halted by the city until three areas of concern were addressed.  The first item required the city to conduct an archaeological survey of the entire route.  The second was to conduct a feasibility study of creating a tunnel under Beretania Street. The final item was to conduct an impact study of how the Rail Project would affect the area surrounding Mother Waldron Park in Kakaako.  Honolulutraffic.com announced that they would appeal the case in February 2013.

Source: Honolulu Star Advertiser, 8-16-2013, www.staradvertiser.com
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Honolulu Rail Project – Transit Officials Finish Court-Ordered Studies

In December of 2012, federal judge A. Wallace Tashima, ordered city officials to conduct a supplemental environmental impact statement on Mother Waldron Neighborhood Park in downtown Honolulu, investigate the possibility of building a tunnel under Beretania street, and conduct a study on if any cultural sites would be affected by the Honolulu Rail Project. While Judge Tashima’s ruling did not prevent the project from happening, it did halt all construction for the fourth and final phase in the downtown and Kakaako neighborhoods until the issues were resolved. In a recent announcement, the Honolulu Authority for Rapid Transportation has finished the Beretania study and the Mother Waldron Park environmental impact statement and hope to be ready to defend their project in federal court later this year.

The Honolulu Authority for Rapid Transportation in conjunction with the U.S. Federal Transit Administration have concluded that tunneling under Beretania Street, while feasible, would be too costly as compared to running an elevated track along that part of the city. The supplemental environmental impact statement for Mother Waldron Park showed that while the Honolulu Rail Project would have “significant effects on views of and over” the park, it would not “substantially impair” the park’s historical or recreational use. The study regarding cultural sites should be completed by July 2013.

The next step would be for the Honolulu Authority for Rapid Transportation to appear before Judge A. Wallace Tashima once again and present their findings.  Judge Tashima will then review the reports and decide if construction would be permitted for the final phase of the Honolulu Rail Project.

Source: Honolulu Star Advertiser, 6-7-2013, www.staradvertiser.com
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Hawaii Tourism – Bill Would Help Hong Kong Citizens Visit the United States Easier

United States Senator, Mazie Hirono, is proposing a new bill which would allow citizens of Hong Kong to enter the United States without a visa. Currently, the law states that only countries are eligible for the U.S. Visa Waiver Program. Since Hong Kong is technically not a country, but rather a self-governing region of China, Hirono stated that a special provision needed to be added to the existing law to make Hong Kong citizens eligible. Hirono stated, “This bipartisan legislation is one example of how just a small legislative change can have a big impact on Hawaii’s economy. Right now, people in Hong Kong can visit more than 140 countries and territories without visas, but these potential Hawaii tourists must still endure a time-consuming visa approval process in order to come to the United States. By fixing the visa waiver process for visitors from Hong Kong, we can make it easier for thousands of tourists from this region to come to Hawaii.”

According to the Hawaii Tourism Authority, Hong Kong visitors who travel to Hawaii spend an average of $230 per day while in the islands. This is almost 20 percent higher then the average visitor.

Source: Honolulu Star Advertiser, 4-12-2013, www.staradvertiser.com
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Mortgage Interest Deduction in Jeopardy at National Level

The Federal Government is looking for ways to increase revenue and to reduce the federal budget before December 31, 2012. One suggestion has been to completely eliminate or significantly reduce the mortgage interest rate deduction that homeowners are allowed to take. It is estimated that this mortgage deduction costs the federal government $100 billion per year in tax revenue. Hawaii real estate experts are concerned that if the mortgage deduction is lost, then the ability to purchase a home would be lost to even more Hawaii residents. Hawaii already has one one of the lowest percentages of home ownership in the country at approximately 57 percent.

United States Senator, Daniel Inouye, stated, “We need to leave it in place. “The deduction helps the real estate industry and the building industry, but most importantly it helps many more people realize the dream of homeownership.” United States Representative Colleen Hanabusa, added, “The deduction is often a critical factor in determining whether a family can afford to own a home, and eliminating it would reduce housing purchases. I think the proposal to eliminate the mortgage interest deduction is a slap to the middle class.”

Source: Honolulu Star Advertiser, 12-16-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Honolulu Rail Project – Federal Judge Hears Both Sides of Case

The Honorable A. Wallace Tashima, a senior federal judge with the 9th U.S. Circuit Court of Appeals, has heard both sides of a lawsuit regarding the Honolulu Rail Project. The lawsuit accuses the city of Honolulu and the Federal Transit Administration officials of violating federal environmental laws. The city’s legal team argued that the FTA and the city followed all requirements of the National Environmental Policy Act and other federal laws. Tashima gave no indication of how he would rule, or when he will make his final decision. However, legal experts believe that it may be weeks or months before Tashima issues a decision in the case.

Source: Honolulu Star Advertiser, 8-22-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Honolulu Rail Project – Lawsuit Has Rail Project in Court

A lawsuit filed by opponents of the Honolulu Rail Project alleges that the city and Federal Transit Adminsitration officials have violated federal environmental law. University of Hawaii law professor, Randall Roth, is part of the group suing the city to stop the project. Roth stated, “I believe in rule of law. I believe that the law should be obeyed, especially by governmental agencies, and in my opinion and the opinion of our lead lawyers, the city and the FTA violated several very important laws.”

The city contends that they have followed all of the procedures required by federal law. Executive Director of the Honolulu Authority for Rapid Transportation, Daniel Grabauskas, stated that, “the city’s position has always been that the city and the FTA conducted a comprehensive environmental evaluation of the rail project and has fully complied with the National Environmental Policy Act and other federal laws.”

Opening arguements by both sides will be heard in court this week by Judge A. Wallace Tashima of the 9th U.S. Circuit Court of Appeals.

Source: Honolulu Star Advertiser, 8-20-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Hawaii Tourism – Taiwan Visitors May Get Visa Waiver

The United States Government has been working with Taiwan officials to grant a visa waiver status for Taiwanese citizens who are interested in visiting the United States.  Currently, the cost to obtain a U.S. visa costs $150 per person from Taiwan.  This expense has curbed the number of families visiting the United States in recent years.  The Hawaii Tourism Authority noted that approximately 20,000 Taiwanese tourists visited Hawaii in 2011.  However, if this visa cost is waived, the HTA predicts that the number of visitors to the Hawaiian islands would at least triple.  Government officials hope to have the visa waiver in place beginning early 2013.

Source: Honolulu Star Advertiser, 7-2-2012, www.staradvertiser.com

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®

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