2.  disposition for residential purposes



 



Cross References



 



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



 



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



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



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



(3)  The instrument of conveyance or lease shall
contain, in addition to the usual terms, the restriction that the land shall be
used only for residential purposes for a period of ten years following the date
of the conveyance or lease, which restriction shall be a covenant running with
the land and enforceable by the board or by any surrounding owner or lessee of
public 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 or
lease, the board shall have the first option to repurchase the interest of the
purchaser or lessee at fair market value.  In the event the land is acquired by
the Federal Housing Administration, pursuant to a contract of mortgage
insurance, or is anywise acquired by the Small Business Administration, Federal
National Mortgage Association, Veterans Administration, or any bank, or savings
and loan institution chartered to do business in the State or by the federal
government, this restriction shall be null and void during the period of such
ownership, and, to this extent, the board may waive any rights accruing to the
State contained in any deed, land patent, sales agreement, or lease made
pursuant to this part;



(5)  The size of any lot sold under this part shall
not exceed two acres; and



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