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Hawaii Considers Ban on Foreign Land Ownership: New Bill Introduced

In Hawaii’s ongoing housing crisis, State Sen. Brenton Awa has proposed a bill aiming to restrict foreigners from purchasing land in the Aloha State. 

The bill, if passed, would require buyers to sign an affidavit confirming they are not foreign principals, defined as individuals domiciled in foreign countries who are neither citizens nor lawful permanent residents of the United States.

Bill Aims to Curb Foreign Land Ownership

The rationale behind the bill stems from concerns over the influx of outside investors, particularly during the pandemic, which has exacerbated housing affordability issues. With soaring home prices and limited salaries in comparison to cash-rich investors, local residents find themselves struggling to compete in the housing market.

Hawaii’s housing woes are further compounded by the impact of tourism and luxury developments, squeezing out affordable housing options for residents. The Maui wildfires of 2023 exacerbated the crisis by destroying thousands of structures, including many affordable housing units.

While the bill has garnered support from those seeking to address the housing crisis, it also faces legal and constitutional challenges. Hawaii’s Attorney General, Anne Lopez, has expressed reservations about its legality, citing concerns over potential litigation and violations of constitutional rights.

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Hawaii’s Legal Battle and Housing Challenges

Hawaii-considers-ban-on-foreign-land-ownership-new-bill-introduced
In Hawaii’s ongoing housing crisis, State Sen. Brenton Awa has proposed a bill aiming to restrict foreigners from purchasing land in the Aloha State.

Similar legislation in Florida, aimed at restricting Chinese buyers, faced legal hurdles and accusations of discrimination. Federal appeals judge Nancy Abudu ruled against the Florida law, citing violations of the 14th Amendment’s protection against discrimination.

In response to the housing emergency, Hawaii’s Governor Josh Green has signed an emergency proclamation to expedite the construction of tiny village communities for unhoused residents. 

Additionally, measures to combat price gouging on essentials like rent and food have been implemented, while proposals to incentivize property owners to provide housing for displaced residents are being considered.

As Hawaii grapples with its housing crisis, the proposed bill represents one of many attempts to address the complex and multifaceted challenges facing the state’s residents. 

Whether it will prove effective in alleviating the housing shortage while navigating legal and constitutional hurdles remains to be seen.

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