HB 1324: RELATING TO LANDLORD-TENANT DISPUTES.

A BILL FOR AN ACT

RELATING TO LANDLORD-TENANT DISPUTES.

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

     SECTION 1.  The legislature finds that stable housing yields a multitude of opportunities and stronger outcomes for children, youth, and adults.  Young people are more vulnerable to mental health problems, developmental delays, and poor cognitive outcomes because of housing instability.  In contrast, housing stability improves educational outcomes by reducing the likelihood of repeating a grade and dropping out of school.

     The legislature further finds that while rentals satisfy Hawaii residents' need for stable housing, tenants have very little support when facing eviction in the State.  In the 2018 report, "Evicted in Hawai‘i:  Lives Hanging in the Balance", Lawyers for Equal Justice found that approximately seventy per cent of landlords are represented by counsel in eviction proceedings, whereas five per cent of tenants are represented.  This disparity in representation results in eighty-five to ninety-five per cent of eviction cases resulting in the eviction of the tenant.

     Additionally, the legislature finds that representation in eviction proceedings can increase the likelihood for a tenant to remain in the home.  Research suggests that tenants who are represented in eviction proceedings are six to ten times more likely to remain in the home.  In New York City, where low-income tenants have full and free access to counsel in eviction proceedings, eighty-six per cent of represented tenants were able to remain in their homes.

     The legislature also finds that access to representation may be substantially increased by permitting lay persons to advocate for tenants in court.  Under existing state law, landlords may be represented by property managers.  However, there is no corresponding right to lay advocacy for tenants.  The legislature notes that in February 2021, a tenant-advocate pilot project was established by the Hawaii supreme court to assist self-represented litigants in landlord-tenant disputes, but this project is currently limited to the first circuit.

     Accordingly, the purpose of this Act is to increase access to representation for residential tenants in actions or proceedings for possession by:

     (1)  Providing for state-funded access to legal services for residential tenants;

     (2)  Authorizing attorneys, paralegals, and law students to provide the legal services; and

     (3)  Appropriating funds to the judiciary to contract with legal service organizations or clinical training programs to carry out this purpose.

     SECTION 2.  Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§666-     Access to representation; representation by whom; no private right of action.  (a)  Subject to the availability and appropriation of funds for the purposes of this section, the judiciary shall contract with designated organizations for the provision of legal services to residential tenants in any action or proceeding for possession as follows:

     (1)  For eligible residential tenants, access to full legal representation upon the filing of an action or proceeding for possession, or as soon thereafter as is practicable, which shall be maintained from the initial filing through termination of the action or proceeding; provided that if full legal representation is unavailable, then access to day-of-court representation on the day of the first court hearing shall be provided; and

     (2)  For a residential tenant who does not meet the definition of an eligible residential tenant under this section, access to limited pro-bono assistance upon the filing of an action or proceeding for possession, or as soon thereafter as is practicable.

     Legal services rendered pursuant to this section shall be at no cost to the tenant.

     (b)  The legal services rendered by designated organizations pursuant to subsection (a) may be provided by:

     (1)  Attorneys;

     (2)  Paralegals; or

     (3)  Law students;

provided that paralegals and law students shall be under the general supervision of an attorney employed with or contracted by the designated organization.

     (c)  Notwithstanding any provision of law requiring the licensure of persons practicing in any court, the persons listed under subsection (b) may appear on behalf of residential tenants in district court.

     (d)  Nothing in this section or the administration or application of this section shall be construed to create a private right of action on the part of any person or entity against the judiciary or State.

     (e)  For purposes of this section:

     "Day-of-court representation" means the provision of legal services provided by a designated organization on the day of a court hearing and does not include pre-trial preparation.

     "Designated organization" means a nonprofit organization or association or clinical training program that has the capacity to provide legal services and is designated by the judiciary pursuant to this section.

     "Eligible residential tenant" means any individual who occupies a dwelling in the State under a claim-of-right other than the owner whose household earns at or below two hundred fifty per cent of the applicable federal poverty level for Hawaii.  "Eligible residential tenant" does not include any individual who owns property in the circuit in which the action or proceeding for possession was filed, or any individual whose annual gross household income is more than two hundred fifty per cent of the applicable federal poverty level for Hawaii.

