Bill Text: HI SB393 | 2023 | Regular Session | Amended


Bill Title: Relating To The Landlord-tenant Code.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2023-04-18 - Received notice of Senate conferees (Sen. Com. No. 904). [SB393 Detail]

Download: Hawaii-2023-SB393-Amended.html

THE SENATE

S.B. NO.

393

THIRTY-SECOND LEGISLATURE, 2023

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE LANDLORD-TENANT CODE.

 

 

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

 


     SECTION 1.  The legislature finds that many Hawaii residents continue to face the possibility of eviction due to challenges to paying rent.  The legislature previously enacted Act 57, Session Laws of Hawaii 2021, to encourage communication, and facilitate mediation, between landlords and tenants to help reduce summary possession cases.  Research indicates that the program and procedures created by Act 57 were widely successful in substantially increasing the number of disputes that were settled in mediation without the filing of a summary possession case and increasing the number of settlements in which the parties agreed that the tenant could continue to reside in the subject home.  The amendments made to Hawaii's residential landlord-tenant code were repealed automatically by Act 57.

     The legislature notes that the availability of rental relief is a key factor in ensuring housing stability and that combining rent relief with a robust pre-litigation mediation process is likely to lead to significantly better outcomes than mediation that starts only after litigation is filed, or rent relief alone.

     Accordingly, the purpose of this Act is to:

     (1)  Create a pilot program that adopts the most effective features of Act 57, Session Laws of Hawaii 2021, by:

          (A)  Extending the period for a notice of termination of the rental agreement from five business days to fifteen calendar days;

          (B)  Requiring landlords to engage in mediation and delay filing an action for summary possession if a tenant schedules or attempts to schedule a mediation;

          (C)  Requiring landlords to include specific information in the fifteen-calendar day notice provided to tenants and certain mediation centers; and

          (D)  Repealing these amendments made to Hawaii's residential landlord-tenant code on December 31, 2024; and

     (2)  Create an emergency rent relief program available to participants in pre-litigation mediation to provide resources that will help avoid eviction and maintain stable tenancies.

     SECTION 2.  Section 521-68, Hawaii Revised Statutes, is amended to read as follows:

     "§521-68  Landlord's remedies for failure by tenant to pay rent.  (a)  A landlord or the landlord's agent may, any time after rent is due, demand payment thereof and notify the tenant in writing that unless payment is made within a time mentioned in the notice, as provided in subsection (b), not less than [five business] fifteen calendar days after receipt thereof, the rental agreement [will] shall be terminated.  If the tenant cannot be served with notice as required, notice may be given to  the tenant by posting the same in a conspicuous place on the dwelling unit[.] and the notice shall be deemed received on the date of posting.  If the tenant remains in default, the landlord may thereafter bring a summary proceeding for possession of the dwelling unit or any other proper proceeding, action, or suit for possession[.

     (b)], subject to subsections (b) through (g).  The notice required in this section need not be given if the action is based on the breach of a mediated agreement or other settlement agreement.

     (b)  The fifteen-calendar day notice required under subsection (a) shall provide, at a minimum, the following:

     (1)  The name and contact information of the landlord or the landlord's agent and including, if possible, phone number, electronic mail address, and mailing address;

     (2)  The address of the dwelling unit subject to the rental agreement;

     (3)  The name and contact information of each tenant, including, if possible, phone number, electronic mail address, and mailing address;

     (4)  The monthly rental rate of the dwelling unit;

     (5)  The current amount of the rent due as of the date of the notice, after applying all rent paid from all sources;

     (6)  Whether the landlord or landlord's agent has applied for rental assistance or been contacted on behalf of the tenant by any agency providing rental assistance;

     (7)  That any rental assistance received by the landlord or landlord's agent has been credited to the tenant's amount due;

     (8)  That a copy of the fifteen-calendar day notice being provided to the tenant is also being provided to the mediation center to be identified by the landlord and, in accordance with subsection (c), in order for the mediation center to contact the landlord and tenant to attempt to schedule a mediation regarding the nonpayment of rent;

     (9)  That the mediation center will provide proof to the landlord that the notice was received and provide confirmation of the scheduled date and time of mediation;

    (10)  That the landlord or landlord's agent may file an action for summary possession if the rent due is not paid and if mediation is not scheduled within fifteen calendar days after the tenant's receipt of the fifteen-calendar day notice, regardless of whether the scheduled mediation session occurs within the fifteen calendar days;

