Understanding SSPP Charges When Buying Land on the Big Island

Aloha folks! If you've been eyeing a piece of land to buy on the Big Island, you may have come across an unfamiliar term: SSPP, or Special Subdivision Project Provision. We will break down what SSPP is, why it matters, and how it could impact your property purchase. Let's dive in.

What is SSPP?

The SSPP program is managed by HELCO, the Hawaiian Electric Light Company. This program shares the cost of extending electrical infrastructure to new subdivisions. When HELCO extends power lines to areas without electricity—and there are a lot of really remote areas on this island—these costs are divided among the properties that benefit from the extension. Each property owner pays a fee known as an SSPP charge to help cover these expenses.

Why Are SSPP Charges Important?

Understanding SSPP charges is crucial when buying vacant land because these fees can significantly impact your budget. Before purchasing a property, you need to check if it falls under an SSPP area and, if so, how much the charge is. These charges are typically assigned when the subdivision is created and remain with the property until paid off, regardless of any ownership changes.

Factors Affecting SSPP Charges:

SSPP charges can vary widely depending on several factors:

• The complexity of the property.
• The cost of the project.
• The number of lots that are served.
• The distance from the lot to the power source.

On the Big Island, particularly in areas like the Puna District on the east side, SSPP fees can range from $2,000 up to $8,000 or even $10,000 or more.

Planning for SSPP Costs:

It's essential to account for these costs early because you want to avoid any surprises down the line. To determine if a property has SSPP charges, you'll need the property's tax map key number or TMK number. With this information, you can contact HELCO or check through your local REALTOR. HELCO provides an online form to request power availability and SSPP information.

Financing Options for SSPP Charges:

HELCO even offers some financing options for these charges. If the total amount is under $2,000, it usually just needs to be paid in a lump sum. But for higher amounts, you can often arrange a payment plan, making it more manageable for you to cover these costs over time.

Conclusion:

When buying land on the Big Island, always inquire about SSPP charges. This due diligence ensures you understand all the costs involved and helps you make an informed decision. As always, working with a knowledgeable local agent will make navigating all these details a whole heck of a lot smoother.

If you have any questions about SSPP, or buying on Big Island, reach out to our team. CONTACT US