SB 942: Landlord; Rent; Application; Proof of Income; Paychecks; Prohibition

A BILL FOR AN ACT

RELATING TO RENTAL APPLICATIONS.

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

     SECTION 1.  The legislature finds that landlords often require prospective tenants to provide recent paystubs to prove sufficient income to pay rent.  However, many individuals, including retirees, the self-employed, and those with alternative forms of income, may not have traditional paystubs but nevertheless possess sufficient financial resources to meet rental obligations.  By allowing tenants to demonstrate financial stability through unearned income or liquid assets, a fairer and more inclusive housing market can be created.

     The legislature further finds that retirees often rely on pensions, social security, investments, or savings to cover their living expenses.  These income streams are typically stable and reliable, even though they are not tied to traditional employment.  Denying retirees the opportunity to rent solely because they lack paystubs disregards their financial viability and unnecessarily limits their housing options.  This Act would ensure that retirees, who have contributed to society and saved responsibly, are not unfairly excluded from the rental market.

     The legislature also finds that prohibiting the requirement to produce paystubs would not only benefit retirees but also others who depend on non-traditional income, such as individuals with significant savings, trust funds, or investment portfolios.  These individuals are equally capable of meeting rental obligations but often face barriers when landlords prioritize employment-based income verification.  Authorizing a prospective tenant to submit evidence of unearned income or liquid assets aligns with the broader goal of promoting housing accessibility while still allowing a landlord to assess a tenant's ability to pay rent.

     The legislature further finds that this Act addresses equity concerns in Hawaii's rental market where housing affordability and availability are pressing issues.  This Act would prevent discrimination against individuals whose financial stability does not fit into outdated norms and create a more inclusive housing ecosystem.  By recognizing the legitimacy of alternative income sources, access to housing can be ensured for all financially capable individuals, regardless of their employment status.

     Accordingly, the purpose of this Act is to modernize the rental application process and recognize the diversity of income sources in today's society by prohibiting landlords from rejecting prospective tenants solely because the tenants cannot provide paystubs as proof of income, under certain circumstances.

     SECTION 2.  Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§521-     Rental applications; proof of income; paychecks; prohibition.  (a)  In considering an application to rent a dwelling unit, no landlord shall reject an applicant solely due to the applicant's inability to submit evidence of a recent paycheck; provided that the landlord may require the applicant to submit evidence, dated within ninety days of the date of the application for rent, of unearned income or liquid assets sufficient to satisfy the rent for the term of the prospective rental period.

     (b)  In the event the evidence provided pursuant to subsection (a) is not issued by a financial institution, the federal government, or a state, county, or municipal government:

     (1)  The landlord may request the applicant's authorization to verify the documentation; or

     (2)  The evidence provided shall be verifiable either directly from the source of the information or by cross-referencing with another official document, such as a tax return."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Landlord; Rent; Application; Proof of Income; Paychecks; Prohibition

Description:

Prohibits a landlord from rejecting a rental application solely due to an applicant's inability to provide a recent paycheck.  Authorizes the landlord to require the applicant to provide evidence dated within ninety days of the application demonstrating the applicant has sufficient unearned income or liquid assets to cover the rental costs.  Effective 7/1/2050.  (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 RENTAL APPLICATIONS.

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

     SECTION 1.  The legislature finds that landlords often require prospective tenants to provide recent paystubs to prove sufficient income to pay rent.  However, many individuals, including retirees, the self-employed, and those with alternative forms of income, may not have traditional paystubs but nevertheless possess sufficient financial resources to meet rental obligations.  By allowing tenants to demonstrate financial stability through unearned income or liquid assets, a fairer and more inclusive housing market can be created.

     The legislature further finds that retirees often rely on pensions, social security, investments, or savings to cover their living expenses.  These income streams are typically stable and reliable, even though they are not tied to traditional employment.  Denying retirees the opportunity to rent solely because they lack paystubs disregards their financial viability and unnecessarily limits their housing options.  This Act would ensure that retirees, who have contributed to society and saved responsibly, are not unfairly excluded from the rental market.

     The legislature also finds that prohibiting the requirement to produce paystubs would not only benefit retirees but also others who depend on non-traditional income, such as individuals with significant savings, trust funds, or investment portfolios.  These individuals are equally capable of meeting rental obligations but often face barriers when landlords prioritize employment-based income verification.  Authorizing a prospective tenant to submit evidence of unearned income or liquid assets aligns with the broader goal of promoting housing accessibility while still allowing a landlord to assess a tenant's ability to pay rent.

     The legislature further finds that this Act addresses equity concerns in the rental market, particularly in Hawaii, where housing affordability and availability are pressing issues.  This Act would prevent discrimination against individuals whose financial stability does not fit into outdated norms and create a more inclusive housing ecosystem.  By recognizing the legitimacy of alternative income sources, access to housing can be ensured for all financially capable individuals, regardless of their employment status.

     Accordingly, the purpose of this Act is to modernize the rental application process and recognize the diversity of income sources in today's society by prohibiting landlords from rejecting prospective tenants solely because the tenants cannot provide paystubs as proof of income; provided that a landlord may require the prospective tenant to provide evidence, dated within thirty days of the application, of unearned income or liquid assets sufficient to cover rental costs.

     SECTION 2.  Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§521-    Rental applications; proof of income; paychecks; prohibition.  (a)  In considering an application to rent a dwelling unit, no landlord shall reject an applicant solely due to the applicant's inability to submit evidence of a recent paycheck; provided that the landlord may require the applicant to submit to the landlord evidence, dated within thirty days of the date of the application for rent, of unearned income or liquid assets sufficient to satisfy the rent for the term of the prospective rental period.

     (b)  In the event the evidence provided pursuant to subsection (a) is not issued by a financial institution, the federal government, or a state, county, or municipal government:

     (1)  The landlord may request the applicant's authorization to verify the documentation; or

     (2)  The evidence provided shall be verifiable either directly from the source of the information or by cross-referencing with another official document, such as a tax return."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Landlord; Rent; Application; Proof of Income; Paychecks; Prohibition

Description:

Prohibits a landlord from rejecting a rental application solely due to an applicant's inability to provide a recent paycheck; provided that the landlord may require the applicant to provide evidence dated within thirty days of the application demonstrating the applicant has sufficient unearned income or liquid assets to cover the rental costs.  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 Rental Applications.

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

     SECTION 1.  The legislature finds that landlords often require prospective tenants to provide recent paystubs to prove sufficient income to pay rent.  However, many individuals, including retirees, the self-employed, and those with alternative forms of income, may not have traditional paystubs but nevertheless possess sufficient financial resources to meet rental obligations.  By allowing tenants to demonstrate financial stability through unearned income or liquid assets, a fairer and more inclusive housing market can be created.

     The legislature further finds that retirees often rely on pensions, social security, investments, or savings to cover their living expenses.  These income streams are typically stable and reliable, even though they are not tied to traditional employment.  Denying retirees the opportunity to rent solely because they lack paystubs disregards their financial viability and unnecessarily limits their housing options.  This Act would ensure that retirees, who have contributed to society and saved responsibly, are not unfairly excluded from the rental market.

     The legislature also finds that prohibiting the requirement to produce paystubs would not only benefit retirees but also others who depend on non-traditional income, such as individuals with significant savings, trust funds, or investment portfolios.  These individuals are equally capable of meeting rental obligations but often face barriers when landlords prioritize employment-based income verification.  Permitting prospective tenants to submit evidence of unearned income or liquid assets aligns with the broader goal of promoting housing accessibility while still allowing landlords to assess a tenant's ability to pay rent.

     The legislature further finds that this Act addresses equity concerns in the rental market, particularly in Hawaii, where housing affordability and availability are pressing issues.  This Act would prevent discrimination against individuals whose financial stability does not fit into outdated norms and create a more inclusive housing ecosystem.  By recognizing the legitimacy of alternative income sources, access to housing can be ensured for all financially capable individuals, regardless of their employment status.

     Accordingly, the purpose of this Act is to modernize the rental application process and recognize the diversity of income sources in today's society by prohibiting landlords from rejecting prospective tenants solely because they cannot provide paystubs as proof of income; provided that the prospective tenant can provide evidence of liquid assets or unearned income sufficient to cover rental costs.

     SECTION 2.  Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§521-    Rental applications; proof of income; paychecks; prohibition.  In considering an application to rent a dwelling unit, no landlord shall reject an applicant solely due to the applicant's inability to submit evidence of a recent paycheck; provided that the landlord may require the applicant to submit to the landlord evidence of unearned income or liquid assets sufficient to satisfy the rent for the term of the prospective rental period."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Landlord; Rent; Application; Proof of Income; Paychecks

Description:

Prohibits a landlord from rejecting a rental application solely due to an applicant's inability to provide a recent paycheck; provided that the applicant can provide evidence of sufficient liquid assets or unearned income to cover the rental costs.

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.  1355

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 942

      S.D. 1

      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 S.B. No. 942, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENTAL APPLICATIONS,"

begs leave to report as follows:

     The purpose of this measure is to prohibit a landlord from rejecting a rental application solely due to an applicant's inability to provide a recent paycheck under certain circumstances.

     Your Committee received testimony in support of this measure from AARP Hawaiʻi and two individuals.  Your Committee received comments on this measure from the Hawaii Association of REALTORS.

     Your Committee finds that retirees, the self-employed, and those with alternative income sources such as pensions, savings, or investments may have difficulty providing a paystub to prove sufficient income to pay rent.  This measure ensures landlords can still assess a tenant's financial capability by allowing verification of unearned income or liquid assets, striking a balance between protecting tenants from unnecessary discrimination and safeguarding landlords' ability to evaluate financial stability.

     Your Committee has amended this measure by:

     (1)  Specifying that a landlord may require evidence dated within ninety days, rather than thirty days, of the date of the application of rent; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests that your Committee on Consumer Protection & Commerce, should it deliberate on this matter, engage with stakeholders to assess whether a ninety-day requirement provides a sufficient and equitable timeframe for the landlord and applicant, ensuring that the interests of both parties are fairly represented.

     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. 942, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 942, S.D. 1, 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,

STAND. COM. REP. NO. 807

Honolulu, Hawaii

RE:    S.B. No. 942

       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 Commerce and Consumer Protection, to which was referred S.B. No. 942 entitled:

"A BILL FOR AN ACT RELATING TO RENTAL APPLICATIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to prohibit landlords from rejecting a rental application solely based on an applicant's inability to provide a recent paycheck; provided that the applicant can provide evidence of sufficient liquid assets or unearned income to cover the rental costs.

     Your Committee received testimony in support of this measure from four individuals.

     Your Committee received comments on this measure from the Hawaiʻi Association of REALTORS.

     Your Committee finds that rental applicants are often required to provide copies of their most recent paystubs to demonstrate to landlords that the applicants have sufficient income to pay rent.  Many individuals, however, including retirees, the self-employed, and those with alternative forms of income, may not have traditional paystubs, but nevertheless have sufficient financial resources to meet their rental obligations.  Additionally, retirees often rely on other sources of income, such as a pension, social security retirement, investments, or savings to cover their living expenses, all of which are typically stable and reliable, though not tied to traditional employment.  Individuals in these situations are denied more often than others solely because they lack traditional employment paystubs.  This requirement unnecessarily limits their rental housing options without regard to their actual financial ability to pay.  This measure aims to address these equity concerns in the housing market, where affordability and availability remain pressing issues.

Your Committee also notes, however, that while paystubs allow for direct employment verification through the employer, the same level of verification may not be feasible for other forms of income, such as bank statements, social security benefits, or letters from third parties who are not prospective employers.  Amendments to this measure are therefore necessary to ensure accuracy and provide clarity in verifying alternative sources of income.

     Accordingly, your Committee has amended this measure by:

     (1)  Clarifying that a landlord may require a prospective tenant to submit evidence, dated within thirty days of the rental application, showing proof of unearned income or liquid assets sufficient to satisfy the rent for the term of the prospective rental period;

     (2)  Clarifying that, if the evidence submitted is not from a bank, the federal government, or a state, county, or municipal government, a landlord may request an applicant's authorization to verify the documentation or the evidence provided shall be verifiable either directly from the source of the information or by cross‑referencing with another official document, such as a tax return;

     (3)  Amending section 1 to reflect its amended purpose;

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 942, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 942, S.D. 1, and be placed on the calendar for Third Reading.

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