Hawaii Seal Hawaii Revised Statutes

Chapter 516

Residential Leaseholds



Part I. General Provisions


516-1 Definitions

516-2 Applicability

516-3 No estoppel or waiver

516-4 Trusts and estates

516-5 Penalty

516-6 Administration of chapter

516-7 Corporation’s duties, generally

516-8 Interested members, officers, or employees

516-9 Quitclaim deeds

Part II. Condemnation of Development Tract

516-21 Applicability

516-22 Designation of leased fee interest in all or part of

development tract for acquisition

516-23 Exercise of power of eminent domain

516-24 Compensation

516-24.5 Exchanges

516-25 Interest acquired

516-26 Interest in compensation paid by the corporation

516-27 Compulsory or involuntary conversion

516-28 Disposition, generally

516-29 Notice of disposition

516-30 Purchase of leased fee interest

516-31 Disposition by lease

516-32 Not for profit

516-33 Qualification for purchase

516-33.5 Deposits by lessees

516-34 Mortgages, agreements of sale, other instruments

516-35 Restrictions on sale and use of residential lots

516-35.1 Foreclosure and sale by mortgagees

516-36 to 39 Repealed

516-40 Bonds as legal investments

516-41 Exemption from taxation and assessments

516-42 Investment of reserves

516-43 Security for funds deposited

516-44 Repealed

516-45 General obligation bonds

516-51 Preliminary negotiation required

516-52 to 55 Repealed

516-56 Eminent domain trial

Part III. Rights of Lessees

516-61 Applicability

516-62 Discrimination

516-63 Free assignability

516-64 Forfeiture

516-65 Extension

516-66 Lease rental

516-67 Zoning changes

516-68 Rights to self-organization; remedies

516-69 Sale of fee by lessor

516-70 Reversion of improvements

516-71 Residential lease; disclosure

516-72 Civil penalty

516-73 Suggested form of standardized summary of lease


Part IV. Judicial Declaration

516-81 Repealed

516-82 Severability

516-83 Legislative findings and declaration of necessity;


Part V. Fee Title Acquisition Loan Program

516-91 Definitions

516-95 Rules; eligible loans

516-101 Revenue bonds; authorization

516-102 Revenue bonds; payment and security

516-103 Revenue bonds; interest rate, price, and sale

516-104 Revenue bonds; investment of proceeds and redemption

516-107 Trustee; designation, duties

516-108 Trust indenture

516-111 Revenue bonds; special funds

516-121 Acquisition loan programs; procedures and requirements

516-122 Acquisition loan programs; general powers

516-123 Acquisition loan programs; self supporting

516-124 Acquisition loan programs; fees

516-125 Acquisition loan programs; evidence of eligible loan

516-131 Loans to lenders program

516-132 Loan to lenders program; collateral security

516-141 Purchase of existing loans program

516-151 Advance commitments program

516-161 Eligible loan funding program

516-171 Loans; service and custody

516-172 Loans; sale, pledge, or assignment

516-173 Loans; insurance and guarantees

516-174 Loans; default

516-181 Interest acquired

516-182 Restrictions on sale and use of residential lots

acquired from proceeds of eligible loan

516-186 Construction

Part VI. Sustainable Affordable Developments

or Leases

516-201 Exemption for sustainable affordable developments

516-202 Certification

516-203 Recordkeeping

516-204 University of Hawaii at Manoa

Law Journals and Reviews

Extending Land Reform to Leasehold Condominiums in Hawai‘i. 14 UH L. Rev. 681.

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.

The Moon Court, Land Use, and Property: A Survey of Hawai‘i Case Law 1993-2010. 33 UH L. Rev. 635 (2011).

Case Notes

Chapter did not preempt ordinance relating to residential condominium leasehold conversion. 76 H. 46, 868 P.2d 1193.

Chapter only authorizes housing finance and development corporation to institute single condemnation proceeding of a specifically designated portion of a development tract and does not allow that proceeding to be judicially divided into multiple condemnations of individual lots. 82 H. 172, 921 P.2d 92.


Chapter did not violate “public use” requirement of Fifth Amendment to U.S. Constitution. 467 U.S. 229.

Hawaii Land Reform Act violates public use limitation of Fifth and Fourteenth Amendments of U.S. Constitution. 702 F.2d 788.

Given system of landholding in Hawaii, legislature could, under police power, conclude that general welfare was served by condemning land of large landholder-lessors and allow lessees to purchase land from State. 483 F. Supp. 63.

Legislature’s determinations of what land is subject to condemnation and who is entitled to repurchase from State are not arbitrary or capricious. 483 F. Supp. 63.

Condemnation of leased fee interests in residential houselots continued to satisfy “public use” prerequisite of Fifth Amendment to U.S. Constitution and article I, §20 of Hawai‘i constitution. 79 H. 64, 898 P.2d 576.