Bill Text: HI HB184 | 2011 | Regular Session | Introduced
Bill Title: Leasehold; Condominiums; Limited-Equity Housing Cooperatives; Lease Options to Purchase
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-24 - (H) Referred to HSG, CPC/JUD, referral sheet 1 [HB184 Detail]
Download: Hawaii-2011-HB184-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
184 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to leasehold Property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The inability of many lessees of residential leasehold condominium property regimes and housing cooperatives to purchase the fee simple title to the land, and the inequities that result when lessees cannot buy the leased property but are forced to pay skyrocketing rents, have been amply documented. The purpose of this Act is to prohibit the establishment of new residential leasehold condominiums or limited-equity housing cooperatives unless the land lease provides an option to purchase the leased fee interest.
SECTION 2. Chapter 431H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§421H- Leasehold property; options to purchase fee. No residential limited-equity housing cooperative shall be established on leasehold property after January 1, 2012, unless the land lease includes an option to purchase the leased fee interest in the land or any individual unit thereof, with the option price fixed for the first ten years of the lease and thereafter based upon the fair market value of the land as established by an appraisal process set forth in the lease."
SECTION 3. Section 514B-31, Hawaii Revised Statutes, is amended to read as follows:
"[[]§514B-31[]]
Creation[.]; requirements for leasehold property. (a) To
create a condominium property regime, all of the owners of the fee simple
interest in land shall execute and record a declaration submitting the land to
the condominium property regime. Upon recordation of the master deed together
with a declaration, the condominium property regime shall be deemed created.
(b) No residential condominium property regime shall be established on leasehold property after January 1, 2012, unless the land lease includes an option to purchase the leased fee interest in the land or any individual unit thereof, with the option price fixed for the first ten years of the lease and thereafter based upon the fair market value of the land as established by an appraisal process set forth in the lease.
[(b)] (c) The condominium
property regime shall be subject to any right, title, or interest existing when
the declaration is recorded if the person who owns the right, title, or
interest does not execute or join in the declaration or otherwise subordinate
the right, title, or interest. A person with any other right, title, or
interest in the land may subordinate that person's interest to the condominium
property regime by executing the declaration, or by executing and recording a
document joining in or subordinating to the declaration."
SECTION 4. This Act shall not apply to the Kakaako community development district established under part II of chapter 206E, Hawaii Revised Statutes.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Leasehold; Condominiums; Limited-Equity Housing Cooperatives; Lease Options to Purchase
Description:
Prohibits the establishment of new residential leasehold condominium property regimes or limited-equity housing cooperatives unless the land lease includes an option to purchase the leased fee interest in the land. Excludes the Kakaako community development district.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
