HB 1777: HHFDC; Tenant Protection Working Group; Report; Appropriation

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 shortage.  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 outcomes.  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)  Establish the tenant protection working group within the Hawaii housing finance and development corporation to address tenant protection issues in the State;

     (2)  Require the tenant protection working group to report to the legislature; and

     (3)  Appropriate funds for the tenant protection working group.

     SECTION 2.  (a)  There is established the tenant protection working group within the Hawaii housing finance and development corporation for administrative purposes only.

     (b)  The tenant protection working group shall address tenant protection issues in the State, including but not limited to a proactive plan to:

     (1)  Protect the tenants of the fourteen thousand units of temporarily affordable housing developed utilizing low-income housing tax credits statewide;

     (2)  Prevent the development of more housing that is affordable only for a temporary amount of time;

     (3)  Develop enough housing to meet demand statewide that minimizes tenant displacement; and

     (4)  Maximize the efficient use of public funds and public lands.

     (c)  The working group shall consist of the following members:

     (1)  The chair of the senate standing committee on housing, who shall serve as co-chairperson of the working group;

     (2)  The chair of the house of representatives standing committee on housing, who shall serve as a co‑chairperson of the working group;

     (3)  The executive director of the Hawaii housing finance and development corporation, or the executive director's designee;

     (4)  The executive director of the Hawaii public housing authority, or the executive director's designee;

     (5)  One tenant advocate, to be invited by the co‑chairpersons;

     (6)  One representative of a private developer, to be invited by the co-chairpersons; and

     (7)  Any other persons with relevant experience or knowledge, as determined by the working group's members and invited by the co‑chairpersons.

     (d)  The tenant protection working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.

     (e)  The tenant protection working group shall consult with the landlord-tenant working group for the purposes of this Act.

     (f)  The members of the working group shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (g)  No member of the tenant protection working group shall be subject to chapter 84, Hawaii Revised Statutes, solely because of the member's participation in the working group.

     SECTION 3.  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 2026-2027 for the establishment of the tenant protection working group.

     The sum appropriated shall be expended by the Hawaii Housing Finance and Development Corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; Tenant Protection Working Group; Report; Appropriation

Description:

Establishes the Tenant Protection Working Group within the Hawaii Housing Finance and Development Corporation to address certain tenant protection issues in the State.  Requires the Tenant Protection Working Group to report to the Legislature.  Appropriates funds.  Effective 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.

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 housing projects receiving any development assistance from the Hawaii housing finance and development corporation, including funding, incentives, and waivers, that displace or evict tenants from existing rental properties to:

          (A)  Grant certain displaced or evicted tenants a right of first offer of a comparable unit in the proposed housing project;

          (B)  Provide displaced or evicted tenants with replacement housing payment equal to the lesser of three months' rent or three months' rent affordable to a two-person household at sixty per cent of the applicable area median income;

          (C)  Provide information, directly or through a contracted service, on available assistance and exercise the right of first offer; and

          (D)  Establish procedures to maintain communication with displaced or evicted tenants; and

     (2)  Provide that a developer's failure to comply is subject to enforcement 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, ordinances, 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:

     (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, meets minimum requirements of health and safety, and provides the county an opportunity to comment;

          (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; provided further that the legislative body shall not impose stricter conditions, impose stricter median income requirements, or reduce fee waivers that will increase the cost of the project beyond those approved by the corporation.  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 the applicable area median income, the developer of the proposed housing project shall:

              (i)  Offer the displaced or evicted tenants the right of first offer for a comparable unit available in the proposed housing project before displacement or eviction, or as soon as practicable thereafter, to be exercised upon availability of the unit;

             (ii)  Provide a replacement housing payment to the displaced or evicted tenants; provided that the payment shall be the lesser of three months' rent the displaced or evicted tenant was paying before being displaced or evicted or an amount equivalent to three months' rent that is affordable to a two-person household at sixty per cent of the applicable area median income;

            (iii)  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 offer when a comparable unit becomes available upon completion of the proposed housing project; and

             (iv)  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 implement the right of first offer 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 offer;

              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 that 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.

     (c)  Nothing in this section shall require a proposed project to include comparable units to those that previously existed.

     [(b)] (d)  For the purposes of this section[, "government]:

     "Comparable unit" means any dwelling that is:

     (1)  Decent, safe, and sanitary;

     (2)  Adequate in size to accommodate the occupants;

     (3)  Within the financial means of the displaced or evicted person;

     (4)  Functionally equivalent;

     (5)  In an area not subject to unreasonable adverse environmental conditions; and

     (6)  In a location generally not less desirable than the location of the displaced or evicted person's dwelling with respect to public utilities, facilities, services, and the displaced or evicted person's place of employment.

     "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; Housing Projects; Tenants; Right of First Offer; Replacement Housing Payments

Description:

Requires developers developing a 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 offer of a comparable unit in the housing project; providing replacement housing payments; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; 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.

