HB 1325: HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-03-20
Current Status:
Failed
(2026-04-02: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Requires developers developing an affordable housing project under the Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. Takes effect 7/1/2050. (SD1)
Requires developers developing an affordable housing project under Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. Effective 7/1/3000. (HD3)
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. Effective 7/1/3000. (HD2)
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Effective 7/1/3000. (HD1)
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate; establishing a fund to provide relocation benefits; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to maintain communication with those tenants.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1325 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State is facing an affordable housing crisis. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.
The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.
The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcome. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.
The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.
Accordingly, the purpose of this Act is to:
(1) Require developers of affordable housing projects under the Hawaii housing finance and development corporation completed with state or federal funds that result in the displacement or eviction of tenants in existing rental properties to:
(A) Grant certain tenants displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(B) Provide information to the tenants, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(C) Establish procedures to maintain communication with displaced and evicted tenants; and
(2) Specify that a developer's failure to comply shall subject the developer to certain actions by the Hawaii housing finance and development corporation.
SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended to read as follows:
"§201H-38 Housing development; exemption from statutes, ordinances, charter provisions, and rules. (a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:
(1) The housing projects meet the following conditions:
(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;
(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;
(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:
(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;
(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and
(iii) The final plans
and specifications for the project shall be deemed approved by the legislative
body if the final plans and specifications do not substantially deviate from
the preliminary plans and specifications.
The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project. For the purposes of
sections 501-85 and 502-17, the executive director of the corporation or the
responsible county official may certify maps and plans of lands connected with
the project as having complied with applicable laws and ordinances relating to
consolidation and subdivision of lands, and the maps and plans shall be
accepted for registration or recordation by the land court and registrar; [and]
(D) The land use
commission has approved, approved with modification, or disapproved a boundary
change within forty-five days after the corporation has submitted a petition to
the commission as provided in section 205-4.
If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [or] and
(E) If the proposed housing project will result in the displacement or eviction of tenant households living in units affordable to families earning one hundred forty per cent or below of the applicable area median income, the developer of the proposed housing project shall:
(i) Offer the displaced or evicted tenants the right of first refusal for a comparable unit available in the proposed housing project or establish a fund and create a relocation program to provide relocation benefits and offer assistance to the displaced or evicted tenants; provided that, if the developer opts to provide relocation benefits, the displaced or evicted tenant may choose to receive either three separate payments with each payment equal to no less than one month's rent in a comparable unit or a lump sum equal to no less than three month's rent; provided further that relocation benefits may be provided either as a rent waiver or as a direct cash payment;
(ii) Provide, either directly or through a contracted service, information to the displaced or evicted tenants on how to obtain relocation assistance, and how to exercise their right of first refusal upon completion of the proposed housing project; and
(iii) Establish procedures to track and maintain communication with the displaced or evicted tenants; provided that communication under this clause shall commence one hundred twenty days before the developer sends the notice to vacate and shall last throughout completion of the proposed housing project, at which time the developer shall offer and implement the right of first refusal to the displaced or evicted tenants, if that option is chosen by the developer under clause (i). Communication required under this clause shall end only when all displaced or evicted tenants have either declined to exercise or have exercised the right of first refusal;
provided that for projects developed under federal programs for affordable housing that offer relocation payments and other relocation assistance to displaced and evicted tenants, the federal regulations that offer greater protections to tenants shall control. Nothing in this subparagraph shall be construed to confer less protection to displaced or evicted tenants than that which is currently available under federal or state law, regulations, or rules; or
(2) The housing projects:
(A) Meet the conditions of paragraph (1);
(B) Do not impose stricter income requirements than those adopted or established by the State; and
(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents.
(b) If a developer fails to comply with the requirements in subsection (a)(1)(E), the corporation shall:
(1) Delay or fail threshold review of the developer's application for funding;
(2) Halt relocation until non-compliance is cured;
(3) Withhold disbursements of program funds until non-compliance is cured; or
(4) Deem the developer ineligible to participate in all corporation programs for no less than one year.
[(b)] (c) For the purposes of this section,
"government assistance program" means a housing program qualified by
the corporation and administered or operated by the corporation or the United
States or any of their political subdivisions, agencies, or instrumentalities,
corporate or otherwise."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
Description:
Requires developers developing an affordable housing project under the Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. Takes effect 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.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1325 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
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|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State is facing an affordable housing crisis. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.
