What happens upon lease expiration is up to the Indian owners.
The Tribe’s preferred lease period was 65 years, and because many of those leases began in the 1970s and ‘80s, many are now within 30 years of expiring. That can present problems for lenders, who make loans with 30-year terms, but most leases are renewed long before the expiration date. Some are renewed for an interim period, an additional 30+ years, making the lending process more acceptable.
Some of section 24 was fee land several years ago. When the land lease was up, the family members who owned the land decided to sell. Homeowners in those properties, who had been paying a land lease, suddenly had to buy the land. The regular income generated from the leases for the Tribe does not make this a common or financially attractive practice.
When looking for real estate in Palm Springs, it’s a good idea to find out about the land lease terms. As a Realtor, I have that information available and understand the ins-and-outs of buying lease land. Sometimes, a Zillow search (or other real estate apps) won’t give you all the information on land leases that you should have. And usually, these apps do not filter by fee and lease land. Another reason why checking the map helps.