SB 321: Private Streets; Highways; Roads; Subdivider; Title; Fee Simple; Ownership; Community Association

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 264, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§264-    Private streets; ownership.  (a)  Notwithstanding any provision of law to the contrary, in any county with a population of less than 250,000, fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider shall be deemed transferred to a community association consisting of the owners of property contiguous or adjacent thereto, when:

     (1)  The subdivider has dissolved or ceased to exist for not less than five years; and

     (2)  There has not been a dedication of the privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail by deed of conveyance naming the State or county as grantee pursuant to subsection 264‑1(c);

     (3)  The community association to which the property is to be transferred has given written notice of a potential transfer of property pursuant to this section to all property owners contiguous or adjacent thereto, the mayor of the county within which the property resides, the administrative judge of the circuit court of the first circuit with jurisdiction over land court within the Hawaii State Judiciary, the Bureau of Conveyances, and published in a paper of broad circulation in the county in which the property is located; and

     (4)  A year has lapsed without the filing of a competing challenge or claim since the community association has met the requirements pursuant to paragraph (3).

     (b)  For the purposes of this section:

     "Community association" means a nonprofit homeowners or community association existing pursuant to covenants running with the land.

     "Subdivider" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof causing land to be subdivided or consolidated, which is the owner of the land or the duly authorized agent or lessee of the owner."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2027 and shall repeal on July 1, 2032.

Report Title:

Private Streets; Highways; Roads; Subdivider; Title; Fee Simple; Ownership; Community Association

Description:

Provides that in any county with a population of less than 250,000, fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.  Effective 7/1/2027.  Sunsets 7/1/2032.  (CD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 264, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§264-    Orphan streets; ownership.  (a)  Notwithstanding any provision of law to the contrary, fee simple absolute title of an orphan street shall be transferred to an adjacent owner pursuant to subsection (b), when:

     (1)  If the subdivider is an entity, the subdivider has dissolved or ceased to exist for no less than five years; or

     (2)  If the subdivider is an individual, the subdivider is deceased and either the heirs disclaim their interest in the orphan street or no heirs can be located with reasonable diligence and a court order authorizing notice by publication is obtained in the action described in subsection (b).

     (b)  The following shall apply to an action for transfer of title brought pursuant to subsection (a):

     (1)  The action may be commenced in the circuit court for the county where the property is located by any adjacent owner;

     (2)  The action shall include a sufficient survey or map to illustrate the property to be transferred and which portions will become part of any other property;

     (3)  The party filing the action shall serve notice on all other adjacent owners.  Any adjacent owner shall be entitled to appear and raise any objection to how the petitioner proposes to transfer title to the orphan street;

     (4)  Notice of a hearing before the court shall be given to the parties identified in paragraph (3); and

     (5)  The court:

          (A)  May require proof of payment of unpaid property taxes assessed against the orphan street, if applicable;

          (B)  May, if necessary, determine any issues of responsibility for existing or future maintenance obligations; and

          (C)  If the petitioner has established the criteria required under this section and has provided a survey or map that the court determines is a proper division of the title to the orphan street, shall issue an order confirming the transfer of title which will be effective when the order is recorded in the bureau of conveyances; provided that if the property or any portion thereof is registered with the land court, the order shall be recorded with the office of the assistant registrar of the land court, and the assistant registrar shall issue a certificate of title to the prevailing adjacent owner covering the affected portion of the orphan street as described in the court order.

     (c)  Any transfer of title pursuant to this section shall not operate to terminate, diminish, or restrict any easements, covenants, utilities, or rights of access, including implied rights of access, in favor of an adjacent owner, over, under, or across the orphan street that existed before the transfer of title.

     (d)  For the purposes of this section:

     "Adjacent owner" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof, including a community association, that owns property that is contiguous to the orphan street in question.

     "Community association" means a nonprofit homeowners or community association existing pursuant to covenants running with the land.

     "Orphan street" means a highway, road, alley, street, way, lane, bikeway, bridge, or trail, title to which is vested in a subdivider that no longer holds an interest in title to any of the other lots or portions of the lots on the plat of consolidation or subdivision that created the orphan street and that has never been dedicated by deed of conveyance naming the State or county as grantee.

