🚨Lease Rent Challenge🚨 🚨Arbitration is On!🚨

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The AOAO’s rent agreement increases ground lease rent by almost 16×.

In addition to 5 other well documented errors described below, the agreement is void because 3 recorded deed restrictions on ALL 151 unit deeds requires:

"Decisions related to property ownership, land rent negotiation and payment of related property expense be made by a Management Committee consisting of the land owners on behalf of all land owners...."

 The AOAO is the Manager of 84 residential land owner units with 53.83% majority.  The AOAO allowed the Kong Lessors minority to make decisions without authority.

 The case consolidated to 6 reasons the rent agreement was void as described below.

The AOAO has AGREED to arbitrate. On June 15, 2026, the Association accepted arbitration before retired Judge Gail Nakatani, administered by Dispute Prevention & Resolution, Inc. There are still details to work out about who will be attending.

  The AOAO represents the 84 fee-simple owners who collectively own 53.8246% of the land. The recorded Co-Owners’ Agreement assigns property ownership and land-rent decisions to a Management Committee acting for all landowners. The AOAO failed to control that Committee, surrendered majority authority, and allowed the Kong Lessors’ 46.1754% minority interest to control the rent negotiation and refuse to negotiate sale of the fee. The Agreement was executed WITHOUT AUTHORITY!

 HRS § 514B-151(c) requires independent counsel whenever an association is a lessor or sublessor. The AOAO remained the sublessor of eight units, acted as the Kong Lessors’ collection agent, and held a prohibited leasehold-owner interest within 9 months of the lease reset date (7D). No independent counsel was appointed, and no lessee vote or written consent authorized the Agreement. AOAO appointed by Sandwich Lease Consent as AGENT to collect rent for Kong Lessors.

 Master Lease Paragraph 23 required arbitration when no written rent agreement was reached by April 2, 2025. That deadline passed without agreement. The AOAO continued negotiating and signed the November 14, 2025 Agreement without authority to waive the arbitration rights held by the individual lessees.

The 2018–2019 sandwich-lease agreements created 59 separate DIRECT contractual relationships between the AOAO, Kong Lessors and the residential and commercial mini-Master Lessees. Those contracts preserve individual rent, appraisal, arbitration, notice, cure, and consent rights. The AOAO could not modify or waive those rights without each lessee’s authorization. 

The Master Lease, recorded amendments, condominium documents, and Hawaiʻi statutes provide no authority for retroactive rent. The governing documents require rent to be paid IN ADVANCE. The retroactive charges were imposed without contract, consent, statute, or equitable basis. 

The Master Lease requires rent equal to 6% of the fair market value of the applicable PARCEL interests. No PARCEL appraisal was performed. The rent was instead based on the entire land, an unsupported $24 million value, and no discount for the Kong Lessors’ minority and fractional ownership interests. The resulting rent does not comply with the Master Lease or governing appraisal standards.

June 15, 2026. Retired Judge Gail Nakatani (DPR). I am naming the AOAO in each of its conflicting capacities AND both Kong entities as Respondents.

On the title of every unit, created by the Kong Lessors themselves in 2000–2001 REQUIRES:

"Decisions related to property ownership, land rent negotiation and payment of related property expense be made by a Management Committee consisting of the land owners on behalf of all land owners" — not the Board, not the Kongs. The 2025 deal ignored them completely. 

The 84 fee simple unit owners have held 53.83% majority control  since 2017, and the authority to buy the fee since 2019. Neither was ever used. The AOAO was never advised by any lawyer, consultant or manager to use the majority power.  

Every appraiser and advisor used an expiration ten years too early, distorting every valuation. The Kongs’ own recorded agreement fixes June 30, 2061. 

WE JUST ADDED TEN MORE YEARS TO OUR LEASEHOLD BY CORRECTING PROFESSIONAL ADVISOR MISTAKES.

July 3, 2026. A 41-section Memorandum & Financial Analysis: the substantive record of every violation, every number, and the fee-acquisition plan. Distributed to the AOAO’s counsel, the professional firms, and owners. Japanese translation in progress. 

Being tendered now on Unit 24A’s policies. Every sandwich purchaser has a policy and may have a claim.  Our experienced agents will guide you through the entire home buying process, from finding the perfect property to closing the deal. We will work with you to understand your unique needs and ensure that you find a home that meets your requirements and budget. 

Residential Unit Owners have held majority control of all land decisions —   including fee simple and rent negotiation — since 10/25/2017, through the   Management Committee written into every deed. 

That Management Committee held   the power to acquire the fee since 4/23/2019. That power has never been used.   Meanwhile leasehold distress drags down YOUR fee simple resale value too.

 The 2025 rent increase — 16 times the old rent, plus back rent —   was signed by a 46.18% minority exercising “manager” control it lost in 2017,   without the appraisal the lease requires and without your consent. That is   why it is being challenged. Leasehold units continue to plummet in value,   when they sell at all. 

 The AOAO is your landlord (it owns your sandwich lease), the   Kongs’ rent collector, AND it claimed to represent you in the rent deal —   three hats on one head. The law (HRS §514B-151(c) required independent   counsel when the AOAO is a sublessor. None was appointed. 

The Board SIGNED the December 2016 document — it knew the   Co-Owners’ Agreement and the manager structure nine years before the 2025   deal. It has held the majority’s voting power since 2017 and never convened   the Management Committee the deed restrictions require. Did not obtain   competent professional advice to pursue acquiring the leased fee.

 The same deed restrictions provide the remedy the Kongs   themselves created: reconstitute the Management Committee around the 53.83%   majority, end the illegal rent, and buy out the Kong 46.18% — fee simple for   every unit. Join the 84 units that have already converted.Our team of experienced real estate agents will help you find the perfect home for you and your family. We will guide you through the entire process from start to finish, ensuring a stress-free experience. 

They wrote the management rules in 2000, invoked them in writing   in December 2016 — signing “as the manager of the remaining 53.83%” — while   they still held control. After the 10/25/2017 switch they kept exercising a role their own recorded documents had ended.