Bill > SB1135

This bill addresses foreclosure practices in Hawaii by introducing two key provisions to protect homeowners and potential buyers during the foreclosure process. First, the bill prohibits sellers from bundling multiple foreclosed properties together at public sale, requiring each property to be sold separately to prevent investors from acquiring large numbers of properties at once. Second, the bill establishes a 45-day window after a public sale during which certain "eligible bidders" can submit a competing bid to purchase the foreclosed property. Eligible bidders include current tenants, 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, who is not related to the original property owner. 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 owner or acting on behalf of another entity. If an eligible bidder submits a bid equal to or exceeding the highest existing bid, they become the new successful bidder. The legislation aims to prevent the displacement of current residents and give local community organizations and potential homeowners a fair chance to acquire foreclosed properties, particularly in the context of increasing housing challenges and economic instability.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1135&year=2026