RELATING TO RESIDENTIAL CONDOMINIUMS.

SB2061

THE SENATE

S.B. NO.

2061

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to residential condominiums
.

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

����
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.

����
(c)
�
Development should be revenue-neutral to the
greatest extent possible.

����
(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.