The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.
The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcome. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.
The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.
Accordingly, the purpose of this Act is to:
(1) Require developers of affordable housing projects under the Hawaii housing development and finance corporation completed with state or federal funds that result in the displacement or eviction of tenants in existing rental properties to:
(A) Grant certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(B) Provide information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(C) Establish procedures to maintain communication with displaced and evicted tenants; and
(2) Specify that a developer's failure to comply subjects the developer to certain actions by the Hawaii housing finance and development corporation.
SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended to read as follows:
"§201H-38 Housing development; exemption from statutes, ordinances, charter provisions, and rules. (a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:
(1) The housing projects meet the following conditions:
(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;
(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;
(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:
(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;
(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and
(iii) The final plans
and specifications for the project shall be deemed approved by the legislative
body if the final plans and specifications do not substantially deviate from
the preliminary plans and specifications.
The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project. For purposes of sections 501-85
and 502-17, the executive director of the corporation or the responsible county
official may certify maps and plans of lands connected with the project as
having complied with applicable laws and ordinances relating to consolidation
and subdivision of lands, and the maps and plans shall be accepted for
registration or recordation by the land court and registrar; [and]
(D) The land use
commission has approved, approved with modification, or disapproved a boundary
change within forty-five days after the corporation has submitted a petition to
the commission as provided in section 205-4.
If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [or] and
(E) If the proposed housing project will result in the displacement or eviction of tenant households living in units whose value is affordable to families earning one hundred forty per cent or below of the applicable area median income, the developer of the proposed housing project shall:
(i) Offer the displaced or evicted tenants the right of first refusal for a comparable unit available in the proposed housing project at a rate no greater than the amount the tenant was paying in the existing development, subject to inflation, or establish a fund and create a relocation program to provide relocation benefits and offer assistance to the displaced or evicted tenants; provided that if the developer opts to provide relocation benefits, the displaced or evicted tenant may choose to receive either three separate payments with each payment equal to no less than one month's rent in a comparable unit or a lump sum equal to no less than three month's rent; provided further that relocation benefits may be provided either as a rent waiver or as a direct cash payment;
(ii) Provide, either directly or through a contracted service, information to the displaced or evicted tenants on how to obtain relocation assistance, and how to exercise their right of first refusal upon completion of the proposed housing project; and
(iii) Establish procedures to track and maintain communication with the displaced or evicted tenants; provided that communication under this clause shall commence one hundred twenty days before the developer sends the notice to vacate and shall last throughout completion of the proposed housing project, at which time the developer shall offer and implement the right of first refusal to the displaced or evicted tenants, if that option is chosen by the developer under clause (i). Communication required under this clause shall end only when all displaced or evicted tenants have either declined to exercise or have exercised the right of first refusal;
provided that for projects developed under federal programs for affordable housing that offer relocation payments and other relocation assistance to displaced and evicted tenants, the federal regulations that offer greater protections to tenants shall control. Nothing in this subparagraph shall be construed to confer less protection to displaced or evicted tenants than that which is currently available under federal or state law, regulations, or rules; or
(2) The housing projects:
(A) Meet the conditions of paragraph (1);
(B) Do not impose stricter income requirements than those adopted or established by the State; and
(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents.
(b) If a developer fails to comply with the requirements in subsection (a)(1)(E), the corporation shall:
(1) Delay or fail threshold review of the developer's application for funding;
(2) Halt relocation until non-compliance is cured;
(3) Withhold disbursements of program funds until non-compliance is cured; or
(4) Deem the developer ineligible to participate in all corporation programs for no less than one year.
[(b)] (c) For the purposes of this section,
"government assistance program" means a housing program qualified by
the corporation and administered or operated by the corporation or the United
States or any of their political subdivisions, agencies, or instrumentalities,
corporate or otherwise."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
Description:
Requires developers developing an affordable housing project under Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. Effective 7/1/3000. (HD3)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1325 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State is facing an affordable housing crisis. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.
The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.
The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcome. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.
The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.
Accordingly, the purpose of this Act is to:
(1) Require developers developing affordable housing projects under the Hawaii housing development and finance corporation completed with state or federal funds that result in the eviction or displacement of tenants in existing rental properties to:
(A) Grant certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(B) Provide information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(C) Establish procedures to maintain communication with displaced and evicted tenants; and
(2) Specify that a developer's failure to comply subjects the developer to certain actions by the Hawaii housing finance and development corporation.
SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended to read as follows:
"§201H-38 Housing development; exemption from statutes, ordinances, charter provisions, and rules. (a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:
(1) The housing projects meet the following conditions:
(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;
(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;
(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:
(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;
(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and
(iii) The final plans
and specifications for the project shall be deemed approved by the legislative
body if the final plans and specifications do not substantially deviate from
the preliminary plans and specifications.
The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project. For purposes of sections 501-85
and 502-17, the executive director of the corporation or the responsible county
official may certify maps and plans of lands connected with the project as
having complied with applicable laws and ordinances relating to consolidation
and subdivision of lands, and the maps and plans shall be accepted for
registration or recordation by the land court and registrar; [and]
(D) The land use
commission has approved, approved with modification, or disapproved a boundary
change within forty-five days after the corporation has submitted a petition to
the commission as provided in section 205-4.
If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [or] and
(E) If the proposed housing project will result in the displacement or eviction of tenant households living in units whose value is affordable to families earning one hundred forty per cent or below of the applicable area median income, the developer of the proposed housing project shall:
(i) Offer the displaced or evicted tenants the right of first refusal for a comparable unit available in the proposed housing project at a rate no greater than the amount the tenant was paying in the existing development, subject to inflation or establish a fund and create a relocation program to provide relocation benefits and offer assistance to the displaced or evicted tenants; provided that if the developer opts to provide relocation benefits, the displaced or evicted tenant may choose to receive either three separate payments with each payment equal to no less than one month's rent in a comparable unit or a lump sum equal to no less than three month's rent; provided further that relocation benefits may be provided either as a rent waiver or as a direct cash payment;
(ii) Provide, either directly or through a contracted service, information to the displaced or evicted tenants on how to obtain relocation assistance, and how to exercise their right of first refusal upon completion of the proposed housing project; and
(iii) Establish procedures to track and maintain communication with the displaced or evicted tenants; provided that communication under this clause shall commence one hundred twenty days prior to the developer sending the notice to vacate and shall last throughout completion of the proposed housing project, at which time the developer shall offer and implement the right of first refusal to the displaced or evicted tenants. Communication required under this clause shall end only when all displaced or evicted tenants have either declined to exercise or have exercised the right of first refusal. For purposes of this clause, tenants are considered relocated only when they have moved into the new project;
provided that for projects developed under federal programs for affordable housing that offer relocation payments and other relocation assistance to displaced and evicted tenants, the federal regulations that offer greater protections to tenants shall control. Nothing in this subparagraph shall be construed to confer less protection to displaced or evicted tenants than that which is currently available under federal or state law, regulations, or rules; or
(2) The housing projects:
(A) Meet the conditions of paragraph (1);
(B) Do not impose stricter income requirements than those adopted or established by the State; and
(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents.
(b) If a developer fails to comply with the requirements in subsection (a)(1)(E), the corporation shall:
(1) Delay or fail threshold review of the developer's application for funding;
(2) Halt relocation until non-compliance is cured;
(3) Withhold disbursements of program funds until non-compliance is cured; or
(4) Deem the developer ineligible to participate in all corporation programs for no less than one year.
[(b)] (c) For the purposes of this section,
"government assistance program" means a housing program qualified by
the corporation and administered or operated by the corporation or the United
States or any of their political subdivisions, agencies, or instrumentalities,
corporate or otherwise."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
Description:
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. Establishes consequences for a developer's noncompliance. 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.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1325 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State is facing an affordable housing crisis. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.
The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.
The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcome. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.
The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.
Accordingly, the purpose of this Act is to require developers developing affordable housing projects under the Hawaii housing development and finance corporation completed with state or federal funds that result in the eviction or displacement of tenants in existing rental properties to:
(1) Grant certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(2) Provide information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(3) Establish procedures to maintain communication with displaced and evicted tenants.
SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:
(1) The housing projects meet the following conditions:
(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;
(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;
(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:
(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;
(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and
(iii) The final plans
and specifications for the project shall be deemed approved by the legislative
body if the final plans and specifications do not substantially deviate from
the preliminary plans and specifications.
