Hawaii Governor Linda Lingle has signed two executive orders setting aside parcels of land in Waiakea in South Hilo to be developed by the county into affordable rental housing for the elderly.

The nearly 21 acres of land at property at Komohana and Mohouli Streets will also be used to consolidate various Fire Department facilities.

Big Island Mayor Harry Kim asked for the transfer to allow 16 acres to be developed into a 250-unit affordable rental housing project. The county plans to work with the nonprofit Hawai'i Island Community Development Corporation to develop the senior residences.

The second parcel of about five acres would be used for a new Big Island of Hawaii County Fire Department administration and support facility. Those functions are now divided between the Central Fire Station, which is in the tsunami inundation zone, and the county building. Another fire station may also be built at the site later.

The Board of Land and Natural Resources has already approved setting aside the parcels for the county projects. 

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Hawaii Mandates Solar Hot Water

Hawai'i has become the first state in the country to require the installation of solar water heaters on new single-family homes.

Hawaii Governor Linda Lingle today signed into law a bill requiring home builders to include solar water heaters in new single-family dwellings beginning in 2010. The measure specifically prohibits the issuing of building permits for single-family homes that do not have solar water heaters, effective Jan. 1, 2010. Variances would be allowed if an engineer or architect finds that solar would be impractical because of insufficient sunshine or if it would cost more than would be saved by lower utility bills, or if an alternative renewable energy system or gas-demand water heater is used.

"This solar power legislation is another important step in our long-term plan for energy independence in Hawai'i," Lingle said. "In addition to solar, it is critical that we continue to develop innovative energy solutions that capitalize on our natural renewable resource advantages in order to achieve our goal of having 70 percent clean energy in Hawai'i by 2030."

The governor's office did express some concerns with the bill, including the elimination of the existing 35 percent tax credit for solar water installations for residential home developers in 2009.

Opposing the bill was the Building Industry Association of Hawaii, which represents contractors, developers and suppliers.

BIA Chief Executive Officer Karen Nakamura said the law would raise the cost of homes. She said the law not only eliminates the 35 percent state tax credit, but a $1,000 HECO rebate for new home buyers.

Nakamura said that first-time home buyers who are already having trouble qualifying will suffer the most because the additional cost will make buying a new home further out of reach.

"The total cost is being put on their backs," she said.

Sen. Gary Hooser (D, Kauai-Niihau), who introduced the bill, said, "With oil $140 a barrel, this is especially timely and will save consumers money, create additional energy security for the state and dramatically reduce greenhouse gas for the environment."

He said he is hopeful other states will follow Hawaii's lead.

Another opponent of the bill is Solar Energy Industries Association, Hawaii, which represents some 25 businesses that install a majority of the solar water heaters in Hawaii.

The law has a loophole that will allow developers to opt out of the mandate by heating the home with a tankless water heater using gas instead, said group Vice President Rolf Christ.

Christ, who is also owner of R&R Solar Supply, the only manufacturer of solar water heaters in Hawaii, said he expects his business will rise with the mandate, but said the law will make solar water heaters less affordable for people buying homes.

The Hawaii Public Utilities Commission will set standards for the water heaters and counties will establish procedures to implement the law.

For more information on solar hot water heaters, check out this great article from Fine Homebuilding magazine which details various type of solar hot water systems.

The Hawaiian monk seal is the official Hawaii State mammal.

Hawaii Lieutenant Governor Duke Aiona signed a bill into law last week giving the endangered and much-beloved seal the official designation. Wildlife experts—who have long considered the seal one of the world’s most-endangered species—hope the move will raise international awareness about the native Hawaii mammal’s plight.

Roughly 1,200 Hawaiian monk seals remain in the wild—about 80 to 100 of these in waters surrounding the main Hawaiian Islands. The new bill will give the monk seals the same protection as the also endangered humpback whale—Hawaii's marine state mammal.

The Hawaiian monk seal population declines by about 4 percent each year. But experts are hopeful that the animal’s designation as an official state symbol will boost seal numbers again. Four monk seal pups have already been born this year.

The National Oceanic and Atmospheric Administration (NOAA) has been implementing monk seal outreach and education programs for years. Find out more about the Hawaiian monk seal and NOAA’s efforts to protect it here.  

Hawaiian monk seals are among the most endangered species of all seals, although its cousin species the Mediterranean Monk Seal is even rarer, and the Caribbean Monk Seal, last sighted the 1950's, was officially declared extinct in June 2008.  The Hawaiian monk seal was officially designated as an endangered species on November 23, 1976 and is now protected by the Endangered Species Act and the Marine Mammal Protection Act. It is illegal to kill, capture or harass a Hawaiian monk seal.

Monk seal species have shown alarming population declines in recent years due to the rapid spread of human activity to even the most remote and isolated areas in the Hawaiian Islands. In the nineteenth century, Hawaiian Monk Seals were clubbed to death by whalers and sealers for their meat, oil and their skin. They were also hunted during World War II when the US forces occupied Laysan Island and Midway.

Death from predation by sharks, reduced pup survival as the result of human disturbances, ciguatera poisoning, high male to female ratios during the breeding season, and entanglement in fishing nets and debris all have led to the species' decline. These threats have taken a toll on the species, as it has been nearly eradicated from part of its former range (including Oahu, Kaua'i, and the Big Island of Hawaii), yet rare sightings still occur on the North Shore of Kauai in Haena, and also at Hakalau Bay on the Big Island. Monk seals are currently found on Laysan, Midway, Pearl and Hermes Atoll, French Frigate Shoals, and Lisianski.

The University of Hawai'i Economic Research Organization (UHERO) has released its second Hawaii Economic Forecast for 2008 (UHERO releases these reports on a quarterly basis). While the current report predicts (more than previously expected) slowing of the Hawaii State Economy, the economic outlook for Hawaii still remains brighter than many mainland and global economies.

Following is a brief summary of the UHERO report:

The 2008 forecast for visitor arrivals growth has been reduced from -1.9% to -4.6% because of the failures of ATA and Aloha Airlines and the surge in oil prices.

The forecast has been reduced for 2008 real income growth by nearly half a percent, from 0.3% to -0.1%. A slight 0.2% contraction in payroll jobs is now expected both this year and next. Employment will fall by about half a percent this year and next.
Higher food and especially energy costs will keep inflation at 5% this year, before significant cooling in 2009.

Prospects for the 2008 Hawai'i economy have worsened significantly since the March Annual Hawai'i Forecast. The failures of ATA and Aloha Airlines, the loss of a second NCL cruise ship, and the dramatic surge in oil prices will damage a local economy that was already feeling the effects of the national downturn. Small net declines are now expected in both real income and jobs this year, and higher 5% inflation.

While 2009 should bring improvement, a significant recovery of the local economy will not begin until 2010, making this a relatively shallow but lengthy Hawai'i economic contraction. A deeper slowdown could occur if oil prices remain at their current record levels or if the national housing slump worsens more than expected.

Hawai'i Economic Indicators (Annual % Growth Rates)*

*Source is UHERO. Figures for 2008-2009 are forecasts.

How does all of this affect the Hawaii real estate market? Are all areas of Hawaii affected in the same way? Want to know the current status of the real estate market for the Hawaii area you are interested in?  Contact Island Trust Properties today for detailed market reports and accurate explanations.

Complete UHERO Forecast

UHERO Economic Information Service