With Bill 53, the Honolulu City Council is On a Path That Will Adversely Affect Our Community
At the recent Honolulu City Council hearing on Bill 53, which would repeal Chapter 38 and kill Leasehold Reform in Honolulu, a range of arguments was offered by proponents and opponents.
But those in favor of killing Chapter 38 just wouldn’t admit that the statute has been found to be in the public interest -- twice -- and in the nation’s highest courts. They want to finesse that fact by alleging that circumstances have changed. In reality, the only circumstance that has changed is that the first multi-family ground lease is now due to expire a scant two years from now and the Community is about to enter uncharted waters where reversion of the land is concerned.
I believe that the many elements that contribute to community strength include a sense of ownership by community members, and community stability. Nothing embodies a sense of membership more than the opportunity for unrestricted home ownership. That is the American Dream. And being secure in your own home is the essence of stability. But now the City Council is on the verge of revoking Chapter 38, introducing severe instability among those whose American Dream happens to sit on leasehold land. Now those who see Chapter 38 as an opportunity for full security, also see a Council that wants to change the rules in the middle of the game and take the goal posts completely off the field.
During testimony on behalf of killing Chapter 38, the issue of eviction came up. Lessor reps dodged the issue, saying that reversion would not necessarily lead to eviction. They promised to look at each case on an ‘ad hoc basis’. That, of course, would put the fate of Lessees completely in the hands of Lessors who have a history of somewhat arbitrary policies with residents. With the demise of Chapter 38, Lessors will have no incentive toward good faith discussions and negotiations with Lessees. That will be the essence of instability for Lessees and the whole community may feel the effects of that.
I believe that, with Bill 53, the City Council is on a path that will adversely affect our Community.
Chapter 38 is a valuable tool for correcting a long-standing problem in our community. Rather than spending their time and energy attacking Chapter 38, it seems more prudent for the Council to leave Chapter 38 in place and build on it to encourage voluntary sales. In addition, the looming issue of reversion for those leasehold buildings that don’t – or can’t – convert to fee simple presents a serious potential for homeowner dislocation and litigation over Lessee assets. This Council should be addressing guidelines to make that transition as trouble-free as possible. Remember, Councilmembers, these are your constituents we’re discussing.
To see an opposing view, go to: "We Did Not Buy Land to Have It Taken Away by Force"
'Robert R. Kessler, a resident of Waikiki, can be reached via email at mailto:kessler.hawaii@verizon.net
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