Bill > HB1325

This bill addresses housing displacement by requiring developers of affordable housing projects funded by state or federal sources to provide protections for tenants who will be displaced or evicted during redevelopment. Specifically, developers must either grant displaced tenants the right of first refusal for a comparable unit in the new housing project or establish a relocation fund that provides financial benefits. These benefits can be either three separate payments equal to one month's rent or a lump sum payment of at least three months' rent, which can be provided as a rent waiver or direct cash payment. Developers must also provide information to displaced tenants about relocation assistance and their rights, and establish communication procedures starting 120 days before the notice to vacate. The bill mandates that developers maintain communication with displaced tenants until they have either declined or exercised their right of first refusal. If developers fail to comply with these requirements, the Hawaii Housing Finance and Development Corporation can take actions such as delaying funding applications, halting relocation, withholding program funds, or declaring the developer ineligible for corporation programs for at least one year. The legislation recognizes the significant negative social and personal impacts of displacement, particularly on vulnerable populations, and aims to mitigate these effects while continuing to support affordable housing development.

Budget and Finance, Business and Industry, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1325&year=2026