§53-21  Auxiliary redevelopment area;
displaced persons. Where the redevelopment agency of a county finds:



(1)  That there is a shortage of decent, safe, and
sanitary housing in the county;



(2)  That the provision of decent, safe, and sanitary
housing for rent or dwelling units for sale is necessary to accomplish the
relocation of families displaced or to be displaced from areas acquired by
governmental agencies for public purposes or displaced from disaster areas as
defined by this chapter; and



(3)  That the acquisition of a fee or leasehold
interest of a particularly described area in a county (hereinafter also called
an auxiliary redevelopment project), suitable for development for predominantly
residential uses and so characterized in the master plan, is essential to
provide for the development of housing facilities at rents the displaced
families can afford or of dwelling units at prices the displaced families can
pay, then the planning, acquisition, preparation for development or disposal of
the auxiliary redevelopment area shall constitute a redevelopment project which
may be undertaken by the agency in the manner provided by this chapter.



The procedure and exceptions set forth in
section 53-20 shall apply to any projects; provided that pursuant to section
101-5, the agency may take and acquire any estate less than a fee simple estate
in lands whenever it appears that the purposes of this section shall be best
achieved and promoted by the taking.



Where the redevelopment plan for the project
makes provision for the development of housing facilities for rent, the agency
shall sell, lease, or sublease the land or the completed development to
qualified developers or nonprofit sponsors for use in accordance with the
redevelopment plan.  The sale, lease, or sublease shall be made at a fair value
reflecting the restrictions imposed on developers and covenants running with
the project land, including restrictions on rent ceilings and modification
thereof which the agency may impose by regulation for a period up to thirty
years for the development in order to achieve private ownership and operation
of the properties at a reasonable profit while providing for rentals which
displaced families can afford.



Where the redevelopment plan for the project
makes provision for the subdivision and development of the land for single
family dwelling units for sale to the displaced families, the agency shall sell
the land or the completed development to qualified developers or nonprofit
sponsors for development and use in accordance with the redevelopment plan. 
The sale shall be made at a fair value reflecting the restrictions imposed on
developers and covenants running with the project lands to limit the price of
sale thereof, the prices which displaced families can afford while permitting
developers a reasonable profit therefrom, and preventing speculative resale
thereof by purchasers and their assigns.



All developers of auxiliary redevelopment
projects authorized by this section shall be entitled to claim exemption or
relief from taxes as provided by section 53-38 for all project lands and
improvements providing for housing facilities for rent to families displaced
from public projects or from disaster areas. [L 1957, c 101, §1; am L 1959, c
45, §1; am L Sp 1960, c 5, §4; am 1965, c 101, §1(k); Supp, §143-20.1; am L
1967, c 168, §1; HRS §53-21; am L 1974, c 137, §1]