MAKAHA SURFSIDE OWNER’S GUIDE

Governance • Finance • Community Living

Why Timely Monthly Maintenance Fees Collection Protects Every Owner

Official Owner Education Publication

July 2026

Prepared by the Board of Directors

Association of Apartment Owners of Makaha Surfside

Our Purpose

Welcome to the Makaha Surfside Owner’s Guide. Owning a home in a condominium association is different from owning a single-family residence. Every owner shares responsibility for maintaining the buildings, common areas, and financial health of the community. The purpose of this Guide is to help owners better understand how the Association operates, why certain decisions are made, and how each owner contributes to the success of our community.

This publication is educational in nature. It is intended to promote transparency, responsible governance, and informed ownership.

Why Monthly Maintenance Fees Matter

Monthly Maintenance Fees are the financial foundation of our Association. Unlike rent, Monthly Maintenance Fees are the shared contributions made by every owner to operate, maintain, repair, insure, and preserve Makaha Surfside. These funds support services and obligations that benefit every owner, including:

✓ Property insurance

✓ Water and sewer

✓ Trash collection

✓ Landscaping

✓ Building maintenance

✓ Elevators

✓ Security

✓ Professional management

✓ Accounting and auditing

✓ Legal services

✓ Reserve funding for future repairs

DID YOU KNOW?

Every owner owns more than just their individual apartment.

Each owner also owns a percentage interest in the common elements of Makaha Surfside, including the buildings, roofs, elevators, walkways, grounds, parking areas, and other shared facilities. Monthly Maintenance Fees help maintain these shared assets for everyone’s benefit.

Why Timely Payment Matters

When every owner pays Monthly Maintenance Fees on time, the Association is better able to:

• Maintain the property.

• Complete repairs promptly.

• Build healthy reserve funds.

• Respond to emergencies.

• Plan for future improvements.

• Protect property values.

Timely Monthly Maintenance Fees help ensure that the financial responsibility of operating the community is shared fairly among all owners.

When Monthly Maintenance Fees Become Delinquent

Delinquent Monthly Maintenance Fees affect more than a single account. Unpaid Monthly Maintenance Fees reduce available operating funds and increase the costs associated with collection. Recovering delinquent Monthly Maintenance Fees often requires additional administrative work, legal services, and collection efforts. Every dollar spent recovering delinquent Monthly Maintenance Fees is a dollar that cannot be used for maintaining and improving the community until it is recovered. For this reason, timely collection benefits all owners.

DID YOU KNOW?

One owner’s delinquency does not simply disappear.

Until those Monthly Maintenance Fees are collected, the Association must continue operating the property and meeting its financial obligations for the benefit of all owners.

The Board’s Responsibility

The Board of Directors has a fiduciary responsibility to all owners. This means the Board must make decisions that protect the financial health and long-term interests of the Association—not the interests of any single owner or group of owners.

Among the Board’s responsibilities are:

• Protecting Association assets.

• Maintaining adequate reserves.

• Following the governing documents.

• Applying Association policies consistently.

• Working with management and legal counsel.

• Collecting Monthly Maintenance Fees in accordance with the governing documents, Board policy, and applicable Hawaii law.

The Board’s responsibility is to administer these duties fairly, consistently, and without favoritism.

Understanding the Collection Process

The Association has adopted a Collection Policy that establishes a consistent framework for addressing delinquent accounts. While every account is unique, the collection process generally includes:

1. Regular Monthly Maintenance Fees billing.

2. Delinquency notices.

3. Communication with owners.

4. Payment arrangements when appropriate.

5. Additional collection efforts when necessary.

6. Liens and other legal remedies authorized by the governing documents and applicable law.

Owners experiencing financial hardship are encouraged to contact the management office as early as possible to discuss available options.

OWNER QUESTIONS

Why doesn’t the Board simply forgive unpaid Monthly Maintenance Fees?

Because doing so would shift the financial burden to owners who have paid their Monthly Maintenance Fees. The Board has a fiduciary responsibility to protect the interests of the entire Association.

Why are collection matters discussed in Executive Session?

Collection matters often involve confidential financial information, legal advice, and pending legal proceedings. Executive Session helps protect both the Association’s legal interests and the privacy of individual owners.

Are payment plans available?

Depending on the circumstances and the Association’s policies, payment arrangements may be considered. Owners should contact management as early as possible if financial difficulties arise.

GOVERNING DOCUMENT SPOTLIGHT

The Declaration

Think of the Declaration as the Association’s Constitution. It establishes:

• Ownership interests

• Monthly Maintenance Fees obligations

• Maintenance responsibilities

• Common elements

• Voting rights

• The authority of the Association

Every owner becomes subject to the Declaration upon purchasing a unit. The Bylaws, House Rules, Board policies, and other governing documents all operate within the framework established by the Declaration. Understanding the Declaration helps explain why many Board decisions are legal obligations rather than matters of personal preference.

DID YOU KNOW?

The Declaration is recorded with the State of Hawaii and remains legally binding on every owner until it is properly amended in accordance with its terms and applicable law.

GOVERNANCE HIGHLIGHTS

Recent Board initiatives include:

✓ Adoption of a formal Collection Policy.

✓ Continued implementation of Association collection procedures.

✓ Preparation for the upcoming Reserve Study inspection.

✓ Continued structural repair and capital improvement projects.

✓ Ongoing efforts to strengthen the Association’s long-term financial stability.

Looking Ahead

The next edition of the Makaha Surfside Owner’s Guide will explain:

Understanding Your Reserve Study

Topics will include:

• Why reserve are studies required.

• How major repairs are planned.

• Why reserve funding protects property values.

• How engineers evaluate building components.

• Frequently asked owner questions.

About This Guide

The Makaha Surfside Owner’s Guide is an ongoing educational publication of the Board of Directors. Its purpose is to help owners better understand Association governance, finances, governing documents, and community operations. Future editions will explore topics including reserve studies, budgets, governing documents, insurance, elections, maintenance responsibilities, and other subjects of interest to owners. Owners are encouraged to submit questions and suggestions to the Association office for consideration in future editions.