Lease conversion supporters hope to pursue pending cases

By Johnny Brannon
Advertiser Staff Writer

The city's mandatory condominium leasehold conversion law likely will be repealed this month, but supporters of the law are making a last-ditch effort to allow pending conversions to continue.

The issue faces a key vote tomorrow by the City Council's executive matters committee, and a final vote by the full council could be taken on Jan. 26.

The controversial 1991 law, known as Chapter 38, lets the city force landowners to sell to qualified condominium owners the fee interest in the leased land under their units.

Dozens of people have packed City Hall hearings to argue their positions over the past five months, but it appears that Chapter 38 is doomed.

The council voted 6-3 last November in favor of the bill that would repeal Chapter 38, and final approval would require only five votes.

Mayor Mufi Hannemann has indicated that he will sign the bill.

That has led supporters of the law to seek exemptions that would allow pending conversions to take place if the law is repealed.

"I'm a realist, and we saw the votes," said Jane Sugimura, acting president of the Hale Coalition, a group that supports condominium conversion. "But for those people who have started the process, they should be allowed to complete it."

The law is popular with many people who want full ownership of the condos they live in, but is staunchly opposed by some landowners, including Kamehameha Schools and the Queen Lili'uokalani Trust.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.