     "Full legal representation" means ongoing legal representation provided by a designated organization to an eligible residential tenant and all legal advice, advocacy, and assistance associated with the representation.  "Full legal representation" includes the filing of a notice of appearance on behalf of the eligible residential tenant in an action or proceeding for possession, pre-trial counsel, court representation, and negotiations.

     "General supervision" includes paralegals and law students appearing on behalf of tenants in court without the physical presence of the supervising attorney.

     "Limited pro-bono assistance" means the provision of basic legal advice and assistance with document preparation provided by a designated organization and does not include in-court representation."

     SECTION 3.  Section 605-2, Hawaii Revised Statutes, is amended to read as follows:

     "§605-2  Attorneys; license required.  Except as provided by the rules of court, no person shall be allowed to practice in any court of the State unless that person has been duly licensed [so] to do so by the supreme court; provided that nothing in this chapter shall prevent any person, plaintiff, defendant, or accused, from appearing in person before any court, and there prosecuting or defending that person's, plaintiff's, defendant's, or accused's own cause, without the aid of legal counsel; provided further that in the district courts sections 605-13 [and], 633-28, and 666-    shall apply."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the judiciary to contract for the representation services required by this Act.

     The sums appropriated shall be expended by the judiciary for the purposes of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

Landlord; Tenant; Legal Services; Income Eligibility; Access to Representation; Judiciary; Appropriation

Description:

Requires the Judiciary to contract for legal services for residential tenants in actions or proceedings for possession under certain circumstances.  Authorizes attorneys, paralegals, and law students to provide legal services to residential tenants.  Appropriates funds.  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 landlord-Tenant disputes.

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

     SECTION 1.  The legislature finds that stable housing yields a multitude of opportunities and stronger outcomes for children, youth, and adults.  Young people are more vulnerable to mental health problems, developmental delays, and poor cognitive outcomes because of housing instability.  In contrast, housing stability improves educational outcomes by reducing the likelihood of repeating a grade and dropping out of school.

     The legislature further finds that while rentals satisfy Hawaii residents' need for stable housing, tenants have very little support when facing eviction in the State.  In the 2018 report, "Evicted in Hawai‘i:  Lives Hanging in the Balance", Lawyers for Equal Justice found that approximately seventy per cent of landlords are represented by counsel in eviction proceedings, whereas five per cent of tenants are represented.  This disparity in representation results in eighty-five to ninety-five per cent of eviction cases resulting in the eviction of the tenant.

     Additionally, the legislature finds that representation in eviction proceedings can increase the likelihood for a tenant to remain in the home.  Research suggests that tenants who are represented in eviction proceedings are six to ten times more likely to remain in the home.  In New York City, where low-income tenants have full and free access to counsel in eviction proceedings, eighty-six per cent of represented tenants were able to remain in their homes.

     The legislature also finds that access to representation may be substantially increased by permitting lay persons to advocate for tenants in court.  Under existing state law, landlords may be represented by property managers.  However, there is no corresponding right to lay advocacy for tenants.  The legislature notes that in February 2021, a tenant-advocate pilot project was established by the Hawaii supreme court to assist self-represented litigants in landlord-tenant disputes, but this project is currently limited to the first circuit.

     Accordingly, the purpose of this Act is to increase access to representation for residential tenants in actions or proceedings for possession by:

     (1)  Providing for state-funded access to legal services for residential tenants;

     (2)  Authorizing attorneys, paralegals, and law students to provide the legal services; and

     (3)  Appropriating funds to the judiciary to contract with legal service organizations or clinical training programs to carry out this purpose.

     SECTION 2.  Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§666-     Access to representation; representation by whom; no private right of action.  (a)  Subject to the availability and appropriation of funds for the purposes of this section, the judiciary shall contract with designated organizations for the provision of legal services to residential tenants in any action or proceeding for possession as follows:

     (1)  For eligible residential tenants, access to full legal representation upon the filing of an action or proceeding for possession, or as soon thereafter as is practicable, which shall be maintained from the initial filing through termination of the action or proceeding; provided that if full legal representation is unavailable, then access to day-of-court representation on the day of the first court hearing shall be provided; and

     (2)  For a residential tenant who does not meet the definition of an eligible residential tenant under this section, access to limited pro-bono assistance upon the filing of an action or proceeding for possession, or as soon thereafter as is practicable.

     Legal services rendered pursuant to this section shall be at no cost to the tenant.

