RELATING TO HOUSING.

SB2819

THE SENATE

S.B. NO.

2819

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:

���� SECTION 1.� 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.� These entities often acquire significant numbers of homes,
restricting opportunities for local families to purchase housing, inflating
prices, and contributing to community instability.

���� 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.� 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.

���� 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.

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

"
Chapter��

SINGLE-FAMILY RESIDENCE PURCHASING
RESTRICTIONS TO CERTAIN PURCHASERS

���� ���
-1�
Definitions.�
As used in this chapter:

���� "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.

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

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

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

���� (3)� 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)� 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;

���� (2)� A community land trust; or

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

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

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

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

���� (1)
Any unoccupied single-family residence acquired through foreclosure;

���� (2)� 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

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

���� ���� -2� Restriction on acquisition.
�
(a)� 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.

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

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

���� (2)� 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

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

���� (c)� 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.

���� ��� -3� Reporting; penalties; certification.
�
(a)� 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:

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

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

���� (b)� 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.� The fine under
this subsection shall be paid upon notice and demand by the director.

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

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

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

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

����
��� -4� Forms and procedures; rules.
�
(a)� The director shall prescribe forms and procedures necessary to achieve the
purposes of this chapter.

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

���� ���
-5� Enforcement.
� (a)� 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� the process of being or has been�
sold in a manner that contravenes the requirements of this chapter, and imposing�
civil damages and penalties pursuant to this chapter."

���� 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.� 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.

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

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.