"[2] However, the shortage of buildable land on Oahu was largely because roughly half of the island is government-owned and thus unavailable for privately owned housing.

The Hawaii legislature enacted a condemnation scheme, which was intended to transfer titles to the lots from its owner, the Bishop Estate, to the home lessees.

The Court's decision looked to Berman v. Parker (1954) in which eminent domain power had been used to redevelop slum areas and for the possible sale or lease of the condemned lands for private interest.

Hawaii's act to regulate the oligopoly was seen as a classic exercise of the State's police powers, and a comprehensive and rational approach to identifying and correcting market failure and satisfied the public use doctrine.

It could not create new housing because it transferred title from the land lessor only to the lessee-homeowners who already occupied existing homes on the subject property.