Residents of an old plantation village on leasehold land in Kahuku face an uncertain future after the village’s landowner announced plans to cut out a nonprofit community association from representing residents in future ground lease negotiations.
The association, established by residents of Kahuku Village, has long tried to keep ground rents low for tenants in the village’s 71 homes.
But yesterday, landowner Continental Pacific LLC notified residents that the association’s role as property manager and master lessee for many of the homes will be terminated as of July 31.
After that, residents will be left to negotiate individually with Florida-based Continental Pacific over how much they pay to lease the land under their homes.
Residents are all on month-to-month leases.
Though Continental Pacific is not proposing a rent increase, some residents fear that the loss of collective negotiating power will allow Continental Pacific to more easily raise rent beyond what they can afford.
The change also will leave residents without a representative to handle maintenance, insurance and other functions the association provided as a property manager.
Jesse Schiel, a local attorney representing Continental Pacific, said the company sought the change because it will provide more flexibility on future options for the land.