Initial Contact
Initial contact between potential easement donors and Hui `Aina o Hana often result from public relations activities or referrals from third parties. Initial meetings are held with the potential donor to discuss the location and purposes of the proposed easement.Authorization by the Board
The Board of Governors evaluates the merits of the potential easement donation. If the subject property satisfies the criteria for conservation projects, the Board will authorize an appropriate representative of the Hui to a) negotiate with the prospective donor and b) initiate a "baseline inventory study" of the property.Baseline Inventory Study
The purpose of the "baseline inventory study" is to assess and document the current condition of the property including its size, use, and resources. This information enables the Board to a) evaluate the public benefit of acquiring the land, b) identify and document the significant features of the property to be protected, and c) assess its future management needs. It should be noted that it is the legal responsibility of the donor to conduct the "baseline inventory study." However, the Hui can assist in the compilation of this document with the donor.Title Search
The purposes of the "title search" is to a) furnish legal property description and b) identify encumbrances on the property such as underlying mortgages, etc. The prospective donor can assist the Hui by providing copies of existing title insurance policies, title certificates and/or title reports.DRAFT Monitoring Plan
This "DRAFT Monitoring Plan" is prepared by the Hui staff. The Plan provides the Board with an initial analysis of the long-term monitoring costs associated with the protection of the property.DRAFT Easement
The "DRAFT Easement" is developed collaboratively by the Hui and the donor. The document will reflect a) specific needs of the donor, b) characteristics of the subject property, c) aspects and features of the property to be protected, and d) descriptions of monitoring and enforcement procedures. The easement must comply with the requirements of the Internal Revenue Service.Appraisal
Hui `Aina o Hana encourages all donors to obtain a competent appraisal of the easement by a qualified appraiser. The Internal Revenue Service has recently enacted regulations which penalize donors and appraisers for the over-valuation of gifts. If is important to note that the donor must attach a copy of the "appraisal summary" (signed and dated by a qualified appraiser and the Hui) to their tax return.Final Easement Document
The "final easement document" must be approved by the Board before it is signed. Once the easement is signed by the donor and an appropriate representative of the Board, Hui `Aina o Hana will have assumed the legal obligation to insure that the terms of the easement are maintained in perpetuity.Ongoing Monitoring Activities
Property protected by an easement will be monitored on a regular basis. Each monitoring visit will include an inspection of the property, after which a letter to the donor will be issued indicating the outcomes of the inspections. If necessary, a meeting with the landowner will be arranged.The donation of an easement represents a major commitment for any landowner. Although the tax benefits may be a strong incentive for such a gift, most donors give an easement with the desire to protect the land in question. CONTRIBUTIONS TO THE HUI
FOR MONITORING PURPOSESBy accepting an easement, the Hui assumes the legal obligation to uphold the terms of the easement in perpetuity. While the donor has made a gift of great significance, the Hui has, in a sense, assumed a liability forever. In order to assist the Hui in fulfilling its present and future responsibilities, tax-deductible contributions must be raised with each easement gift.
Although the amount of support necessary for the Hui to effectively acquire and monitor easements will vary, the following cost are constant:
- Overhead Cost: Office/program expenses, personnel
- Transaction Cost: Documents, legal fees, negotiations, recording fees, title search
- Monitoring Cost: Baseline inventory, field visits, potential enforcement expenses
For each gift of an easement, the Board of Governors request that a donation to the Easement Maintenance Fund be made to help meet these expenses.
