Ninety-Nine Year Leasehold Program
Posted on Jul 25, 2024 in MainNinety-Nine Year Leasehold Program
Act 97 of Session Laws of Hawai’i 2023 established a 99-year leasehold condominium program within the Hawai’i Community Development Authority (HCDA). The purpose of this law was to develop a low-cost, leasehold residential condominium project for sale to Hawai’i residents on state-owned land, within an urban redevelopment site. It authorizes one project on non-ceded land within an urban redevelopment site selected by the HCDA; appropriates $1,500,000 for the purpose of administrative rule making, engaging the community, and conducting site and pre-development planning; and established two full-time temporary positions within the HCDA and provides funding for the positions.
A part-time planning staff has been hired to assist with the administrative rule making, community engagement, and pre-development planning. Funds for the Project have been released by the Governor and would lapse by the end of June 30, 2024, if not encumbered by a contract. A request for proposal (RFP) to provide development services for the Project was released in February 2024. No proposals were received by the proposal deadline. Since no proposals were received by the proposal deadline, and since it was not practicable to resolicit the RFP, staff is following an alternative procurement method to retain a developer to perform the pre-development work for the Project.
Administrative rules will need to be promulgated to comply with the provisions of the Act before the development of the Project and sale of condominium units. Staff anticipates conducting community consultations prior to developing a draft of the administrative rules. Once a draft administrative rule is developed, two consecutive public hearings will be held before adoption of the rules by the HCDA.
In May 2024, the HCDA authorized the HCDA executive director to initiate the administrative rulemaking process for the Ninety-Nine Year Leasehold Program and conduct community engagement and public hearings to adopt the rules.
On August 13, 2024, Hawai’i Community Development Authority (HCDA) held a Community Meeting to consult with stakeholders and community members before starting the Ninety-Nine Year Leasehold Program administrative rulemaking process. Below is a recording of that meeting. Meeting Flyer
On August 27, 2024, HCDA staff presented an overview and explained the rule-making process to the Ala Moana-Kaka’ako Neighborhood Board.
Next steps
The HCDA staff will draft administrative rules for the 99-year leasehold condominium program, and it will be vetted by the Attorney General’s office and community stakeholders before being posted on the HCDA website for community comment. Later, the draft administrative rules will go through two public hearings, comments will continue to be incorporated before the rules are finalized.