reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 28. Property › 515. Discrimination in Real Property Transactions › 515-19 Public contractors.

§515-19 Public contractors.
Upon receiving a certification made under section 515-13(c), a contracting agency may take appropriate action to:
(1) Terminate a contract or portion thereof previously entered into with the respondent, either absolutely or on condition that the respondent carry out a program of compliance with this chapter; and
(2) Assist the State and all counties, and agencies thereof, to refrain from entering into further contracts, or extensions or other modifications of existing contracts, with the respondent until the commission is satisfied that the respondent will carry out policies in compliance with this chapter. [L 1967, c 193, §19; HRS §515-19; am L 1982, c 204, §8; am L 1989, c 386, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 515. Discrimination in Real Property Transactions › 515-20 Prima facie evidence.

§515-20 Prima facie evidence.
In a proceeding under this chapter, a written, printed, or visual communication, advertisement, or other form of publication, or written inquiry, or record, or other document purporting to have been made by a person is prima facie evidence that it was authorized by the person. [L 1967, c 193, §20; HRS §515-20; gen ch 1985]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-2 Applicability.

§516-2 Applicability.
This chapter applies to all lands leased as residential lots which are owned or held privately or owned by the State or its political subdivisions, except Hawaiian home lands which are subject to Article XII of the Constitution of the State and lands owned or held by the federal government. This chapter is not meant to supersede or preclude any other remedy at law available to residential leasehold lessees or the State, including those available under chapter 480. [L 1967, c 307, §3; HRS §516-2; am L 1969, c 203, §1; am L 1975, c 184, §2(2)]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-3 No estoppel or waiver.

§516-3 No estoppel or waiver.
The rights granted to lessees by this chapter shall be effective, notwithstanding any provision in any lease or contract to the contrary. No lessee shall be estopped by any covenant, term, condition, or contract, however worded, from claiming the rights granted to the lessee or otherwise be deemed to have waived such right. Any provision in any lease or contract contrary to the intent or purpose of this chapter is void. [L 1967, c 307, §4; HRS §516-3; gen ch 1985]
Law Journals and Reviews
Hawaii's Land Reform Act: Is it Constitutional? 6 HBJ, no. 2, at 31 (1969).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-4 Trusts and estates.

§516-4 Trusts and estates.
The rights granted to lessees by this chapter shall be effective, notwithstanding any condition or provision to the contrary in any instrument creating any life tenancy, defeasible fee, estate, or trust, regardless of whether such tenancy, fee, estate or trust was in effect prior to June 24, 1967 or is created hereafter; and the life tenant, holder, officer, or trustee of any such tenancy, defeasible fee, estate, or trust may convey residential leases for terms exceeding twenty years and shall perform all acts required of the life tenant, holder, officer, or trustee by this chapter. Every such instrument now in existence or hereafter executed shall be construed in conformity with the intent and purpose of this chapter. No trustee, officer, or agent of a lessor or other legal or equitable owner shall, while acting pursuant to this chapter, be deemed to be acting in bad faith or to have committed a breach of trust. [L 1967, c 307, §5; HRS §516-4; am L 1975, c 184, §2(3); gen ch 1985]
Law Journals and Reviews
Hawaii's Land Reform Act: Is it Constitutional? 6 HBJ, no. 2, at 31 (1969).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-5 Penalty.

§516-5 Penalty.
Any person who violates this chapter shall be fined not more than $5,000 nor less than $1,000 or imprisoned not more than one year, or both. [L 1967, c 307, §6; HRS §516-5; am L 2015, c 237, §37]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-6 Administration of chapter.

§516-6 Administration of chapter.
The Hawaii housing finance and development corporation shall administer this chapter. [L 1967, c 307, §7; HRS §516-6; 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 › 516-7 Corporation's duties, generally.

