STAND. COM. REP. NO. 211

Honolulu, Hawaii

, 2005

RE: H.B. No. 1523

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Water, Land, & Ocean Resources and Housing, to which was referred H.B. No. 1523 entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

beg leave to report as follows:

The purpose of this bill is to terminate the statutory authorization allowing mandatory residential leasehold condemnation that permits lessees to purchase the fee simple interest in their homes by repealing chapter 516, Hawaii Revised Statutes, (HRS).

The Kamehameha Schools, Small Landowners Association of Hawaii and Small Landowners Association of Oahu testified in support of the bill. The Housing and Community Development Corporation of Hawaii testified in support of the bill's intent. The Hawaii Council of Associations of Apartment Owners and Hawaii Independent Condominium & Cooperative Owners testified in opposition to the bill.

Your Committees find that Hawaii's mandatory leasehold conversion law has outlived its usefulness and that it is time to restore the rights of landowners. Your Committees are aware that chapter 516, HRS, contains more than the lease-to-fee provisions, such as the rights of lessees, assignability of residential leases, and extensions of leases that should be retained. Further, residential lessees should have an opportunity to acquire their fee interest before the repeal of the lease-to-fee provisions of chapter 516. Accordingly, your Committees have amended this bill by:

(1) Reinstating Part I (General Provision) and Part III (Rights of Lessees) of chapter 516, HRS; and

(2) Changing the effective date to July 1, 2006.

As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1523, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1523, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Housing,

 

____________________________

MICHAEL P. KAHIKINA, Chair

____________________________

EZRA R. KANOHO, Chair