
For the Weekend of July 6th, 2024
Hawaii’s Most Read Mortgage Publication for 16 Years
Volume 16 – Issue 43
Alan Van Zee
President | NMLS #: 297154
Hawaii Mortgage Company, Inc.
Company NMLS #: 232582
Alan Van Zee is one of the top producing Mortgage Originators in the state, originating over $2,000,000,000 to date. He has written and published this weekly newsletter for the past 16 years. It is the most widely read mortgage publication in Hawaii.
Hawaii Mortgage Company celebrates its 24th anniversary providing mortgages to the people of Hawaii and is proud to continuously earn an A+ rating from the BBB of Hawaii.
Who Owns the Strip?
Readers always ask how I come up with content each week. Some weeks are more difficult than others, but this week a run-in with a neighbor was all I needed to answer a question a lot of people are mistaken about.
Recently the Board of Water Supply posted signs advising cars not to park in a specific section of our street because of impending work to be done. I am sure you are all have seen these signs.
The signs were put up about a week before the actual dates to give residents a head’s up and make other plans if they park on the street. The day after the signs went up, I noticed one was moved off the grassy area and onto the street. As a conscientious citizen, I moved the sign back to the grass were it was originally placed by the BWS staff. I know kids like to play games and I wouldn’t want a car coming by and hitting the sign by accident. A few hours later I noticed the sign was once again moved onto the street. It was during school hours, so I know it wasn’t kids doing it. As I returned the sign to its rightful resting spot, I commented rather loudly that anyone that would keep moving this sign onto the street must have psychological problems. That’s when the owner of the home abutting this area came out and confronted me. He told me to stop putting the sign on “his property”. It was obvious, along with his confession, that he was the person moving the sign onto the street. I first clarified that it was the BWS that originally put the sign there, and I was merely returning it to where it belonged. I also informed the neighbor, to his great anger and disagreement, that he didn’t own the strip of land in front of his home.
The upset homeowner, who I still think has a screw lose, claimed he owned the land, and the county simply had an easement for a future sidewalk. My retort was, if you own it, try and build something on it then! But then his comment about the easement got me thinking. Was he right? If I am expected to be a source of real estate and financial facts with you each week, I can’t be mistaken when arguing with a neighbor over something as trivial as this. That’s when I did the research.
If you use the city’s tax map database, you’ll be able to see your parcel, your neighbors’ parcels, and their relation to the street. If you are curious, you can look at any parcel throughout the islands you want to. When you look at this map, the property lines extend all the way to the street. Anyone looking at these maps would conclude that their property runs to the street. Unfortunately, these maps are used for tax purposes and not for building. They aren’t 100% accurate.
This next map comes from the City’s Land Use Division. It shows the same properties, but you’ll notice the highlighted section. That highlighted section is property owned by the county. This map clearly shows where the property lines end, and that buffer strip of land exists.
Another lot down the street recently added a rock wall to their property. In the lower left corner, you can see the property boundary flag. That property line designation aligns with the land use map above. The wall was constructed to the property line and does not encroach into the city’s property.
If you don’t own it, what can you do with it?
You can’t build on it, and you can’t block people from walking along it. You can landscape it, but you still need to leave room for people to walk. And if you must cross over that strip of land for a driveway or a front entrance walkway, the county has specific design guidelines of what materials you can use.
What if there’s a sidewalk?
This picture below is a great representation of both the true property line and what the homeowner chose to do other than just planting grass and erecting a wall. So long as people can walk along the sidewalk unimpeded, let your landscaping juices flow.
County regulations state that the county is responsible for the repair of the sidewalk if ever needed, but it is the responsibility of the abutting landowner to maintain the land in front of their home. That’s not just the grass and foliage, but also includes maintaining the sidewalk. It is your responsibility to make sure the sidewalk is not blocked nor a slip hazard due to mold.
The City and County of Honolulu considers sidewalk maintenance important to avoid any trip hazard that may take place due to uneven pavement, overgrown weeds and trash along the sidewalk. The Customer Services Department oversees the enforcement and the Department of Planning and Permitting (DPP), residential code branch ensures compliance of codes.
In the Public Works Infrastructure referring to Chapter 14, their requirements include fees and services and goes over what a homeowner is responsible for. In section 14-20.1 of the Cleaning of Sidewalks section it states, every property owner whose land abuts or adjoins a public street will continually maintain, and keep clean, passable, and free from weeds and noxious growths, the sidewalk and gutter area which abuts or connects the property owner’s property.
What do you do if you have a neighbor that fails to maintain that area in front of their home? In section 14-20.2 of the Procedure on Owner Failing to Clean, it outlines the next steps if a homeowner does not comply with maintaining their sidewalk area. According to this section, if the owner receives a notice to clean their sidewalk, they have 20 days to do so, or the city will do it and bill the homeowner the expense. This includes a notice to clean up the sidewalk or failure and neglecting to keep their sidewalk clean and free from weeds and noxious growths.
Today’s lesson is that we don’t own the land in front of our homes. We are required to maintain it. But most important, curb appeal is everything. Why not try and make it as nice as possible? If not for the neighborhood, how about yourself? Think of the smile on your face every time leave and return home to see your beautiful frontage?
And now the week’s economic news…….
Jobs Report Revisions Show Weakness
There were a few significant surprises in the economic data released this week. While the services sector revealed weakness, the key labor market report was in line with the forecasts of leading economists. As a result, mortgage rates ended the week lower.
The economy added 206,000 jobs in June, close to the consensus forecast. A large portion of the gains was seen in the healthcare, construction, and government sectors. Unexpectedly, the unemployment rate rose from 4.0% to 4.1%, the highest level since October 2021. Average hourly earnings were 3.9% higher than a year ago, down from an annual rate of 4.1% last month and the lowest level since May 2021.
While the headlines for the jobs report met expectations, revisions to the previous months’ reports showed a very different picture. Last month’s 272,000 jobs number was revised down to 218,000 and the April jobs number was adjusted down for the second time from 165,000 jobs to a paltry 108,000. One must wonder what the Fed would have done with interest rates if they had known the true extent of lackluster job creation.
Two other significant economic reports released this week from the Institute of Supply Management revealed unexpected weakness. The ISM national services sector index plunged to 48.8, far below the consensus forecast and the lowest level since May 2020. The national manufacturing index dropped to 48.5, a little lower than expected. Since readings above 50 indicate an expansion in the sector and below 50 a contraction, these reports suggest that both important segments of the economy are slowing.
At an economic summit in Europe on Tuesday, Fed Chair Powell stuck to a familiar script regarding inflation and future monetary policy. He said that the Fed has made "quite a bit" of progress, but officials still want more confidence that inflation is "moving sustainably" back down toward their 2% target before loosening monetary policy. He also noted that the risks of cutting rates too soon and risking higher inflation or waiting too long and unnecessarily constraining economic growth are in better balance.
Next Week
For economic reports, the inflation data will be in the spotlight. The main event will be CPI on Thursday. The Consumer Price Index (CPI) is a widely followed monthly inflation indicator that looks at the price changes for a broad range of goods and services. The Producer Price Index (PPI), another inflation indicator, will come out on Friday. Testimony from Fed Chair Powell on Tuesday also could influence mortgage markets.