§516-7 Corporation's duties, generally.
In addition to any other duty prescribed by law and in this chapter, the Hawaii housing finance and development corporation shall:
(1) Within six months after June 24, 1967, adopt and promulgate, in accordance with chapter 91, all rules and regulations necessary to effectuate the purposes of this chapter;
(2) Enforce this chapter and the rules and regulations adopted pursuant thereto;
(3) Subject to chapter 76, appoint and remove such administrative, technical, and clerical staff as it may require and prescribe their powers and duties; except that the corporation may appoint, without regard to chapter 76, one or more appraisers on a part-time, contractual basis for the purposes set forth in this chapter;
(4) Establish such reasonable fees to be assessed and collected from lessees for the services of any appraiser;
(5) Disseminate information and render assistance to lessees of residential lots in order that this chapter may be understood and effectively implemented;
(6) Conduct an investigation upon any written complaint or whenever it appears to the corporation that this chapter has been or is being violated. In such investigation, the corporation may examine the books, accounts, records, and files of any person connected with the matter under investigation and conduct hearings. If the corporation finds from satisfactory evidence that any person has violated or is violating this chapter, it may order such person to cease and desist from continuing the violation or engaging therein or doing any act or acts in furtherance thereof and, where necessary, it may bring an action in the name of the State in any court of competent jurisdiction for enforcement of its orders;
(7) Acquire by eminent domain proceedings, all necessary property interests as provided in this chapter;
(8) Make and execute contracts, mortgages, and other instruments necessary or convenient to the exercise of the powers of the corporation;
(9) From time to time, require from the lessors of leases of residential lots and from all fee owners and legal and equitable owners of lots subject to such leases, such information as it may reasonably require in connection with the administration of this chapter;
(10) Do all things necessary and convenient to carry out the powers expressly conferred upon it by this chapter. [L 1967, c 307, §8; HRS §516-7; am L 1975, c 184, §2(4); am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 2000, c 253, §150; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-8 Interested members, officers, or employees.

§516-8 Interested members, officers, or employees.
No member of the Hawaii housing finance and development corporation or officer or employee administering this chapter shall acquire any interest, direct or indirect, in the ownership or development of any development tract other than by gift, devise, or inheritance, nor shall the member, officer, or employee have or acquire any interest, direct or indirect, in the financing or in any contract or proposed contract for services to be furnished or used in connection with or relating to the development of any development tract. If any such member, officer, or employee has or acquires an interest by gift, devise, or inheritance, direct or indirect, in any development tract or is a lessee of any residential lot affected by the eminent domain proceedings instituted under this chapter, the member, officer, or employee shall immediately disclose the same in writing to the corporation and such disclosure shall be entered upon the minutes of the corporation. The member, officer, or employee shall not participate in any action by the corporation relating to the property, tract, or contract in which the member, officer, or employee has or acquires any such interest. Violation of this section constitutes misconduct in office and is cause for dismissal. [L 1967, c 307, §9; HRS §516-8; gen ch 1985; 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 › 516-9 Quitclaim deeds.

§516-9 Quitclaim deeds.
Unless otherwise provided by law, the corporation shall issue quitclaim deeds and leases whenever it conveys, transfers, sells, or assigns any property developed, constructed, or sponsored under this chapter. In no instance shall the corporation be considered a guarantor or warrantor of the condition and quality of the property upon the issuance of any such quitclaim deed or lease. [L 1984, c 162, §4; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1991, c 82, §1; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-21 Applicability.

§516-21 Applicability.
This part applies to development tracts which are, at the time of acquisition of leased fee interests in residential lots within such tracts by the Hawaii housing finance and development corporation as [provided] herein:
(1) Developed and subdivided into residential houselots occupied by lessees under leases executed before June 24, 1967;
(2) Developed and subdivided or partially developed into residential houselots occupied or to be occupied by lessees under leases executed after June 24, 1967, provided that ten or more years remain before the final termination of the lease term, and provided further that ninety per cent of the leases to the lots have been executed. [L 1967, c 307, §10; HRS §516-21; am L 1975, c 184, §2(5); 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]
Law Journals and Reviews
For discussion of an approach to concentration of land ownership, see The Antitrust Laws and Land: An Answer to Hawaii's Housing Crisis? 8 HBJ, no. 1, at 5 (1971).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-22 Designation of leased fee interest in all or part of development tract for acquisition.

