Report Title:

Lessees; Buyback Exemption

Description:

Exempts certain lessees from the ten-year-buyback and shared-appreciation-equity restrictions.  (HB1264 CD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	1264
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII		C.D. 1

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201H-47, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The corporation may waive the restrictions prescribed in subsection (a) or (b) if:

     (1)  The purchaser wishes to transfer title to the real property by devise or through the laws of descent to a family member who would otherwise qualify under rules established by the corporation; [or]

     (2)  The sale or transfer of the real property would be at a price and upon terms that preserve the intent of this section without the necessity of the State repurchasing the real property; provided that, in this case, the purchaser shall sell the unit or lot and sell or assign the property to a person who is a "qualified resident" as defined in section 201H-32; and provided further that the purchaser shall pay to the corporation its share of appreciation in the unit as determined in rules adopted pursuant to chapter 91, when applicable[.]; or

(3) The sale or transfer is of real property subject to a sustainable affordable lease as defined in section 516-1."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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