REPORT TITLE:
Residential Leaseholds


DESCRIPTION:
Places responsibilities of payment of a lessor's costs upon the
lessees, when an abandonment of eminent domain proceedings by the
HCDC is due to a lessee's inability, failure, or refusal to
comply with provisions under chapter 516, or to purchase the
leased fee interest condemned.

 
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                                                        2771
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO RESIDENTIAL LEASEHOLDS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to place direct
 
 2 responsibility of payment of lessor's costs upon the lessees when
 
 3 an abandonment of eminent domain proceedings by the housing and
 
 4 community development corporation of Hawaii is due to a lessee's
 
 5 inability, failure, or refusal to comply with the provisions
 
 6 under chapter 516, Hawaii Revised Statutes, or to purchase the
 
 7 leased fee interest condemned.
 
 8      SECTION 2.  Section 516-23, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§516-23  Exercise of power of eminent domain.  Within
 
11 twelve months after the designation of all or part of the
 
12 development tract for acquisition, the housing and community
 
13 development corporation of Hawaii shall acquire through voluntary
 
14 action of the parties, or institute eminent domain proceedings to
 
15 acquire the leased fee interest in the tract or portion so
 
16 designated; provided that negotiations for acquisition by
 
17 voluntary transaction shall not be required before the
 
18 institution of eminent domain proceedings.  Except as otherwise
 
19 provided in this part, the corporation shall exercise its power
 

 
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 1 of eminent domain in the same manner as provided in chapter 101.
 
 2 If the development tract or applicable portion thereof, as the
 
 3 case may be, is not acquired or eminent domain proceedings are
 
 4 not instituted within the twelve-month period, the corporation 
 
 5 shall reimburse the fee owner, the lessor, and the legal and
 
 6 equitable owners of the land so designated for actual out-of-
 
 7 pocket expenses of appraisal, survey, and attorney fees as the
 
 8 owner, the lessor, and the legal and equitable owners may have
 
 9 incurred as a result of the designation [.]; provided that, if
 
10 the development tract or an applicable portion thereof is not
 
11 acquired or eminent domain proceedings are not instituted within
 
12 the twelve-month period as a result of the lessee's dismissal,
 
13 discontinuance, or withdrawal from the eminent domain proceedings
 
14 or failure to purchase the leased fee interest condemned because
 
15 of the lessee's inability, failure, or refusal to comply with any
 
16 provision under chapter 516 or to purchase the leased fee
 
17 interest condemned, then such lessee shall reimburse the fee
 
18 owner, the lessor, and the legal and equitable owners of the land
 
19 so designated or condemned, for their respective prorated costs,
 
20 as described above, which the fee owner, the lessor, and the
 
21 legal and equitable owners may have incurred as a result of the
 
22 designation and condemnation."
 

 
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 1      SECTION 3.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:  _______________________
 

 
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