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HB1777
HOUSE OF REPRESENTATIVES
H.B. NO.
1777
THIRTY-THIRD LEGISLATURE, 2026
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:
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(1)
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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:
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(A)
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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;
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(B)
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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;
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(C)
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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
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(D)
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Establish procedures to
maintain
communication with displaced and evicted tenants; and
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(2)
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Specify that a developer's failure to
comply shall subject the developer to certain actions by the Hawaii housing
finance and development corporation.
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SECTION
2
.
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Section
201H-38, Hawaii Revised Statutes, is amended to read as follows:
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�201H-38
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Housing development; exemption from statutes,
ordinances, charter provisions, and rules.
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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
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
]
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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 affordable to families earning one hundred
forty per cent or below 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 offer for a comparable unit
available in the proposed housing project;
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(ii)
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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;
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(iii)
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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
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(iv)
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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).
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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;
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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.
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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
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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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(b)
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If a developer fails to comply with the requirements in subsection
(a)(1)(E), the corporation shall:
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(1)
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Delay or fail
threshold review of the developer's application for funding;
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(2)
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Halt relocation
until non-compliance is cured;
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(3)
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Withhold
disbursements of program funds until non-compliance is cured; or
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(4)
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Deem the
developer ineligible to participate in all corporation programs for no less
than one year.
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[
(b)
]
(c)
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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.
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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;
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:
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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.
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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.