HB576 • 2026

RELATING TO RESTRICTIONS ON THE TRANSFER OF REAL PROPERTY UNDER CHAPTER 201H, HAWAII REVISED STATUTES.

Housing

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: HOLT, KAHALOA, KILA, MARTEN, MIYAKE, TODD
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on specific exemptions for transfers during a ten-year period after purchase.

Exemptions for Hawaiian Home Lands Transfers

This bill removes transfer restrictions on real property under housing development programs of the Hawaii Housing Finance and Development Corporation (HHFDC) when it involves Hawaiian Home Lands.

What This Bill Does

Removes certain transfer restrictions on real property developed by HHFDC for Hawaiian Home Lands.

Who It Names or Affects

Hawaiian Home Lands owners and residents.
The Hawaii Housing Finance and Development Corporation (HHFDC).

Terms To Know

Hawaiian Home Lands: Land set aside for Native Hawaiians by the Hawaiian Homes Commission Act of 1920.
Hawaii Housing Finance and Development Corporation (HHFDC): A state agency that provides affordable housing options in Hawaii.

Limits and Unknowns

The bill's effective date is set for July 1, 3000, which seems to be an error or placeholder.
It does not specify what happens if the restrictions are removed before this date due to administrative action.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment changes how a corporation can buy back real property developed and sold under Chapter 201H, Hawaii Revised Statutes, by setting price limits for such purchases.

The corporation has the first option to purchase real property at a price not exceeding the original cost plus improvements, interest, and any previous payments made by the purchaser.
If the property is sold after ten years from initial purchase or agreement of sale, the purchaser must pay back certain amounts to the corporation before selling freely.

The amendment text was truncated and does not provide complete information about all changes.
Some parts are unclear due to incomplete sentences and references to rules that are not provided in this version of the bill.

HD2

Hawaii published version HD2

Plain English: This amendment changes how a corporation can purchase real property developed and sold under Chapter 201H, Hawaii Revised Statutes, by removing the option for the corporation to buy back the property with certain conditions.

The amendment removes the option for the corporation to purchase the real property either free of all mortgages and liens or subject to existing mortgages and liens after a ten-year period from the initial purchase.
It also eliminates the requirement that the corporation's interest created by this section constitutes a statutory lien on the real property, superior to any other mortgage or lien except for specific exceptions.

The amendment text is incomplete and does not provide full details about all changes made.
Some parts of the original bill are referenced but not fully explained in this amendment.

SD1

Hawaii published version SD1

Plain English: This amendment changes how a corporation can purchase real property developed and sold under Chapter 201H, Hawaii Revised Statutes by removing the requirement for conveyance free or subject to mortgages and liens.

The amendment removes the option for the corporation to purchase real property either 'by conveyance free' or 'subject to existing mortgages and liens'.
It simplifies the process of transferring ownership, making it clear that any transfer must be done without specific conditions regarding mortgages and liens.

