Where and so long as the major portion of a redevelopment project of a redevelopment corporation is composed of residential units and the rents for the residential units are reasonable as compared with prevailing rental levels for comparable accommodations, the land and improvements in the project shall be exempted (1) for ten years from the date of acquisition of such project by the redevelopment corporation, from real property taxes, other than assessments for local improvements in excess of the total real property taxes paid upon the land and improvements for the year prior to the commencement of proceedings by the agency for the acquisition of the lands and improvements; and (2) for the next succeeding fifteen-year period following such ten-year period, from real property taxes on fifty per cent of the assessed valuation of the property and improvements; provided that:

(A) Where the cost of acquisition of the land and improvements in the redevelopment project by the redevelopment corporation is at least ninety per cent of the cost of acquisition, clearing and improvement of the land and improvements by the redevelopment agency, the tax exemption granted under clause (1) of this section shall be for fifteen years from the date of acquisition of the project by the redevelopment corporation, with no further exemption thereafter, except that, if the net earnings from the project for the last five of the fifteen-year period, above expenses, taxes, assessments, and depreciation or amortization (as provided in § 53-27 ), available for payment of interest and dividends, shall be less than three per cent of the total actual final cost of the project (as defined by [paragraph] (2) of § 53-32 ), then the tax exemption granted under this proviso (A) shall be extended for an additional ten years; and
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Hawaii Revised Statutes 53-38

  • Amortization: Paying off a loan by regular installments.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(B) No such tax exemption shall be allowed for any land and improvements which are used for commercial, industrial, or any other nonresidential purposes.

  Previous
Next  
 Part I Contents