reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-66 Lease rental.

§516-66 Lease rental.
(a) In every case of an extension under section 516-65, the annual lease rental during the first thirty years shall not exceed an amount determined as follows:
(1) Compute to the nearest whole year, one hundred per cent of the unexpired period of fixed rent at the commencement of the extended term;
(2) Multiply the number of years computed in paragraph (1) by the fixed annual rent in effect immediately prior to the extension;
(3) Deduct from thirty years the number of years computed in paragraph (1) and multiply that difference by the annual rent determined by mutual agreement of lessor and lessee within thirty days after the extension or by arbitration in accordance with chapter 658A; and
(4) Add the amounts computed in paragraphs (2) and (3) and divide that sum by thirty. This sum rounded to the nearest dollar shall be the annual rent for the first thirty years of the extended term; provided that the rent shall not be less than the annual rent in effect immediately prior to the extension, unless otherwise consented to by the lessor.
(b) The annual rent payable under subsection (a) for and during the remaining period of the extended term shall be determined by mutual agreement of the lessor and the lessee or, if they fail to reach an agreement at least ninety days before the commencement of the period, by arbitration in accordance with chapter 658A. [L 1967, c 307, §39; HRS §516-66; am L 1975, c 184, §2(18); am L 2001, c 265, §4; am L 2018, c 18, §40]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-67 Zoning changes.

§516-67 Zoning changes.
A lessor, fee owner, or any legal or equitable owner applying for a change in zoning in any area shall notify all of the lessor's, fee owner's, or legal or equitable owner's lessees within three-fourths miles of the land proposed to be rezoned of the application and its contents at least thirty days before filing the same before any public zoning authority. [L 1967, c 307, §40; HRS §516-67; gen ch 1985]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-68 Rights to self-organization; remedies.

§516-68 Rights to self-organization; remedies.
Lessees in a development tract shall have the right of self-organization and the right to form, join, or assist each other in forming associations for their mutual benefit or to select representatives of their choosing to engage in bargaining with their lessor or to secure other mutual aid or protection as may be necessary or desirable with respect to their respective leasehold interests. No lessor or agent of the lessor shall interfere with, restrain, or coerce any lessee in the exercise of the rights granted by this section or dominate or attempt to control the formation of any such organization. Neither the lessor nor the organization or the duly authorized representative of a majority of the lessees shall refuse to bargain collectively in good faith with each other. In the event of any such refusal or violation of this section, either party may file a complaint with the Hawaii housing finance and development corporation, and the corporation, after due notice of hearing and hearings, may issue such cease and desist orders as shall be meet and just in the light of the evidence adduced. [L 1967, c 307, §41; HRS §516-68; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-69 Sale of fee by lessor.

§516-69 Sale of fee by lessor.
No fee owner of any residential lot under lease shall sell the leased fee interest to the lot to any third party unless the fee owner has first given a written thirty-day notice to the lessee and the corporation of such intention. [L 1967, c 307, §42; HRS §516-69; gen ch 1985; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-70 Reversion of improvements.

§516-70 Reversion of improvements.
(a) This section applies to all leases of residential lands as defined by section 516-1.
(b) At the termination of any lease, or at the expiration of the lease term, the lessee may, if not then in default under the terms of the lessee's lease, remove all onsite improvements on the lot which were constructed at the cost of, or otherwise paid for by, the lessee, without compensating the lessor therefor. If the lessee notifies the lessor in writing within sixty days before the termination or expiration that the lessee declines to remove such onsite improvements and if the lessee is not then in default under the terms of the lessee's lease, and if the lessor refuses to extend the term of the existing lease or to issue a new lease for a term of at least thirty years at a rental that is mutually agreeable to the parties or failing such agreement that is determined by arbitration pursuant to chapter 658A, the lessor shall be required to compensate the lessee for the current fair market value of all such onsite improvements. Such improvements shall be appraised at the expense of the lessee. The appraiser selected shall be by mutual agreement of the lessee and the lessor or in conformance to chapter 658A. The compensation shall be determined by mutual agreement or in conformity with chapter 658A, and the compensation shall be paid within thirty days of determination. Such expense of arbitration shall be equally shared by both parties. [L 1967, c 307, §43; HRS §516-70; am L 1975, c 184, §2(19); gen ch 1985; am L 2001, c 265, §4]
Revision Note
Section "516-1" substituted for "516-1(5)".
Case Notes
Requirement that lessor purchase leasehold improvements unconstitutionally impairs obligation of preexisting lease contract. 69 H. 112, 736 P.2d 55 (1987).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-71 Residential lease; disclosure.