The amendment text is incomplete and does not provide full details on all changes.
Some parts of the original section are removed or altered but their exact implications are unclear due to missing context.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-03-21 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2025-03-21 S
Reported from HWN/HOU (Stand. Com. Rep. No. 1282) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2025-03-18 S
The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2025-03-18 S
The committee(s) on HWN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HWN were as follows: 4 Aye(s): Senator(s) Richards, San Buenaventura, Ihara, Keohokalole; Aye(s) with reservations: none ; 1 No(es): Senator(s) DeCorte; and 0 Excused: none.
2025-03-12 S
The committee(s) on HOU deferred the measure until 03-18-25 1:00PM; CR 225 & Videoconference.
2025-03-12 S
The committee on HOU has deleted the measure from decision making scheduled on 03-13-25 1:00PM; CR 225 & Videoconference.
2025-03-11 S
The committee(s) on HWN deferred the measure until 03-18-25 1:00PM; CR 224 & Videoconference.
2025-03-11 S
The committee(s) on HOU deferred the measure until 03-13-25 1:00PM; CR 225 & Videoconference.
2025-03-07 S
The committee(s) on HWN/HOU has scheduled a public hearing on 03-11-25 1:05PM; Conference Room 225 & Videoconference.
2025-03-06 S
Referred to HWN/HOU, WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 258).
2025-03-04 H
Passed Third Reading as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.
2025-02-28 H
Forty-eight (48) hours notice Tuesday, 03-04-25.
2025-02-28 H
Reported from JHA (Stand. Com. Rep. No. 1057) as amended in HD 2, recommending passage on Third Reading.
2025-02-26 H
The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Perruso, Takayama, Todd, Garcia, Shimizu; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Kahaloa.
2025-02-21 H
Bill scheduled to be heard by JHA on Wednesday, 02-26-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE.
2025-02-13 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kitagawa, Ward excused (3).
2025-02-13 H
Reported from HSG (Stand. Com. Rep. No. 584) as amended in HD 1, recommending passage on Second Reading and referral to JHA.
2025-02-12 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Cochran.
2025-02-06 H
Bill scheduled to be heard by HSG on Wednesday, 02-12-25 9:00AM in House conference room 430 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to HSG, JHA, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO RESTRICTIONS ON THE TRANSFER OF REAL PROPERTY UNDER CHAPTER 201H, HAWAII REVISED STATUTES.
Housing Development Programs; HHFDC; Restrictions on Transfer; Hawaiian Home Lands; Exception
Exempts transfers of Hawaiian Home Lands from transfer restrictions for real property under housing development programs of the Hawaii Housing Finance and Development Corporation. Effective 7/1/3000. (SD1)

Current Bill Text

Read the full stored bill text

HB576

HOUSE OF REPRESENTATIVES

H.B. NO.

576

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to restrictions on the transfer of real property under chapter 201h, Hawaii
Revised Statutes
.

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

����
SECTION
1
.
�
Section 201H-47, Hawaii Revised Statutes, is
amended to read as follows:

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"
�201H-47
�
Real property; restrictions on transfer;
waiver of restrictions.
�
(a)
�
The following restrictions shall apply to the
transfer of real property developed and sold under this chapter, whether in fee
simple or leasehold:

����
(1)
�
For a period of ten years after the
purchase, whether by lease, assignment of lease, deed, or agreement of sale, if
the purchaser wishes to transfer title to the real property, the corporation
shall have the first option to purchase the real property at a price that shall
not exceed the sum of:

���������
(A)
�
The original cost to the purchaser, as
defined in rules adopted by the corporation;

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(B)
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The cost of any improvements added by
the purchaser, as defined in rules adopted by the corporation;

���������
(C)
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Simple interest on the original cost
and capital improvements to the purchaser at the rate of one per cent per year;
and

���������
(D)
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The amount, if any, previously paid by
the purchaser to the corporation as the corporation's share of net appreciation
in the real property;

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(2)
�
The corporation may purchase the real
property either:

���������
(A)
�
By conveyance free and clear of all
mortgages and liens; or

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(B)
�
By conveyance subject to existing
mortgages and liens.

���������
If
the real property is conveyed in the manner provided in subparagraph (A), it
shall be conveyed to the corporation only after all mortgages and liens are
released.
�
If the real property is
conveyed in the manner provided in subparagraph (B), the corporation shall
acquire the real property subject to any first mortgage created for the purpose
of securing the payment of a loan of funds expended solely for the purchase of
the real property by the seller; and any mortgage or lien created for any other
purpose; provided that the corporation has previously consented to it in
writing.

�������������
The
corporation's interest created by this section shall constitute a statutory
lien on the real property and shall be superior to any other mortgage or lien,
except for any first mortgage created for the purpose of securing the payment
of a loan of funds expended solely for the purchase of the real property by the
seller; any mortgage insured or held by a federal housing agency; and any
mortgage or lien created for any other purpose; provided that the corporation
has previously consented to it in writing.
�
The amount paid by the corporation to the
seller shall be the difference, if any, between the purchase price determined
by paragraph (1)(A) to (D), and the total of the outstanding principal balances
of the mortgages and liens assumed by the corporation;

����
(3)
�
A purchaser may refinance real property
developed and sold under this chapter; provided that the purchaser shall not
refinance the real property within ten years from the date of purchase for an
amount in excess of the purchase price as determined by paragraph (1)(A) to
(C); provided further that the purchaser shall obtain the corporation's written
consent if any restriction on the transfer of the real property remains
applicable;

