§171-73 Term, rent, and other conditions of residential leases. Residential leases made by the board of land and natural resources may be for an initial term of fifty-five years with the privilege of extension to meet Federal Housing Administration requirements, provided the aggregate of the initial terms and extension shall in no event exceed seventy-five years. It may contain such terms and conditions as the board may in its discretion determine, except that the following shall in any event be complied with in each residential lease:
(1) Rent and taxes. The annual rent shall be not less than an amount representing a fair return on the value of the premises at the inception of the rental period under the lease, which value shall be determined by appraisers. The lessee shall pay all real property taxes, assessments for the lessee's pro rata share of the costs of the improvements of the tract in which the land is located, and such other charges made against or levied upon the lessee's premises. "Value of premises" as used in this section means the fair market value of the raw land, including in such value the pro rata share of the cost of improvements only if the lessee has not already been assessed or has not already paid the lessee's pro rata share thereof or if the State has not assumed the costs.
(2) Construction of residence. Each residential lease shall contain requirements that the lessee construct a residence upon the premises, pursuant to plans and specifications approved by the board and using a licensed contractor, within such time and having such minimum value or ground floor area as may be determined by the board in its discretion.
(3) Use. Upon the completion of improvements upon the premises, the lessee shall use and occupy the premises as the lessee's residence and shall not rent or use for any business purposes the whole or any part of the premises, except with the written consent of the board.
(4) Alienation. Each residential lease shall contain conditions prohibiting the lessee from subletting or parting with the possession of the whole or any part of the premises and from selling, assigning, transferring, or otherwise disposing of or encumbering, except by way of mortgage as hereinafter permitted, any interest in the lease or any improvements erected on the premises, except with the written consent of the board.
(5) Right of purchase. Each residential lease shall also state that no right or privilege of purchasing the fee title to the land demised shall be created by the lease, except as provided in section 171-79, notwithstanding any other provision of the law to the contrary.
(6) Construction and mortgages. Each residential lease shall provide that the lessee may mortgage the lease and improvements only for the purpose of financing the construction of a residence upon the premises or, after the requirement of construction of a residence upon the premises has been fulfilled, for the purpose of financing the purchase of the lease and improvements. The mortgages shall be made only to recognized lending institutions and may provide for foreclosure and for sale at the foreclosure to any purchaser, without regard to whether the purchaser at the sale is qualified or disqualified to take a residential lease under this part. The mortgagee's interest in any such mortgage shall be freely assignable.
(7) Mortgage qualification. The foregoing provisions to the contrary notwithstanding, the board is authorized from time to time, upon the issuance of any such lease to adopt or modify or eliminate any provision contained in sections 171-70 to 171-83, to the extent necessary to qualify the lease for mortgage lending or guaranty purposes with the Federal Housing Administration, Federal National Mortgage Association, and Department of Veterans Affairs, and their respective successors and assigns. [L 1962, c 32, pt of §2; Supp, §103A-69; HRS §171-73; gen ch 1985; am L 2017, c 12, §1]
Structure Hawaii Revised Statutes
Title 12. Conservation and Resources
171. Public Lands, Management and Disposition of
171-2 Definition of public lands.
171-3 Department of land and natural resources.
171-4.5 Aha moku advisory committee; established.
171-5 Meetings, regular, special; quorum.
171-6.4 General administrative penalties.
171-7 General duties of the board.
171-8 Land agents and other employees.
171-8.6 Risk assessment working group.
171-11 Public purposes, lands set aside by the governor; management.
171-12 Permanent register of applicants for public lands.
171-13 Disposition of public lands.
171-14.5 Auction pre-qualification; agricultural and pasture leases.
171-19 Special land and development fund.
171-20 Notice of breach or default.
171-21 Rights of holder of security interest.
171-23 Land patents and deeds, issued when.
171-24 Land conveyances, preparation, signing, record, copies.
171-26 Rights-of-way to the sea, game management areas, and public hunting areas.
171-28 Government-owned Hawaiian fishponds; sale prohibition.
171-29 Report to legislature on all dispositions.