§516-71 Residential lease; disclosure.
(a) Except as otherwise provided for in this section, for any sale of a leasehold residential lot, no later than ten calendar days after the acceptance of the deposit, receipt, offer, and acceptance contract (DROA) or other similar contract, the seller shall directly or through the seller's agent provide to the buyer, a copy of the original recorded lease and any amendments thereto for the buyer's approval and acceptance. A sale for the purposes of this subsection shall not be deemed to include any transfer to a co-owner, or to a spouse or reciprocal beneficiary, parent or child of the seller, or to any stranger by devise, descent, court order, or by operation of law, including, but not limited to, any transfer by foreclosure, bankruptcy, or partition sale. Upon receipt of the original lease and amendments thereto, the buyer shall have ten calendar days to review, accept, or reject the terms of the lease.
(b) In addition to the requirements set forth in subsection (a), the buyer shall acknowledge receipt of the lease documents specified under subsection (a) through a signed receipt or a signed DROA or other contract. The receipt or contract shall include at least the following information:
(1) A standardized summary, as set forth on the optional standardized summary form in this chapter, or in a form similar to the optional standardized summary form, of the lease provisions in plain language which shall contain information on the following: the length of the lease, lease rent terms, lease rent renegotiation dates, how renegotiated lease rents will be calculated; and surrender clause provisions;
(2) A standardized glossary, satisfied by use of a Hawaii governmental publication, of commonly used lease terms in plain language; and
(3) A statement that the buyer has read and understands the provisions of the standardized summary of the lease provisions.
(c) Within ten calendar days of acknowledged receipt of the contract specified in subsection (a), the buyer shall have the right to cancel the offer to purchase with no loss of deposit.
(d) The seller and buyer, on a standardized form, may agree to reduce or extend the time period provided herein for production and review of the applicable lease documents; provided that the agreement shall not constitute a waiver of the requirement to provide the applicable lease documents to the buyer. Buyers other than natural persons may waive, in writing, all the requirements of this section. [L 1989, c 168, §3; ree L 1990, c 277, pt of §1; am L 1991, c 276, §3; am L 1997, c 383, §63]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-72 Civil penalty.

§516-72
Civil penalty.
Failure to furnish disclosures substantially complying with the requirements of section 516-71 shall entitle the buyer to the recovery of a civil penalty of $1,000 in any proceeding at law brought within one year of the violation and the violator shall be liable further for the actual damages of the buyer, if any, reasonable attorneys' fees and court costs. [L 1991, c 276, §4]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-73 Suggested form of standardized summary of lease provisions.

