RELATING TO HOUSING.

HB1325

HOUSE OF REPRESENTATIVES

H.B. NO.

1325

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to housing
.

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

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SECTION 1.
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The legislature finds that the State is
facing an affordable housing crisis.
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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.

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The legislature further finds that
displacement, whether due to redevelopment, rising rents, or other factors, has
profound impacts on individuals, families, and communities.
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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.
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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.

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The legislature additionally finds
that residential instability caused by displacement is linked to numerous
negative health and social outcomes, particularly for children and youth.
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Studies show that frequent moves are
correlated with decreased academic performance, increased drug and alcohol use,
behavioral issues, and diminished health outcome.
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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.
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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.

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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.

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Accordingly, the purpose of this Act
is to require developers developing affordable housing projects under the
Hawaii housing development and finance corporation completed with state or
federal funds that result in the eviction or displacement of tenants in existing
rental properties to:

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(1)
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Grant certain persons displaced or
evicted by the proposed affordable housing project the right of first refusal
of a comparable unit in the housing project at an affordable rate;

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(2)
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Establish
a fund to provide relocation benefits to displaced or evicted tenants;

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(3)
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Provide information, either directly or
through a contracted service, on how to obtain assistance and exercise the
right of first refusal; and

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(4)
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Establish procedures to
maintain
communication with displaced and evicted tenants.

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SECTION
2
.
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Section
201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

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"
(a)
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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:

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(1)
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The housing
projects meet the following conditions:

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(A)
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The corporation
finds the housing project is consistent with the purpose and intent of this
chapter, and meets minimum requirements of health and safety;

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(B)
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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;

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(C)
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The legislative
body of the county in which the housing project is to be situated has approved
the project with or without modifications:

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(i)
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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.
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If on the forty-sixth day a project is not
disapproved, it shall be deemed approved by the legislative body;

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(ii)
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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

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(iii)
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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.
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The final plans and specifications for the project shall constitute the
zoning, building, construction, and subdivision standards for that
project.
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For purposes of sections 501-85
and 502-17, the executive director of the corporation or the responsible county
official may certify maps and plans of lands connected with the project as
having complied with applicable laws and ordinances relating to consolidation
and subdivision of lands, and the maps and plans shall be accepted for
registration or recordation by the land court and registrar; [
and
]

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(D)
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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.
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If, on the forty-sixth day, the petition is not disapproved, it shall be
deemed approved by the commission; [
or
]
and

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(E)
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If
the proposed housing project will result in the displacement or eviction of
tenant households living in units whose value is affordable to families earning
one hundred forty per cent or below of the applicable area median income, the
developer of the proposed housing project shall:

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(i)
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Offer
the displaced or evicted tenants the right of first refusal for a comparable
unit available in the proposed housing project at a rate no greater than the
amount the tenant was paying in the existing development, subject to inflation;

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(ii)
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Established
a fund to provide relocation benefits to the displaced or evicted tenants at an
amount equal to no less than three months' rent; provided that relocation
benefits may be provided either as a rent waiver or as a direct cash payment;

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(iii)
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Provided,
either directly or through a contracted service, information to the displaced
or evicted tenants on how to obtain relocation assistance, and how to exercise
their right of first refusal upon completion of the proposed housing project;
and

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(iv)
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Established
procedures to maintain communication with the displaced or evicted tenants throughout
the construction of the proposed housing project; or

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(2)
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The
housing projects:

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(A)
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Meet
the conditions of paragraph (1);

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(B)
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Do not impose
stricter income requirements than those adopted or established by the State;
and

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(C)
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For the lifetime
of the project, require one hundred per cent of the units in the project be
exclusively for qualified residents."

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SECTION
3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 4.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

HHFDC; Affordable
Housing Projects; Tenants; Right of First Refusal; Relocation Assistance

Description:

Requires
developers developing an affordable housing project under HHFDC to assist
certain tenants who are subject to displacement or eviction by the proposed project
by: granting those tenants the right of first refusal of a comparable unit in
the housing project at an affordable rate; establishing a fund to provide
relocation benefits; providing information, either directly or through a
contracted service, on how to obtain assistance and exercise the right of first
refusal; and establishing procedures to
maintain communication with those
tenants.

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