STAND. COM. REP. NO. 2984

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2288

       H.D. 1

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 2288, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PRIVATE TRANSFER FEES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to prohibit the inclusion of a requirement in a deed restriction or other covenant running with the land that requires a transferee of real property to pay a fee in connection with a future transfer of the property.

 

     Written comments in support of the measure were submitted by two private organizations.  Written comments regarding the measure were submitted by the Hawai‘i Association of Realtors.  Written comments presented to your Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that a private transfer fee is a fee imposed by a private party that requires the payment of a certain amount, potentially in perpetuity.  Presently, there is no regulation over the imposition of private transfer fees, no limitation on the application of the fees, and no accountability or oversight of the recipients of the fees.  Your Committee notes that some private transfer fees are legitimate.  These include, among others, fees paid to holders of conservation easements when portions of the property are transferred to a third party and assessments by community association entities.  Your Committee believes that the measure as received adequately exempts these legitimate transfer fees.

 

     Your Committee received comments from the Hawai‘i Association of Realtors regarding the exemption relating to shared appreciation for affordable housing, suggesting that a ten-year limitation be included to close a potential loophole for nongovernmental affordable housing projects.

 

     Your Committee has amended this measure by:

 

     (1)  Adding a ten-year limitation for the exemption regarding shared appreciation for affordable housing, as suggested by the Hawai‘i Association of Realtors; and

 

     (2)  Making technical, nonsubstantive changes for purposes of style, consistency, and clarity.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2288, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2288, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

 

		____________________________ BRIAN T. TANIGUCHI, Chair