08-29-2024, 04:47 PM
(08-17-2024, 09:31 PM)tikicarver Wrote: I think the big negative of building an unpermited house would be the re-sale value down the road when I'm dead...
and like others have said, it will shrink the available buyers because most lenders will not lend on an unpermited house....
I think the biggest danger is in the here and now. Here is the scenario for a current buyer:
1. The house is 30 years or older.
2. Current owner (the seller) has many unpermitted additions, the most glaring of which is a 120 sq ft room he added, which altered the roofline. He did this around 10 years ago, and has not paid taxes on the improvements. What's worse is that the current owner is an out-state resident. Should Dawn Takeuchi Apuna (head of DPP) hear about this, she could subject the owner to fines galore. This is a small island, where rumors spread faster than the Maui wildfire.
3. HPIA will not insure the new buyer, unless that chap submits full blueprints and an as-built plan from an architect, or equivalent. That's close to $10K in costs.
4. HPIA will withdraw coverage if the new buyer is late in supplying the package described in (3) to the DPP. During the time the permit is being reviewed, HPIA may not cover fire damage to the unpermitted addition.
5. Mortgage company can demand payment in full for the loan upon (4).
6. Even if (4) and (5) do not transpire, DPP could require the new owner to get the roof re-sheathed with plywood to meet current code. You might as well replace the galvanized roof at the same time. That could be a $20K cost. Add in money for electricians and plumbers to fix the other undocumented improvements in the home. What is under the kimono is invariably revealed in the whole property blueprint. Right off the top of his head, one architectural firm rep told me the average cost to submit and fulfill an as-built home plan is around $50K.
7. If DPP sees any monkey business with the cesspool, add another $40K to the project for a brand new septic system. I think (in my case) the owner had his cesspool pumped years ago, and the contractor must have damaged the cap, because why else would they push a shed over the area?
8. Here is the final nightmare in the modern day version of Mr. Blandings Build His Dream House (in Puna): Non-Renewal Notice from HPIA.