§516-73
Suggested form of standardized summary of lease provisions.
A standardized summary of lease provisions executed pursuant to section 516-71 of this chapter may, but need not, be substantially in the following form:
STANDARDIZED SUMMARY OF LEASE PROVISIONS
This receipt dated _______________, between ________________
________________________________________ (the "buyer"), and
________________________________________ (the "seller"),
tax map key no. ( ) / / / (the "property").
Lessor: _______________________________________________________
Sublessor: ____________________________________________________
Lease Expiration: ____________ Surrender Clause: (yes or none)
Lease Rent: $__________ per __________ until __________
$__________ per __________ until __________
$__________ per __________ until __________
Renegotiation Dates: __________________________________________
Renegotiation Terms: __________________________________________
________________________________________________________________
I understand the information above is a summary of the terms of the lease and that for more detailed information I should read the lease.
I understand that the subject property is leasehold property and I will acquire the right to occupy and use the leased real property for the time stated in the lease agreement. I will not acquire outright or absolute ownership of the land or fee simple ownership. The land is owned by lessor or the leased fee owner, to whom I, the lessee, will agree to make lease rent payments and comply with the terms of the lease or be subject to the lessor's enforcement actions. The lease rent payments are usually fixed for specific amounts at fixed periods of time, then subject to renegotiation. Renegotiation may be based on formula or arbitration set in the lease agreement or by law or by agreement between the lessor and lessee. THE RENEGOTIATED LEASE RENTS MAY INCREASE SIGNIFICANTLY. AT THE END OF THE LEASE, I MAY HAVE TO SURRENDER THE PROPERTY (SURRENDER CLAUSE) AND THE LAND BACK TO THE LESSOR WITHOUT ANY COMPENSATION.
I understand when leasehold property is acquired, title is normally conveyed by means of an assignment of lease, whose purpose is similar to that of a deed. The legal and practical effect is different because the assignment conveys only the rights and obligations created by the lease to the property, not the property itself.
I UNDERSTAND THAT IF I HAVE ANY LEGAL QUESTIONS ABOUT LEASEHOLD PROPERTY, ABOUT THE LEASE DOCUMENTS, ABOUT THE TERMS OF THE LEASE, AND ITS CONSEQUENCES, I SHOULD SEEK THE ADVICE OF AN ATTORNEY.
[ ] I HAVE READ AND UNDERSTAND THE PROVISIONS OF THE LEASE DOCUMENTS RECEIVED, AND ACCEPT THE TERMS OF THE LEASE.
[ ] I DO NOT ACCEPT THE TERMS OF THE LEASE AND CANCEL THE ACCEPTANCE CONTRACT (DROA).
______________________________ _______________________________
Buyer's signature Buyer's signature
Date: ________________, ____AM/PM
[L 1991, c 276, §5]
Revision Note
Reference to "19______" referred to in date lines omitted as obsolete.
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-82 Severability.

§516-82 Severability.
If any part, section, sentence, clause, or phrase of this chapter, or its application to any person or transaction or other circumstances, is for any reason held to be unconstitutional or invalid, the remaining parts, sections, sentences, clauses, and phrases of this chapter, or the application of this chapter to other persons or transactions or circumstances, shall not be affected. The legislature hereby declares that it would have passed this chapter and each part, section, clause, or phrase thereof, irrespective of the fact that any one or more parts, sections, sentences, clauses, or phrases of this chapter, or its application to any person or transaction or other circumstance, be declared unconstitutional or invalid. [L 1975, c 184, §2(21)]
Case Notes
Since Hawaii Land Reform Act contains comprehensive severability clause, unless statute stands or falls as a whole, specific invalid provisions may be separated out. 471 F. Supp. 871 (1979).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-91 Definitions.

§516-91 Definitions.
The following words or terms as used in this part shall have the following meanings unless a different meaning clearly appears from the context:
"Eligible borrower" means any lessee, irrespective of race, creed, national origin, or sex, who:
(1) Qualifies to purchase the leased fee interest in the lessee's property under this chapter;
(2) Has never before obtained a loan under this part; and
(3) Meets other qualifications as established by rules adopted by the corporation.
"Eligible loan" means a loan to an eligible borrower for the purchase of the leased fee interest in the eligible borrower's houselot; provided that the property financed is and will be occupied as the principal place of residence by the eligible borrower, and meets other requirements as established by rules adopted by the corporation.
"Fee title acquisition loan programs" or "acquisition loan programs" includes all or any part of the loan to lenders program, the purchase of existing loans program, the advance commitments program, and the eligible loan funding program authorized under this part.
"Mortgage lender" means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, which:
(1) Is authorized to do business in the State;
(2) Customarily provides services or otherwise aids in the financing of mortgages on single family or multi-family residential property; and
(3) Is a financial institution whose accounts are federally insured, or is an institution which is an approved mortgagee for the Federal Housing Administration, or is an approved lender for the Department of Veterans Affairs or the United States Department of Agriculture, or is an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
"Revenue bond" means bonds, notes, or other evidence of indebtedness of the corporation issued to finance any of the acquisition loan programs under this part.
"Trustee" means a national or state bank or trust company within or without the State which enters into a trust indenture.
"Trust indenture" means an agreement by and between the corporation and the trustee, which sets forth the duties of the trustee with respect to the revenue bonds, the security therefor, and other provisions as deemed necessary or convenient by the corporation to secure the revenue bonds. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 258, §20; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2017, c 12, §1]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-95 Rules; eligible loans.

