HKCA Meeting Packet and Proxy Form

Aloha fellow Hokulani owners, 

Many of you may know me from my past 8-year tenure from 2015-2023 as your board representative and 14 years as an owner.  My vision for the resort is to return Honua Kai to its roots as a unique world class destination resort where we and our guests live in harmony with the ocean, land, local community, and each other.  Not just another beach front resort catering to the whims of tourists but a special place we all care deeply for as a home away from home.  

I've always believed leadership is ultimately not about words but actions. As a director for Hokulani, I always made sure I was available and promptly responded to all questions and concerns. You’ll notice my candidacy letter provides my email (carltchu@gmail.com), phone (425-442-2297) and website (www.carlhu.us) because I welcome your input.

When I left the board last year to answer a higher calling in supporting the over 1,000 survivors of the Lahaina wildfires tragedy staying at HK, I had hoped that the board would embrace greater openness, communication, and transparency.  Sadly, this has not been the case and the board is now as closed and secretive as ever.  Committees are stocked with directors rather than owners and simple requests for information like resolutions go unanswered.  That’s unacceptable. 

Regarding the resort’s appearance, upkeep and operational efficiency, there’s obviously much room for improvement but not if we continue our HOA DIY (do-it-yourself) approach. Remember, "you get what you pay for" so a 5-star world class resort requires 5-star personnel and management only possible from a proven professional resort management company.  Our greatest operational challenge has been the inability to attract and retain great employees because the only career path at HKCA is to leave for the big guys like Starwood and Marriott. We simply can't compete against them so remain stuck in second tier. When I previously proposed the board solicit bids from qualified resort management companies, it was not only summarily rejected but I was reprimanded for even suggesting – that’s how far stuck in the sand the board’s leadership is who pride themselves on DIY mediocrity.    

As for why I'm running again, it’s not my first choice but frankly owners need a director with the integrity and conviction to keep the board honest and hold it accountable.  I’m particularly concerned about recent self-serving actions taken by the board which conflict with its fiduciary duty to act in the best interest of all owners.  Two glaring examples are: (1) this Hokulani election which is an entirely unnecessary waste of time and money and a blatant attempt by the board to help reelect directors by banning proxies and denying owners the opportunity to know their challengers, and (2) the board’s recent vote to take legal action against the Luana developer when HKCA has absolutely no legal or financial responsibility over their AC units.  While these defects affect fewer than 10% of all owners, 55% (5 or 9) of residential directors are Luana owners who rather than recuse themselves as required instead voted to use HKCA funds for their own benefit.  We will all suffer the consequences of this self-serving act including hefty legal bills and lawsuit disclosures resulting in mortgage denials. Who will blow the whistle and keep the board from abusing its authority if not Hu?

Lastly, regarding finances, I’ll be the first to admit that this is not my area of expertise and I will defer to the judgement of a HKCA finance committee composed of highly qualified owners with CPA and CFO experience for guidance. While I don't like maintenance fee increases any more than the next owner, HKCA must remain financially sound. However, the biggest financial challenge facing owners is not budgets and reserves but low occupancy rates. Most owners just can't survive with rates less than 50% when we were accustomed to 90% pre-COVID.  

That’s why it’s paramount that the board do far more to attract guests through the promotion of the Honua Kai Resort brand and image. The board had a golden opportunity when Honua Kai became the largest and most compassionate of the Red Cross shelter hotels providing a peaceful and comfortable refuge for hundreds of local families.  Rather than capitalize on this enormous act of goodwill, the board remained stubbornly focused on how to get rid of these people who they viewed more as intruders than neighbors in need.  If we want to get back to where we were before COVID, we need professional expertise and resort management - not this current group of self-absorbed board directors.  

For more information, please visit my website www.carlhu.us where I will continue to post current information and issues which are important for all owners.

Mahalo,

Carl Hu