A bill to prohibit foreigners from buying older homes in Hawaii was unanimously endorsed this month by state senators in an effort to make housing less pricey for local people.

However, the proposed ban has drawn questions about its effectiveness and constitutionality if it becomes law.

Senate Bill 3110 would generally bar people who aren’t U.S. citizens and legal residents, as well as companies and trusts controlled by such nonresident aliens, from buying Hawaii homes that are more than 5 years old.

The bill was introduced by Sen. Kurt Fevella (R, Ewa Beach-Iroquois Point) with six Democratic colleagues as sponsors. Two Senate committees advanced the measure last month followed by a 25-0 March 3 vote by all senators to send the legislation to the state House for consideration.

So far, the measure has drawn overwhelmingly more support than opposition in public testimony, though only about 20 written comments have been submitted.

Kananiloa‘anuenue Ponciano, a married business owner and mother of two living in Kahuku, wrote that her family isn’t struggling, but can’t afford to buy a home because of “outrageous prices” that foreign investors and developers can afford.

“Homes in Hawaii should not be exploited to foreign developers and investors but should be tailored to the fixed incomes of the Hawaiian Natives and local people as priority,” she said. “Hawaii is losing too many of our born and raised Native Hawaiian families to the continent and we must do what we can to keep our Hawaii Hawaiian.”

The median home sale price on Oahu last year was $789,000 for single-family houses and $425,000 for condominiums.

Melinda Buck mentioned in her written testimony past practices of Japanese billionaire Genshiro Kawamoto, who bought nearly 200 homes on Oahu in the 1980s plus about 30 more in the 2000s and let many deteriorate while renting some but keeping others vacant.

Barbara Phillip urged lawmakers to help local residents stay in Hawaii by passing the bill.

“It’s time to think of the residents and stop selling out to nonresident investors and developers,” she said in written testimony.

Only the Hawaii Association of Realtors, representing more than 10,000 real estate agents, submitted testimony opposing the bill.

Ken Hiraki, the trade group’s director of government affairs, said in his written comments that home sales to foreigners accounted for about 3% of all Hawaii real estate transactions last year and that cutting off such sales would do little to address the cost of housing.

Hiraki encouraged lawmakers to focus on increasing the housing supply, and suggested that the bill might affect foreign developers from building homes for residents while also affecting foreign buyers who work here or send their children to school in the state as opposed to speculators.

In an email, Patrick ONeill, owner and principal broker of Honolulu-based real estate sales firm Luxury Homes International, said the 3% figure cited by the trade association equated to 539 homes and was down from 929 sales to foreigners in 2018 based on Title Guaranty data.

ONeill called SB 3110 a “ridiculous” proposal and noted that 78% of Hawaii home sales last year were to local residents, followed by 8% to California residents.

Though senators voted unanimously, without reservations, to advance the bill to the House, some lawmakers on two Senate committees expressed concerns earlier.

The Senate Judiciary Committee in a report last month said restricting residential property purchases by nonresident aliens may be unconstitutionally discriminatory and inconsistent with U.S. foreign policy. The report also said the bill has no clear basis for applying only to homes over 5 years old.

“Your committee believes that these concerns should be addressed as this measure proceeds,” the report said.

The Senate Water and Land Committee amended the bill to delay its effective date to 2050 to encourage further discussion, and two members of that committee voted with reservations to pass the measure.

The bill includes exceptions to comply with any U.S. treaties, and notes that other states have “similar” restrictions on real estate ownership by foreigners.

Many such restrictions apply to farmland.

Under SB 3110 a suspected violation of the prohibition would allow Hawaii’s attorney general to seek approval from a state judge to seize ownership of the property.

The bill has temporary exemptions for foreigners who acquire homes through a will, inheritance or debt. In these cases a foreign owner would have five years to get rid of the property. The bill also wouldn’t prohibit a foreigner who bought a home before July 1, 2020, from keeping the same home.

Three committees in the House are assigned to consider the bill. As of Sunday no hearings had been scheduled.