§516-95 Rules; eligible loans.
(a) The corporation shall establish requirements for property financed by an eligible loan, and may consider, but not be limited to the location, age, condition, and other characteristics of the property.
(b) The corporation shall establish restrictions on the terms, maturities, interest rates, collateral, and other requirements for eligible loans.
(c) All eligible loans made shall comply with applicable state and federal laws. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-101 Revenue bonds; authorization.

§516-101 Revenue bonds; authorization.
(a) The corporation, with the approval of the governor, may issue from time to time revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of undertaking and maintaining any of the acquisition loan programs.
(b) All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this part.
(c) The revenue bonds shall be issued in the name of the corporation, and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding forty years from the date of issuance. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-102 Revenue bonds; payment and security.

§516-102 Revenue bonds; payment and security.
(a) The revenue bonds shall be payable from and secured by the revenues derived from the benefits of the acquisition loan programs for which the revenue bonds are issued, including:
(1) Any payment made for eligible loans or other agreements entered into for the acquisition loan programs;
(2) Revenues derived from insurance proceeds;
(3) Reserve accounts and earnings thereon; and
(4) Revenues resulting from loans to mortgage lenders or from the payment on account of principal of and interest on loans purchased from mortgage lenders.
(b) The corporation may pledge any revenue derived from the acquisition loan programs financed from the proceeds of the revenue bonds to the punctual payment of the principal, interest, and redemption premiums, if any, on the revenue bonds.
(c) The revenue bonds additionally may be secured by the pledge or assignment of the loans and other agreements or any note or other undertaking, obligation, or property held by the corporation or any mortgage lender or its agent to secure the loans.
(d) Any pledge made by the corporation shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the corporation from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances. Upon such filing, the revenues, moneys, or property so pledged and thereafter received by the corporation immediately shall be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether such parties have notice thereof. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-103 Revenue bonds; interest rate, price, and sale.

§516-103 Revenue bonds; interest rate, price, and sale.
(a) The revenue bonds shall bear interest at a rate or rates payable monthly, quarterly, or semiannually.
(b) The corporation shall include the costs of undertaking and maintaining the acquisition loan programs for which the revenue bonds are issued in determining the principal amount of revenue bonds to be issued. In determining the cost of undertaking and maintaining the acquisition loan programs, the corporation may include the cost of purchasing or funding loans or other agreements entered into for the acquisition loan programs; the costs of studies and surveys; insurance premiums; underwriting fees; financial consultant, legal, accounting, and marketing services incurred; reserve account, trustee, custodian, and rating agency fees; and interest on the bonds for a period not to exceed one year from the date of issuance.
(c) The revenue bonds may be sold at public or private sale, and for a price as may be determined by the corporation to be in the best interest of the State.
(d) Section 39-65 shall not apply to revenue bonds issued for the purpose of undertaking and maintaining any of the acquisition loan programs as permitted by this part. The legislature consents to the taxation by the United States of America of interest on revenue bonds issued for the purpose of undertaking and maintaining any of the acquisition loan programs as permitted by this part. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Revision Note
Section "39-65" substituted for "39-61".
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-104 Revenue bonds; investment of proceeds and redemption.

§516-104 Revenue bonds; investment of proceeds and redemption.
Subject to any agreement with the holders of its revenue bonds, the corporation may:
(1) Invest its moneys not required for immediate use, including proceeds from the sale of any revenue bonds, in accordance with section 201H-77; and
(2) Purchase its revenue bonds out of any fund or money of the corporation available therefor, and hold, cancel, or resell the revenue bonds. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §16; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §29]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-107 Trustee; designation, duties.

