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Landowners Celebrate Leasehold Repeal

Residents Take City To Court Over Condominium Conversion

POSTED: 3:54 pm HST February 9, 2005

Mayor Mufi Hannemann Wednesday signed into law a bill to repeal Hawaii's mandatory leasehold condominium conversion law.

Hawaiian land trusts and smaller landowners were at the public signing ceremony Wednesday, applauding the end of forced conversions. However, residents in buildings already trying to buy their units say they should be allowed to finish the process.

Residents who own condos often don't own the land. The leasehold conversion law forced landowners to sell the land to the condo residents.

About 300 people in the process of converting their units are upset because they've be stopped before they can finish. Residents at the Admiral Thomas condominiums and the Kahala Beach Apartments have already sued the city.

The Discovery Bay in Waikiki is another leasehold building now stopped in its tracks from finishing its conversion.

Apartment owner Ralph Mitchell and his wife, Lucy, bought their Discovery Bay apartment believing they would be able to convert it to fee. Ralph is chairman of a group of 30 condo owners who've spent thousands of dollars in legal fees to all but complete the process.

"We consider it to be grossly unfair, not just minimally unfair, but grossly unfair because no provisions were made, like I just told you, to all those in the so-called pipeline, to finish," Mitchell said.

Hawaiian trusts and individual landowners at the bill-signing ceremony celebrated.

"We are elated, we are absolutely elated that finally a corrupt law has been abolished,"

Hannemann made the repeal of mandatory conversion one of his campaign promises.

"I also hope and pray this bill does not put people on the street and make them homeless. It would disappointment me greatly if property owners used this as a tool to make that happen," Hannemann said.

Hannemann said he expects lawsuits over the repeal and says he's ready to let the court process run its course. Leases run out in some buildings as early as 2007.

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