The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project. For purposes of sections 501-85
and 502-17, the executive director of the corporation or the responsible county
official may certify maps and plans of lands connected with the project as
having complied with applicable laws and ordinances relating to consolidation
and subdivision of lands, and the maps and plans shall be accepted for
registration or recordation by the land court and registrar; [and]
(D) The land use
commission has approved, approved with modification, or disapproved a boundary
change within forty-five days after the corporation has submitted a petition to
the commission as provided in section 205-4.
If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [or] and
(E) If the proposed housing project will result in the displacement or eviction of tenant households living in units whose value is affordable to families earning one hundred forty per cent or below of the applicable area median income, the developer of the proposed housing project shall:
(i) Offer the displaced or evicted tenants the right of first refusal for a comparable unit available in the proposed housing project at a rate no greater than the amount the tenant was paying in the existing development, subject to inflation or establish a fund and create a relocation program to provide relocation benefits and offer assistance to the displaced or evicted tenants; provided that if the developer opts to provide relocation benefits, the displaced or evicted tenant may choose to receive either three separate payments with each payment equal to no less than one month's rent in a comparable unit or a lump sum equal to no less than three month's rent; provided further that relocation benefits may be provided either as a rent waiver or as a direct cash payment;
(ii) Provide, either directly or through a contracted service, information to the displaced or evicted tenants on how to obtain relocation assistance, and how to exercise their right of first refusal upon completion of the proposed housing project; and
(iii) Establish procedures to track and maintain communication with the displaced or evicted tenants; provided that communication under this clause shall commence one hundred twenty days prior to the developer sending the notice to vacate and shall last throughout completion of the proposed housing project, at which time the developer shall offer and implement the right of first refusal to the displaced or evicted tenants. Communication required under this clause shall end only when all displaced or evicted tenants have either declined to exercise or have exercised the right of first refusal. For purposes of this clause, tenants are considered relocated only when they have moved into the new project;
provided that for projects developed under federal programs for affordable housing that offer relocation payments and other relocation assistance to displaced and evicted tenants, the federal regulations that offer greater protections to tenants shall control. Nothing in this subparagraph shall be construed to confer less protection to displaced or evicted tenants than that which is currently available under federal or state law, regulations, or rules; or
(2) The housing projects:
(A) Meet the conditions of paragraph (1);
(B) Do not impose stricter income requirements than those adopted or established by the State; and
(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
Description:
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to track and maintain communication with those tenants. 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.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1325 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State is facing an affordable housing crisis. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.
The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.
The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcome. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.
The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.
Accordingly, the purpose of this Act is to require developers developing affordable housing projects under the Hawaii housing development and finance corporation completed with state or federal funds that result in the eviction or displacement of tenants in existing rental properties to:
(1) Grant certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate;
(2) Establish a fund to provide relocation benefits to displaced or evicted tenants;
(3) Provide information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(4) Establish procedures to maintain communication with displaced and evicted tenants.
SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:
(1) The housing projects meet the following conditions:
(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;
(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;
(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:
(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;
(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and
(iii) The final plans
and specifications for the project shall be deemed approved by the legislative
body if the final plans and specifications do not substantially deviate from
the preliminary plans and specifications.
The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project. For purposes of sections 501-85
and 502-17, the executive director of the corporation or the responsible county
official may certify maps and plans of lands connected with the project as
having complied with applicable laws and ordinances relating to consolidation
and subdivision of lands, and the maps and plans shall be accepted for
registration or recordation by the land court and registrar; [and]
(D) The land use
commission has approved, approved with modification, or disapproved a boundary
change within forty-five days after the corporation has submitted a petition to
the commission as provided in section 205-4.
