This blog is all about the Sun Village Condominium Complex in Kauai, Hawaii. 

Many people end up having a few questions about Sun Village. First, because it’s a Leasehold project, and second because it’s the only condominium project on Kauai with an age restriction.

Recent Update at Sun Village: *** The condo project has been offered to covert to fee simple and owners will soon have the opportunity to purchase the fee. This is wonderful news for owners and potential buyers. See below for more information.

In this blog, I will explain as much information as I know about Sun Village to help answer any questions. This way you can get to know if the condominium project is right for you.

The 411 on the Sun Village Condos on Kauai

Basic Information

Sun Village is located in Lihue near the Wilcox Hospital (Kauai’s main hospital). It is also a Leasehold meaning someone only owns the property for the remaining time of the lease. The Fee is owned by a charitable foundation ~ The Wineberg foundation.

There is also an age restriction of 55 years or older. So one person must be at least 55 years or older living in the unit. An owner can be under the age of 55 years. However, they could only occupy the unit if living with someone 55 or older. I also believe there is a minimum age requirement.

There are 3 buildings A, B & C. These condos allow long-term rentals only a 6-month lease or longer.

Amenities

• Right next to Wilcox hospital and Walmart.
• Some units have ocean & valley views.
• Amenities include pool, gym, club house (more info below), library, and some outdoor gardening.
• Allows small pets.
• Storage area for each unit in the basement. This is a big plus! Not many condo projects on Kauai have this much storage.
• Elevators.
• Lots of guest parking.
• On-site managers office.

View from Sun Village C Building

Fees

There is an HOA fee for basic things like trash, sewer, water, maintenance of the grounds and pool. There is an additional fee since the property is leasehold and this is called the leasehold rent. The leasehold rent and HOA fee both seem to correlate with the square footage of the unit. The bigger square footage of a unit the higher the fees will be.

Purchasing Information

The best way to purchase a Sun Village condo is of course with cash. It is possible to purchase a unit with a mortgage however the mortgage term has to be shorter than the lease expiration date. See a list of lenders I recommend here.

Search for available Sun Village units here

Why People Buy at Sun Village

Many people buy here to downsize! The location of Wilcox and the medical clinic is also a plus for those who have to visit their doctor frequently.

Overall Sun Village seems like a great place to live and a tight community with neighbors who look out for each other. I’ve sold a few units to buyers and they are all happy in their units. I love the sense of community at Sun Village. Residence can be as involved or un-involved there as they wish. One of my favorite things about Sun Village is their CLUB HOUSE!

The first floor of the club house has a large kitchen and room for hosting events. Or just for meeting with someone for lunch or meetings and the managers office. There is also a library room which I love.

Below is a wood working shop, gym, music room, and art room. These spaces are great! It gives residents a chance to be creative and to get to know each other. I’m only 30 something but I would love to live in a place with spaces like these.

Sun Village Library

Sun Village Gym

The prices are also lower than other fee simple condominiums on Kauai.

If you have any other questions about purchasing or selling a condo at Sun Village, give me a call (808) 652-6173.

Leased Fee Purchase

So how does this all work?

FIRST: Your Board of Directors will authorize the Association to take out a loan from First Hawaiian Bank, making a non-refundable deposit of .5% of the loan.

SECOND: The Board will exercise our First-Right-of-Refusal and purchase the Leased Fee Interest from the Weinberg Foundation for the Sun Village Kauai Association of Apartment Owners, with an anticipated closing date on or around November 30, 2024.

THIRD: Owners will then continue to pay their same monthly Ground Rent, but they will pay it to the Association instead of the Weinberg Foundation.

Owners who are willing and have the available funds will be able to purchase their portion of the Leased Fee Interest from the AOAO during the initial period of 6 months. Owners who have purchased their Leased Fee Interest will no longer pay the monthly Ground Rent, although they will continue to pay the other costs of ownership such as the monthly Maintenance fees.

Based on the Leased Fee Interest price and the estimated closing costs:

For Studio apartments the total amount, including closing costs, will be $39,000.

For 1 Bedroom, 1 Bath apartments the total amount, including closing costs, will be $48,000.

For 2 Bedroom, 1 Bath apartments the total amount, including closing costs, will be $63,000.

For 2 Bedroom, 2 Bath apartments the total amount, including closing costs, will be $76,000.

For “Penthouse” apartments the total amount, including closing costs, will be $92,000.

FOURTH: Owners who are willing to purchase their leased fee interest, but need to borrow funds for the purchase at those same initial prices may use the lender of their choice. A list of financial institutions willing to make mortgages for this purpose will be provided, but it will be up to the homeowners to meet necessary qualifications.

FIFTH: After the initial period of 6 months, the prices for the Leased Interest will increase by 10%. Thereafter, the Board of Directors will periodically review the value of unsold Leased Fee Interests and adjust pricing as it finds appropriate. Owners that later decide to purchase the Leased Fee Interest will pay the increased amount.

New Buyers who purchase units from owners that have not purchased the Leased Fee Interest for their units will likely, but are not required to, purchase the Leased Fee Interest from the Association as part of their purchase. The amount will depend on the pricing in place at the time of the transaction.

SIXTH: Owners that do not desire to purchase the Leased Fee Interest will continue to pay their same monthly Ground Rent to the Association, rather than the Weinberg Foundation. Those Ground Rent amounts will be subject to renegotiation in 2031 and again in 2041.

At some point in the future, to the determined by a future Board of Directors, those unsold Leased Fee Interests may be sold to outside investors or retained by the Association. In either case, the same monthly Ground Rent amount will be due until 2031 when the Owners who have not purchased their Leased Fee Interest and either the Association or the outside investor will re-negotiate the monthly Ground Rent amount. This Ground Rent amount negotiation will repeat in 2041.

In 2046 to 2048, when the individual leases expire for those owners who have not purchased their Leased Fee Interest, either the Association or the outside investor will then own their unit.

It is possible that if the Association continues to own those remaining Leased Fee Interests, they may choose to continue to collect them from the Unit Owners rather than take possession of the Unit, but that is a decision for a future Board of Directors.