SB77 would amend Hawaii’s residential leasehold statutes to carve out a new category of state and county land leases from the protections and procedures in chapters 516 and 516D. Specifically, if state or county land is leased after July 1, 2025, for an initial term of at least 99 years, those leases would be excluded from the chapter 516 residential leasehold rules and the chapter 516D rules governing residential condominium property regimes and cooperative housing corporations. The bill leaves existing coverage in place for privately held lands, Hawaiian home lands, and federal lands.
The measure also states that it does not eliminate other legal remedies available to residential leasehold lessees or the State, including remedies under chapter 480, Hawaii’s unfair and deceptive practices law. Its practical effect is to create a long-term lease exemption for future state and county leases, likely reducing the application of leasehold conversion, valuation, and related statutory protections to those newly issued 99-year public leases.
Impact
SB77 would amend sections 516-2 and 516D-1 of the Hawaii Revised Statutes by adding an exemption for state and county lands leased after July 1, 2025, for an initial term of not less than 99 years. This would narrow the reach of Hawaii’s residential leasehold and related condominium/cooperative housing statutes for future long-term public land leases, while preserving the statutes’ application to private lands, Hawaiian home lands, and federal lands. The bill would take effect on July 1, 2025, and would affect state and county lessors, residential leasehold lessees, condominium associations, and cooperative housing corporations involved in qualifying long-term leases.
Sentiment
The available record suggests a neutral to cautiously supportive posture rather than clear opposition, but there is limited direct evidence because no committee transcript or vote record is provided. The bill advanced far enough to remain under consideration and was re-referred to CPN/WLA and JDC, indicating continued legislative interest and review. The absence of recorded votes or testimony makes it difficult to identify a strong public sentiment, though the bill’s narrow, technical framing suggests it is being treated as a policy adjustment rather than a highly controversial measure.
Contention
The main point of contention is likely to be whether exempting 99-year state and county leases from chapters 516 and 516D weakens protections for residential leasehold occupants and condominium/cooperative residents on public lands. Supporters may view the exemption as a way to recognize that very long-term public leases do not need the same statutory framework as shorter or more uncertain leaseholds, while opponents may argue it could reduce leverage, remedies, or statutory safeguards for lessees. Another possible issue is the interaction with chapter 480 remedies, since the bill preserves other legal remedies but does not specify how those remedies would operate in practice for affected leases.
Relating to certain municipal regulation of certain mixed-use and multifamily residential development projects and conversion of certain commercial buildings to mixed-use and multifamily residential occupancy.