Bill > HB2351

This bill, known as the Hawaii Homes for Hawaii Families Act, aims to address Hawaii's housing crisis by limiting the number of single-family homes that can be owned by large-scale investors for rental purposes, with the goal of preserving and expanding opportunities for local residents to own their homes. Specifically, it prohibits a corporate owner from renting out a single-family home if they have a property interest in five or more such non-owner-occupied properties that are currently rented, available for rent, or have been rented in the past year. Similarly, an individual owner is prohibited from renting a single-family home if they have a property interest in seven or more such properties under the same conditions. The bill outlines several exemptions for entities like government agencies, land trusts, non-profit organizations, employers renting to employees, housing developers, and mortgage note holders who acquired properties through foreclosure. Owners can also apply for individual exemptions from the Director of Taxation if granting the exemption would not negatively impact affordable housing availability or the supply of homes for owner-occupants. The bill also establishes enforcement mechanisms, including civil penalties for violations, which are calculated as a percentage of the property's assessed value based on the duration of noncompliance, and these penalties cannot be passed on to tenants. Revenues from these penalties will be deposited into an affordable homeownership revolving fund. The bill defines key terms such as "corporate owner," "property interest," and "single-family home" and will take effect five years after its enactment, on July 1, 2026.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2351&year=2026