§516-22 Designation of leased fee interest in all or part of development tract for acquisition.
The corporation may designate all or a portion of a development tract for acquisition and acquire leased fee interests in residential houselots in a development tract, through the exercise of the power of eminent domain or by purchase under the threat of eminent domain after twenty-five or more lessees or the lessees of more than fifty per cent of the residential lease lots within the development tract, whichever number is the lesser, have applied to the corporation to purchase the leased fee interest in their residential leasehold lots pursuant to section 516-33 and if, after due public notice and public hearing, the time and place of which have been duly given in the county in which the development tract is situated on at least three different days, the last notice being not less than five days before the date of hearing, the corporation finds that the acquisition of the leased fee interest in residential houselots in all or part of the tract through exercise of the power of eminent domain or by purchase under threat of eminent domain and the disposition thereof, as provided in this part will effectuate the public purposes of this chapter. [L 1967, c 307, §11; HRS §516-22; am L 1975, c 184, §2(6); am L 1976, c 242, §2; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1998, c 2, §104; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Law Journals and Reviews
The Constitutionality of a Naked Transfer: Mandatory Lease-to-Fee Conversion's Failure To Satisfy a Requisite Public Purpose in Hawai`i Condominiums. 25 UH L. Rev. 561 (2003).
Case Notes
State may use power of eminent domain to redefine, rearrange, or redistribute interests in land. 471 F. Supp. 871 (1979).
Taking is for a public use. 68 H. 55, 704 P.2d 888 (1985).
Statutory public hearing requirement serves only informational purpose. 72 H. 466, 822 P.2d 955 (1991).
Pursuant to this section, the housing finance and development corporation's sole function is to determine that necessary quantum of lessees have applied for purchase of their leased fee interests in residential lots situated in a qualifying "development tract", in conformity with preconditions enumerated in §516-33, and that the acquisition by the housing finance and development corporation will effectuate public purposes of the Hawaii Land Reform Act. 79 H. 64, 898 P.2d 576 (1995).
Section 516-23 requires the housing finance and development corporation to acquire and dispose of the leased fee interests in no less than that portion of the development tract represented by the statutory minimum number of applicants designated pursuant to this section. 82 H. 172, 921 P.2d 92 (1996).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-23 Exercise of power of eminent domain.

§516-23 Exercise of power of eminent domain.
Within twelve months after the designation of all or part of the development tract for acquisition, the Hawaii housing finance and development corporation shall acquire through voluntary action of the parties, or institute eminent domain proceedings to acquire the leased fee interest in the tract or portion so designated; provided that negotiations for acquisition by voluntary transaction shall not be required before the institution of eminent domain proceedings. Except as otherwise provided in this part, the corporation shall exercise its power of eminent domain in the same manner as provided in chapter 101. If the development tract or applicable portion thereof, as the case may be, is not acquired or eminent domain proceedings are not instituted within the twelve-month period, the corporation shall reimburse the fee owner, the lessor, and the legal and equitable owners of the land so designated for actual out-of-pocket expenses of appraisal, survey, and attorney fees as the owner, the lessor, and the legal and equitable owners may have incurred as a result of the designation; provided that, if the development tract or an applicable portion thereof is not acquired or eminent domain proceedings are not instituted within the twelve-month period as a result of the lessee's dismissal, discontinuance, or withdrawal from the eminent domain proceedings or failure to purchase the leased fee interest condemned because of the lessee's inability, failure, or refusal to comply with any provision under chapter 516 or to purchase the leased fee interest condemned, then such lessee and not the corporation shall be solely responsible to reimburse the fee owner, the lessor, and the legal and equitable owners of the land so designated or condemned, for their respective prorated costs, as described above, which the fee owner, the lessor, and the legal and equitable owners may have incurred as a result of the designation and condemnation. [L 1967, c 307, §12; HRS §516-23; am L 1975, c 184, §2(7); am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 2001, c 38, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Law Journals and Reviews
Hawaii's Land Reform Act: Is it Constitutional? 6 HBJ, no. 2, at 31 (1969).
Case Notes
Section requires the housing finance and development corporation to acquire and dispose of the leased fee interests in no less than that portion of the development tract represented by the statutory minimum number of applicants designated pursuant to §516-22. 82 H. 172, 921 P.2d 92 (1996).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-24 Compensation.

§516-24 Compensation.
The compensation to be paid for the leased fee interest in a residential houselot within a tract shall be the owner's basis as defined in section 516-1. The compensation shall be determined as of the date of the summons of the complaint in eminent domain. [L 1967, c 307, §13; HRS §516-24; am L 1968, c 46, §2e; am L 1975, c 184, §2(8); am L 1983, c 204, §2]
Revision Note
Section "516-1" substituted for "516-1(14)".
Case Notes
Chapter does not deprive landowners of just compensation. 68 H. 55, 704 P.2d 888 (1985).
Procedure for determining blight of summons damages in leasehold conversion cases. 69 H. 247, 739 P.2d 248 (1987).
Calculation of blight of summons damages as part of just compensation under leasehold condemnation. 72 H. 383, 819 P.2d 82 (1991).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-24.5 Exchanges.

