Clarifying the Steps for Condominium Property Regime (CPR) Approval   

Condominium Property Regime (CPR) is a type of ownership and governing process that is created when real property is submitted to the condominium property regime. It’s a process that you may have heard as “CPR-ing” a property. Here in Hawaii, the project has to contain two or more units as defined by statute. That means CPR properties can include a high-rise complex, a luxury oceanfront residential condo or simply two homes on one lot.

Condominium ownership is the ownership of a unit and a percentage of undivided interest in the common elements. Because there are so many different types of CPRs, they can have different uses: residential, office, commercial, industrial or mixed-use.

It’s also important to remember that CPR-ing a property is not the same thing as subdividing a property. This process cannot determine what can be built on property, how many units can be placed or change any building, zoning or usage restrictions imposed by local laws.

How is a CPR created?

This is one of the most common questions – how exactly do you start creating a CPR? Here in Hawaii, only the lessees or owners can submit property to a CPR. The process of creating the CPR can be complicated, which is why we find it is best to think of the CPR process as two parts.

Part One

• Receive approval from the City and County of Honolulu to have a CPR
• The property has an Existing Use Permit for the structures already on the property
• The property has an Approved Conversion Letter from the C&C Department of Planning and Permitting
• Once you have the letter of approval from the C&C, the property is considered CPR Approved.

Part Two

Once part one is complete, the Real Estate Commission needs the following in order to consider the approval of a CPR; however, this should by no means be considered a complete list, as every property is unique and so are its needs for development and approval:

• CPR map (floor plans and elevation)
• Declaration of a CPR
• Developers public record
• Bylaws of the association
• House rules
• Master deed or lease
• Disclosures about property
• Maintenance fees
• Outline of common area maintenance

We recommend that these documents be drafted with the advice of an attorney who specializes in this area of law. Real estate attorneys will work with the property owners and other professionals, such as a Hawaii-registered architect or professional engineer, who have to certify the condominium map. The attorney will pull together all the above items, and create and submit a package to the Real Estate Commission. The Real Estate Commission then reviews the request and either approves it or returns the package for corrections.

How is a CPR registered?

Before a unit can be offered for sale, the project must be registered with the Real Estate Commission. A developer’s public report form is needed as well, which is a disclosure statement for prospective buyers. You can find condominium registration packets and the public report form on the Commission website. Once the developer’s public report is filed, the Commission would issue an effective date – this process can take anywhere from six to eight weeks. Larger or more complex condominiums may take longer. This issuance of the date means that units can be sold.

For more information, visit www.hawaii.gov/hirec, call the condominium hotline at (808) 586-2644 or email hirec@dcca.hawaii.gov.