§516-107 Trustee; designation, duties.
(a) The corporation shall designate a trustee for each issue of revenue bonds secured under the same trust indenture; provided that the trustee shall be approved by the director of finance.
(b) The trustee shall be authorized by the corporation to receive and receipt for, hold, and administer the proceeds of the revenue bonds, and to apply the proceeds to the purposes for which the bonds are issued.
(c) The trustee also shall be authorized by the corporation to hold and administer the acquisition loan program revenue bond special fund established pursuant to section 516-111, and to receive and receipt for, hold, and administer the revenues derived by the corporation from the benefits of the acquisition loan programs for which the revenue bonds are issued and to apply these revenues to the payment of the cost of administering, operating, and maintaining the acquisition loan programs, to pay the principal of and interest on these bonds, to the establishment of reserves, and to other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.
(d) Notwithstanding section 39-68, the director of finance may appoint the trustee to serve as fiscal agent for:
(1) The payment of the principal of and interest on the revenue bonds; and
(2) The purchase, registration, transfer, exchange, and redemption of the bonds.
(e) The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the revenue bonds and coupons which have been paid and the supervision of the destruction thereof in accordance with the law.
(f) Nothing in this part shall limit or be construed to limit the powers granted to the director of finance in sections 36-3 and 39-13, and the third sentence of section 39-68, to appoint the trustee or others as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower those fiscal agents, paying agents, and registrars to perform the functions referred to in those sections. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Revision Note
Section "39-68" substituted for "39-65". "39-13" substituted for "39-12".
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-108 Trust indenture.

§516-108 Trust indenture.
(a) A trust indenture may contain covenants and provisions authorized by part III of chapter 39, and as deemed necessary or convenient by the corporation for the purposes of this part.
(b) A trust indenture may allow the corporation to pledge and assign to the trustee loans and other agreements related to the acquisition loan programs, and the rights of the corporation thereunder, including the right to receive revenues thereunder and to enforce the provision thereof.
(c) Where a trust indenture provides that any revenue bond issued under that trust indenture is not valid or obligatory for any purpose unless certified or authenticated by the trustee, all signatures of the officers of the State upon the revenue bonds required by section 39-56 may be facsimiles of their signatures.
(d) A trust indenture also shall contain provisions as to:
(1) The investment of the proceeds of the revenue bonds, the investment of any reserve for the bonds, the investment of the revenues of the acquisition loan programs, and the use and application of the earnings from investments; and
(2) The terms and conditions upon which the holders of the revenue bonds or any portion of them or any trustee thereof may institute proceedings for the foreclosure of any loan or other agreement or any note or other undertaking, obligation, or property securing the payment of the bonds and the use and application of the moneys derived from the foreclosure.
(e) A trust indenture also may contain provisions deemed necessary or desirable by the corporation to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the acquisition loan programs or in the financing of the costs of administering, operating, or maintaining the acquisition loan programs. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Revision Note
Section "39-56" substituted for "39-64".
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-111 Revenue bonds; special funds.

§516-111 Revenue bonds; special funds.
A separate special fund shall be established in accordance with section 39-62 for each acquisition loan program or part thereof financed from the proceeds of the revenue bonds secured under the same trust indenture. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1993, c 280, §12]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-121 Acquisition loan programs; procedures and requirements.

§516-121 Acquisition loan programs; procedures and requirements.
(a) The corporation shall establish procedures for:
(1) The submission of requests or the invitation of proposals for loans to mortgage lenders;
(2) The purchase of existing loans by auction, invitation of tenders, or negotiation;
(3) The making of advance commitments to purchase and the purchasing of eligible loans to be made by mortgage lenders by auction, invitation of tenders, or negotiation; and
(4) Loan applications made through mortgage lenders to eligible borrowers.
(b) The corporation shall establish standards and requirements for:
(1) The allocation of loans to mortgage lenders;
(2) The allocation of funds to purchase existing loans from mortgage lenders;
(3) The making of advance commitments and allocation of funds to purchase eligible loans from mortgage lenders; and
(4) The participation by mortgage lenders as originators and processors of eligible loans on behalf of the corporation.
(c) The standards and requirements for the allocation of funds to mortgage lenders adopted by the corporation shall be designed to include the maximum number of qualified mortgage lenders as participants in the acquisition loan programs.
(d) The corporation may adopt rules under chapter 91 necessary or convenient for the operation of the acquisition loan programs under this part. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-122 Acquisition loan programs; general powers.

§516-122 Acquisition loan programs; general powers.
(a) The corporation may make, enter into, and enforce all contracts or agreements which are necessary, convenient, or desirable for the purposes of the performance of its duties in executing the acquisition loan programs.
(b) The corporation may require representations and warranties as it determines necessary to secure its loans. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-123 Acquisition loan programs; self supporting.