If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [or] and
(E) If the proposed housing project will result in the displacement or eviction of tenant households living in units whose value is affordable to families earning one hundred forty per cent or below of the applicable area median income, the developer of the proposed housing project shall:
(i) Offer the displaced or evicted tenants the right of first refusal for a comparable unit available in the proposed housing project at a rate no greater than the amount the tenant was paying in the existing development, subject to inflation;
(ii) Established a fund to provide relocation benefits to the displaced or evicted tenants at an amount equal to no less than three months' rent; provided that relocation benefits may be provided either as a rent waiver or as a direct cash payment;
(iii) Provided, either directly or through a contracted service, information to the displaced or evicted tenants on how to obtain relocation assistance, and how to exercise their right of first refusal upon completion of the proposed housing project; and
(iv) Established procedures to maintain communication with the displaced or evicted tenants throughout the construction of the proposed housing project; or
(2) The housing projects:
(A) Meet the conditions of paragraph (1);
(B) Do not impose stricter income requirements than those adopted or established by the State; and
(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
HHFDC; Affordable Housing Projects; Tenants; Right of First Refusal; Relocation Assistance
Description:
Requires developers developing an affordable housing project under HHFDC to assist certain tenants who are subject to displacement or eviction by the proposed project by: granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate; establishing a fund to provide relocation benefits; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and establishing procedures to maintain communication with those tenants.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 21, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 755). |
| Apr 17, 2025 | House Conferees Appointed: Evslin, Matayoshi, Poepoe, Grandinetti Co-Chairs; Muraoka. |
| Apr 17, 2025 | Re-referred to HSG, CPC, JHA, FIN, referral sheet 33 |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 761) in amended form (SD 1). |
| Apr 8, 2025 | Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 4, 2025 | One Day Notice 04-08-25. |
| Apr 4, 2025 | Reported from WAM/JDC (Stand. Com. Rep. No. 1822) with recommendation of passage on Third Reading. |
| Apr 1, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) DeCoite. |
| Apr 1, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 27, 2025 | The committee(s) on WAM/JDC will hold a public decision making on 04-01-25 10:00AM; Conference Room 211 & Videoconference. |
| Mar 21, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/JDC. |
| Mar 21, 2025 | Reported from HOU/CPN (Stand. Com. Rep. No. 1310) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/JDC. |
| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 18, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 18, 2025 | The committee(s) on HOU deferred the measure until 03-18-25 1:00PM; CR 225 & Videoconference. |
| Mar 13, 2025 | The committee(s) on HOU/CPN has scheduled a public hearing on 03-18-25 9:35AM; Conference Room 229 & Videoconference. |
| Mar 6, 2025 | Referred to HOU/CPN, WAM/JDC. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 356). |
| Mar 4, 2025 | Passed Third Reading as amended in HD 3 with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Forty-eight (48) hours notice Tuesday, 03-04-25. |
| Feb 28, 2025 | Reported from JHA (Stand. Com. Rep. No. 1065) as amended in HD 3, recommending passage on Third Reading. |
| Feb 26, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Perruso, Takayama, Todd, Garcia, Shimizu; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Kahaloa. |
| Feb 21, 2025 | Bill scheduled to be heard by JHA on Wednesday, 02-26-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Feb 14, 2025 | Report adopted; referred to the committee(s) on JHA as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4). |
| Feb 14, 2025 | Reported from CPC (Stand. Com. Rep. No. 672) as amended in HD 2, recommending referral to JHA. |
| Feb 11, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and Excused: none. |
| Feb 7, 2025 | Bill scheduled to be heard by CPC on Tuesday, 02-11-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE. |
| Feb 4, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kong, Ward excused (3). |
| Feb 4, 2025 | Reported from HSG (Stand. Com. Rep. No. 136) as amended in HD 1, recommending passage on Second Reading and referral to CPC. |
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran. |
| Jan 27, 2025 | Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Jan 27, 2025 | Referred to HSG, CPC, JHA, referral sheet 4 |
| Jan 23, 2025 | Introduced and Pass First Reading. |
| Jan 22, 2025 | Pending introduction. |
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Date
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Description
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Location
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Votes
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| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
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| Apr 1, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
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| Apr 1, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Judiciary |
Passed |
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| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
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| Mar 18, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
