Bill Text: HI HB845 | 2011 | Regular Session | Introduced
Bill Title: Ground Leases; Residential Real Property; Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-04-06 - (S) The committee on JDL deferred the measure. [HB845 Detail]
Download: Hawaii-2011-HB845-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
845 |
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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 ground leases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to encourage the extension of ground leases by requiring lessors who do not extend a ground lease to offer to sell the leased fee interest in the land to the lessee.
SECTION 2. Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§666- Extension of long-term ground leases; sale of leased fee interest in land. (a) Within the final ten years of a long-term commercial or industrial ground lease, the lessee may request from the lessor an extension of the lease. If the lessor does not extend the term of the existing lease or issue a new ground lease:
(1) For a term of at least thirty years with substantially similar lease terms; and
(2) At a rental rate that is mutually agreeable to the lessee and lessor or a rental rate that is determined by appraisal pursuant to subsection (b);
the lessor shall be required to offer to sell the fee simple interest in the land to the lessee for the amount fixed by an appraiser's determination of the leased-fee interest in the land, in compliance with the uniform standards of professional appraisal practice.
(b) If a lessor and lessee are unable to agree on a rental rate, the rate shall be determined by appraisal. The lessor and the lessee shall each select an appraiser, who then shall jointly choose a third appraiser. All appraisers shall hold a MAI designation from the Appraisal Institute. The new rental rate shall be determined upon the agreement of any two of the three appraisers. Each appraiser shall be impartial and adhere to the uniform standards of professional appraisal practice.
In the event that either the lessor or lessee fails to select an appraiser, the selection shall be made by a judge sitting in the circuit in which the land is located. The lessor and lessee shall be responsible for the cost of their respective appraisers, and the cost of the third appraiser shall be shared equally by the lessor and lessee.
The lessor and lessee may agree to have a single appraiser. The agreement shall be in writing and signed by both the lessor and lessee, with the cost of the appraiser to be shared equally by the lessor and lessee.
(c) In the event of any conflict regarding procedures or valuation processes, the uniform standards of professional practice shall control."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval and shall apply retroactively to any ground lease in effect on the Act's effective date.
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INTRODUCED BY: |
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Report Title:
Ground Leases; Extension; Sale of Leased-Fee Interest
Description:
Requires lessors who do not extend a ground lease to offer to sell the leased fee interest in the land to the lessee who requests the extension.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
