Bill > HB467

This bill aims to protect homeowners and communities during foreclosure processes by introducing new regulations for property sales. The legislation prohibits sellers from bundling multiple foreclosed properties together at public sales, requiring each property to be sold separately. Additionally, the bill establishes a 15-day initial period after a public sale during which eligible bidders can submit a subsequent bid or notice of intent to bid, which can extend to a 45-day period. Eligible bidders are specifically defined and include tenants currently occupying the property, prospective owner-occupants, affordable housing nonprofits, community land trusts, and state or county government agencies. The bill defines an "eligible tenant buyer" as someone currently occupying the property as their primary residence under a rental agreement and who is not related to the original mortgagor. A "prospective owner-occupant" must commit to living in the property as their primary residence for at least one year and cannot be related to the original mortgagor. If an eligible bidder submits a subsequent bid equal to or exceeding the highest initial bid, they become the final successful bidder. The legislation is designed to prevent investor takeovers of foreclosed properties and help maintain community stability by giving preference to residents and local organizations.

Business and Industry, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=467&year=2026