§516-123 Acquisition loan programs; self supporting.
The interest rate, fees, charges, premiums, and other terms of the loans made under the acquisition loan programs shall be at least sufficient to pay the cost of administering and maintaining the portion of the specific acquisition loan programs for which the revenue bonds have been issued, and to assure payment of the principal of and interest on the revenue bonds as they become due. [L 1983, c 270, pt of §1]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-124 Acquisition loan programs; fees.

§516-124 Acquisition loan programs; fees.
The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for its acquisition loan programs.
The fees, premiums, and charges shall be deposited into the fee title acquisition loan program revenue bond special fund established for the particular acquisition loan program or part thereof from which the fees, premiums, and charges are derived as determined by the corporation. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-125 Acquisition loan programs; evidence of eligible loan.

§516-125 Acquisition loan programs; evidence of eligible loan.
(a) Each mortgage lender who participates in any acquisition loan program shall submit evidence, as deemed satisfactory by the corporation, that eligible loans have been made from the proceeds of the revenue bonds.
(b) The corporation may inspect the books and records of the mortgage lenders as may be necessary for this section. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-131 Loans to lenders program.

§516-131 Loans to lenders program.
(a) The corporation may make loans to mortgage lenders under terms and conditions requiring that the loan proceeds be used within a time period prescribed by the corporation to make eligible loans in an aggregate principal amount substantially equal to the amount of the loan.
(b) The loan made to a mortgage lender shall be a general obligation of the respective mortgage lender.
(c) The loan as determined by the corporation shall:
(1) Bear a date or dates;
(2) Mature at a time or times;
(3) Be evidenced by a note, bond, or other certificate of indebtedness;
(4) Be subject to prepayment; and
(5) Contain other provisions consistent with this part.
(d) Subject to any agreement with the holders of its revenue bonds, the corporation may consent to any modification to the rate of interest, time, and payment of any installment of principal or interest, security or any other term of any loan to a mortgage lender or any bond, note, contract, or agreement of any kind to which the corporation is a party. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-132 Loan to lenders program; collateral security.

§516-132 Loan to lenders program; collateral security.
(a) Loans made to mortgage lenders additionally may be secured by a pledge of a lien upon collateral security in an amount as the corporation deems necessary to assure the payment of principal of and interest on the loans as they become due.
(b) The corporation shall determine the nature and type of collateral security required.
(c) A statement designating the collateral security pledged, the mortgage lender pledging the collateral, and the corporation's interest in the pledged collateral may be filed with the bureau of conveyances. Where a statement has been filed, no possession, further filing, or other action under any state law shall be required to perfect any security interest which may be deemed to have been created in favor of the corporation. The mortgage lender shall be deemed the trustee of an express trust for the benefit of the corporation in all matters relating to the pledged collateral.
(d) Subject to any agreement with the holders of its revenue bonds, the corporation may collect, enforce the collection of, and foreclose on any collateral securing its loans to mortgage lenders. The corporation may acquire, take possession of, sell at public or private sale with or without bidding, or otherwise deal with the collateral to protect its interests. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-141 Purchase of existing loans program.

§516-141 Purchase of existing loans program.
(a) The corporation may contract with a mortgage lender to purchase, in whole or in part, existing loans, whether or not eligible loans. The contract may contain provisions as determined by the corporation to be necessary or appropriate to provide security for its revenue bonds, including but not limited to provisions requiring the:
(1) Repurchase of the loans, in whole or in part, by mortgage lenders at the option of the corporation;
(2) Payments of premiums, fees, charges, or other amounts by mortgage lenders to provide a reserve or escrow fund for the purposes of protecting against loan defaults; and
(3) Guarantee by, or for recourse against, mortgage lenders, with respect to defaults on these loans of the corporation.
(b) The corporation shall require as a condition of each purchase of existing loans from a mortgage lender that the mortgage lender proceed to make and disburse eligible loans in an aggregate principal amount substantially equal to the amount of the proceeds from the purchase by the corporation of loans therefrom. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-151 Advance commitments program.

