These FAQs have been prepared to assist owners in understanding the complex issues confronting Kauai Beach Villas AOAO.
Here are some acronyms and definitions to know:
PTC
Post-tension cable; a construction method using steel cables to reinforce concrete slabs. The second and third floors of KBV were constructed using PTC technology.
SPA
Special Assessment
THG
The John Hardy Group; the association's third party project management firm (https://www.jhgi.com/)
WJE
Wiss, Janney, Elstner Associates, INC; a third party structural engineering firm hired by the association to assess the condition of the buildings (https://www.wje.com/)
PCI
Percent Common Interest: every apartment as a designated percent common interest that can be found on your recorded deed. See Declaration B: Common Interest
CIP
Common Interest Percentage: same as PCI
September 26, 2025
Updates on Bankruptcy and Project Reoccupy G&H
The AOAO Owners have voted at a Special Meeting of the Association to direct the Board to file a Chapter 11 Bankruptcy Petition for the Association in the United States Bankruptcy Court for the District of Hawaii. This filing is anticipated to happen sometime in October 2025. Until the filing is made, we will not be able to address questions about what will happen and when.
Please look at this FAQ page for updates as we learn more about the process. The FAQ will be updated when new intormation is available. We anticipate updates every week or two.
Project Reoccupy work on Building G continues. Current work involves demolition to remove spalling concrete and to expose the post-tension cables for repair or replacement. Each week, the contractor finds additional construction defects from the original design and/or construction of the buildings, which add to the work needed on Building G. New cost estimates and change orders are being created to cover the additional work needed.
Buildings G&H continue to be closed and are not safe to occupy. Building G is a construction zone and is only safe for trained construction workers to enter. Some owners entered the building at night, which has created additional work for the contractor and is a risk for those entering. If this continues, the contractor will stop working on the building until additional security measures are in place. Additional security will add to the cost of the contract. PLEASE DO NOT ENTER BUILDINGS G AND H AT ANY TIME. YOU DO SO AT YOUR OWN RISK, AND THIS WILL RESULT IN UNNECESSARY ADDED COSTS TO THE PROJECT.
Today, the Special Meeting of the AOAO Kauai Beach Villas was held at the resort for the purpose of establishing a quorum for the meeting, recording the owner votes, and tabulating the votes of the owners as requested by a special petition.
The two measures submitted to the owners for a vote were:
1. Authorize the Board of Directors for the Association of Apartment Owners of Kauai Beach Villas (“AOAO KBV”) to file a Chapter 11 bankruptcy case for the AOAO KBV to, among other things, pursue a sale of the entire Project, including all common elements, property interests of the AOAO KBV, and unit/interval interests of all members/owners, and take any and all action necessary and related to that bankruptcy as stated in the Appendix to Notice of Special Meeting.
2. Authorize the Board of Directors for AOAO KBV to acquire or accept a unit or interval prior to a bankruptcy filing by the AOAO KBV.
Both measures passed by a majority of the owners voting.
The AOAO Board has scheduled a special meeting of the Board of Directors for Monday, September 22 at 0900 HST to discuss these measures, with any legal issues concerning these measures to be discussed in an Executive Session of the Board. Thank you for your understanding.
Mahalo,
Board of Directors
Kauai Beach Villas AOAO
