By any measure, $130 million is a massive chunk of money, and it’s money that the city can ill afford to relinquish, but instead, should be avidly pursuing. That’s particularly true when it’s money due the city from fines still unpaid by landowners who have violated property-use laws.
The owners of at least 274 Oahu properties with outstanding fines exceeding $100,000 owe the city more than $130 million for building and other permit violations, according to Department of Planning and Permitting (DPP) data. That’s a stunning finding — exacerbated by the fact that until recently, DPP was so lenient about collecting fines that it had no firm policies nor timetables in place to pursue them.
That all now seems to be getting a course correction, long overdue.
“When I came in about 22 months ago and we realized that there’s this huge number on the books, we had the same question: What is going on?” DPP acting Director Dawn Takeuchi Apuna told Star-Advertiser reporter Ashley Mizuo in a Sunday article.
DPP has since established clear policies that property owners are expected to pay 100% of the fines levied against their property, unless there’s some exigent circumstance.
Before imposing a fine, DPP first issues a notice of violation to the property owner, who has 30 days to correct the problem. If the owner doesn’t comply, a notice of order is issued. Where previously there was no timeline, DPP’s new policy gives landowners two months to pay any fines once issued the order; after that comes a demand letter, giving landowners three more months to pay — and if no payment is forthcoming, DPP will move to put a lien on the property.
All that is welcome and necessary, establishing that the city takes violations seriously and will take action to enforce property violations, which can run the gamut of erecting unpermitted structures, to unpermitted grading, to illegal uses of structures, to derelict properties affecting neighbors.
As reported Sunday, the highest amount for a single property, with fines accrued daily, was for a Kalihi Valley vacant lot, which racked up $15.8 million for numerous violations, mainly for overgrown weeds; while a Kahuku property accrued $1.6 million in fines largely due to being an illegal short-term rental. Neither property owner has paid any portion of the fines.
Certainly then, a government lien against delinquent property owners — such as against a driver’s license or other registration application — will convey the seriousness of the situation. It gives the city enforcement teeth for violators to pay their fines, work out a payment plan or come into compliance with property laws.
Another tool that state legislators should consider again next session: allowing the city to do nonjudicial foreclosures on properties when all notices, orders and appeals are exhausted. Rather than the current time-consuming court route, nonjudicial foreclosure — used sparingly — could then be done administratively for particularly problematic properties.
For now, though, DPP will need to work mightily to onboard more enforcement staffers. Currently, only two staffers are handling the slew of fines being issued for violations by three different divisions: Site Development, Building and Customer Service. Takeuchi Apuna hopes to have more people hired by next spring.
Improving DPP enforcement and capacity are imperative. As rightly noted by City Council Chairman Tommy Waters, collecting the $130 million in fines could make a significant difference for the department and the services it provides.
The long-troubled DPP has an opportunity here to help itself, and its taxpaying customers. Rather than perpetuating a hapless cycle of enforcement laxity enabled by insufficient staffing which enables more laxity, DPP must get serious about fixing its dysfunctional system to, ultimately, break the cycle.