    (11)  A warning in bold typeface print that reads:  "If mediation is not scheduled within fifteen calendar days after receipt of the notice, regardless of whether the scheduled mediation session occurs within the fifteen-calendar day period, then the landlord may file an action for summary possession after the expiration of the fifteen-calendar day period.  If mediation is scheduled before the expiration of the fifteen-calendar day period, regardless of whether the scheduled mediation session occurs within the fifteen calendar days, then the landlord shall only file an action for summary possession after the expiration of thirty calendar days following the tenant's receipt of the fifteen-calendar day notice.  If the fifteen‑calendar day notice was mailed, receipt of notice shall be deemed to be two days after the date of the postmark.  If the fifteen-calendar day notice was posted on the premises, receipt of notice shall be deemed to be the date of posting.  If an agreement is reached before the filing of an action for summary possession, whether through mediation or otherwise, then the landlord shall not bring an action for summary possession against the tenant, except as provided in any agreement that may be reached.  The landlord shall be required to note the status of the mediation or settlement effort and proof of sending or posting the fifteen-calendar day notice to the mediation center in the action for summary possession.";

    (12)  Notice that the eviction may be subject to additional requirements and protections under state or federal law and that the tenant is encouraged to seek the tenant's own legal advice regarding their rights and responsibilities; and

    (13)  That the landlord or landlord's agent shall engage in mediation if mediation is scheduled.

     (c)  Landlords or their agents shall provide the fifteen‑calendar day notice to a mediation center that offers free mediation for residential landlord-tenant matters.  The mediation center shall contact the landlord or landlord's agent and the tenant to schedule the mediation.  If a tenant schedules mediation within the fifteen-calendar day period, regardless of whether the scheduled mediation session occurs within the fifteen-day period, the landlord shall only file a summary proceeding for possession after the expiration of thirty calendar days from the date of receipt of the notice.  If the tenant schedules mediation, the landlord shall participate.

     (d)  The summary possession complaint for nonpayment of rent shall include:

     (1)  A document or documents from the mediation center verifying that the landlord provided a copy of the required fifteen-calendar day notice to the mediation center;

     (2)  A statement as to whether the landlord or landlord's agent and tenant have participated in, or will participate in any scheduled mediation; and

     (3)  If mediation is pending, the date on which the mediation is scheduled.

     (e)  If the mediation has not occurred as of, or been scheduled for a future date after, the return hearing date on the summary possession complaint, the court, in its discretion and based on a finding of good cause, may order a separate mediation.

     (f)  If there is any defect in the fifteen-calendar day notice described in subsection (b) provided by the landlord and the court determines the defect was unintentional and immaterial, the court may allow the landlord to cure the defect without dismissing the action for summary possession.

     (g)  A landlord or the landlord's agent may bring an action for rent alone at any time after the landlord has demanded payment of past due rent and notified the tenant of the landlord's intention to bring [such an] the action."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for administration of the pre-litigation mediation program established under section 2 of this Act.

     The sums appropriated shall be expended by the counties for the purposes of this Act, in the following amounts:

     City and county of Honolulu             $

     County of Hawaii                        $

     County of Kauai                         $

     County of Maui                          $           .

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment of an emergency rent relief program to provide moneys to participants in the pre-litigation mediation program established pursuant to section 2 of this Act for the purposes of avoiding eviction and maintaining stable tenancies.

     The sums appropriated shall be expended by the counties for the purposes of this Act, in the following amounts:

     City and county of Honolulu             $

     County of Hawaii                        $

     County of Kauai                         $

     County of Maui                          $           .

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050; provided that section 2 of this Act shall be repealed on December 31, 2024, and section 521-68, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.


 


 

Report Title:

Housing; Landlord-tenant Code; Remedies; Notice; Failure to Pay Rent; Mediation; Appropriations

 

Description:

Until 12/31/2024, extends the period for a notice of termination of the rental agreement from 5 business days to 15 calendar days; requires landlords to engage in mediation and delay filing an action for summary possession if a tenant schedules or attempts to schedule a mediation; requires landlords to include specific information in the fifteen-calendar day notice provided to tenants and certain mediation centers.  Appropriates moneys.  Effective 7/1/2050.  (SD1)

 

 

 

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

 

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