HI HB1831

Establishes a mandatory lease-to-fee conversion program for business, commercial, and industrial leasehold properties administered by the Hawaii Housing Finance and Development Corporation, mirroring the successful residential leasehold conversion program enacted in 1967.

Allows lessees to apply for conversion when at least 25 lessees or more than 50% of all lessees (whichever is less) in a development tract request purchase of their fee simple interests through a condemnation process.

Requires lessees to meet eligibility criteria including holding a valid lease, owning structures on the lot, demonstrating financial capacity, not owning other fee simple business property in the county, and being at least 18 years old.

Establishes the "owner's basis" as the compensation method for fee owners, calculated either through discounted future rental income and reversionary interest or through current fair market value minus lessee contributions to improvements and development.

Creates a business lot conversion revolving fund supported entirely by lessee deposits and payments with no public funds to be expended; corporation must acquire designated leased fee interests within 12 months through voluntary sale or eminent domain proceedings.