Non-permitted structures (Hilo, Volcano, Pahoa: construction loan, house, option to buy)

[Koale]

Aloha,
I'm relocating my family to the Big Island soon. Been looking at properties and find it interesting that so many listings advise that either some/all/none of the dwellings are 'permitted'. This must be the norm for some reason but how are these places expected to be sold? Realtors advise against purchasing them for the simple reason that it will be difficult to secure a loan not to mention having to permit them and bring all utilities/structures up to code. Anyone have any thoughts or resources on this?

[Jungjohann]

Major problem with a non-permitted dwelling is that no inspections were performed, so you have no idea as to what shortcuts the owner/builder took. Are all the proper tie downs installed, hurricane clips, drywall, siding and roof sheeting properly nailed off? I don't know how they get away with it, but in considering buying such a home, you would defininitely want to have it thoroughly inspected, only problem being that all the structural components of the home are now concealed by drywall, siding and shingles. Best of luck, you'ld probably be better off just buying some bare land, a pre-packaged home, and hiring a contractor to build it, or, better yet, build it yourself!! Better start watching Bob Villa a lot!!!!!!!

Aloha and okolemaluna

[cynmkolohe]

Many of the unpermitted structures are built as "cabins" that are intended to be a place to live while a more permanent "legal" structure is built...sometimes that just never quite happens and the cabin becomes the "home"...

Keep in mind that this appeals to some folks...While at lunch in Hilo a few months ago, I met a young couple who had just had their first baby, had bought an unpermitted cabin and two lots in one of the Puna subdivisions and were planning to build a home on their 6 acre property. They were living without electricity. The dad had just found work with the DOE, the mom was a really sweet young mom. It was just their way of finding a place to live that is "theirs" while saving up to build a home--and they were comfortable with their lifestyle.

Sometimes, what you see is a do-it-yourself addition that was not permitted. Appraisers won't count this sq footage in an appraisal.

Considering that there are now homes in Puna listed for under 200K, it is likely your better option to buy a permitted home. But if all you have is 60K and you are looking for a job, maybe sharing a home with four or five other roommates, that cabin on a few acres might start to be appealing after while!

Like Jung says, if you are looking into any unpermitted structure, do be sure to get an inspection. If you are working with a Realtor, you will have to sign plenty paperwork, disclosures and waivers...

On the other hand, if a property has not had a "final" simply because the seller ran out of funds or had some other extenuating circumstance and couldn't complete the project, you might find a diamond in the rough...there are likely a few of those on the market at any given time...

[cynmkolohe]

PS...there is one house on the market right now that I have seen on an agents tour that is in a subdivision near Volcano...it is "incomplete", but the seller is offering the original plans with the sale. A lender who was with us on the tour said that he could put together a construction loan for a buyer who had a licensed contractor give an estimate (maybe a contract?) for the completion of the home. There are unusual situations that come up for families and plans sometimes get abandoned...this was a really tragic story and someone will likely get a deal on the property, but it will take someone looking for a "project" and with a little vision...

[Jungjohann]

I think for any building with a cost of over $2,000.00, a permit is required. Whether it's a simple remodel, or a small cabin, you need a permit. Kind of the states way of covering it's okole, and also protecting the owner. All it takes is one lousy electrical circuit and "poof", the house, cabin or whatever is gone, up in smoke.

Aloha and okolemaluna

[kani-lehua]

i can't recall the name of the woman or the position she holds on the big island (she's opposed to building BIG BOX stores) who lives on hawaiian home lands and her house is unpermitted?

[leilaniguy]

Originally Posted by kani-lehua

i can't recall the name of the woman or the position she holds on the big island (she's opposed to building BIG BOX stores) who lives on hawaiian home lands and her house is unpermitted?

She is "aunty" Emily Naeole, county council member from Makuu homelands just outside Pahoa.

[cynmkolohe]

Councilwoman Emily Naeole...County of Hawaii - County Council District 5, Council Member Emily I. Naeole

Edit: (oops...just saw leilaniguy's post--I was reading an article on her recent exchange with DHHL Director Micah Kane )

Article: Hawaii Tribune-Herald :: Hilo, Hawaii

[kani-lehua]

Originally Posted by leilaniguy

She is "aunty" Emily Naeole, county council member from Makuu homelands just outside Pahoa.

things that make you go, "HM?!"

[cynmkolohe]

Read this...see if you go "hmmm"!!??

Hawaii Tribune-Herald :: Hilo, Hawaii "Land Board: Lava Home Has To Go"