171-30 Acquisition of real property; general.
171-31 Depository for documents; filing, record.
171-31.5 Disposition of abandoned or seized property.
171-34 Planning; intensive agricultural and pasture uses.
171-35 Lease provisions; generally.
171-36 Lease restrictions; generally.
171-36.1 Reservation of rights to prehistoric and historic remains on leased public lands.
171-36.2 Public lands for historic preservation and restoration.
171-36.5 Commercial, industrial, resort, mixed-use, or government leases; extension of term.
171-37 Lease restrictions; intensive agricultural and pasture uses.
171-37.5 Withdrawal or taking of leased land; fair compensation.
171-38 Condemnation of leases.
171-40 Expired leases; holdover.
171-41 Commercial, industrial, and other business uses.
171-41.5 Amendment of commercial, hotel, or industrial lease.
171-41.6 Lessees within the last ten years of their lease terms; requests for interest
171-43 Lease of campsites or sites for youth athletic and/or educational activities.
171-43.1 Lease to eleemosynary organizations.
171-44 Lease for recreation-residence use.
171-45 Residence lots; sale or leases.
171-46 Residential sales or leases; planning.
171-47 Residence lots; improvement districts.
171-48 Residence lots, requirements.
171-49 Residence lots: unsold; forfeited; surrendered.
171-49.5 Resale, first offer to board; limitation on resale price.
171-49.7 Public lands suitable and available for residential development; inventory.
171-50.1 Acquisition of lands for exchange under chapter 516.
171-50.2 Exchanges for conversion of leasehold lands to fee simple ownership.
171-53 Reclamation and disposition of submerged or reclaimed public land.
171-56 Contract or license for concessions or concession space.
171-57 Reserved rights and easements.
171-58 Minerals and water rights.
171-59 Disposition by negotiation.
171-60 Development through private developer.
171-61 Cancellation, surrender.
171-62 Sales; payment, default.
171-63 Waiver of restrictions.
171-64 Covenants against discrimination.
171-64.5 Nonconventional uses; department of health; approval and authorization; Waimano ridge.
171-64.7 Legislative approval of sale or gift of lands.
171-65 Leases, leases with option to purchase, sales permitted; when.
171-67 Restrictions; conditions.
171-68 Applicants; qualifications of.
171-70 Findings and declaration of necessity.
171-72 Subdivision, improvement and lease of public lands.
171-73 Term, rent, and other conditions of residential leases.
171-74 Qualifications of lessees.
171-75 Persons disqualified to take residential leases.
171-76 Preference right to residential lease.
171-79 Purchase of fee title by lessee.
171-80 Cancellation of leases.
171-83 Costs of, and realization from, residential leasing.
171-84 Leases to certain developers of housing for low and moderate income families.
171-87 Disposition to victims of natural disaster, when.
171-91 Notice of availability of leases; selection of lessees.
171-92 Existing public leases.
171-94 Persons dispossessed or displaced.
171-95.1 Authority of board to extend leases under certain circumstances.
171-95.3 Renewable energy producers; lease of public lands without public auction.
171-95.5 Lease to public charter schools.
171-96 Lease to foreign governments.
171-98 Release of restrictions.
171-100 Successor determination program.
171-117 Public lands; agricultural park lands.
171-121 Molokai forest lands, management program established.
171-132 Designation of industrial park.
171-133 Authority to plan, improve, develop, operate, and maintain industrial parks.
171-134 Industrial park development.
171-135 Joint venture or development agreement.
171-136 Disposition of public lands within industrial park.
171-141 Lease for eligible permittee in industrial park.
171-142 Lease for lessees dislocated by condemnation proceedings.
171-144 Issuance of revenue bonds.
171-153 Beach restoration plan.
171-154 Authority to lease coastal lands.
171-155 Development of public coastal lands.
171-156 Beach restoration special fund.
171-172 Turtle Bay conservation easement special fund.
171-173 Turtle Bay appraisal and due diligence.
171-174 Lease of Turtle Bay lands.
171-193 Lessees within the last ten years of their lease terms; request for interest.