Bill Text: HI HB845 | 2012 | Regular Session | Amended
Bill Title: Ground Leases; Residential Real Property; Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB845 Detail]
Download: Hawaii-2012-HB845-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
845 |
TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 2 |
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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 residential 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 arbitration 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.
(b) If a lessor and lessee are unable to agree on a rental rate, the rate shall be determined by arbitration in accordance with chapter 658, except as set forth in this section. The lessor and the lessee shall each select an arbitrator, who then shall jointly choose a third arbitrator. The new rental rate shall be determined upon the agreement of any two of the three arbitrators.
In the event that either the lessor or lessee fails to select an arbitrator, 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 arbitrators, and the cost of the third arbitrator shall be shared equally by the lessor and lessee.
The lessor and lessee may agree to have a single arbitrator. The agreement shall be in writing and signed by both the lessor and lessee, with the cost of the arbitrator to be shared equally by the lessor and lessee.
(c) This section shall not apply to a county with a population of less than one hundred thousand."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2112.
Report Title:
Ground Leases; Extension; Sale of Leased-Fee Interest
Description:
Within the final ten years of a long-term residential ground lease, permits a lessee to request a lease extension from the lessor. Under specified conditions, requires a lessor to offer to sell the fee simple interest in the land to the lessor for the amount fixed by an appraiser's determination of the leased-fee interest in the land. Establishes a process for arbitration when the lessor and lessee are unable to agree on a rental rate. Effective July 1, 2112. (HB845 HD2)
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