THE SENATE	S.B. NO.	942
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO RENTAL APPLICATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that landlords often require prospective tenants to provide recent paystubs to prove sufficient income to pay rent. However, many individuals, including retirees, the self-employed, and those with alternative forms of income, may not have traditional paystubs but nevertheless possess sufficient financial resources to meet rental obligations. By allowing tenants to demonstrate financial stability through unearned income or liquid assets, a fairer and more inclusive housing market can be created.

The legislature further finds that retirees often rely on pensions, social security, investments, or savings to cover their living expenses. These income streams are typically stable and reliable, even though they are not tied to traditional employment. Denying retirees the opportunity to rent solely because they lack paystubs disregards their financial viability and unnecessarily limits their housing options. This Act would ensure that retirees, who have contributed to society and saved responsibly, are not unfairly excluded from the rental market.

The legislature also finds that prohibiting the requirement to produce paystubs would not only benefit retirees but also others who depend on non-traditional income, such as individuals with significant savings, trust funds, or investment portfolios. These individuals are equally capable of meeting rental obligations but often face barriers when landlords prioritize employment-based income verification. Authorizing a prospective tenant to submit evidence of unearned income or liquid assets aligns with the broader goal of promoting housing accessibility while still allowing a landlord to assess a tenant's ability to pay rent.

The legislature further finds that this Act addresses equity concerns in Hawaii's rental market where housing affordability and availability are pressing issues. This Act would prevent discrimination against individuals whose financial stability does not fit into outdated norms and create a more inclusive housing ecosystem. By recognizing the legitimacy of alternative income sources, access to housing can be ensured for all financially capable individuals, regardless of their employment status.

Accordingly, the purpose of this Act is to modernize the rental application process and recognize the diversity of income sources in today's society by prohibiting landlords from rejecting prospective tenants solely because the tenants cannot provide paystubs as proof of income, under certain circumstances.

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

"§521-  Rental applications; proof of income; paychecks; prohibition. (a) In considering an application to rent a dwelling unit, no landlord shall reject an applicant solely due to the applicant's inability to submit evidence of a recent paycheck; provided that the landlord may require the applicant to submit evidence, dated within ninety days of the date of the application for rent, of unearned income or liquid assets sufficient to satisfy the rent for the term of the prospective rental period.

(b) In the event the evidence provided pursuant to subsection (a) is not issued by a financial institution, the federal government, or a state, county, or municipal government:

(1) The landlord may request the applicant's authorization to verify the documentation; or

(2) The evidence provided shall be verifiable either directly from the source of the information or by cross-referencing with another official document, such as a tax return."

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. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050.

Report Title:

Landlord; Rent; Application; Proof of Income; Paychecks; Prohibition

Description:

Prohibits a landlord from rejecting a rental application solely due to an applicant's inability to provide a recent paycheck. Authorizes the landlord to require the applicant to provide evidence dated within ninety days of the application demonstrating the applicant has sufficient unearned income or liquid assets to cover the rental costs. Effective 7/1/2050. (HD1)

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