USA – HAWAII Law and Practice Contributed by: Jon Pang, Lisa Broulik and Matthew Cohen, Case Lombardi, A Law Corporation
SHPD. SHPD has the authority to grant final approval for development to continue according to a binding burial treatment plan agreeable to the developer. Development Agreements As discussed in 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law , developers may enter into development agreements with the counties to obtain development rights in exchange for providing public benefits, such as public infrastructure or afford - able housing. Approval of a development agreement requires a public hearing to be held by the county legislative body. In addition, the state or appropriate county may enter into an agreement with a private developer selected through a mandated procurement process vesting the developer with certain rights to develop land owned by the state or such county. Zoning and Classification Changes A property owner may seek to reclassify the state land use classification of the land area within which its property is located, in order to allow a proposed development, by petitioning the Land Use Commis - sion to amend the district boundaries of – or to issue a special permit to use – lands within conservation districts, lands designated or sought to be designated as important agricultural lands, and lands greater than 15 acres in the Agricultural, Rural and Urban districts. Petitions for such amendments or special use permits for lands of 15 acres or less in the Agricultural, Rural and Urban districts are administered at the county level. Such a petition is a lengthy process requiring a public hearing at which any person may testify to sup - port or oppose it, and aggrieved parties with the requi - site standing may intervene. The petitioner must sub - mit studies, reports and assessments of the impacts of the proposed development, commonly resulting in conditions to the approval to mitigate the impacts. Amendments and variances to existing zoning des - ignations may be requested from the appropriate county, and appeals to such approvals may be made to the appropriate county boards. For the City and County of Honolulu, for example, appeals concerning zoning decisions are heard and decided by the Zoning Board of Appeals, while appeals concerning build - ing permits, building codes, electrical codes, plumb -
ing codes and other similar matters are heard by the Building Board of Appeals. Enforcement The counties adopt zoning regulations and build - ing codes for their respective jurisdictions. County departments enforce planning and zoning restric - tions by requiring mandatory permitting, conducting inspections of the land, issuing citations and stop work orders, and issuing fines for violating permit conditions and zoning regulations. A certificate of occupancy is issued authorising use or occupancy of a building upon passing inspections and compliance with zoning regulations and building codes. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Investors may hold real estate assets in any legally recognised entity, including limited liability compa - nies, partnerships (general, limited, limited liability and limited liability limited partnerships), corporations and trusts. Limited liability companies are commonly used by investors to hold real estate assets due to their relative operational flexibility and tax benefits. All entities are required to register and comply with reporting requirements set by the Hawaiʻi Department of Commerce and Consumer Affairs (DCCA), Business Registration Division. Hawaiʻi is an entity theory state, meaning that a partnership is treated as a separate entity distinct from its partners. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity The main features of the constitution of each type of entity used to invest in real estate in Hawaiʻi are as follows. Partnerships General and limited liability partnerships are governed by the Hawaiʻi Partnership Act. While the filing of a registration statement is not necessary for the creation of a general partnership, a general partnership formed to do business in Hawaiʻi must file a registration state - ment with the DCCA within 30 days after its formation. Partnerships formed under the laws of a jurisdiction
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