STAND. COM. REP. NO. 696

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 285
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 285, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CONDOMINIUM PROPERTY
     REGIMES,"

begs leave to report as follows:

     The purpose of this bill is to clarify the powers of the
boards of directors of associations of apartment owners to enter
into purchase agreements with lessors in order to facilitate and
encourage voluntary lease-to-fee conversions of condominium
projects.

     This bill requires that bylaws provide that an association
of apartment owners may purchase the lessor's interest in the
condominium project, provided that the declaration of condominium
property regime either contain or be amended to include a
provision authorizing the board of directors to effectuate such a
purchase; and that if the association of apartment owners
purchases the lessor's interest, certain specified powers shall
be conferred upon the association of apartment owners, including
the power to purchase or otherwise acquire, own, improve, use,
and otherwise deal in and with the leased fee interest to the
land or any or all undivided interests therein.


 
a                                                     SB285 SD1
 
 
 
 
                                   STAND. COM. REP. NO. 696
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.
No. 285, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB285 SD1