Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred H.B. No. 1453, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that chapter 516, Hawaii Revised Statutes (HRS), the Residential Leasehold Conversion law, applies only to lots zoned for residential use.

Your Committee received testimony in support of this measure from the Housing and Community Development Corporation of Hawaii, Kamehameha Schools, and three small landowners.

Chapter 516, HRS, relating to residential leaseholds, authorizes the mandatory lease-to-fee conversion of residential leaseholds. The nature of today's residential housing development is such that residential housing is frequently a component of a commercially zoned mixed use project or agriculturally zoned project.

Proponents of this measure have argued that mandatory conversion was intended to apply only to residentially zoned land, not to agricultural land or mixed-use properties. Your Committee supports this measure, which would limit mandatory conversions to properties zoned for residential use.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs, and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1453, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.