Bill > SB206

This bill aims to prohibit nonresident aliens (defined as foreign nationals who are not U.S. citizens or legal residents, foreign businesses, or businesses/trusts with significant foreign ownership) from acquiring certain residential properties in Hawaii, specifically "threshold properties" which are residential properties constructed more than five years prior to acquisition. The legislation is motivated by concerns that foreign investment is artificially inflating housing prices and making homeownership difficult for local residents. The bill provides several exceptions to this prohibition, including properties acquired before July 1, 2025, properties obtained through inheritance or debt collection, and properties with liens or mortgages. If a nonresident alien acquires a threshold property, they must convey it to a non-nonresident alien within five years, or the property will revert to the State. The Attorney General is empowered to initiate proceedings to escheat (transfer ownership to the state) properties held in violation of this law, and if the property was acquired through certain permitted means, the State must compensate the owner at the property's full value. The law is set to take effect on July 1, 2025, and is modeled after similar restrictions in other jurisdictions like New Zealand and some U.S. states.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=206&year=2026