§113-5  Policy provisions.  In acquiringreal property for any project or program in which federal or federal-aid fundsare used, the State shall comply with the following policies:

(1)  Every reasonable effort shall be made to acquireexpeditiously real property by negotiation.

(2)  Real property shall be appraised before theinitiation of negotiations, and the owner or the owner's designatedrepresentative shall be given an opportunity to accompany the appraiser duringthe appraiser's inspection of the property; provided that the State may proceedwithout an appraisal in cases involving the donation of property or thevoluntary conveyance of property for nominal value or where the property hasfair market value of $2,500 or less.

(3)  Before the initiation of negotiations for realproperty, an amount shall be established which is reasonably believed to bejust compensation therefor and such amount shall be offered for the property. In no event shall such amount be less than the approved appraisal of the fairmarket value of such property.

(4)  No owner shall be required to surrenderpossession of real property before the agreed purchase price is paid or beforethere is deposited with the state court, in accordance with applicable law, forthe benefit of the owner an amount not less than the approved appraisal of thefair market value of such property, or the amount of the judgment in thecondemnation proceeding involving the property.

(5)  The construction or development of a publicimprovement shall be so scheduled that, to the greatest extent practicable, noperson lawfully occupying real property shall be required to move from adwelling (assuming a replacement dwelling will be available) or to move theperson's business or farm operation without at least ninety days' writtennotice from the date by which such move is required.

(6)  If an owner or tenant is permitted, on a rentalbasis, to occupy the real property acquired for a short term or for a periodsubject to termination by the State on short notice, the amount of rentrequired shall not exceed the fair rental value of the property to a short-termoccupier.

(7)  In no event shall the time of condemnation beadvanced, on negotiations or condemnation and the deposit of funds in court forthe use of the owner be deferred, or any other coercive action be taken tocompel an agreement on the price to be paid for the property.

(8)  If an interest in real property is to be acquiredby exercise of the power of eminent domain, formal condemnation proceedings shallbe instituted.  The State shall not intentionally make it necessary for anowner to institute legal proceedings to prove the fact of the taking of theowner's real property.

(9)  If the acquisition would leave the owner with anuneconomic remnant, the State shall offer to acquire that remnant.  For thepurposes of this section, an "uneconomic remnant" is a parcel of realproperty in which the owner is left with an interest after the partialacquisition of the owner's property and which the State has determined to havelittle or no value or utility to the owner.

(10)  All buildings, structures, or other improvementswhich must be removed or which are adversely affected by the use to which thereal property acquired will be put, shall be acquired.

(11)  Notwithstanding the obligation of a tenant orlessee, as owner, to remove a building, structure or other improvement at theexpiration of the tenant's or lessee's term, just compensation shall be paid tothe owner for the taking of such building, structure or other improvement, justcompensation being the value which such building, structure or otherimprovement contributes to the fair market value of the real property, or thefair market value of such building, structure, or improvement alone, whicheveris the greater; provided that payment for such buildings, structures or otherimprovements shall not result in duplication of payments unless otherwiseauthorized by state law; and provided further that no such payment shall bemade unless the owner of the land involved disclaims all interest in theimprovements of the tenant.  Nothing herein shall be construed to deprive thetenant of the tenant's right to reject the proffered payment and to seekcompensation for the tenant's property interest through other laws of theState.

(12)  After the owner is fully informed of the owner'sright to receive just compensation for property being acquired under thischapter, the owner may donate such property, any part thereof, any interesttherein, or any compensation to be paid therefor to the State.

(13)  The term "State", as used in thischapter, means the State of Hawaii and any department, agency, orinstrumentality of the State, or a political subdivision of the State.

(14)  The term "appraisal" means a writtenstatement, independently and impartially prepared by a qualified appraiser whomeets qualification criteria established by the State, setting forth an opinionof the fair market value of adequately described property as of a specificdate, supported by the presentation and analysis of relevant marketinformation. [L 1971, c 32, §5; gen ch 1985; am L 1989, c 52, §1]