2.  disposition for residential purposes

 

Cross References

 

  Infrastructure development fund (Kikala-Keokea), see§171-19.5.

 

§171-93  Authorization.  The board ofland and natural resources may dispose of by sale, lease, or lease with optionto purchase, public land through drawing by lots and without recourse to publicauction to persons dispossessed or displaced as a result of a natural disaster,as determined by proclamation of the governor, under the following terms andconditions:

(1)  The department of land and natural resourcesshall subdivide and improve, including roads, the land to be disposed of;

(2)  Such land shall be sold at fair market value orleased at fair market lease rental, as determined by appraisal, based on theland as improved;

(3)  The instrument of conveyance or lease shallcontain, in addition to the usual terms, the restriction that the land shall beused only for residential purposes for a period of ten years following the dateof the conveyance or lease, which restriction shall be a covenant running withthe land and enforceable by the board or by any surrounding owner or lessee ofpublic land that is subject to the same restriction;

(4)  If the purchaser or lessee decides to sell,lease, or sublease the land within ten years from the date of the conveyance orlease, the board shall have the first option to repurchase the interest of thepurchaser or lessee at fair market value.  In the event the land is acquired bythe Federal Housing Administration, pursuant to a contract of mortgageinsurance, or is anywise acquired by the Small Business Administration, FederalNational Mortgage Association, Veterans Administration, or any bank, or savingsand loan institution chartered to do business in the State or by the federalgovernment, this restriction shall be null and void during the period of suchownership, and, to this extent, the board may waive any rights accruing to theState contained in any deed, land patent, sales agreement, or lease madepursuant to this part;

(5)  The size of any lot sold under this part shallnot exceed two acres; and

(6)  A person eligible under this part may draw onelot for the person's property destroyed by natural disaster. [L 1962, c 32, ptof §2; Supp, §103A-88; HRS §171-93; gen ch 1985]