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

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

(2)  That the provision of decent, safe, and sanitaryhousing for rent or dwelling units for sale is necessary to accomplish therelocation of families displaced or to be displaced from areas acquired bygovernmental agencies for public purposes or displaced from disaster areas asdefined by this chapter; and

(3)  That the acquisition of a fee or leaseholdinterest of a particularly described area in a county (hereinafter also calledan auxiliary redevelopment project), suitable for development for predominantlyresidential uses and so characterized in the master plan, is essential toprovide for the development of housing facilities at rents the displacedfamilies can afford or of dwelling units at prices the displaced families canpay, then the planning, acquisition, preparation for development or disposal ofthe auxiliary redevelopment area shall constitute a redevelopment project whichmay be undertaken by the agency in the manner provided by this chapter.

The procedure and exceptions set forth insection 53-20 shall apply to any projects; provided that pursuant to section101-5, the agency may take and acquire any estate less than a fee simple estatein lands whenever it appears that the purposes of this section shall be bestachieved and promoted by the taking.

Where the redevelopment plan for the projectmakes provision for the development of housing facilities for rent, the agencyshall sell, lease, or sublease the land or the completed development toqualified developers or nonprofit sponsors for use in accordance with theredevelopment plan.  The sale, lease, or sublease shall be made at a fair valuereflecting the restrictions imposed on developers and covenants running withthe project land, including restrictions on rent ceilings and modificationthereof which the agency may impose by regulation for a period up to thirtyyears for the development in order to achieve private ownership and operationof the properties at a reasonable profit while providing for rentals whichdisplaced families can afford.

Where the redevelopment plan for the projectmakes provision for the subdivision and development of the land for singlefamily dwelling units for sale to the displaced families, the agency shall sellthe land or the completed development to qualified developers or nonprofitsponsors for development and use in accordance with the redevelopment plan. The sale shall be made at a fair value reflecting the restrictions imposed ondevelopers and covenants running with the project lands to limit the price ofsale thereof, the prices which displaced families can afford while permittingdevelopers a reasonable profit therefrom, and preventing speculative resalethereof by purchasers and their assigns.

All developers of auxiliary redevelopmentprojects authorized by this section shall be entitled to claim exemption orrelief from taxes as provided by section 53-38 for all project lands andimprovements providing for housing facilities for rent to families displacedfrom public projects or from disaster areas. [L 1957, c 101, §1; am L 1959, c45, §1; am L Sp 1960, c 5, §4; am 1965, c 101, §1(k); Supp, §143-20.1; am L1967, c 168, §1; HRS §53-21; am L 1974, c 137, §1]