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| Mar 4, 2025 | Third Reading | House Floor |
Passed |
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| Feb 26, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
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| Feb 11, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Consumer Protection & Commerce |
Passed |
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| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Adult Friends for Youth | ** Support | |
| Adult Friends for Youth | ** Support | |
| Adult Friends for Youth | *** Support | Mar 18, 2025 |
| Chamber of Commerce Hawaii | *** Support | Apr 1, 2025 |
| Democratic Party of Hawai’i | *** Support | Apr 1, 2025 |
| Hawaii Housing Finance and Development Corporation | *** Support | Apr 1, 2025 |
| Hawaii Workers Center | *** Support | Apr 1, 2025 |
| Hawai‘i Appleseed Center for Law and Economic Justice | *** Support | Apr 1, 2025 |
| Hawai‘i Children’s Action Network Speaks! | *** Support | Apr 1, 2025 |
| Hawai‘i YIMBY | *** Support | Apr 1, 2025 |
| Honolulu Tenants Union | *** Support | Jan 29, 2025 |
| Hui Malama Pono Hawaiʻi | ** Support | |
| Hui Malama Pono Hawai’i | *** Support | Feb 11, 2025 |
| Kōkua Kalihi Valley | *** Support | Apr 1, 2025 |
| Kokua Kalihi Valley Comprehensive Family Services | *** Support | Apr 1, 2025 |
| Kokua Kalihi Valley, CFS | *** Support | Apr 1, 2025 |
| Lāhainā Strong | *** Support | Apr 1, 2025 |
| LIMBY Hawaii | *** Support | Mar 18, 2025 |
| Locals In My Backyard Hawaiʻi | ** Support | |
| Maui Housing Hui | ** Support | |
| Maui Tenants and Workers Association | ** Support | |
| Maui Tenants and Workers Assn. | *** Support | Mar 18, 2025 |
| Maui Tenants and Workers Association | ** Support | |
| Medical Legal Partnership for Children in Hawaiʻi | ** Support | |
| Medical-Legal Partnership for Children in Hawaiʻi | *** Support | Apr 1, 2025 |
| NAIOP Hawaii | *** Against | Apr 1, 2025 |
| Parents and Children Together (PACT) | *** Support | Apr 1, 2025 |
| Save Medicaid Hawaii | ** Support | |
| Sierra Club of Hawaiʻi | *** Support | Feb 11, 2025 |
| Susannah Wesley Community Center | *** Support | Feb 26, 2025 |
| Susannah Wesley Community Center | ** Support | |
| Tagnawa for Maui | ** Support | |
| We Are One, Inc. - WAO | *** Support | Apr 1, 2025 |
STAND. COM. REP. NO. 1822
Honolulu, Hawaii
RE: H.B. No. 1325
H.D. 3
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 Ways and Means and Judiciary, to which was referred H.B. No. 1325, H.D. 3, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
beg leave to report as follows:
The purpose and intent of this measure is to protect vulnerable communities from displacement.
More specifically, the measure:
(1) Requires developers of affordable housing projects under the Hawaii Housing Finance and Development Corporation that are completed with state or federal funds and that result in the displacement or eviction of tenants from existing rental properties to:
(A) Grant certain tenants who are displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in that housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(B) Provide information to the tenants, either directly or through a contracted service, on how tenants may obtain assistance and exercise the right of first refusal; and
(C) Establish procedures to maintain communication with displaced and evicted tenants; and
(2) Provides that a developer's failure to comply shall subject the developer to certain actions by the Hawaii Housing Finance and Development Corporation.
Your Committees received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Adult Friends for Youth, Chamber of Commerce of Hawaii, Democratic Party of Hawaii, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Children's Action Network Speaks!, Hawaii Workers Center, Hawaii YIMBY, Kokua Kalihi Valley Comprehensive Family Services, Lahaina Strong, Medical-Legal Partnership for Children in Hawaii, Parents and Children Together, We Are One, Inc., and numerous individuals.
Your Committees received written comments in opposition to this measure from NAIOP Hawaii.
Your Committees find that efforts to address the ongoing housing crisis in the State by increasing the housing supply have sometimes led to the unintended consequence of displacing tenants from properties marked for redevelopment. Your Committees further find that displacement, whether from rising rents or redevelopment, disrupts individuals, families, and communities, especially vulnerable populations who lose not only their homes but also their critical support systems. Your Committees believe that in addition to increasing affordable housing, it is vital to prevent unnecessary displacement and ensure that publicly subsidized developers offer displaced tenants the right of first refusal for comparable units or provide relocation assistance.
As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1325, H.D. 3, S.D. 1, and recommend that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,
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________________________________ KARL RHOADS, Chair |
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 1310
Honolulu, Hawaii
RE: H.B. No. 1325
H.D. 3
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 Housing and Commerce and Consumer Protection, to which was referred H.B. No. 1325, H.D. 3, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Require developers developing an affordable housing project under the Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by:
(A) Granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance;
(B) Providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(C) Establishing procedures to track and maintain communication with those tenants; and
(2) Establish consequences for a developer's noncompliance.
Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Tagnawa for Maui, Locals In My Backyard Hawaiʻi, Democratic Party of Hawaiʻi, Adult Friends for Youth, Chamber of Commerce Hawaii, Medical-Legal Partnership for Children in Hawaiʻi, Hawaiʻi YIMBY, Lāhainā Strong, Hawaii Appleseed Center for Law and Economic Justice, Kōkua Kalihi Valley Comprehensive Family Services, Parents and Children Together, Hawaiʻi Workers Center, Maui Tenants and Workers Association, Hawaiʻi Children's Action Network Speaks!, and twenty-four individuals.
Your Committees received testimony in opposition to this measure from NAIOP Hawaii.
Your Committees received comments on this measure from one individual.
Your Committees find that addressing the State's chronic housing shortage is of paramount importance to ensure local individuals and families can remain in Hawaii. While housing developers are developing more housing units to increase the State's existing inventory, developments may inadvertently displace residents in the surrounding communities. As residential displacement creates stress, anxiety, and uncertainty for individuals and families, especially children, housing stability ensures positive social and health outcomes for all residents. Therefore, this measure prioritizes the needs of residents in established communities impacted by housing development while improving communication practices.
Your Committees note the concerns of NAIOP Hawaii regarding the requirement for redeveloped units to remain one hundred percent affordable in perpetuity. While the affordability requirement ensures the unit remains affordable for local working individuals and families, the perpetual restriction limits financial flexibility, limits lender confidence, and eliminates the ability to leverage mixed-income models that make affordable housing feasible. Additionally, the financial compensation provisions for displaced tenants go beyond reasonable assistance, creating a potential windfall for tenants. As this measure proposes to require three months of comparable rent upfront to tenants, this provision may inadvertently increase housing development costs and discourage future production.
Additionally, your Committees also note the testimony of various individuals presently residing in affected development areas. Relocation of housing, regardless of whether the relocation is temporary or permanent, is a significant hardship on individuals and families who have established their lives in a community. Further, as individuals and families have centered their lives around a specific community, relocation due to housing development can significantly impact both the physical and mental well-being of residents. As individuals and families relocate to other temporary or permanent housing, an effort should be made to ensure that living conditions in the new housing units are safe and secure to promote healthy living environments. Your Committees find that these issues warrant further consideration and respectfully request that subsequent committees that choose to deliberate on this measure examine these issues.
Your Committees have amended this measure by:
(1) Deleting language that would have required the unit the new proposed housing project to be offered at the same rate as the prior unit, subject to inflation;
(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(3) 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 Housing and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1325, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1325, H.D. 3, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.
Respectfully submitted on behalf of the members of the Committees on Housing and Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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________________________________ STANLEY CHANG, Chair |
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STAND. COM. REP. NO. 1065
Honolulu, Hawaii
, 2025
RE: H.B. No. 1325
H.D. 3
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. 1325, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Require developers of affordable housing projects under the Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by:
(A) Granting those tenants the right of first refusal of a comparable unit in the housing project at an affordable rate or establishing a fund to provide relocation benefits and offer assistance;
(B) Providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(C) Establishing procedures to track and maintain communication with those tenants; and
(2) Establish consequences for a developer's noncompliance.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Tagnawa; Democratic Party of Hawaiʻi; Hawaii Appleseed Center for Law & Economic Justice; LIMBY Hawaiʻi; Save Medicaid Hawaii; Lāhainā Strong; Chamber of Commerce Hawaii; Susannah Wesley Community Center; Adult Friends for Youth; Maui Tenants and Workers Association; Parents and Children Together; Medical-Legal Partnership for Children in Hawaiʻi; Hawaiʻi YIMBY; Kokua Kalihi Valley Comprehensive Family Services; and numerous individuals.
Your Committee finds that addressing the housing shortage requires the redevelopment of existing homes. However, when an existing residential structure is being redeveloped, the current residents should be treated fairly and equitably, and allowed the opportunity to return to their community. The lack of a standardized process to address the displacement of current residents cultivates mistrust of housing efforts. This measure establishes a standardized process to transition current residents displaced by an affordable housing project.
Your Committee has amended this measure by:
(1) Clarifying that upon completion of the proposed housing project, developers must offer and implement the right of first refusal to displaced or evicted tenants if that option is chosen by the developer;
(2) Deleting language that would have specified that tenants are considered relocated only when they have moved into the new project; 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. 1325, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1325, H.D. 3.
Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,
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____________________________ DAVID A. TARNAS, Chair |
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STAND. COM. REP. NO. 672
Honolulu, Hawaii
, 2025
RE: H.B. No. 1325
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 Consumer Protection & Commerce, to which was referred H.B. No. 1325, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
(1) Granting certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;
(2) Providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(3) Establishing procedures to maintain communication with displaced and evicted tenants.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Tagnawa for Maui; Hawaiʻi YIMBY; Democratic Party of Hawaiʻi; Adult Friends for Youth; Hui Malama Pono Hawaiʻi; Hawaii Appleseed Center for Law & Economic Justice; Lāhainā Strong; Medical Legal Partnership for Children in Hawaiʻi; Hawaiʻi Workers Center; Maui Housing Hui; Parents And Children Together; and numerous individuals.
Your Committee finds that the creation of new affordable housing units is an important aspect of the State's efforts to address the existing housing crisis in Hawaii. However, the creation of new affordable housing units through the redevelopment of existing housing displaces and dislocates those tenants. This measure specifies a clear procedure for developers to follow when redeveloping areas on which existing tenants reside.
Your Committee has amended this measure by:
(1) Specifying consequences for a developer's failure to comply with the requirements of this measure; 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1325, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs in the form attached hereto as H.B. No. 1325, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ SCOT Z. MATAYOSHI, Chair |
STAND. COM. REP. NO. 136
Honolulu, Hawaii
, 2025
RE: H.B. No. 1325
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 Housing, to which was referred H.B. No. 1325 entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
(1) Grant certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate;
(2) Establish a fund to provide relocation benefits to displaced or evicted tenants;
(3) Provide information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and
(4) Establish procedures to maintain communication with displaced and evicted tenants.
Your Committee received testimony in support of this measure from Tagnawa; Hawaiʻi Workers Center; Hawaiʻi YIMBY; Hawaii Appleseed Center for Law & Economic Justice; Medical-Legal Partnership for Children in Hawaiʻi; and numerous individuals. Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation and one individual.
Your Committee finds that efforts to increase affordable housing production have inadvertently led to the displacement of vulnerable tenants, disrupting their social networks and economic stability. Your Committee further finds that residential instability resulting from displacement is linked to negative health and social outcomes, particularly for children and youth. Your Committee believes that it is imperative to balance the development of affordable housing with measures to protect displaced and evicted tenants to ensure their continued access to stable, affordable housing.
Your Committee has amended this measure by:
(1) Requiring a developer of a proposed housing project to either offer the displaced or evicted tenant the right of first refusal for a comparable unit in the proposed housing project or establish a fund and create a relocation program to provide relocation benefits;
(2) Specifying that if a developer chooses to provide relocation benefits, a displaced or evicted tenant may choose to receive either three separate payments with each payment equal to no less than one month's rent in a comparable unit or a lump sum equal to no less than three months' rent;
(3) Clarifying communication requirements between developers and displaced or evicted tenants;
(4) Clarifying that federal regulations for federal programs for affordable housing that offer greater tenant relocation payment and assistance control;
(5) Changing the effective date to July 1, 3000, to encourage further discussion; and
(6) 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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1325, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1325, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.
Respectfully submitted on behalf of the members of the Committee on Housing,
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____________________________ LUKE A. EVSLIN, Chair |
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Date
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Testimony PDF
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| Apr 1, 2025 | HB1325_SD1_TESTIMONY_WAM-JDC_04-01-25_.PDF |
| Mar 18, 2025 | HB1325_HD3_TESTIMONY_CPN-HOU_03-18-25_.PDF |
| Feb 26, 2025 | HB1325_HD2_TESTIMONY_JHA_02-26-25_.PDF |
| Feb 11, 2025 | HB1325_HD1_TESTIMONY_CPC_02-11-25_.PDF |
| Jan 29, 2025 | HB1325_TESTIMONY_HSG_01-29-25_.PDF |
Discussed in Hearing
5SEC
Senate Standing Committee on Housing
5SEC
Senate Standing Committee on Labor and Technology
5SEC
Senate Standing Committee on Water and Land
4MIN
House Floor
30MIN
House Standing Committee on Judiciary & Hawaiian Affairs
17MIN
House Standing Committee on Consumer Protection & Commerce
16MIN
House Standing Committee on Housing
Bill Author