§516-24.5 Exchanges.
(a) The corporation may exchange public lands for private lands to be condemned or involuntarily sold pursuant to this chapter; provided that any such exchange shall be subject to legislative disapproval; provided further that lands exchanged need not be of like-kind or comparable use; and provided further that no lands classified as conservation shall be exchanged for private lands.
(b) The corporation may acquire private lands by negotiated sale for purposes of exchanging such land with private lands pursuant to subsection (a). The legislature declares that such acquisition is for the public purpose of encouraging home ownership on as widespread a basis as possible. [L 1975, c 184, §2(21); 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 › 516-25 Interest acquired.

§516-25 Interest acquired.
(a) Upon acquisition of the leased fee interest in residential houselots within all or a portion of a development tract as provided in this part, the property interest acquired by the Hawaii housing finance and development corporation is all of the right, title, and interest of the fee owner, and of the lessor and all legal and equitable owners, if any, in and to the residential houselots acquired; subject to existing leases of residential houselots within the development tract, and 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, lessor, and legal and equitable owners or permitted or suffered by lessees of existing residential houselot leases, which are not inconsistent with the intent of this part. The acquisition terminates all the right, title, and interest of the fee owner, lessor, 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 is subject to any mortgage, lien, or encumbrance suffered or permitted by the lessee, including, but not limited to, rights arising through divorce, marriage, or assignment, the purchase of the leased fee by the lessee shall in no manner 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 by the lessee, for the purpose and to extent necessary to avoid any impairment of such leasehold security, unless the holder of the leasehold mortgage, lien, or encumbrance shall in writing consent to the transfer thereof to the fee as herein provided. Upon the written consent by the holder thereof, 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 lessee, and shall thereafter continue in full force and effect as a mortgage, lien, or encumbrance of the fee acquired by the lessee, 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 lessee's immediate, previous leasehold interest. [L 1967, c 307, §14; HRS §516-25; am L 1975, c 184, §2(9); 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 › 516-26 Interest in compensation paid by the corporation.

§516-26 Interest in compensation paid by the corporation.
The fee owner, lessor, and all legal and equitable owners shall share in the compensation paid by the Hawaii housing finance and development corporation as their respective interests appear. Notwithstanding any contrary provision in any contract or lease, a developer or other person entitled to share in the lease rentals shall share in such compensation paid by the corporation to the extent of the developer's or other person's interest as may be determined by agreement of those entitled to share in the compensation paid by the corporation, or in the absence of such agreement, pursuant to chapter 658A. [L 1967, c 307, §15; HRS §516-26; am L 1975, c 184, §2(10); gen ch 1985; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 2001, c 265, §4; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-27 Compulsory or involuntary conversion.

§516-27 Compulsory or involuntary conversion.
It is the intent of the legislature, within the meaning of section 1033 or section 1231 of the Internal Revenue Code or the applicable provisions of chapter 235, Hawaii Revised Statutes, as well as all other statutes, rules, regulations, administrative orders, and legal interpretations within the federal and state governments relating to taxation, that any conveyance of title to property by a fee owner to the corporation under this part shall constitute a compulsory or involuntary conversion (as a result of the exercise of the power of condemnation or the threat of imminence thereof), and that such fee owner shall not be deemed, by reason, in whole or in part, of any provision of this part or by reason of the execution by the fee owner of leases to the property and other properties subsequent to June 24, 1967, to hold the property primarily for sale to customers in the ordinary course of trade or business. [L 1967, c 307, §16; HRS §516-27; 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 › 516-28 Disposition, generally.

§516-28 Disposition, generally.
It shall be the policy of the Hawaii housing finance and development corporation to encourage the widespread fee simple ownership of residential lots situated within a development tract. Where necessary or desirable, the corporation may lease the residential lots. Not more than one lot shall be sold in fee simple or leased to a purchaser or lessee. A husband and wife together, unless separated and living apart under a decree of separation issued by a court of competent jurisdiction, shall be entitled to only one lot. [L 1967, c 307, §17; HRS §516-28; am L 1975, c 184, §2(11); 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 38, §27 and c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-29 Notice of disposition.

