Bill > SB206

This bill seeks 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 containing a main structure constructed more than five years prior to purchase. The legislation is motivated by concerns that nonresident alien investors and developers are artificially inflating Hawaii's real estate market, making homeownership difficult for local families. The bill includes several key exceptions, such as 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 can initiate proceedings to escheat (transfer ownership to the state) such properties, and if the property was acquired through certain legal means, the State must compensate the owner at full value. The bill is modeled after similar restrictions in places like New Zealand and some U.S. states, and is designed to help make housing more accessible to local residents by reducing speculative foreign investment in the real estate market.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=206&year=2025