SB 1133: Counties; Ordinance; Rental Unit Price Control; Income Tax Credit; Residential Landlords; Long-Term Lease
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-28
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Authorizes certain counties to establish a rental unit price ceiling ordinance that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires certain counties to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a nonrefundable Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Allows the tax credit to be carried forward for up to three taxable years. Applies to taxable years beginning after 12/31/2025. Effective 7/1/2050. (SD2)
Authorizes certain counties to establish by ordinances a rental unit price control that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires certain counties to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Tax credit applies to taxable years beginning after 12/31/2025. Effective 7/1/2050. (SD1)
Authorizes each county to establish by ordinances a rental unit price control that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires each county to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Tax credit applies to taxable years beginning after 12/31/2024.
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THE SENATE |
S.B. NO. |
1133 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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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:
The legislature further finds that rent stabilization policies have been successfully implemented in other jurisdictions, such as California and Oregon, to curb excessive rental increases while maintaining incentives for property owners. Studies show these measures can mitigate displacement, preserve community stability, and promote equitable housing opportunities.
The legislature additionally finds that many tenants were displaced by predatory rent increases following the 2023 Maui wildfires. Regulating rental price increases based on transparent, data-driven metrics, such as the Consumer Price Index for rent of primary residences, can help these communities address the growing housing shortage in a way that balances tenant protections with the rights of landlords, fostering a fair and sustainable rental housing market. Furthermore, encouraging landlords to offer stable, affordable housing options through long-term leases will help ensure security for tenants and financial predictability for landlords. The legislature believes that by combining these measures, the State can create a housing environment that supports economic stability, community well-being, and a thriving rental market for communities impacted by disasters.
Accordingly, the purpose of this Act is to:
(1) Authorize a county in which over one per cent of housing stock was destroyed or rendered uninhabitable by a disaster to establish by ordinance a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index; and
(2) Establish a long-term residential lease tax credit for taxpayers who own and lease a dwelling unit to a person as the person's principal residence in a county that has adopted such an ordinance, pursuant to a lease agreement of a term of one year or longer.
SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- County rental unit price ceiling; computation. (a) Beginning , a county in which over one per cent of housing stock was destroyed or rendered uninhabitable by a disaster may establish by ordinance a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county pursuant to subsection (b); provided that the increase in the rental price for each dwelling unit shall be calculated based on the lowest rental price charged for that dwelling unit at any time during the twelve-month period immediately before the effective date of the increase.
(b) Beginning August 1, 2025, and every year thereafter, a county that has adopted an ordinance pursuant to subsection (a) shall calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period, computed based on changes in the applicable Consumer Price Index for rent of primary residence, or a successor index, for the twelve-month period immediately before July 1 of that year as reported by the United States Bureau of Labor Statistics; provided that, if in any year the change in the Consumer Price Index for rent of primary residence, or a successor index, for the twelve-months period immediately before July 1 of that year is at or lower than zero per cent, the maximum rate of rental price increase for the calendar year shall be zero.
(c) For the purposes of this section:
"Dwelling unit" and "landlord" have the same meaning as defined in section 521-8.
"Rental price" means the amount paid in cash for the occupancy of a dwelling unit that is used by a person as the principal residence in this State. "Rental price" includes charges for utilities, parking stalls, storage of goods, yard services, furniture, and furnishings; provided that the amount or rates to be charged are under the control of the landlord."
SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Long-term residential lease tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a long-term residential lease tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit shall be equal to $ per dwelling unit to which the taxpayer has title and leases to a person as the person's principal residence; provided that:
(1) The lease shall be pursuant to a lease agreement of a term of one year or longer;
(2) The dwelling unit is located in a county that has adopted a rental unit price ceiling ordinance pursuant to section 46- ; and
(3) The lessee shall not be an immediate family member of any taxpayer that owns the dwelling unit;
provided further that if a dwelling unit is owned by multiple taxpayers, the tax credit may be claimed by only one of the taxpayers in a taxable year.
In the case of a partnership, S corporation, estate, trust, or other pass-through entity, the tax credit allowable is for every dwelling unit to which the entity has title and leases to a person pursuant to this subsection. The tax credit shall be determined at the entity level. Distribution and share of the tax credit shall be determined pursuant to administrative rule.
(c) If the tax credit claimed by the taxpayer under this section exceeds the taxpayer's income tax liability, the excess credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted; provided that no credit shall be carried forward after the third taxable year in which the credit is originally claimed. All claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of any claim to the credit.
(d) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
(e) For the purposes of this section, "dwelling unit" has the same meaning as defined in section 521-8."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050; provided that section 3 shall apply to taxable years beginning after December 31, 2025.
Report Title:
Counties; Ordinance; Rental Unit Price Control; Income Tax Credit; Residential Landlords; Long-Term Lease
Description:
Authorizes certain counties to establish a rental unit price ceiling ordinance that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires certain counties to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a nonrefundable Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Allows the tax credit to be carried forward for up to three taxable years. Applies to taxable years beginning after 12/31/2025. Effective 7/1/2050. (SD2)
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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THE SENATE |
S.B. NO. |
1133 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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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:
The legislature further finds that rent stabilization policies have been successfully implemented in other jurisdictions, such as California and Oregon, to curb excessive rental increases while maintaining incentives for property owners. Studies show these measures can mitigate displacement, preserve community stability, and promote equitable housing opportunities.
The legislature additionally finds that many tenants were displaced by predatory rent increases following the 2023 Maui Wildfires. Regulating rental price increases based on transparent, data-driven metrics, such as the Consumer Price Index for rent of primary residences, can help these communities address the growing housing shortage in a way that balances tenant protections with the rights of landlords, fostering a fair and sustainable rental housing market. Furthermore, encouraging landlords to offer stable, affordable housing options through long-term leases will help ensure security for tenants and financial predictability for landlords. The legislature believes that by combining these measures, the State can create a housing environment that supports economic stability, community well-being, and a thriving rental market for communities impacted by disasters.
Accordingly, the purpose of this Act is to:
(1) Authorize a county in which over one per cent of housing stock was destroyed or rendered uninhabitable by a disaster to establish by ordinance a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index; and
(2) Establish a long-term residential lease tax credit for taxpayers who own and lease a dwelling unit to a person as the person's principal residence in such a county pursuant to a lease agreement of a term of one year or longer.
SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- County rental unit price ceiling; computation. (a) Beginning , a county in which over one per cent of housing stock was destroyed or rendered uninhabitable by a disaster may establish by ordinance a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county pursuant to subsection (b); provided that the increase in the rental price for each dwelling unit shall be calculated based on the lowest rental price charged for that dwelling unit at any time during the twelve-month period immediately before the effective date of the increase.
(b) Beginning August 1, 2025, and every year thereafter, the county shall calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period, computed based on changes in the applicable Consumer Price Index for rent of primary residence, or a successor index, for the twelve-month period immediately before July 1 of that year as reported by the United States Bureau of Labor Statistics; provided that if in any year the change in the Consumer Price Index for rent of primary residence, or a successor index, for the twelve-months period immediately before July 1 of that year is at or lower than zero per cent, the maximum rate of rental price increase for the calendar year shall be zero.
(c) For the purposes of this section:
"Dwelling unit" and "landlord" have the same meaning as defined in section 521-8.
"Rental price" means the amount paid in cash for the occupancy of a dwelling unit that is used by a person as the principal residence in this State. "Rental price" includes charges for utilities, parking stalls, storage of goods, yard services, furniture, and furnishings; provided that the amount or rates to be charged are under the control of the landlord."
SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Long-term residential lease tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a long-term residential lease tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit shall be equal to $ per dwelling unit to which the taxpayer has title and leases to a person as the person's principal residence in a county where over one per cent of housing stock was destroyed or rendered uninhabitable by a disaster; provided that:
(1) The lease shall be pursuant to a lease agreement of a term of one year or longer;
(2) The dwelling unit is located in a county that has adopted a rental unit price ceiling ordinance pursuant to section 46- ; and
(3) The lessee shall not be an immediate family member of any owner of the dwelling unit;
provided further that if a dwelling unit is owned by multiple taxpayers, the tax credit may be claimed by only one of the taxpayers in a taxable year.
In the case of a partnership, S corporation, estate, trust, or other pass-through entity, the tax credit allowable is for every dwelling unit to which the entity has title and leases to a person pursuant to this subsection. The tax credit shall be determined at the entity level. Distribution and share of the tax credit shall be determined pursuant to administrative rule.
(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall not be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer. The tax credit claimed by the taxpayer under this section may be claimed by the taxpayer for not more than three taxable years. All claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of any claim to the credit.
(d) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
(e) For the purposes of this section, "dwelling unit" has the same meaning as defined in section 521-8."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050; provided that section 3 shall apply to taxable years beginning after December 31, 2025.
Report Title:
Counties; Ordinance; Rental Unit Price Control; Income Tax Credit; Residential Landlords; Long-Term Lease
Description:
Authorizes certain counties to establish by ordinances a rental unit price control that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires certain counties to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Tax credit applies to taxable years beginning after 12/31/2025. 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.
|
THE SENATE |
S.B. NO. |
1133 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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|
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|
|
|
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||
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|
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A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that rent stabilization policies have been successfully implemented in other jurisdictions, such as California and Oregon, to curb excessive rental increases while maintaining incentives for property owners. Studies show these measures can mitigate displacement, preserve community stability, and promote equitable housing opportunities.
The legislature additionally finds that by empowering counties to regulate rental price increases based on transparent, data-driven metrics, such as the Consumer Price Index for rent of primary residences, the growing housing crisis can be addressed in a way that balances tenant protections with the rights of landlords, fostering a fair and sustainable rental housing market. Furthermore, encouraging landlords to offer stable, affordable housing options through long-term leases will help ensure security for tenants and financial predictability for landlords. The legislature believes that by combining these measures, the State can create a housing environment that supports economic stability, community well-being, and a thriving rental market.
Accordingly, the purpose of this Act is to:
(1) Authorize each county to establish by ordinances a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index; and
(2) Establish a long-term residential lease tax credit for taxpayers who own and lease a dwelling unit to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer.
SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- County rental unit price ceiling; computation. (a) Beginning , each county may establish by ordinance a rental unit price ceiling that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county pursuant to subsection (b); provided that the increase in the rental price for each dwelling unit shall be calculated based on the lowest rental price charged for that dwelling unit at any time during the twelve-month period immediately before the effective date of the increase.
(b) Beginning August 1, 2025, and every year thereafter, each county shall calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period, computed based on changes in the applicable Consumer Price Index for rent of primary residence, or a successor index, for the twelve-month period immediately before July 1 of that year as reported by the United States Bureau of Labor Statistics; provided that if in any year the change in the Consumer Price Index for rent of primary residence, or a successor index, for the twelve-months period immediately before July 1 of that year is at or lower than zero per cent, the maximum rate of rental price increase for the calendar year shall be zero.
(c) For the purposes of this section:
"Dwelling unit" and "landlord" have the same meaning as defined in section 521-8.
"Rental price" means the amount paid in cash for the occupancy of a dwelling unit that is used by a person as the principal residence in this State. "Rental price" includes charges for utilities, parking stalls, storage of goods, yard services, furniture, and furnishings; provided that the amount or rates to be charged are under the control of the landlord."
SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Long-term residential lease tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a long-term residential lease tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit shall be equal to $ per dwelling unit to which the taxpayer has title and leases to a person as the person's principal residence in the State; provided that:
(1) The lease shall be pursuant to a lease agreement of a term of one year or longer; and
(2) The dwelling unit is located in a county that has adopted a rental unit price ceiling ordinance pursuant to section 46- .
In the case of a partnership, S corporation, estate, trust, or other pass-through entity, the tax credit allowable is for every dwelling unit to which the entity has title and leases to a person pursuant to this subsection. The tax credit shall be determined at the entity level. Distribution and share of the tax credit shall be determined pursuant to administrative rule.
(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(d) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
(e) For the purposes of this section, "dwelling unit" has the same meaning as defined in section 521-8."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall apply to taxable years beginning after December 31, 2024.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Counties; Ordinance; Rental Unit Price Control; Income Tax Credit; Residential Landlords; Long-Term Lease
Description:
Authorizes each county to establish by ordinances a rental unit price control that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index. Beginning 8/1/2025, requires each county to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period. Establishes a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer. Tax credit applies to taxable years beginning after 12/31/2024.
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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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 6, 2025 | Referred to HSG/ECD, CPC, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 263) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from CPN/WAM (Stand. Com. Rep. No. 894) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Aquino, Fevella. |
| Feb 26, 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. |
| Feb 20, 2025 | The committee(s) on CPN/WAM will hold a public decision making on 02-26-25 10:00AM; Conference Room 211 & Videoconference. |
| Feb 14, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPN/WAM. |
| Feb 14, 2025 | Reported from HOU (Stand. Com. Rep. No. 562) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN/WAM. |
| Feb 5, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Aquino, Fevella. |
| Feb 3, 2025 | The committee(s) on HOU has scheduled a public hearing on 02-06-25 1:05PM; Conference Room 225 & Videoconference. |
| Jan 31, 2025 | Re-Referred to HOU, CPN/WAM. |
| Jan 23, 2025 | Referred to HOU/EIG, CPN/WAM. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 26, 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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| Feb 5, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate 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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|---|---|---|
| Grassroot Institute of Hawaii | ** Against | |
| Hawaiʻi Association of REALTORS | ** Against | |
| Lāhainā Strong | ** Support | |
| NAIOP Hawaii | ** Against | |
| University of Hawaiʻi at Mānoa (MSW student) | *** Support | Feb 26, 2025 |
STAND. COM. REP. NO. 894
Honolulu, Hawaii
RE: S.B. No. 1133
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Commerce and Consumer Protection and Ways and Means, to which was referred S.B. No. 1133, 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:
(1) Authorize counties in which over one percent of housing stock was destroyed or rendered uninhabitable by a disaster to establish a rental unit price ceiling ordinance to prohibit landlords from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index;
(2) Beginning August 1, 2025, require counties that adopt such an ordinance to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period; and
(3) For taxable years beginning after December 31, 2025, establish a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a fixed-term lease of at least one year.
Your Committees received testimony in support of this measure from Lāhainā Strong and twenty-three individuals.
Your Committees received testimony in opposition to this measure from the Hawaiʻi Association of REALTORS, NAIOP Hawaii, and eleven individuals.
Your Committees received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, Mortgage Bankers Association of Hawaii, and Grassroot Institute of Hawaii.
Your Committees find that long-term residential leases can provide housing security and stability for renters in the State. In the aftermath of the devastating 2023 Maui wildfires, many landlords engaged in predatory practices by increasing rents and displacing many long-term tenants, which only further exacerbated the ongoing housing shortage. This measure aims to prevent such predatory practices from further displacing renters.
Your Committees have amended this measure by:
(1) Removing duplicative language and specifying that the income tax credit shall be available for owners of dwelling units located in counties that have adopted a rental unit price ceiling ordinance;
(2) Clarifying that the tax credit shall be nonrefundable and that any excess of credit over liability may be carried forward for three years;
(3) Amending section 1 to reflect its amended purpose; and
(4) 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 Commerce and Consumer Protection and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1133, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1133, S.D. 2.
Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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________________________________ JARRETT KEOHOKALOLE, Chair |
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STAND. COM. REP. NO. 562
Honolulu, Hawaii
RE: S.B. No. 1133
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Housing, to which was referred S.B. No. 1133 entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Authorize each county to establish by ordinance a rental unit price control that prohibits a landlord from increasing the rental price of a dwelling unit at a rate that exceeds the percentage calculated and published by the county based on changes in the applicable Consumer Price Index;
(2) Beginning August 1, 2025, require each county to annually calculate and publish the maximum rate at which a landlord may increase the rental price of a dwelling unit during the immediately succeeding twelve-month period;
(3) Establish a Long-Term Residential Lease Tax Credit for taxpayers who own and lease a dwelling unit located in a county that has adopted a rental unit price ceiling ordinance to a person as the person's principal residence in the State pursuant to a lease agreement of a term of one year or longer; and
(4) Apply the tax credit to taxable years beginning after December 31, 2024.
Your Committee received testimony in support of this measure from one individual.
Your Committee received testimony in opposition to this measure from the Hawaiʻi Association of REALTORS, NAIOP Hawaii, and Grassroot Institute of Hawaii.
Your Committee received comments on this measure from the Department of Taxation.
Your Committee finds that long-term residential leases provide stable housing to individuals and families. Therefore, residential homeowners should be incentivized to rent their properties through long-term leases to help alleviate housing insecurity.
Your Committee notes the numerous challenges faced by Maui residents following the devastating 2023 wildfires and the drastic rent increases that followed as a result of federal assistance being made available to fire victims. Many landlords engaged in predatory practices which exacerbated the ongoing housing shortage and displaced many long-term tenants. This measure seeks to prevent such practices in response to a disaster.
Your Committee has amended this measure by:
(1) Inserting language clarifying that any county in which more than one percent of the housing stock has been destroyed or rendered uninhabitable by a disaster may adopt the rent control ordinance authorized by this measure;
(2) Inserting language prohibiting a lessee from being an immediate family member of any owner of the dwelling unit;
(3) Clarifying that, if a dwelling unit is owned by multiple taxpayers, the tax credit may be claimed by only one of the taxpayers in a taxable year;
(4) Limiting the Long-Term Residential Lease Tax Credit to three years of eligibility;
(5) Specifying that the Long-term Residential Lease Tax Credit is nonrefundable;
(6) Requiring all claims for the tax credit, including any amended claims, to be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed;
(7) Clarifying that noncompliance with the filing of a claim for the Long-Term Residential Lease Tax Credit shall constitute a waiver of any claim to the credit;
(8) Making it apply to taxable years beginning after December 31, 2025;
(9) Amending section 1 to reflect its amended purpose;
(10) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(11) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
Your Committee notes the Department of Taxation's testimony regarding the challenges in administering the proposed tax credit established by this measure. The Department of Taxation would need to adopt new rules to implement reporting requirements regarding property ownership and lease details for taxpayers claiming the credit. Further, ensuring that a dwelling unit is leased to a person as their primary residence may require some involvement by the lessee to attest that they have no other primary residence, as lessors are not situated to confirm this information.
Your Committee additionally notes testimony raising concerns that rent control reduces the quantity and quality of available housing for rent. As rent stabilization measures in other jurisdictions have often led to unintended consequences such as discouraging new housing development, your Committee respectfully requests these issues be examined further as this measure moves through the legislative process.
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 S.B. No. 1133, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1133, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Housing,
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________________________________ STANLEY CHANG, Chair |
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Date
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Testimony PDF
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| Feb 26, 2025 | SB1133_SD1_TESTIMONY_WAM-CPN_02-26-25_.PDF |
| Feb 6, 2025 | SB1133_TESTIMONY_HOU_02-06-25_.PDF |
Discussed in Hearing
2MIN
Senate Standing Committee on Housing
2MIN
Senate Standing Committee on Labor and Technology
Bill Author
Bill Co-Author(s):