Hawaii HB 1325: RELATING TO HOUSING.

Bill Text

HOUSE OF REPRESENTATIVES
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:
1 SECTION 1. The legislature finds that the State is facing
2 an affordable housing crisis. Although significant efforts have
3 been made to facilitate the production of more housing and
4 remove barriers to the development of affordable housing, these
5 developments have had the unintended consequence of displacing
6 and dislocating the tenants who were living in rental housing
7 marked for redevelopment.
8 The legislature further finds that displacement, whether
9 due to redevelopment, rising rents, or other factors, has
10 profound impacts on individuals, families, and communities.
11 Tenants forced out of their housing due to redevelopment face
12 the loss of social networks and economic stability in addition
13 to their loss of housing. These disruptions are most keenly
14 felt by vulnerable populations, who face the loss of critical
15 support systems that buffer the effects of economic and social
16 disadvantage.
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1 The legislature additionally finds that residential
2 instability caused by displacement is linked to numerous
3 negative health and social outcomes, particularly for children
4 and youth. Studies show that frequent moves are correlated with
5 decreased academic performance, increased drug and alcohol use,
6 behavioral issues, and diminished health outcome. In addition
7 to harming the individual, these outcomes also erode social
8 support networks and communities, making it harder for families
9 to thrive and neighborhoods to remain resilient. Communities
10 that are able to maintain long-term stability provide vital
11 connections to resources, support systems, a sense of belonging,
12 and access to upward mobility.
13 The legislature believes that while the State must continue
14 to prioritize the production of affordable housing, it is
15 equally important to ensure that these developments do not -
16 result in the unnecessary displacement of the communities meant
17 to benefit from the creation of additional affordable housing.
18 Accordingly, the purpose of this Act is to require
19 developers developing affordable housing projects under the
20 Hawaii housing development and finance corporation completed
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1 with state or federal funds that result in the eviction or
2 displacement of tenants in existing rental properties to:
3 (1) Grant certain persons displaced or evicted by the
4 proposed affordable housing project the right of first
5 refusal of a comparable unit in the housing project at
6 an affordable rate;
7 (2) Establish a fund to provide relocation benefits to
8 displaced or evicted tenants;
9 (3) Provide information, either directly or through a
10 contracted service, on how to obtain assistance and
11 exercise the right of first refusal; and
12 (4) Establish procedures to maintain communication with
13 displaced and evicted tenants.
14 SECTION 2. Section 201H-38, Hawaii Revised Statutes, is
15 amended by amending subsection (a) to read as follows:
16 “(a) The corporation may develop on behalf of the State or
17 with an eligible developer, or may assist under a government
18 assistance program in the development of, housing projects that
19 shall be exempt from all statutes, charter provisions,
20 ordinances, and rules of any government agency relating to
21 planning, zoning, construction standards for subdivisions,~
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1 development and improvement of land, and the construction of
2 dwelling units thereon; provided that either:
3 (1) The housing projects meet the following conditions:
4 (A) The corporation finds the housing project is
5 consistent with the purpose and intent of this
6 chapter, and meets minimum requirements of health
7 and safety;
8 (B) The development of the proposed housing project
9 does not contravene any safety standards,
10 tariffs, or rates and fees approved by the public
11 utilities commission for public utilities or of
12 the various boards of water supply authorized
13 under chapter 54;
14 (C) The legislative body of the county in which the
15 housing project is to be situated has approved
16 the project with or without modifications:
17 (i) The legislative body shall approve, approve
18 with modification, or disapprove the project
19 by resolution within forty-five days after
20 the corporation has submitted the
21 preliminary plans and specifications for the
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1 project to the legislative body. If on the
2 forty-sixth day a project is not
3 disapproved, it shall be deemed approved by
4 the legislative body;
5 (ii) No action shall be prosecuted or maintained
6 against any county, its officials, or
7 employees on account of actions taken by
8 them in reviewing, approving, modifying, or
9 disapproving the plans and specifica