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 all housing projects that receive any development assistance from the Hawaii housing finance and development corporation, including funding, incentives, and waivers, that result in the displacement or eviction of tenants in existing rental properties to:

          (A)  Grant certain tenants displaced or evicted by the proposed housing project the right of first offer of a comparable unit in the proposed housing project;

          (B)  Provide a replacement housing payment to the displaced tenants; provided that the payment will be the lesser of three months' rent or an amount equivalent to three months' rent that is affordable to a two-person household at sixty per cent of the applicable area median income;

          (C)  Provide information to the tenants, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; and

          (D)  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 the applicable area median income, the developer of the proposed housing project shall:

              (i)  Offer the displaced or evicted tenants the right of first offer for a comparable unit available in the proposed housing project;

             (ii)  Provide a replacement housing payment to the displaced tenants; provided that the payment shall be the lesser of three months' rent the displaced tenant was paying before being displaced or evicted or an amount equivalent to three months' rent that is affordable to a two-person household at sixty per cent of the applicable area median income;

            (iii)  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 offer upon completion of the proposed housing project; and

             (iv)  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 offer 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 offer;

              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; Housing Projects; Tenants; Right of First offer; Replacement Housing Payments

Description:

Requires developers developing a 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 offer of a comparable unit in the housing project and providing replacement housing payments; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; and establishing procedures to track and maintain communication with those tenants.  Establishes consequences for a developer's noncompliance.  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 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 all housing projects that receive any development assistance from the Hawaii housing finance and development corporation, including funding, incentives, and waivers, that result in the displacement or eviction of tenants in existing rental properties to:

          (A)  Grant certain tenants displaced or evicted by the proposed housing project the right of first offer of a comparable unit in the proposed housing project;

          (B)  Provide a replacement housing payment to the displaced tenants; provided that the payment will be the lesser of three months' rent or an amount equivalent to three months' rent that is affordable to a two-person household at sixty per cent of the applicable area median income;

          (C)  Provide information to the tenants, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; and

          (D)  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 the applicable area median income, the developer of the proposed housing project shall:

              (i)  Offer the displaced or evicted tenants the right of first offer for a comparable unit available in the proposed housing project;

             (ii)  Provide a replacement housing payment to the displaced tenants; provided that the payment will be the lesser of three months' rent or an amount equivalent to three months' rent that is affordable to a two-person household at sixty per cent of the applicable area median income;

            (iii)  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 offer upon completion of the proposed housing project; and

             (iv)  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 offer 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 offer;

              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 upon its approval.

Report Title:

HHFDC; Housing Projects; Tenants; Right of First offer; Replacement Housing Payments

Description:

Requires developers developing a 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 offer of a comparable unit in the housing project and providing replacement housing payments; providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; and establishing procedures to track and maintain communication with those tenants.  Establishes consequences for a developer's noncompliance.

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.  1199-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1777

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1777, H.D. 1, 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 developing a 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 offer of a comparable unit in the housing project and providing replacement housing payments;

          (B)  Providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first offer; 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 Office of Hawaiian Affairs; Hawaii Housing Finance and Development Corporation; Shimanchu Mamuyaa; Kokua Kalihi Valley Comprehensive Family Services; Hawaiʻi Workers Center; Waipahu Safe Haven Immigrant/Migrant Resource Center; American Civil Liberties Union of Hawaiʻi; Parents and Children Together; Hawaiʻi YIMBY; Hawaiʻi Appleseed Center for Law & Economic Justice; Medical-Legal Partnership for Children in Hawaiʻi; Hawaii Organization for Progress and Equity; AARP Hawaiʻi; and seven individuals.  Your Committee received comments on this measure from NAIOP Hawaii and Avalon Development Company.  

     Your Committee finds that the State has an urgent need to increase housing production.  However, policy strategies that support development must be paired with focused consumer protections to ensure redevelopment projects do not unintentionally displace the very residents they intend to serve.  Without clear tenant protections and right of first offer or return options, redevelopment can result in a net loss of truly accessible housing for the most vulnerable participants in Hawaii's housing market.  This measure establishes clearly defined safeguards that balance the need for increased housing production with fairness to tenants who may otherwise bear the burden of redevelopment.

     Your Committee has amended this measure by:

     (1)  Clarifying that the right of first offer exists and is to be made before displacement or eviction, or as soon as practicable thereafter;

     (2)  Specifying that this measure does not require a proposed project to include comparable units to those that previously existed;

     (3)  Inserting a definition of "comparable unit"; and

     (4)  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. 1777, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1777, H.D. 2.

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

STAND. COM. REP. NO.  398-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1777

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1777, H.D. 1, 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 housing projects receiving any development assistance from the Hawaii Housing Finance and Development Corporation to provide specified protections to tenants displaced or evicted by redevelopment; 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; Office of Hawaiian Affairs; Hawaiʻi Children's Action Network Speaks!; Medical-Legal Partnership for Children in Hawaiʻi; AARP Hawaiʻi; Hawaii Appleseed Center for Law & Economic Justice; Adult Friends for Youth; Hawaiʻi YIMBY; Parents And Children Together; and ten individuals.  Your Committee received comments on this measure from NAIOP Hawaii.

     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 in which existing tenants reside.

     Your Committee respectfully requests your Committee on Judiciary & Hawaiian Affairs, should it deliberate on this measure, to consider an appropriate definition of "comparable unit".

     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. 1777, H.D. 1, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

STAND. COM. REP. NO.  115-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1777

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 1777 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 housing projects receiving any development assistance from the Hawaii Housing Finance and Development Corporation to provide specified protections to tenants displaced or evicted by redevelopment; 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; Parents and Children Together; Maui Housing Hui; Hawaiʻi Appleseed Center for Law & Economic Justice; Hawaiʻi Workers Center; Adult Friends for Youth; Medical-Legal Partnership for Children in Hawaiʻi; Hawaiʻi YIMBY; LIMBY Hawaii; AARP Hawaii; and three individuals.  Your Committee received comments on this measure from NAIOP Hawaii.

     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)  Clarifying that the three months' rent provided as a replacement housing payment is the amount of rent the displaced tenant was paying before being displaced or evicted;

     (2)  Deleting language that implied the developer's obligation to extend a right of first offer was optional;

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

     (4)  Making a technical, nonsubstantive amendment for the purpose 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. 1777, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1777, 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,