§516-29 Notice of disposition.
Except in case of a sale of the leased fee interest to the lessee of a residential lot under lease, no sale or lease of any residential lots shall be made by the Hawaii housing finance and development corporation unless it has given public notice on at least two different days in the county of its intent to sell or lease. The notice shall state, in general terms, the size, location, and prices or lease rentals of the lots to be sold or leased, the terms of the sale or lease, and the last date on which applications will be received by the corporation, which date shall not be less than thirty days after the first notice. The notice shall also state the times and places at which more detailed information with respect to the sale or lease may be secured by interested persons. [L 1967, c 307, §18; HRS §516-29; am L 1968, c 46, §2f; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 1998, c 2, §105; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-30 Purchase of leased fee interest.

§516-30 Purchase of leased fee interest.
The lessee of a residential lot within a development tract, whether the lessee was a lessee at the time of the acquisition or became a lessee after the acquisition of the development tract, who has applied to the corporation and has qualified for purchase of the leased fee interest shall purchase from the Hawaii housing finance and development corporation by contract within sixty days of acquisition of the interest by the corporation, the leased fee interest to the lot, subject to the terms, covenants, and conditions of the contract executed with the corporation; provided that the lessee is not then in default in the performance of the lessee's obligations under the lease; and further provided that should any of the lessees fail or refuse to enter into such a contract, then in such event, each such lessee shall pay to the corporation the lessee's pro rata share of all direct costs incurred by the corporation in the acquisition of the houselots within the development tract including but not limited to appraisal costs, costs of publication, and survey, and the corporation is authorized to take whatever action it deems necessary to collect such costs; and provided further that in case of a wilful breach of the purchase agreement the corporation shall be entitled to any available remedy, including the sale of its interest in the houselot; and further provided that the sales price shall be at the lowest possible price consistent with section 516-32 and the purpose of this chapter. [L 1967, c 307, §19; HRS §516-30; am L 1975, c 184, §2(12); gen ch 1985; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 2001, c 60, §2; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Case Notes
State may use power of eminent domain to redefine, rearrange, or redistribute interests in land. 471 F. Supp. 871 (1979).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-31 Disposition by lease.

§516-31 Disposition by lease.
The Hawaii housing finance and development corporation may lease any of the residential lots in a development tract at lease rentals and upon terms and conditions as it may determine. The leases shall be subject to all of the rights of lessees enumerated in part III. The corporation, in its discretion, may utilize any of the residential lots and rent out the same for periods of twenty years or less for the purposes set forth in chapter 201H, or for any other purpose, all upon terms and conditions as the corporation may determine. [L 1967, c 307, §20; HRS §516-31; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L 1998, c 11, §26 and c 212, §46; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §28]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-32 Not for profit.

§516-32 Not for profit.
It is declared to be the policy of the State that the Hawaii housing finance and development corporation shall carry out its responsibilities under this part in an efficient manner so as to enable it to fix the sales prices and rentals for residential lots at the lowest possible rates consistent with the purpose of this part; and that the corporation shall not administer this part for profit or as a source of revenue to the State. To this end, the corporation shall fix the sales prices for residential lots or rentals for lots at no higher rates or prices than it shall find to be necessary in order to produce revenues that (together with all other available moneys, revenues, income, and receipts of the corporation from whatever sources derived under the administration of this part) will be sufficient to:
(1) Pay, as the same becomes due, the principal and interest on the bonds of the corporation;
(2) Meet the cost of and provide for the administration of this part; and
(3) Create a reserve sufficient to meet the largest principal and interest payments that will be due on the bonds in any one year thereafter and to maintain the reserve. [L 1967, c 307, §21; HRS §516-32; 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; am L 2018, c 18, §37]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-33.5 Deposits by lessees.

§516-33.5 Deposits by lessees.
(a) The corporation may require the submission of a deposit by any lessee applying to the corporation for the purchase of a residential lot under this chapter. The amount of the deposit shall be established by rule. All interests earned on deposits submitted by lessees shall accrue to the lessees.
(b) The deposit may be applied by the corporation to payment of appraisal, survey, attorney fees, and any other cost the corporation has incurred as a result of the designation, with the remainder of the deposit to be applied toward the purchase of the owner's fee interest. The corporation shall incur no liability for such deposits under this section. [L 1978, c 140, §3; am L 1983, c 270, §3; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 2001, c 60, §3; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-34 Mortgages, agreements of sale, other instruments.

§516-34 Mortgages, agreements of sale, other instruments.
(a) If an applicant who wishes to purchase the leased fee interest in the applicant's residential leasehold lot is unable to obtain sufficient funds at reasonable rates from private lenders, the Hawaii housing finance and development corporation may, by way of mortgage, agreement of sale or other instruments to secure the indebtedness, loan to the purchaser up to ninety per cent of the purchase price; provided that such agreement of sale shall be for a term not to exceed three years; provided further that the corporation, upon its discretion, may extend such agreement of sale for not more than two years if the lessee requests such extension. In case of any dispute of the extension of the agreement of sale, the lessee shall bear the burden of proof to show good cause for such extension.
(b) The purchaser of the leased fee interest shall pay not less than ten per cent of the price and execute with the corporation an agreement of sale, or mortgage, or other instrument to secure the indebtedness under the terms of which the unpaid balance and the interest thereon, at a reasonable rate determined by the corporation, shall be paid in monthly installments over such periods as the corporation may determine. Every mortgage, agreement of sale, other instruments to secure the indebtedness, or instrument of indebtedness shall be freely assignable by the corporation and may contain such other provisions as are usually found in such instruments and shall provide that the purchaser may prepay the whole or any part of the unpaid balance of the purchase price plus accrued interest at any time without prepayment penalty.
(c) If the purchaser defaults on the payment of any loan, the corporation shall take all necessary action to collect the delinquent principal and interest on the loan and may take all actions allowed to holders of obligations, including the power to repossess, purchase, lease, rent, repair, renovate, modernize, and sell the property foreclosed. [L 1967, c 307, §23; HRS §516-34; am L 1968, c 46, §2g; am L 1975, c 184, §2(14); gen ch 1985; 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 › 516-35.1 Foreclosure and sale by mortgagees.

§516-35.1 Foreclosure and sale by mortgagees.
If the leased fee, fee simple title or lease to a lot, purchased or acquired from the Hawaii housing finance and development corporation under this chapter is secured by a mortgage held by a lending institution authorized to do business as a lending institution either in the State or elsewhere in the United States, upon foreclosure of the mortgage, the leased fee, the fee simple title or the lease may be sold to any purchaser, including the holder of the mortgage, without regard to whether or not the purchaser is qualified under the provisions of this chapter to own or otherwise acquire the leased fee, the fee simple title, or the lease. The mortgage so held, and the interest so acquired by the purchaser on such foreclosure, shall be freely assignable, notwithstanding the provisions of section 516-35. The term, "lending institution," includes an insurer or guarantor of the obligation or condition of the mortgage, including the Federal Housing Administration, the Federal National Mortgage Association, the Department of Veterans Affairs, or any other federal agency and their respective successors and assigns or any lending institution authorized to do business in the State or elsewhere in the United States; provided that the rights and powers of nongovernmental holders of mortgages shall not be any greater than those of the aforementioned federal agencies.
Notwithstanding any provision in this chapter to the contrary, in sales by the corporation of the leased fee or the fee simple title, or in leases of lots, the corporation may waive or modify any restrictions contained in this chapter, if such waiver or modification is necessary to enable any of aforementioned federal agencies or any lending institution authorized to do business in the State or elsewhere in the United States to participate in any loan secured by a mortgage on the leased fee, the fee simple interest or the lease; provided any such waiver or modification shall not confer any greater rights or powers in the holder than those which would be required by the Federal Housing Administration. [L 1968, c 46, §2i; 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; am L 2017, c 12, §1]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-40 Bonds as legal investments.

§516-40 Bonds as legal investments.
The State and all of its public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, including savings and loan associations, all investment companies, insurance companies, insurance associations, and other persons carrying on an insurance business in the State, and all personal representatives, guardians, trustees, and other fiduciaries in the State may legally invest moneys or funds belonging to them or within their control and available for investment under other provisions of law, in any bonds or other obligations issued by the Hawaii housing finance and development corporation under this part, and such bonds and other obligations of the corporation shall be authorized security for all public deposits and shall be fully negotiable in the State. It is the purpose of this section to authorize any of the foregoing to use any funds owned or controlled by them, including (but not limited to) sinking, insurance, investments, retirement, compensation, pension, and trust funds and funds held on deposit, for the purchase of any such bonds or other obligations; provided that nothing contained in this section shall operate to relieve any person, firm, or corporation from liability for failure to exercise reasonable care in selecting investments or, in the case of a guardian or trustee, from liability for failure to exercise the judgment and care to observe the duties required of a guardian or trustee by article 8 of chapter 412 and section 554-6. [L 1967, c 307, §29; HRS §516-40; am L 1976, c 200, pt of §1; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1993, c 350, §32; 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 › 516-41 Exemption from taxation and assessments.

§516-41 Exemption from taxation and assessments.
The Hawaii housing finance and development corporation and the property acquired by it under this part, if not leased or sold, are exempt from any and all taxes and assessments. Bonds, notes, debentures, and other evidences of indebtedness issued by the corporation are declared to be issued for a public purpose and to be public instrumentalities and, together with interest thereon, shall be exempt from taxes. [L 1967, c 307, §30; HRS §516-41; 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 › 516-42 Investment of reserves.

§516-42 Investment of reserves.
The Hawaii housing finance and development corporation may invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control. No provisions with respect to the acquisition, operation, or disposition of property by other public bodies are applicable to the corporation under this part unless otherwise specifically provided by law. [L 1967, c 307, §31; HRS §516-42; 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 › 516-43 Security for funds deposited.

§516-43 Security for funds deposited.
The Hawaii housing finance and development corporation, by resolution, may provide that all moneys deposited by it shall be secured by:
(1) Any securities by which funds deposited by the state director of finance may be legally secured as provided in section 38-3; or
(2) An undertaking with sureties as are approved by the corporation faithfully to keep and pay over upon the order of the corporation any deposits and agreed interest thereon, and all banks and trust companies may give any security for those deposits. [L 1967, c 307, §32; HRS §516-43; 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; am L 2018, c 18, §38]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-45 General obligation bonds.

§516-45 General obligation bonds.
The director of finance may, from time to time, issue general obligation bonds in such amounts as may be authorized by the legislature, for the purpose of acquisition by the Hawaii housing finance and development corporation of residential houselots within development tracts pursuant to chapter 516, part II or for the acquisition of suitable properties to exchange pursuant to section 516-24.5 or for the acquisition by the department of land and natural resources under section 171-50.1 of suitable properties for exchange pursuant to section 171-50.2 to effectuate the purpose of this chapter. Pending the receipt of funds from the issuance and sale of general obligation bonds, amounts required within the limits of legislative authorization may be advanced to the Hawaii housing finance and development corporation from the general fund of the State. Upon the receipt of the bond funds, the general fund shall be reimbursed the amount advanced. [L 1971, c 215, §4; am L 1975, c 184, §2(17); 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; am L 2015, c 237, §38]
Note
Part IIA heading was deleted by L 1980, c 107, §3.
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-51 Preliminary negotiation required.

§516-51 Preliminary negotiation required.
(a) Upon the filing of a petition by the number of lessees required by section 516-22 with the Hawaii housing finance and development corporation, the corporation shall request the lessor and the lessees or their designated agents to negotiate the just compensation which the lessees will pay to the lessor to acquire the lessor's interest in the development tract. If no agreement is reached within sixty days after the request to negotiate, the parties shall simultaneously exchange written final offers together with any appraisals, other documents, and any other expert opinions on which their negotiating positions were based. Copies of the final offers and related documents shall be submitted to the corporation and the corporation may use the information in determining, prior to commencing condemnation proceedings, the probability that lessees will be able to meet the financial requirements of section 516-33(a)(4).
(b) This preliminary negotiation shall be in advance of and shall not constitute any part of any action in condemnation or eminent domain.
Any offers, appraisals, other documents, or any other expert opinions giving a value of the lessor's interest in the development tract which were prepared by a party for use in preliminary negotiations as provided for in this section, for setting qualification amounts pursuant to section 516-33(a)(4), or for negotiations to determine the just compensation after designation to acquire the lessor's interest in the development tract, and were not prepared for use in the trial shall not be discoverable, usable, or admissible by an opposing or adverse party in any action, suit, or proceeding brought under this chapter. [L 1976, c 242, pt of §4; am L 1980, c 107, pt of §3; am L 1983, c 203, §2; am L 1984, c 157, §1; 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]
Revision Note
Section "516-33(a)(4)" substituted for "516-33(4)".
Case Notes
Former mandatory arbitration provisions of this part held unconstitutional, but severable. 471 F. Supp. 871 (1979).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-56 Eminent domain trial.

