Why the board dragging us into a legal mess that has nothing to do with HKCA

You may have recently read the board's announcement that HKCA it will take legal action against the developer of the Luana townhomes for certain defects related to AC units.  If you did, you may have had the same reaction as me - why is the board making me pay to fix AC units in Luana when I'm not an owner there and HKCA has no responsibility for their building defects?  The answer is proof why we badly need new leadership on the board which starts with electing 3 new Hokulani directors.   

Unlike Hokulani and Konea, the Luana AC units are not common elements maintained by HKCA, they are limited common elements which the unit's owner is solely responsible for. So why is the board dragging all owners into a private legal dispute between the owners and developer of Luana when this has absolutely nothing to do with HKCA?  

I believe it has to do with this fact: while Luana comprises just 10% of HKCA units, 55% (5 of 9) of the board's residential directors are Luana owners.  Although directors are required to recuse themselves from any matter which they have a direct financial interest in, these 5 (Chapman, Hafezi, Calzano, Kubiak, Tali) refused to do so and instead abused their authority to get HKCA to take costly legal action for their own personal benefit.  That's just wrong!

I consider this action to be an egregious  unprecedented breach of fiduciary duty by the board which demands corrective action by owners.  It is yet another example of certain board directors placing their personal interests ahead of that of the 700+ owners they have a duty to serve.  The board has a fiduciary duty to act in the best interest of the entire association, not just a small subset of owners who are disproportionately represented in the boardroom.  

This is particularly true for legal actions since filing a lawsuit can have far reaching negative consequences for all owners since this fact must be publicly disclosed to all potential buyers which can lead to the denial of mortgage applications. These types of lawsuits can be particularly expensive as evidenced by the fact that HKCA spent over $500,000 on its last developer lawsuit, an amount that we will fall woefully short of in recovering.  So why don't Luana owners band together and hire their own attorney to sue the developer? Maybe it's because it would be on their own dime instead of HKCA's.

Because it's outrageously unfair for the 90% of HKCA owners who are not affected to pay for the 10% who are, I will be introducing a resolution which will rescind the board's authority to take legal action in matters pertaining to limited common element defects or repairs.  In such cases, HKCA Bylaws 5.01 requires the owner of the unit to pay for all limited common element maintenance and repair expenses.  This will stop the board's current efforts to use the HKCA general fund as a piggy bank for their own private benefit.  

So if you don't like the idea of the board using your already high maintenance fees to pay for their private expenses, then you need a director who will blow the whistle on abuse like this and bring much needed honesty, transparency, and accountability to the boardroom.  I was that director during my previous 8 year tenure and I will be that director again if you vote to elect me as a Hokulani director and make me your proxy representative at the 2024 HKCA Annual Meeting on Nov 15th.  

The following email was sent to all owners on Oct 3, 2024 by President Roshy Hafezi who is also a Luana owner:

Dear Luana Owners,

I am writing to inform you about the ongoing air conditioning (AC) issues in our Luana units and the steps the Board is taking to address them.

Since mid-2020, our community has faced a series of widespread AC problems. These include, but are not limited to, pump failures, overflow of drip pans leading to drywall damage in laundry and dining rooms, motherboard replacements, and, most notably, leaks from the internal Fan Coil Units (FCUs) and the external Condensing Unit. While our data collection is ongoing, our records currently indicate that at least 78% of Luana units have experienced some form of AC malfunction.

Recognizing the severity of the situation and its collective impact on our community, the Board has voted to pursue legal action against the parties responsible to hold them accountable for the widespread failures we’ve encountered.

To build a strong case, it is essential that we present comprehensive and clear evidence of these AC failures. To date, we have received documentation from several owners and property management companies outlining the specific issues they’ve experienced. However, this data remains incomplete. To strengthen our case, we need your full cooperation in retaining and sharing all relevant information and evidence related to your unit’s AC system.

If you’ve experienced AC issues in the past, please send me an email at rhafezi@hkcamaui.com. I will provide you with a link where you can upload all related invoices and correspondence.

If you are currently experiencing AC problems or encounter them in the future, it is crucial that the entire process is thoroughly documented. Please notify Jamie Klunder at jklunder@hkcamaui.com of any scheduled leak tests, repairs, or replacements. If any parts need to be replaced, please coordinate with Jamie to ensure that the removed parts are stored properly.

Your active participation and cooperation are vital to the success of our case. The level of involvement from each owner directly impacts our ability to achieve a favorable outcome for the community.

Thank you for your attention to this important matter.

Roshy Hafezi

Board President