CPR

Most states have a law which governs the establishment and governance of condominium apartments. In Hawaii the law identifies and directs the condominium property regime or CPR. Though most think of a “condominium” as an apartment, a CPR is more accurately a form of ownership in which the limited “common elements” (the unit or apartment, for example) can be separated from the “common elements” (grounds, swimming pool, BBQ areas, etc.), which are proportionally owned and governed by all the owners in the Association. About 20 years ago, the CPR from of ownership (not technically “subdivide”) lands and residents so that separate title could be held on each of the limited common elements. Suppose a land owner had a piece of agriculture land which would allow the building of two dwellings. He could separate the land into two parcels (each allowing one dwelling) through the CPR process. Each parcel would then be considered “the unit” or “apartment” in other words the limited common element. What was common to both would be the common elements, and the Association of owner required by the CPR law would have mutual control over only that portion. Where an older style of combined ownership in Hawaii resulted in a cooperative ownership in a group or hui with attendant risk of shared liability, this CPR ownership separates ownership interests and allows individual mortgaging independent of other owners of the CPR project.