Ka Wai Ola - Office of Hawaiian Affairs, Volume 11, Number 3, 1 March 1994 — OHA, Legislature tackle 999-year lease problems [ARTICLE]

OHA, Legislature tackle 999-year lease problems

bv Jeff Clark Tutu has lived on the family lot for decades, but the lease has passed into the hands of her cousin, and the cousin wants her off. Tutu's not alone. As part of one of the 50 or so families still holding a lease under the 999year Homestead Lease Program, she is faced with uncertainty because of the complicated way in whieh the leases pass from generation to generation. Lessees cannot piek a succgssor to their lease in their will. Under the program, when a homestead lessee dies, the lease goes to the spouse, and when the spouse dies, to their children.

The children share the lease equally among them. But when there remains only one surviving offspring, that person is the sole lessee - his or her nieces and nephews, who may have lived on the land for decades, have no elaim. This program is separate from the Hawaiian Home Lands program (see box). The state Legislature commissioned an OHA study of the 999year lease program, and OHA's housing division contracted John H. Bay and Jane vanSchaick to look into it. They found the families facing several issues: • they have difficulty financing home construction and repairs, because they don't own the land and can't use it as collateral; • they laek documentation of title and are uncertain as to who is the legal lessee; • they cannot buy their fee because state law sets the price

at "fair market value." House Bill 3113 and its eompanion Senate Bill 2769 aim to . - K£ sort out the pilikia between lessee family members and to recognize the interest these families have vested in their lots by allowing them to purchase their land at a nominal fee. The legislation would establish a genealogy arbitration panel to

wade through birth and death certificates and determine who has legal elaim to the lease. It would also allow lessees to purchase the fees on their leases for $1 instead of market value, recognizing that 900 years is a lot of time left on the lease. continued on page 16

Under the Land Act of 1 895, more than 750 families were issued 999-year leases between 1895 and 1 950. Most of these leases have been abandoned or canceled, but under a law passed in 1950, about 70 families have purchased fee simple ownership of their leasehold. Approximately 51 families still hold leases located on all major islands except Lāna'i. Most of these families are Hawaiian. The property is part of the ceded lands.

999-year leases from page 8

Testifying Feb. 7 before the House Committee on Hawaiian Affairs, OHA trustee Abraham Aiona said, however, that HB 3113 is premature because many of the families involved remain unsure of their rights under the leases. Although OHA supports its intent, the legislation should be deferred until at least next year, he said. HB 3113 was passed with amendments by the committee Feb. 14, and was referred to the Finance Committee. Call the committee at 586-6200 for hearing schedules. The eompanion bill, SB 2769, was passed Feb. 14 by the Senate Government Operations, Environment and Hawaiian Programs Committee and

referred to the Senate Ways and Means Committee. Call the eommittee at 586-6690 for hearing schedules. One of the problems with the program is that "lessee families just don't know where they stand," OHA housing officer Stephen Morse said. HB 3564, "Relating to Public Lands," introduced by Rep. D. Ululani Beirne at OHA's request, would have helped remedy that situation. It called for money for brochures and workshops to educate the lessees as to their rights under the 999-year lease program. The bill was held by the House Hawaiian Affairs Committee Feb. 16.