����
(4)
�
After the end of the tenth year from
the date of initial purchase or execution of an agreement of sale, the
purchaser may sell the real property and sell or assign the property free from
any price restrictions; provided that the purchaser shall be required to pay to
the corporation the sum of:

���������
(A)
�
The balance of any mortgage note,
agreement of sale, or other amount owing to the corporation;

���������
(B)
�
Any subsidy or deferred sales price
made by the corporation in the acquisition, development, construction, and sale
of the real property, and any other amount expended by the corporation not
counted as costs under section 201H-45 but charged to the real property by good
accounting practice as determined by the corporation whose books shall be prima
facie evidence of the correctness of the costs;

���������
(C)
�
Interest on the subsidy or deferred
sales price, if applicable, and any other amount expended at a rate established
by the corporation computed as to the subsidy or deferred sales price, if
applicable, from the date of purchase or execution of the agreement of sale,
and as to any amount expended, from the date of expenditure; provided that the
computed interest shall not extend beyond thirty years from the date of
purchase or execution of the agreement of sale of the real property.
�
If any proposed sale or transfer will not
generate an amount sufficient to pay the corporation the sum as computed under
this paragraph, the corporation shall have the first option to purchase the
real property at a price that shall not exceed the sum as computed under
paragraphs (1) and (2); and

���������
(D)
�
The corporation's share of appreciation
in the real property as determined under rules adopted pursuant to chapter 91,
when applicable;

����
(5)
�
Notwithstanding any provision in this
section to the contrary, pursuant to rules adopted by the corporation, the
subsidy or deferred sales price described in paragraph (4)(B) and any interest
accrued pursuant to paragraph (4)(C) may be paid, in part or in full, at any
time; and

����
(6)
�
Notwithstanding any provision in this
section to the contrary, the corporation's share of appreciation in the real
property described in paragraph (4)(D):

���������
(A)
�
Shall apply when the sales price of the
real property that is developed and sold under this chapter is less than the
then-current, unencumbered, fair market value of the real property, as
determined by a real property appraisal obtained prior to the closing of the
sale;

���������
(B)
�
Shall be a restriction that runs with
the land until it is paid in full and released by the corporation, or
extinguished pursuant to subsection (f); and

���������
(C)
�
May be paid, in part or in full, at any
time after recordation of the sale.

����
(b)
�
If the corporation waives its first option to
repurchase the real property provided in subsection (a), a qualified nonprofit
housing trust shall have the option to purchase the real property at a price
that shall not exceed the sum of:

����
(1)
�
The original cost to the purchaser, as
defined in rules adopted by the corporation;

����
(2)
�
The cost of any improvements added by
the purchaser, as defined in rules adopted by the corporation;

����
(3)
�
Simple interest on the original cost
and capital improvements to the purchaser at the rate of one per cent per year;
and

����
(4)
�
The corporation's share of net
appreciation in the real property to be paid as determined under rules adopted
pursuant to chapter 91, when applicable.

����
(c)
�

For a period of ten years after the purchase, whether by lease,
assignment of lease, deed, or agreement of sale, if the purchaser wishes to
transfer title to the real property, and if the corporation or the qualified
nonprofit housing trust selected by the corporation does not exercise the
option to purchase the real property as provided in subsection (a) or (b), then
the corporation shall require the purchaser to sell the real property to a
"qualified resident" as defined in section 201H-32, and upon the
terms that preserve the intent of this section and sections 201H-49 and
201H-50, and in accordance with rules adopted by the corporation.

����
(d)
�

The corporati
on may waive the restrictions
prescribed in subsections (a) through (c) 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;

����
(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 real property and sell or
assign the real 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 real property 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.

����
(e)
�
The corporation may release the restrictions
prescribed in
subsections (a) through (c)

if the real property is financed under a federally subsidized mortgage program
and the restrictions would jeopardize the federal government's ability to
recapture any interest credit subsidies provided to the homeowner.

