SB2061

SECTION 1. Section 206E-281, Hawaii Revised Statutes, is amended by amending the definition of "owner-occupied use" to read as follows:

""Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. [~~"Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee of any kind.~~]"

SECTION 2. Section 206E-283, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-283[]] Rules; guidelines. "(a) [~~Residential~~] At least sixty per cent of the residential condominium units within urban redevelopment sites shall [~~not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use.~~] be set aside for owner-occupied residential use for not less than ten years from the date of initial purchase of the unit. The authority, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within an urban redevelopment site.

(b) The design [~~and~~], development, and construction contracts for residential condominium units within an urban redevelopment site shall not be subject to chapter 103D[.]; provided that every laborer and mechanic performing work on the job site for the construction of residential condominium units shall be paid the prevailing wage established by the director of labor and industrial relations pursuant to section 104-2.

(d) Urban redevelopment sites shall maximize walkability.

(e) One hundred per cent of the residential condominium units within an urban redevelopment site shall be initially offered for sale for owner-occupied residential use; provided that, if after sixty days there are unsold units, up to forty per cent of the units may be sold to qualified residents, as defined in section 201H-32."

SECTION 3. Section 206E-284, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The authority shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within urban redevelopment sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements [~~for an eligible buyer or owner of a residential condominium unit~~] to be an eligible buyer for purchase of a residential condominium unit within an urban redevelopment site[:] set aside for owner-occupied residential use:

(1) The person shall be a qualified resident of the State, as defined in section 201H-32; and

(2) The person shall not use a residential condominium unit within an urban redevelopment site for any purpose other than owner-occupied residential use[~~; and~~

~~(3)~~ The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential and non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within an urban redevelopment site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within an urban redevelopment site; provided further that an owner of a residential condominium unit within an urban redevelopment site in the process of selling the residential condominium unit may own other real property up to six months prior to closing on the sale of the residential condominium unit to an eligible buyer;] for a period of not less than ten years from the date of the initial purchase of the unit;

provided that the rules adopted pursuant to this subsection may require at least [~~fifty~~] sixty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner‑occupancy, including a prohibition on renting or subleasing a residential condominium unit within an urban redevelopment site to any tenant or sublessee[.] for residential condominium units set aside for owner-occupied residential use. The authority may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises."

2. By amending subsections (c) and (d) to read:

"(c) Residential condominium units within an urban redevelopment site set aside for owner-occupied residential use shall be sold only to other eligible buyers[.] for a period of not less than ten years from the date of the initial purchase of the unit.

(d) An owner of a residential condominium unit within an urban redevelopment site set aside for owner-occupied residential use may sell the owner's residential condominium unit; provided that the authority shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the authority. If the authority does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within an urban redevelopment site[,] set aside for owner‑occupied residential use, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050.

INTRODUCED BY:	_____________________________

Report Title:

Hawaii Community Development Authority; Affordable Housing; Ninety-Nine Year Leasehold Program; Condominium Units; Owner‑Occupied Residential Use

Description:

Clarifies the Ninety-Nine Year Leasehold Program to: (1) Require at least sixty per cent of the residential condominium units within urban redevelopment sites to be set aside for owner-occupied residential use for not less than ten years from the date of initial purchase of the unit; (2) Amend eligibility requirements to buy or own a residential condominium unit within an urban redevelopment site to allow an individual to own other real property; (3) Amend the term "owner-occupied residential use" to include the renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee of any kind; and (4) Allow the sale of up to forty per cent of residential condominium units to qualified residents if there are units available after being advertised for sale for more than sixty days. Effective 7/1/2050.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	2061
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII