Bill Text: HI HB2642 | 2024 | Regular Session | Amended
Bill Title: Relating To Eviction Mediation.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2024-03-07 - Referred to CPN, WAM/JDC. [HB2642 Detail]
Download: Hawaii-2024-HB2642-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2642 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO EVICTION MEDIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Act 57, Session Laws of Hawaii 2021 (Act 57), encouraged communication and facilitated mediation between housing providers and tenants to promote collaborative solutions to this common problem and to avoid evictions when possible. Experience shows that the mediation procedures created by Act 57 were widely successful in substantially increasing the number of disputes that were settled in mediation without any eviction cases being filed, as well as increasing the number of settlements in which the parties agreed that the tenant could continue to reside in the dwelling unit. However, the amendments made to the Residential Landlord-Tenant Code by Act 57 have expired.
Accordingly,
the purpose of this Act is to encourage landlords and
tenants to engage in conversations early, as soon as a tenant knows they are
not able to make their full rental payment by:
(1) Establishing a pilot program that adopts the most effective provisions of Act 57 that:
(A) Extends the period for a notice of termination of the rental agreement from five business days to ten calendar days;
(B) Requires all landlords and tenants to engage in early mediation and delay filing an action for summary possession if a tenant schedules or attempts to schedule a mediation;
(C) Requires
landlords and tenants to be responsible for their own attorney's fees and costs
in prelitigation mediation and authorizes the landlord to file for summary
possession and payment of all attorney's fees and costs incurred in the
pre-litigation mediation process if the tenant defaults on a mediated
agreement; and
(D) Requires landlords to provide specific information in the ten-calendar-day notice to tenants, which shall also be provided to a mediation center that offers free mediation for residential landlord-tenant disputes; and
(2) Appropriating funds for the pre-litigation mediation pilot program.
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[.]; pre-litigation mediation. (a) A
landlord or the landlord's agent [may], any time after rent is due, may
demand payment thereof and notify the tenant in writing that unless payment is
made within a time mentioned in the notice[, not] as provided
in subsection (b), no less than [five business] ten calendar
days after receipt thereof, the rental agreement will be terminated. [If the tenant cannot be served with
notice as required, notice] 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 the posting. If the notice is mailed to the tenant via the
United States Postal Service, properly addressed and with appropriate postage,
the notice shall be deemed to have been received two business days after the
date of the postmark, unless the letter is returned to the landlord as
undeliverable. If the tenant remains
in default[,] after the expiration of the time stated in the notice,
the landlord may thereafter bring a summary proceeding for possession of the
dwelling unit or any other proper proceeding, action, or suit for possession[.],
subject to subsections (b) through (i).
The notice required by this section need not be given if the action is
based on the breach of a mediated agreement or other settlement agreement or is
for a summary proceeding for possession based on matters other than non-payment
of rent. In any action based on the
breach of a mediated agreement, the court shall not require any further
mediation prior to trial.
(b) The ten-calendar-day notice shall provide the
following:
(1) The name of the landlord or the
landlord's agent and the landlord's or landlord's agent's contact information,
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
all tenants listed on the rental agreement, including phone number and, if
possible, electronic mail address and mailing address;
(4) The current amount of the rent due
as of the date of the notice, after applying all rent paid from all sources;
(5) Notice that a copy of the
ten-calendar-day notice being provided to the tenant is also being provided to a
state-funded mediation center in order for the mediation center to contact the
landlord and tenant to attempt to schedule a mediation regarding the nonpayment
of rent in accordance with subsection (c);
(6) Notice 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 ten calendar days after the tenant's
receipt of the ten‑calendar-day notice, regardless of whether the
scheduled mediation session occurs within the ten calendar days;
(7) A warning in bold typeface print in
substantially the following form: "If mediation is not scheduled within ten calendar days after receipt of
this notice, regardless of whether the scheduled mediation session occurs
within the ten-calendar-day period, then the landlord may file an action for
summary possession after the expiration of the ten-calendar-day period. If mediation is scheduled before the
expiration of the ten-calendar-day period, regardless of whether the scheduled
mediation session occurs within the ten calendar days, then the landlord shall
only file an action for summary possession after the expiration of twenty
calendar days following the tenant's receipt of the ten-calendar-day notice unless
you (tenant) fail to attend or cancel mediation. If the ten‑calendar‑day notice
was posted on the premises, receipt of notice shall be deemed to be the date of
posting. If the ten‑calendar‑day
notice was mailed, receipt of notice shall be deemed to be two business days
after the date of the postmark. If
filing an action for summary possession, the landlord shall be required to note,
in the summary possession complaint, the status of the mediation or settlement
effort and proof of posting or sending the ten‑calendar-day notice to the
mediation center."; and
(8) Notice that the landlord or
landlord's agent shall engage in mediation if mediation is scheduled.
The
judiciary shall prepare a notice form that may be used by landlords and
landlords' agents to provide the information required by this subsection and
make the form available on its website.
(c) A landlord or the landlord's agent shall
provide the ten‑calendar-day notice to a state-funded mediation center that
offers free mediation for residential landlord-tenant matters. All state-funded mediation centers shall
offer mediation services to landlords and tenants through in-person and remote
means, and shall allow mediation participants to utilize remote appearances, if
requested. If a mediation center schedules
mediation within the ten-calendar-day period and the tenant participates in the
mediation, regardless of whether the scheduled mediation session occurs within
the ten-calendar-day period, the landlord shall only file a summary possession
proceeding after the expiration of twenty calendar days from the date of the
tenant's receipt of the ten-calendar-day notice. If either party schedules mediation, then both
parties shall participate. Upon request
by the landlord or the landlord's agent, the mediation center shall provide
copies of a document or documents verifying that the landlord provided a copy
of the required ten‑calendar-day notice to the mediation center.
(d) The summary possession complaint for
nonpayment of rent shall include:
(1) A document or documents from the
state-funded mediation center verifying that the landlord provided a copy of
the required ten-calendar-day notice to the mediation center or an affirmation
from the landlord or the landlord's agent that the notice was provided to the
applicable mediation center and the means by which the notice was provided to
the applicable mediation center. Upon
request by the landlord or the landlord's agent, the mediation center shall
provide copies of the relevant documents to the landlord; and
(2) If mediation is scheduled but has
not yet occurred, the date on which the mediation is scheduled.
(e) If there is any defect in the
ten-calendar-day notice described in subsection (b) provided by the landlord
and the court determines the defect was unintentional or immaterial, the court
may allow the landlord to cure the defect without dismissing the action for
summary possession.
(f) Nothing in this section shall impact a
landlord's or tenant's other rights and responsibilities under this chapter.
(g) The mediation may take place using remote
communication, in person, or both.
(h) Each tenant and landlord shall be responsible
for bearing the party's own costs, including attorney's fees, relating to the
mediation; provided that if the tenant defaults on a mediated agreement or
fails to attend a scheduled mediation, the landlord may request payment of all
costs, including reasonable attorney's fees, incurred during the pre-litigation
mediation process.
(i) If the mediation does not result in an
agreement, the landlord or the landlord's agent may file an action for summary
possession without participating in an additional mediation; provided that
after the filing of the action for summary possession, the court, in its
discretion and based on a finding of good cause, may order an additional
mediation.
[(b)]
(j) 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 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 2024-2025 for the judiciary to contract for mediation services pursuant to section 2 of this Act.
The sum appropriated shall be expended by the judiciary for the purposes of this Act.
SECTION 4. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the needs provided for by this Act.
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000; provided that:
(1) Section 2 shall take effect on November 1, 2024; and
(2) This Act shall be repealed on November 1, 2026, and section 521-68, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of section 2 of this Act.
Report Title:
Judiciary; Eviction Mediation; Pre-litigation Mediation Pilot Program; Summary Possession; Landlords; Tenants; Appropriation; Expenditure Ceiling
Description:
Beginning 11/1/2024: extends the period for a notice of termination of a rental agreement; requires tenants and landlords to engage in mediation; delays filing an action for summary possession if a tenant schedules or attempts to schedule mediation; and requires landlords to provide specific information in the 10‑calendar-day notice to tenants. Appropriates funds. Repeals 11/1/2026. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