����
(f)
�

The restrictions prescribed in this section and sections 201H-49 to
201H-51 shall be automatically extinguished and shall not attach in subsequent
transfers of title when a qualified nonprofit housing trust becomes the owner
of the real property pursuant to subsection (b); or a mortgage holder or other
party becomes the owner of the real property pursuant to a mortgage
foreclosure, foreclosure under power of sale, or a conveyance in lieu of
foreclosure after a foreclosure action is commenced; provided that the mortgage
is the initial purchase money mortgage, or that the corporation consented to
and agreed to subordinate the restrictions to the mortgage when originated, if
the mortgage is not the initial purchase money mortgage; or when a mortgage is assigned
to a federal housing agency.
�
Any law to
the contrary notwithstanding, a mortgagee under a mortgage covering real
property or leasehold interest encumbered by the first option to purchase in
favor of the corporation, prior to commencing mortgage foreclosure proceedings,
shall notify the corporation in writing of:

����
(1)
�
Any default of the mortgagor under the
mortgage within ninety days after the occurrence of the default; and

����
(2)
�
Any intention of the mortgagee to foreclose
the mortgage under chapter 667 forty-five days prior to commencing mortgage
foreclosure proceedings;

provided that the mortgagee's
failure to provide written notice to the corporation shall not affect the
mortgage holder's rights under the mortgage.
�

The corporation shall be a party to any foreclosure action, and shall be
entitled to its share of appreciation in the real property as determined under
this chapter in lien priority when the payment is applicable, and if
foreclosure occurs within the ten-year period after the purchase, the
corporation shall also be entitled to all proceeds remaining in excess of all
customary and actual costs and expenses of transfer pursuant to default,
including liens and encumbrances of record; provided that the person in default
shall be entitled to an amount that shall not exceed the sum of amounts
determined pursuant to subsection (a)(1)(B) and (C).

����
(g)
�

The provisions of this section shall be incorporated in any deed, lease,
agreement of sale, or any other instrument of conveyance issued by the
corporation.
�
In any sale by the
corporation of real property for which a subsidy or deferred sales price was
made by the corporation, the amount of the subsidy or deferred sales price
described in subsection (a)(4)(B), a description of the cost items that
constitute the subsidy or deferred sales price, and the conditions of the
subsidy or deferred sales price shall be clearly stated at the beginning of the
contract document issued by the corporation.
�

In any sale in which the corporation's share of appreciation in real
property is a restriction, the terms of the shared appreciation equity program
shall be clearly stated and included as an exhibit in any deed, lease,
agreement of sale, or any other instrument of conveyance.

����
(h)
�

This section need not apply to market-priced units in an economically
integrated housing project, except as otherwise determined by the developer of
the units; provided that preference shall be given to qualified residents in
the initial sale of market-priced units.

����
(i)
�

The corporation is authorized to waive any of the restrictions set forth
in this section in order to comply with or conform to requirements set forth in
federal law or regulations governing mortgage insurance or guarantee programs
or requirements set forth by federally chartered secondary mortgage market
participants.

����
(j)
�

Notwithstanding any law to the contrary, if real property is purchased
by a qualified nonprofit housing trust pursuant to subsection (b), the housing
trust shall establish new buyback restrictions for the purpose of maintaining
the unit as affordable for as long as practicable, or as otherwise required by
the corporation.

����
(k)
�

A qualified nonprofit housing trust shall report the status and use of
its housing units to the corporation by November 30 of each calendar year.

����
(l)
�

This section shall not apply to any transfers of Hawaiian home lands
under the Hawaiian Homes Commission Act, 1920.
"

����
SECTION 2.
�

New statutory material is underscored.

����
SECTION 3.
�

This Act shall take effect upon its approval; provided that the amendments
made to section 201H-47, Hawaii Revised Statutes, by section 1 of this Act
shall not be repealed when that section is reenacted on June 30, 2028, pursuant
to section 5 of Act 92, Session Laws of Hawaii 2023.

INTRODUCED BY:

_____________________________

Report Title:

Housing
Development Programs; Restrictions on Transfer; Hawaiian Home Lands; Exception

Description:

Exempts
transfers of Hawaiian home lands from transfer restrictions for real property
under Chapter 201H housing development programs.

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