     "Subdivider" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof that caused the consolidation or subdivision creating the orphan street, or the duly authorized agent or lessee thereof."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Orphan Streets; Subdividers; Title; Fee Simple; Ownership

Description:

Establishes a process for transferring fee simple absolute title of orphan streets to adjacent property owners under certain conditions, such as when the subdivider has dissolved, has ceased to exist, or is deceased, and includes legal procedures for filing the action for transfer.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 264, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§264-    Private streets; ownership.  (a)  Notwithstanding any provision of law to the contrary, fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider shall be deemed transferred to owners of property contiguous or adjacent thereto, or to the community association consisting of the owners of property contiguous or adjacent thereto, when:

     (1)  The subdivider has dissolved or ceased to exist for no less than five years; and

     (2)  There has not been a dedication of the privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail by deed of conveyance naming the State or county as grantee pursuant to section 264‑1(c)(1).

     (b)  For the purposes of this section:

     "Community association" means a nonprofit homeowners or community association existing pursuant to covenants running with the land.

     "Subdivider" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof causing land to be subdivided or consolidated, which is the owner of the land or the duly authorized agent or lessee of the owner."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Private Streets; Highways; Roads; Subdivider; Title; Fee Simple; Ownership; Community Association

Description:

Provides that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 264, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§264-    Private streets; ownership.  (a)  Notwithstanding any provision of law to the contrary, fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider shall be deemed transferred to owners of property contiguous or adjacent thereto, or to the community association consisting of the owners of property contiguous or adjacent thereto, when:

     (1)  The subdivider has dissolved or ceased to exist for not less than five years; and

     (2)  There has not been a dedication of the privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail by deed of conveyance naming the State or county as grantee pursuant to section 264‑1(c).

     (b)  For the purposes of this section:

     "Community association" means a nonprofit homeowners or community association existing pursuant to covenants running with the land.

     "Subdivider" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof causing land to be subdivided or consolidated, which is the owner of the land or the duly authorized agent or lessee of the owner."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050.

Report Title:

Private Streets; Highways; Roads; Subdivider; Title; Fee Simple; Ownership; Community Association

Description:

Provides that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to Transportation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 264, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§264-     Private streets; ownership.  (a)  Any provision of law to the contrary notwithstanding, fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider shall be deemed transferred to owners of property contiguous or adjacent thereto, or to the community association consisting of the owners of property contiguous or adjacent thereto, when:

     (1)  The subdivider has dissolved or ceased to exist for not less than five years; and

     (2)  There has not been a dedication of the privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail by deed of conveyance naming the State or county as grantee pursuant to section 264‑1(c).

     (b)  As used in this section:

     "Community association" means a nonprofit homeowners or community association existing pursuant to covenants running with the land.

     "Subdivider" means a person, firm, corporation, partnership, association, trust, or other legal entity or combination thereof causing land to be subdivided or consolidated, which is the owner of the land or the duly authorized agent or lessee of the owner."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Private Streets; Highways; Roads; Subdivider; Title; Fee Simple; Ownership; Community Association

Description:

Provides that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

CONFERENCE COMMITTEE REP. NO. 99

Honolulu, Hawaii

                 , 2025

RE:    S.B. No. 321

       S.D. 1

       H.D. 2

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 321, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to establish a process for transferring fee simple absolute title of orphan streets to adjacent property owners under certain conditions, such as when the subdivider has dissolved, has ceased to exist, or is deceased, and include legal procedures for filing the action for transfer.

     Your Committee on Conference finds that it is necessary to clarify the transfer of the fee simple ownership process for certain privately owned roadways or trails in the State in situations where the previous owner no longer exists and the State or a county has not been named grantee via a deed conveyance.  Your Committee on Conference further finds that establishing a clear transfer process of these paths to an adjacent owner under certain circumstances will help to avoid legal disputes pertaining to liability, maintenance, and access.  

     Your Committee on Conference has amended this measure by:

     (1)  Reverting to the language of the S.D. 1 version of this measure to provide that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to a community association consisting of contiguous or adjacent property owners if certain conditions are met;

     (2)  Specifying that the transfer requirements apply to any county with a population of less than 250,000;

     (3)  Specifying the required notice that the community association to which the property is being transferred to is required to give of a potential transfer of property;

     (4)  Specifying that a transfer of a fee simple title requires a year to have lapsed without the filing of a competing challenge or claim since the community association has given the required notice for the transfer;

     (5)  Changing its effective date to July 1, 2027;

     (6)  Inserting a sunset date of July 1, 2032; and

     (7)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 321, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 321, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

STAND. COM. REP. NO.  2029

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 321

      S.D. 1

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 321, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this measure is to require that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail be deemed transferred to adjacent property owners or community associations if certain conditions are met.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received comments on this measure from the Hawaii Land Title Association; Mortgage Bankers Association of Hawaii; and Hawaii Financial Services Association.