§516-151 Advance commitments program.
(a) The corporation may contract with a mortgage lender for the advance commitment to purchase eligible loans.
(b) The contract may contain provisions as determined by the corporation to be necessary or appropriate to provide security for its revenue bonds. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-161 Eligible loan funding program.

§516-161 Eligible loan funding program.
(a) The corporation may make or contract directly with mortgage lenders to fund eligible loans.
(b) The contract may contain provisions as determined by the corporation to be necessary or appropriate to provide security for its revenue bonds. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-171 Loans; service and custody.

§516-171 Loans; service and custody.
The corporation may contract for the service and custody of its loans. The contract may provide for the payment of fees or charges for the services rendered; provided that the fees or charges shall not exceed the usual, customary, and reasonable charges for the services rendered. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-172 Loans; sale, pledge, or assignment.

§516-172 Loans; sale, pledge, or assignment.
(a) Subject to any agreement with the holders of its revenue bonds, the corporation may sell its loans at public or private sale at a price and upon terms and conditions as it determines.
(b) Subject to any agreement with the holders of its revenue bonds, the corporation may pledge or assign its loans, other agreements, notes, or property to secure the loans or agreements. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-173 Loans; insurance and guarantees.

§516-173 Loans; insurance and guarantees.
The corporation may procure insurance or guarantees against any default of its loans, in amounts and from insurers or guarantors, as it deems necessary or desirable. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-174 Loans; default.

§516-174 Loans; default.
The corporation may:
(1) Renegotiate, refinance, or foreclose any loan in default;
(2) Waive any default or consent to the modification of the terms of any loan or security agreement;
(3) Commence any action to protect or enforce any right conferred upon it by any law, mortgage, insurance policy, contract, or other agreement;
(4) Bid for and purchase the property secured by the loan at any foreclosure or other sale, or acquire or take possession of the property secured by the loan; and
(5) Operate, manage, lease, dispose of, or otherwise deal with the property secured by the loan. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-181 Interest acquired.

§516-181 Interest acquired.
(a) Upon acquisition of the leased fee interest in a residential houselot from the proceeds of an eligible loan, the property interest acquired shall be all of the right, title, and interest of the fee owner and all legal and equitable owners, if any, in and to the residential houselot acquired, subject to all covenants, conditions, easements, reservations, and restrictions of record running with the land or contained in the agreement of sale, deed, or other conveyance held by the fee owner and legal and equitable owners. The acquisition of a leased fee interest in a residential houselot from the proceeds of an eligible loan shall terminate all the right, title, and interest of the fee owner and all legal and equitable owners, whether the interest be a remainder, vested or contingent, a reversion, or other beneficial interest in the property, present or prospective.
(b) If the leasehold on property acquired from the proceeds of an eligible loan is subject to any mortgage, lien, or encumbrance suffered or permitted by the eligible borrower, including, but not limited to, rights arising through divorce, marriage, or assignment, the purchase of the leased fee interest in such residential houselot in no manner shall affect or impair the mortgage, lien, or encumbrance or the security afforded thereby to the holder thereof, and the leasehold shall continue, notwithstanding the purchase of the leased fee interest in such residential houselot by the eligible borrower, for the purposes and to the extent necessary to avoid any impairment of leasehold security, unless the holder of the mortgage, lien, or encumbrance on such leasehold and the corporation in writing shall consent to the transfer thereof to the fee. Upon the written consent by the holder thereof and the corporation, each such mortgage, lien, or encumbrance to which the leasehold is subject and to which such consent refers shall be transferred to and shall bind the fee acquired by the eligible borrower, and thereafter shall continue in full force and effect as a mortgage, lien, or encumbrance of the fee acquired by the eligible borrower, in the same order and priority among such mortgages, liens, and encumbrances so transferred to the fee as the same applied to and bound the eligible borrower's immediate, previous leased fee interest. [L 1983, c 270, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-182 Restrictions on sale and use of residential lots acquired from proceeds of eligible loan.

§516-182 Restrictions on sale and use of residential lots acquired from proceeds of eligible loan.
No interest in property acquired from the proceeds of an eligible loan made under this part, so long as any part of such eligible loan is outstanding, shall be transferred unless contemporaneously with such transfer all interest in onsite improvements situated on such property are transferred to the same transferee. [L 1983, c 270, pt of §1]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-186 Construction.

