STAND. COM. REP. NO. 1061

Honolulu, Hawaii

, 2025

RE: H.B. No. 528

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 528, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL LEASEHOLDS,"

begs leave to report as follows:

The purpose of this measure is to exempt state and county lands leased after July 1, 2025, for an initial period of no less than ninety-nine years from state law governing residential leaseholds.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that existing law provides assistance and protection to certain lessees. Under chapter 516, Hawaii Revised Statutes, the Hawaii Housing Finance and Development Corporation is authorized to assist residential lessees of single-family homes to purchase the leased fee interest in their houselots by petitioning the State to facilitate a lease-to-fee conversion through its use of eminent domain powers. Under chapter 516D, Hawaii Revised Statutes, sellers of residential leaseholds of condominium units or cooperative apartments are required to disclose the major provisions of the lease.

Your Committee further finds that these statutory provisions should not apply to state and county lands, leased on or after July 1, 2025, for an initial period of no less than ninety-nine years as it would be inconsistent with the intent of those leases. This measure exempts such state and county lands from the provisions of chapters 516 and 516D, Hawaii Revised Statutes, to more effectively manage the land.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 528, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair