HB1895

SECTION 1. The legislature finds that tenants need additional protections in the wake of the ongoing COVID-19 pandemic. The legislature recognizes the landlord-tenant code heavily favors landlords, offering little to no tenant protections. Community preservation measures that ensure renters do not risk eviction are effective in municipalities like San Francisco. A robust sellers' market in the real estate sector created an eviction epidemic in 2021. Good tenants are losing their housing after renting for decades. Hawaii's communities could benefit from some modicum of tenant protection. Such measure would stabilize our workforce, help keep our keiki home, and create housing security where there currently is none.

Accordingly, the purpose of this Act is to:

(1) Establish a penalty for landlord violations of the residential landlord-tenant code;

(2) Establish minimum notice requirements for landlords terminating rental agreements;

(3) Limit the allowable amount for landlord rent increases annually; and

(4) Require landlords to pay tenants when terminating or refusing to renew a rental agreement.

SECTION 2. Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§521- Penalty. In addition to any other penalties, any landlord that violates this chapter shall be liable to the tenant in an amount equal to three months' rent."

SECTION 3. Section 127A-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Whenever the governor declares a state of emergency for the entire State or any portion thereof, or a mayor declares a local state of emergency for the county or any portion thereof, or when the State, or any portion thereof, is the subject of a severe weather warning:

(1) There shall be prohibited any increase in the selling price of any commodity, whether at the retail or wholesale level, in the area that is the subject of the proclamation or the severe weather warning; and

(2) No landlord shall terminate any tenancy for a residential dwelling unit in the area that is the subject of the proclamation or the severe weather warning, except that a tenancy for a residential dwelling unit may be terminated by the landlord upon at least thirty-days' notice for a breach of a material term of a rental agreement or lease[,] or at least forty-five-days' notice if the unit is unfit for occupancy as defined in this chapter; provided that:

(A) Nothing in this chapter shall be construed to extend a fixed-term lease beyond its termination date, except that a periodic tenancy for a residential dwelling unit may be terminated by the landlord upon at least forty-five days' written notice:

(i) When the residential dwelling unit is sold to a bona fide purchaser for value; or

(ii) When the landlord or an immediate family member of the landlord will occupy the residential dwelling unit; or

(B) Under a fixed-term lease or a periodic tenancy, upon forty-five days' written notice, a landlord may require a tenant or tenants to relocate during the actual and continuous period of any repair to render a residential dwelling unit fit for occupancy; provided that:

(i) Reoccupancy shall first be offered to the same tenant or tenants upon completion of the repair;

(ii) The term of the fixed-term lease or periodic tenancy shall be extended by a period of time equal to the duration of the repair; and

(iii) It shall be the responsibility of the tenant or tenants to find other accommodations during the period of repair."

SECTION 4. Section 521-21, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:

"(d) When the tenancy is from month to month, the amount of rent for such tenancy shall not be increased by the landlord [~~without~~]:

(1) Without written notice given forty-five consecutive days [~~prior to~~] before the effective date of the increase[.]; and

(2) In an amount greater than five per cent during any twelve-month period.

(e) When the tenancy is less than month to month, the amount of rent for such tenancy shall not be increased by the landlord [~~without~~]:

(1) Without written notice given fifteen consecutive days [~~prior to~~] before the effective date of the increase[.]; and

(2) In an amount greater than five per cent during any twelve-month period."

SECTION 5. Section 521-68, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a) through (d) to read:

"(a) A landlord or the landlord's agent may, any time after rent is due, demand payment thereof and notify the tenant in writing that unless payment is made within a time mentioned in the notice as provided in subsection (b), [~~not~~] no less than [~~fifteen calendar~~] thirty days after receipt thereof, the rental agreement shall be terminated. If the tenant cannot be served with notice as required, notice may be given to the tenant by posting the same in a conspicuous place on the dwelling unit, and the notice shall be deemed received on the date of posting. If the tenant remains in default, the landlord may thereafter bring a summary proceeding for possession of the dwelling unit or any other proper proceeding, action, or suit for possession, subject to subsections (b) through (g). The notice required in this section need not be given if the action is based on the breach of a mediated agreement or other settlement agreement.

(b) The [~~fifteen-calendar day~~] thirty-day notice shall provide, at a minimum, the following:

(1) The name of the landlord or the landlord's agent and the landlord's or landlord's agent's contact information, including, if possible, phone number, electronic mail address, and mailing address;

(2) The address of the dwelling unit subject to the rental agreement;

(3) The name and contact information of each tenant, including, if possible, phone number, electronic mail address, and mailing address;

(4) The monthly rental rate of the dwelling unit;

(5) The current amount of the rent due as of the date of the notice, after applying all rent paid from all sources;

(6) Whether the landlord or landlord's agent has applied for rental assistance or been contacted on behalf of the tenant by any agency providing rental assistance;

(7) That any rental assistance received by the landlord or landlord's agent has been credited to the tenant's amount due;

(8) That a copy of the [~~fifteen-calendar day~~] thirty-day notice being provided to the tenant is also being provided to the mediation center to be identified by the landlord and, in accordance with subsection (c), in order for the mediation center to contact the landlord and tenant to attempt to schedule a mediation regarding the nonpayment of rent;

(9) That the mediation center will provide proof to the landlord that the notice was received and provide confirmation of the scheduled date and time of mediation;

(10) That the landlord or landlord's agent may file an action for summary possession if the rent due is not paid and if mediation is not scheduled within [~~fifteen calendar~~] thirty days after the tenant's receipt of the [~~fifteen-calendar day~~] thirty-day notice, regardless of whether the scheduled mediation session occurs within the [~~fifteen calendar~~] thirty days;

(11) A warning in bold typeface print that says: "If mediation is not scheduled within [~~fifteen calendar~~] thirty days after receipt of the notice, regardless of whether the scheduled mediation session occurs within the [~~fifteen-calendar day~~] thirty-day period, then the landlord may file an action for summary possession after the expiration of the [~~fifteen-calendar day~~] thirty-day period. If mediation is scheduled before the expiration of the [~~fifteen-calendar day~~] thirty‑day period, regardless of whether the scheduled mediation session occurs within the [~~fifteen calendar~~] thirty days, then the landlord shall only file an action for summary possession after the expiration of [~~thirty calendar~~] forty-five days following the tenant's receipt of the [~~fifteen-calendar day~~] thirty‑day notice. If the [~~fifteen-calendar day~~] thirty-day notice was mailed, receipt of notice shall be deemed to be two days after the date of the postmark. If the [~~fifteen-calendar day~~] thirty-day notice was posted on the premises, receipt of notice shall be deemed to be the date of posting. If an agreement is reached before the filing of an action for summary possession, whether through mediation or otherwise, then the landlord shall not bring an action for summary possession against the tenant, except as provided in any agreement that may be reached. The landlord shall be required to note the status of the mediation or settlement effort and proof of sending or posting the [~~fifteen-calendar day~~] thirty-day notice to the mediation center in the action for summary possession.";

(12) Notice that the eviction may be subject to additional requirements and protections under state or federal law and that the tenant is encouraged to seek the tenant's own legal advice regarding their rights and responsibilities; and

(13) That the landlord or landlord's agent shall engage in mediation if mediation is scheduled.

(c) Landlords or their agents shall provide the [~~fifteen‑calendar day~~] thirty-day notice to a mediation center that offers free mediation for residential landlord-tenant matters. The mediation center shall contact the landlord or landlord's agent and the tenant to schedule the mediation. If a tenant schedules mediation within the [~~fifteen-calendar day~~] thirty-day period, regardless of whether the scheduled mediation session occurs within the [~~fifteen-day~~] thirty-day period, the landlord shall only file a summary proceeding for possession after the expiration of [~~thirty calendar~~] forty-five days from the date of receipt of the notice. If the tenant schedules mediation, the landlord shall participate.

(d) The summary possession complaint for nonpayment of rent shall include:

(1) A document or documents from the mediation center verifying that the landlord provided a copy of the required [~~fifteen-calendar day~~] thirty-day notice to the mediation center;

(2) A statement as to whether the landlord or landlord's agent and tenant have participated in, or will participate in, any scheduled mediation; and

(3) If mediation is pending, the date on which the mediation is scheduled."

2. By amending subsection (f) to read:

"(f) If there is any defect in the [~~fifteen-calendar day~~] thirty-day notice described in subsection (b) provided by the landlord and the court determines the defect was unintentional and immaterial, the court may allow the landlord to cure the defect without dismissing the action for summary possession."

SECTION 6. Section 521-69, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) If the tenant is in material noncompliance with section 521-51, the landlord, upon learning of any such noncompliance and after notifying the tenant in writing of the noncompliance and allowing a specified time [~~not~~] no less than [~~ten~~] thirty days after receipt of the notice, for the tenant to remedy the noncompliance:

(1) May terminate the rental agreement and bring a summary proceeding for possession of the dwelling unit or any other proper proceeding, action, or suit for possession if the tenant is in material noncompliance with section 521-51(1); or

(2) May remedy the tenant's failure to comply and bill the tenant for the actual and reasonable cost of such remedy if the noncompliance can be remedied by the landlord by cleaning, repairing, replacing a damaged item, or the like, which bill shall be treated by all parties as rent due and payable on the next regular rent collection date or, if the tenancy has terminated, immediately upon receipt by the tenant.

No allowance of time to remedy noncompliance shall be required when noncompliance by the tenant causes or threatens to cause irremediable damage to any person or property. If the tenant cannot be served with notice as required, notice may be given the tenant by posting the same in a conspicuous place on the dwelling unit."

SECTION 7. Section 521-71, Hawaii Revised Statutes, is amended to read as follows:

"§521-71 Termination of tenancy; landlord's remedies for holdover tenants. (a) When the tenancy is month-to-month, the landlord may terminate the rental agreement by notifying the tenant, in writing, at least forty-five days in advance of the anticipated termination. When the landlord provides notification of termination, the tenant may vacate at any time within the last forty-five days of the period between the notification and the termination date, but the tenant shall notify the landlord of the date the tenant will vacate the dwelling unit and shall pay a prorated rent for that period of occupation.

(b) When the tenancy is month-to-month, the tenant may terminate the rental agreement by notifying the landlord, in writing, at least twenty-eight days in advance of the anticipated termination. When the tenant provides notice of termination, the tenant shall be responsible for the payment of rent through the twenty-eighth day.

(c) Before a landlord terminates a month-to-month tenancy where the landlord contemplates voluntary demolition of the dwelling units, conversion to a condominium property regime under chapter 514B, or changing the use of the building to transient vacation rentals, the landlord shall provide notice to the tenant at least one hundred twenty days in advance of the anticipated demolition or anticipated termination. If notice is revoked or amended and reissued, the notice period shall begin from the date it was reissued or amended. Any notice provided, revoked, or amended and reissued shall be in writing. When the landlord provides notification of termination pursuant to this subsection, the tenant may vacate at any time within the one‑hundred-twenty-day period between the notification and the termination date, but the tenant shall notify the landlord of the date the tenant will vacate the dwelling unit and shall pay a prorated rent for that period of occupation.

(d) When the tenancy is less than month-to-month[~~, the~~]:

(1) The landlord [~~or the~~] may terminate the rental agreement by notifying the tenant at least forty-five days before the anticipated termination; and

(2) The tenant may terminate the rental agreement by notifying the [~~other~~] landlord at least ten days before the anticipated termination.

(e) Whenever the term of the rental agreement expires, whether by passage of time, by mutual agreement, by the giving of notice as provided in subsection (a), (b), (c), or (d), or by the exercise by the landlord of a right to terminate given under this chapter, if the tenant continues in possession after the date of termination without the landlord's consent, the tenant may be liable to the landlord for a sum not to exceed twice the monthly rent under the previous rental agreement, computed and prorated on a daily basis, for each day the tenant remains in possession. The landlord may bring a summary proceeding for recovery of the possession of the dwelling unit at any time during the first sixty days of holdover. Should the landlord fail to commence summary possession proceedings within the first sixty days of the holdover, in the absence of a rental agreement, a month-to-month tenancy at the monthly rent stipulated in the previous rental agreement shall prevail beginning at the end of the first sixty days of holdover.

(f) Any notice of termination initiated for the purposes of evading the obligations of the landlord under subsections 521-21(d) or (e) shall be void.

(g) A landlord that terminates a rental agreement under this section or section 127A-30(a)(2)(A), except terminations for a breach of a material term of a rental agreement or lease, or refuses to renew a rental agreement shall, at the time the landlord delivers the tenant the notice to terminate the rental agreement or forty-five days before the specified ending date of the rental agreement, pay the tenant an amount equal to:

(1) One month's rent if the tenant has been renting the dwelling unit for five years or less;

(2) Two month's rent if the tenant has been renting the dwelling unit for more than five years but less than ten years; or

(3) Three month's rent if the tenant has been renting the dwelling unit for ten years or more.

If the landlord terminates the rental agreement or refuses to renew the rental agreement because the landlord has accepted an offer to purchase the dwelling unit, the landlord may recover the amount paid to the tenant under this subsection from the purchaser."

SECTION 8. Section 521-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) If the tenant breaches any rule authorized under section 521-52, the landlord may notify the tenant in writing of the tenant's breach. The notice shall specify the time, [~~not~~] no less than [~~ten~~] thirty days, within which the tenant is required to remedy the breach and shall be in substantially the following form:

"(Name and address of tenant) (date)

You are hereby notified that you have failed to perform according to the following rule:

(specify rule allegedly breached)

Be informed that if you (continue violating) (again violate) this rule after (a date [~~not~~] no less than [~~ten~~] thirty days after this notice), the landlord may terminate the rental agreement and sue for possession of your dwelling unit."

No allowance of time to remedy the breach of any rule authorized under section 521-52 shall be required when the breach by the tenant causes or threatens to cause damage to any person or constitutes a violation of section 521-51(1) or (6)."

SECTION 9. Section 521-74, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) Notwithstanding subsection (a), the landlord may recover possession of the dwelling unit if:

(1) The landlord provides at least thirty days' notice to the tenant and:

[~~(1)~~] (A) The tenant is committing waste, or a nuisance, or is using the dwelling unit for an illegal purpose or for other than living or dwelling purposes in violation of the tenant's rental agreement; or

(B) The complaint or request of subsection (a) relates only to a condition or conditions caused by the lack of ordinary care by the tenant or another person in the tenant's household or on the premises with the tenant's consent; or

(2) The landlord provides the required notice under section 521-71 or at least forty-five days' notice, as applicable, to the tenant and:

[~~(2)~~] (A) The landlord seeks in good faith to recover possession of the dwelling unit for immediate use as the landlord's own abode or that of the landlord's immediate family;

[~~(3)~~] (B) The landlord seeks in good faith to recover possession of the dwelling unit for the purpose of substantially altering, remodeling, or demolishing the premises;

[~~(4)~~ The complaint or request of subsection (a) relates only to a condition or conditions caused by the lack of ordinary care by the tenant or another person in the tenant's household or on the premises with the tenant's consent;

~~(5)~~] (C) The landlord has received from the department of health certification that the dwelling unit and other property and facilities used by or affecting the use and enjoyment of the tenant were on the date of filing of the complaint or request in compliance with health laws and regulations;

[~~(6)~~] (D) The landlord has in good faith contracted to sell the property, and the contract of sale contains a representation by the purchaser corresponding to [~~paragraph (2) or (3);~~] subparagraph (A) or (B); or

[~~(7)~~] (E) The landlord is seeking to recover possession on the basis of a notice to terminate a periodic tenancy, which notice was given to the tenant previous to the complaint or request of subsection (a)."

2. By amending subsection (d) to read:

"(d) Notwithstanding subsection (a), the landlord may increase the rent if:

(1) The landlord has received from the department of health certification that the dwelling unit and other property and facilities used by and affecting the use and enjoyment of the tenant were on the date of filing of the complaint or request of subsection (a) in compliance with health laws and regulations;

(2) The landlord has become liable for a substantial increase in property taxes, or a substantial increase in other maintenance or operating costs not associated with the landlord's complying with the complaint or request, [~~not~~] no less than four months [~~prior to~~] before the demand for an increase in rent; and the increase in rent does not exceed the prorated portion of the net increase in taxes or costs;

(3) The landlord has completed a capital improvement of the dwelling unit or the property of which it is a part and the increase in rent does not exceed the amount [~~which~~] that may be claimed for federal income tax purposes as a straight-line depreciation of the improvement, prorated among the dwelling units benefited by the improvement;

(4) The complaint or request of subsection (a) relates only to a condition or conditions caused by the want of due care by the tenant or another person of the tenant's household or on the premises with the tenant's consent; or

(5) The landlord can establish, by competent evidence, that the rent now demanded of the tenant does not exceed the rent charged other tenants of similar dwelling units in the landlord's building or, in the case of a single-family residence or where there is no similar dwelling unit in the building, does not exceed the market rental value of the dwelling unit[.];

provided that the landlord shall not increase the rent in an amount greater than five per cent during any twelve-month period."

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval; provided that the amendments made to section 521-68, Hawaii Revised Statutes, by section 5 of this Act shall not be repealed when that section is reenacted on August 6, 2022, pursuant to section 7 of Act 57, Session Laws of Hawaii 2021.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1895
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII