Guam § 5307 - Lease of Property for Use in Accordance With the Plan.

§ 5307. Lease of Property for Use in Accordance With the Plan.

Subject to such requirements and procedures as the Federal

Government may impose with respect to federally-aided subdivision

plans, which shall in any event prevail:

(a) The Authority may lease, for not longer than ninety-nine

(99) years, land or any interest therein acquired by it, may sell

improvements, and may enter into contracts with respect thereto, in

a subdivision for residential, recreational or for other public use, in

accordance with the subdivision plan, subject to such covenants,

conditions and restrictions, including covenants running with the

land, as it may deem to be in the public interest or necessary to

assist in preventing the development or spread of future slums or

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blighted areas or to otherwise carry out the purposes of this Article;

provided that such lease of land, sale of improvements and any

agreements relating thereto may be made only after the approval of

the subdivision plan.

(b) The lessees shall be obligated to devote such land only to

the uses specified in the subdivision plan, and may be obligated to

comply with such other requirements as the Authority may

determine to be in the public interest or the Federal Government

may determine to be necessary as a condition of federal aid,

including the obligations to begin and to complete within a

reasonable time any improvements on such real property required

by the subdivision plan and the new uses specified therein; provided

that any obligation to begin construction of improvements shall not

apply to mortgagees and others who acquire an interest in such

property as the result of the enforcement of any lien or claim

thereon.

(c) The Authority is authorized to lease lots in the subdivisions

authorized by this Article at their market value.

(d) Special Provisions for Coastal Land. Notwithstanding any

other provisions of this Article, the Authority is authorized to

exchange lots in the subdivision for lots lying within the seashore

reserve as defined by 21 GCA § 63103(c). Said exchange shall be

made only in the case where a person or family is residing on a lot

within the seashore reserve and exchanges said lot for a lot within

the subdivision upon which it will reside. Each of the lots will be

valued at its fair market value. In determining the fair value of lots

in the subdivision for uses in accordance with the subdivision plan,

the Authority shall take into account and give consideration to the

uses provided in such plan; the restrictions upon and the covenants,

conditions and obligations assumed by the owners of such lots in a

subdivision area; and the objectives of such plan for the prevention

of the recurrence of slum or blighted areas. The Authority may

retain or employ qualified appraisers and land valuation experts to

appraise the value of such real property in accordance with the

standards here prescribed, which appraisals shall be advisory in

nature only for the purpose of aiding and assisting the Authority in

finding, determining and establishing the fair value of such real

property for uses in accordance with the subdivision plan.

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No person or family shall be entitled to more than one (1)

subdivision lot. The Board of Commissioners of the Authority shall

provide rules and regulations for the implementation of this Section.

(e) The Authority shall provide in any lease or other agreement

that the lessee shall be without the power to sublease or otherwise

transfer the land without the prior written consent of the Authority.

The Authority shall provide in any such lease or other agreement

that the lessee shall be without power to sell, lease or otherwise

transfer any improvements upon the lot without the prior written

consent of the Authority. The Authority shall provide, in any such

lease or agreement, that such real property shall revert to or revest in

the Authority at its discretion, upon a breach or violation of any

condition, covenant, restriction, undertaking or other requirements

relating to the use of the property or otherwise without relieving any

lessee of any obligation assumed by such lessee, and without

liability on the part of the Authority for any claim arising from such

retesting or reversion. The Authority, upon a certification by it to a

court of competent jurisdiction that any lessee has breached or

violated any condition, covenant, restriction, undertaking or

requirement, shall be entitled to immediate relief (without bond or

liability for damages) restraining and enjoining any such breach or

violation, pending the determination of the issues in the controversy.

(f) The lease or other agreement for each lot shall contain a

restraint on the alienation of improvements on the lot for a period of

ten (10) years after the lease is executed. The lease or other

agreement shall grant the Authority an option, after the initial ten

(10) year period, to purchase the improvements on said lot at the fair

market value of the improvements. The Authority shall sell the

improvements to a person or family qualifying to lease the lot under