Allows joint owners who are tax-exempted charitable entities to sell the leased fee interest under a condominium to each other by exempting the entities from the requirement that the interest be first offered to the association of condominium owners. (SB1336 HD1)

A BILL FOR AN ACT

SECTION 1. Section 514C-8, Hawaii Revised Statutes, is amended to read as follows:

"§514C-8 Exception. (a) This part shall not apply if the land under the condominium project or cooperative housing corporation subject to a leased fee interest is part of a larger tract of land and the lessor will not agree to sell the leased fee interest in the land in parts.

(b) If the land under the condominium is owned jointly by lessors, all of whom qualify as tax-exempt charitable organizations as defined by section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the sale by one co-lessor to another co-lessor of its interest in the land under the condominium shall not be subject to the provisions of this chapter."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.