     (b)  The legal services rendered by designated organizations pursuant to subsection (a) may be provided by:

     (1)  Attorneys;

     (2)  Paralegals; or

     (3)  Law students;

provided that paralegals and law students shall be under the general supervision of an attorney employed with or contracted by the designated organization.

     (c)  Notwithstanding any provision of law requiring the licensure of persons practicing in any court, the persons listed under subsection (b) may appear on behalf of residential tenants in district court.

     (d)  Nothing in this section or the administration or application of this section shall be construed to create a private right of action on the part of any person or entity against the judiciary or State.

     (e)  For purposes of this section:

     "Day-of-court representation" means the provision of legal services provided by a designated organization on the day of a court hearing and does not include pre-trial preparation.

     "Designated organization" means a nonprofit organization or association or clinical training program that has the capacity to provide legal services and is designated by the judiciary pursuant to this section.

     "Eligible residential tenant" means any individual who occupies a dwelling in the State under a claim-of-right other than the owner, including tenants of the Hawaii public housing authority, whose household earns at or below eighty per cent of the area median income.

     "Eligible residential tenant" does not include any individual who owns property in the circuit in which the action or proceeding for possession was filed, or any individual whose annual gross household income is more than eighty per cent of the area median income for a family of the same size.

     "Full legal representation" means ongoing legal representation provided by a designated organization to an income-eligible tenant and all legal advice, advocacy, and assistance associated with such representation.  "Full legal representation" includes the filing of a notice of appearance on behalf of the income-eligible tenant in an action or proceeding for possession, pre-trial counsel, court representation, and negotiations.

     "General supervision" includes paralegals and law students appearing on behalf of tenants in court without the physical presence of the supervising attorney.

     "Limited pro-bono assistance" means the provision of basic legal advice and assistance with document preparation provided by a designated organization and does not include in-court representation."

     SECTION 3.  Section 605-2, Hawaii Revised Statutes, is amended to read as follows:

     "§605-2  Attorneys; license required.  Except as provided by the rules of court, no person shall be allowed to practice in any court of the State unless that person has been duly licensed so to do by the supreme court; provided that nothing in this chapter shall prevent any person, plaintiff, defendant, or accused, from appearing in person before any court, and there prosecuting or defending that person's, plaintiff's, defendant's, or accused's own cause, without the aid of legal counsel; provided further that in the district courts sections 605-13 [and], 633-28, and 666-    shall apply."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the judiciary to contract for the representation services required by this Act.

     The sums appropriated shall be expended by the judiciary for the purposes of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

Landlord; Tenant; Legal Services; Income Eligibility; Access to Representation; Judiciary; Appropriation

Description:

Requires the Judiciary to contract for legal services for residential tenants in actions or proceedings with their landlord under certain circumstances.  Authorizes attorneys, paralegals, and law student to provide legal services to residential tenants.  Appropriates funds.

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

STAND. COM. REP. NO.  246

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1324

      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 Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1324 entitled:

"A BILL FOR AN ACT RELATING TO LANDLORD-TENANT DISPUTES,"

begs leave to report as follows:

     The purpose of this measure is to increase access to representation for residential tenants in actions or proceedings for possession by:

     (1)  Providing for state-funded access to legal services for residential tenants;

     (2)  Authorizing attorneys, paralegals, and law students to provide the legal services; and

     (3)  Appropriating funds to the Judiciary to contract with legal service organizations or clinical training programs to carry out this purpose.

     Your Committee received testimony in support of this measure from Hawaii Appleseed Center for Law and Economic Justice and four individuals.  Your Committee received comments on this measure from the Judiciary and Department of Attorney General.

     Your Committee finds that providing legal representation for tenants facing eviction is crucial.  It helps level the playing field against landlords, significantly increases the chances of a positive outcome for tenants, and can prevent the devastating consequences of eviction, including homelessness.  This measure will ensure that Hawaii's low-income tenants have a fair opportunity to protect their housing rights.

     Your Committee has amended this measure by:

     (1)  Amending the definition of "eligible residential tenant" to:

          (A)  Delete language that would have included tenants of the Hawaii Public Housing Authority; and

          (B)  Change the income threshold to persons whose household earns at or below two hundred fifty percent of the applicable federal poverty level for Hawaii;

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

     (3)  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 H.B. No. 1324, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1324, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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