§516-56 Eminent domain trial.
The parties to the eminent domain action brought under this chapter shall be the corporation as plaintiff and the lessees and all other necessary parties as defendants. The corporation does not have the burden of proof in establishing the fair market value of the leased fee interest being acquired. Instead, all parties, including the corporation, shall be given an opportunity to present evidence of the fair market value of the leased fee interest being acquired. [L 1983, c 203, §3; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1991, c 154, §1; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
Case Notes
Pursuant to this section, defendant, because defendant was a lessee of disputed property, was named as co-defendant in condemnation action; defendant had standing to move to set aside the action in which defendant was named a party. 77 H. 144, 883 P.2d 65 (1994).
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-61 Applicability.

§516-61 Applicability.
Except as otherwise expressly provided, this part applies to all leases of residential lots existing and in force on June 24, 1967, and to all leases of residential lots executed thereafter.
Notwithstanding any term, condition, or provision in any lease to the contrary, the lessee of a residential lot shall have all of the rights enumerated in this part. [L 1967, c 307, §34; HRS §516-61; am L 1968, c 46, §2j]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-62 Discrimination.

§516-62 Discrimination.
No person shall be denied the right to become a lessee of a residential lot, because of the person's race, religion, sex, ancestry, or a physical handicap. [L 1967, c 307, §35; HRS §516-62; am L 1976, c 159, §8; gen ch 1985]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-63 Free assignability.

§516-63 Free assignability.
Except as otherwise provided in section 516-35 and restrictions placed in leases by state or county agencies, a lessee may assign the lessee's lease at any time without the approval or consent of the lessor, and the assignee shall have the same rights and obligations under the lease as the original lessee; provided that no assignment shall be effective to transfer any interest in the lease unless the lessor has received:
(1) Either a true executed copy of the assignment or written notice thereof;
(2) A reasonable service charge, except in case of an assignment by way of mortgage or assignment to or by the Federal Housing Administration, Department of Veterans Affairs, or Federal National Mortgage Association or a foreclosure of mortgage or assignment in lieu of foreclosure; and
(3) The written undertaking of the assignee to perform all obligations of the lessee under the lease, which undertaking may be incorporated in the assignment.
No assignment shall release the assignor from liability under the lease unless the lessor consents in writing to the assignment. A consent to the assignment shall be deemed a consent to the release of the assignor from liability under the lease. The lessor shall not require payment of any money for the lessor's consent except the service charge, nor withhold consent unreasonably. Any person acquiring the leasehold estate in consideration of the extinguishment of a debt secured by mortgage of the lease or through foreclosure sale, judicial or otherwise, shall be liable to perform the obligations imposed on the lessee by the lease only during the period the person has possession or ownership of the leasehold estate. [L 1967, c 307, §36; HRS §516-63; am L 1968, c 46, §2k; gen ch 1985; am L 1986, c 218, §1; am L 2017, c 12, §1; am L 2018, c 18, §39]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-64 Forfeiture.

§516-64 Forfeiture.
No forfeiture of the lessee's interest in a leasehold shall be declared by the lessor for the lessee's failure to pay the rent or otherwise to perform the lessee's obligations under the lease, unless the lessor has given written notification to the lessee of the default and has given the lessee at least thirty days within which to correct the default. [L 1967, c 307, §37; HRS §516-64; gen ch 1985]
2023 Hawaii Revised Statutes › Title 28. Property › 516. Residential Leaseholds › 516-65 Extension.

§516-65 Extension.
From time to time during the first twenty years of the term of any lease, the lessee shall have the right to extend the lease term to fifty-five years, commencing on the first day of the calendar month in which the lessee gives written notice thereof to the lessor, subject to the following conditions:
(1) At the time the right to extend the lease is exercised, the unexpired term of the lease is less than fifty years;
(2) The extension is for the purpose of mortgaging the leasehold interest;
(3) The lessee is not then in default in any respect under the lease; and
(4) The notice is accompanied by payment of a reasonable service charge.
This section applies only to leases executed and effective subsequent to June 24, 1967. [L 1967, c 307, §38; HRS §516-65]