§516-186 Construction.
The powers conferred by this part shall be in addition and supplemental to the powers conferred by any other law. The fee title acquisition loan programs authorized under this part may be undertaken, and revenue bonds may be issued under this part, notwithstanding that any other law may provide for a loan program similar to that authorized under this part, and may be undertaken for the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations, or other provisions contained in any other law. Insofar as the provisions of this part are inconsistent with the provisions of any other law, this part shall be controlling. [L 1983, c 270, pt of §1]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-201 Exemption for sustainable affordable developments.

§516-201 Exemption for sustainable affordable developments.
Notwithstanding any law to the contrary, no lessee under a sustainable affordable lease may exercise the rights granted to a lessee by part II and sections 516-63, 516-65, and 516-66. The lessee under a sustainable affordable lease may exercise rights under section 516-70; provided that in no event shall compensation to the lessee for on-site improvements at the termination or expiration of the lease term exceed the lessee's share of the maximum sales price of a residential lot, including all buildings and improvements, on resale as determined pursuant to paragraph (2) of the definition of "sustainable affordable lease" in section 516-1. In addition, sections 516-5 and 516-83 shall not apply to the fee owner and lessor of land in a sustainable affordable development. [L 2005, c 197, pt of §2]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-202 Certification.

§516-202
Certification.
The lessor of a sustainable affordable development shall certify the lessor's qualification for the exemption established in section 516-201 at the time of the delivery of the first sustainable affordable lease by filing an affidavit with the registrar of the bureau of conveyances or assistant registrar of the land court, as appropriate, that:
(1) Declares the percentage of all the residential lots in the development tract that will have their initial sales prices limited in accordance with directly applicable state or county law, regulation, policy, or agreement, such that households earning not more than the required percentage of the median income for the applicable county will spend no more than the allowable percentage of their gross income for housing costs; provided that if the percentage of residential lots is less than thirty per cent, the state or county agency's approval thereof shall also be set forth;
(2) Declares the percentage of all the residential lots in the development tract that will have their initial sales prices and resale sales prices limited to eighty per cent of the fair market value of the residential lots in fee, including all buildings and improvements, unencumbered by the lease and describing the calculation of the difference; provided that if the percentage of residential lots is less than fifty-one per cent, the state or county agency's approval thereof shall also be set forth; and
(3) Sets forth the provisions in the sustainable affordable leases that limit the resale price of the residential lot, including all buildings and improvements, and entitle the lessor to a share of the appreciation in the residential lot, including all buildings and improvements. [L 2005, c 197, pt of §2]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-203 Recordkeeping.

§516-203 Recordkeeping.
A lessor of a sustainable affordable development shall maintain during the term of all sustainable affordable leases records regarding income levels and other qualifications of buyers of sustainable affordable leases at the time of purchase. [L 2005, c 197, pt of §2]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-204 University of Hawaii at Manoa.

§516-204 University of Hawaii at Manoa.
The legislature identifies the creation of a sustainable affordable development by or on land owned by or set aside to the University of Hawaii at Manoa to be a matter of statewide concern because of the built-up nature of the surrounding community. The University of Hawaii at Manoa shall not create a sustainable affordable development by entering into any sustainable affordable lease or by authorizing any land owned by or set aside to the University of Hawaii at Manoa to be demised under a sustainable affordable lease prior to enactment of a law specifically authorizing the University of Hawaii at Manoa to enter into a sustainable affordable lease or to demise any land owned by or set aside to the University of Hawaii at Manoa under a sustainable affordable lease. [L 2005, c 197, pt of §2]
2023 Hawaii Revised Statutes › Title 28. Property › 516D. Residential Leasehold Condominiums and Cooperatives › 516D-1 Applicability.

§516D-1 Applicability.
This chapter applies to all lands on which are situated either residential condominium property regimes created under chapter 514B or any predecessor thereto, or cooperative housing corporations, which are owned or held privately or by the State or by the counties, except Hawaiian home lands subject to article XII of the state constitution and lands owned or held by the federal government. [L 1989, c 168, pt of §4; ree L 1990, c 277, pt of §1; am L 2004, c 164, §23; am L 2008, c 28, §17; am L 2017, c 181, §35]