     Your Committee finds that in the absence of clear ownership, privately owned streets, roads, and other infrastructure in subdivisions may lead to legal disputes or ambiguity over responsibility when the subdivider has dissolved or ceased to exist.  Such circumstances, coupled with the lack of formal dedication to the State or county, may result in prolonged uncertainty regarding the ownership and maintenance obligations of these facilities.

     Your Committee further finds that concerns were raised regarding this measure and the lack of procedures to determine real property ownership over private streets, which could lead to unintended consequences.  One way to ensure certainty over ownership of private streets would be to require a court to provide an order to transfer title of these private streets.  A court process would provide appropriate notice, define the parties and property in question, determine any maintenance obligations, settle any disputes over ownership, and provide a transfer of title that can then be recorded with the Bureau of Conveyances or Land Court.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting its substantive contents and inserting language that establishes a process for transferring fee simple absolute title of orphan streets to adjacent property owners under certain conditions, such as when the subdivider has dissolved, has ceased to exist, or is deceased, and includes legal procedures for filing the action for transfer; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 321, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 321, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

STAND. COM. REP. NO.  1401

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 321

      S.D. 1

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Water & Land, to which was referred S.B. No. 321, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this measure is to require that fee simple absolute title of a privately-owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider be deemed transferred to certain owners under certain circumstances.

     Your Committee received testimony in support of this measure from three individuals.

     Your Committee finds that many private roads that were created as part of a planned community development are owned by entities that have dissolved or are otherwise inactive.  As a result, the community associations that maintain these roadways do not have actual title to the roads, which prevents the community associations from being able to secure financing or enter into contracts for road work and creates unnecessary barriers if the State or counties need to acquire an easement involving these roads.  Your Committee believes that automatically transferring ownership of these roads after the subdivider has dissolved will ensure the State's roadways are appropriately maintained.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 321, S.D. 1, H.D. 1, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

STAND. COM. REP. NO.  1197

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 321

      S.D. 1

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Transportation, to which was referred S.B. No. 321, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this measure is to require that fee simple absolute title of a privately-owned highway, road, alley, street, way, lane, bikeway, bridge, or trail held by a subdivider be deemed transferred to certain owners under certain circumstances.

     Your Committee received testimony in support of this measure from three individuals.  Your Committee received testimony in opposition to this measure from one individual.

     Your Committee finds that the existing framework of determining ownership over certain roads leaves privately owned streets, roads, alleys, and similar rights-of-way in a state of ambiguity when the original subdivider ceases to exist, often resulting in deferred maintenance and unclear responsibility for infrastructure upkeep.  The lack of clear ownership often leads to deteriorating infrastructure, safety hazards, and disputes among adjacent property owners over liability and upkeep.  This measure will ensure proper management and long-term maintenance of these essential thoroughfares by transferring ownership of certain private roads to contiguous property owners or their community association.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 321, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 321, S.D. 1, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Transportation,

STAND. COM. REP. NO. 896

Honolulu, Hawaii

RE:    S.B. No. 321

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 321 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to provide that the fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.

     Your Committees received testimony in support of this measure from two individuals.

     Your Committees find that, when a subdivision is developed by a corporation, roadways or access routes that provide ingress and egress to the subdivision are also established for the lots.  However, after the lots are sold, the development corporation can go inactive or be dissolved, sometimes decades before the roadways or access routes can be formally conveyed or transferred to the subdivision's community association, who ultimately becomes responsible for maintaining the roadways or access routes.  Title issues concerning the roads can then complicate financing necessary to complete certain maintenance or repairs.  This measure addresses this issue by reducing barriers that may preclude community associations from being able to properly maintain their roads.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 321, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 321, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

STAND. COM. REP. NO. 624

Honolulu, Hawaii

RE:    S.B. No. 321

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Transportation and Culture and the Arts and Water and Land, to which was referred S.B. No. 321 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to provide that fee simple absolute title of a privately owned highway, road, alley, street, way, lane, bikeway, bridge, or trail is deemed transferred to adjacent property owners or the community association if certain conditions are met.

     Your Committees received testimony in support of this measure from one member of the Hawaiʻi County Council and two individuals.

     Your Committees find that there is a need to provide for the ownership of certain properties following the dissolution or cessation of their owners and failing the conveyance of a deed naming the State or county as grantee.  Without a clearly designated owner, issues of caretaking, liability, and access often arise and can lead to costly legal disputes.  This measure preempts those issues by providing for the transferred ownership of certain properties following certain circumstances.

     As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 321 and recommend that it pass Second Reading and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Water and Land,