RELATING TO HOUSING.

HB2200

HOUSE OF REPRESENTATIVES

H.B. NO.

2200

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�s housing crisis continues to worsen, driven in part by the growing
concentration of single-family residential properties held by large investment
entities, including hedge funds and real estate investment trusts.
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These entities often acquire significant
numbers of homes, restricting opportunities for local families to purchase
housing, inflating prices, and contributing to community instability.

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The
legislature further finds that these concerns have also prompted federal
legislative proposals aimed at mitigating the impact of large-scale
institutional ownership on the nation�s housing supply.
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While such federal action is important,
state-level measures are also necessary to address Hawaii�s unique challenges,
including limited land availability and a high cost of living.

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Accordingly,
to reduce speculative practices that artificially inflate housing costs and
displace local families, this Act seeks to protect the State�s housing market
from speculative and predatory practices, preserve homeownership opportunities
for local residents, and foster a more stable and equitable housing system.

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SECTION
2.
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The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

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Chapter
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SINGLE-FAMILY RESIDENCE PURCHASING
RESTRICTIONS TO CERTAIN PURCHASERS

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Definitions.
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As used in this chapter:

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"Community land trust" means a
nonprofit organization exempt from certain taxes pursuant to section 501(c)(3)
or section 501(c)(4) of the United States Internal Revenue Code, or that is
incorporated under the not-for-profit corporation law, or both, whose primary
purpose is to provide affordable housing by owning land and leasing or selling
residential housing situated on that land to households that meet certain
income requirements.

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"Covered entity" means any
partnership, corporation, or real estate investment trust that:

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(1)
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Owns ten or more single-family residences;

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(2)
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Manages or receives funds pooled from
investors and acts as a fiduciary with respect to one or more investors; and

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(3)
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Has $30,000,000 or more in net value or assets
under management on any day during the taxable year.

"Covered
entity" does not include:

(1)
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An
organization that is described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, as
amended, or an organization primarily engaged in the construction or
rehabilitation of single-family residences;

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(2)
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A
community land trust; or

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(3)
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A creditor or its loan servicer acquiring
ownership of real property in full or partial satisfaction of a secured debt.

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"Department" means the department
of commerce and consumer affairs.

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"Director" means the director of
commerce and consumer affairs.

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"Single-family
residence" means any residential property consisting of one to four
dwelling units.
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"Single-family
residence" does not include:

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(1)

Any
unoccupied single-family residence acquired through foreclosure;

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(2)
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Any
single-family residence that is not rented or leased and used as the principal
residence, as defined under section 121 of the Internal Revenue Code, of any
person who has an ownership interest in the covered entity that seeks to
purchase the single-family residence; or

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(3)
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Any
single-family residence constructed, acquired, or operated with federal, state,
or local appropriated funding sources.

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Restriction on acquisition.
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(a)
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It shall be unlawful for a
covered entity to purchase or acquire any interest in a single-family residence
in the State after the effective date of this section.

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(b)
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Subsection (a) shall not apply to:

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(1)
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Property acquired through foreclosure or deed
in lieu of foreclosure, provided the property is alienated within one year of
acquisition;

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(2)
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Property acquired for the purpose of
converting the property to long-term affordable housing, subject to conditions
established by the housing finance and development corporation; and

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(3)
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Property acquired prior to the effective date
of this section.

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(c)
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A
covered entity or covered entity's agent that violates this chapter shall be
subject to civil damages and penalties in an amount not to exceed one-half of
the fair market value of the property.

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Reporting; penalties; certification.
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(a)
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The director shall require
reporting as the director determines necessary or appropriate to carry out the
purposes of this chapter, including reporting with respect to:

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(1)
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The
dates upon which single-family residences owned by a covered taxpayer were
acquired by the taxpayer; and

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(2)
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Whether
any person acquiring a single-family residence from a covered taxpayer owns any
other single-family residences at the time of the acquisition.

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(b)
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Any person who fails to report information
required under subsection (a) or who fails to include correct information in
the report shall pay a fine of $20,000; provided that no fine shall be imposed
under this subsection with respect to any failure if it is shown that the
failure was due to reasonable cause and not willful neglect.
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The fine under this subsection shall be paid
upon notice and demand by the director.

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(c)
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The director shall require a certification
from each individual to whom a single-family residence is sold or transferred
from a covered taxpayer.
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The
certification shall be signed by the purchaser or transferee and state the
following:

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(1)
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The name and address of the purchaser or
transferee;

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(2)
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That
the purchaser is not a covered entity under this chapter; and

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(3)
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An
acknowledgement that the purchaser or transferee shall be subject to the
penalties established in subsection (b) for any false certification.

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Forms
and procedures; rules.
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(a)
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The director shall prescribe forms and
procedures necessary to achieve the purposes of this chapter.

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(b)
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The department shall adopt rules pursuant to
chapter 91 to implement this chapter.

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Enforcement.
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(a)
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The attorney general shall enforce this chapter by applying, in the name
of the people of the State of Hawaii, to the supreme court, upon notice of five
days, for an order enjoining the continuance of a violative activity subject to
this chapter, including but not limited to bringing an action for injunctive or
declaratory relief if a single-family residence is in
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the process of being or has been
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sold in a manner that contravenes the
requirements of this chapter, and imposing
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civil damages and penalties pursuant to this chapter."

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

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SECTION 4.
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If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.

INTRODUCED BY:

_____________________________

Report Title:

Housing;
Single-family residence; Purchasing Restrictions

Description:

Prohibits
certain entities from purchasing single-family residences in the State of
Hawaii. Requires reports and certifications to the Department of Commerce and
Consumer Affairs. Establishes penalties and enforcement authority.

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