Bill Text: HI SB3332 | 2024 | Regular Session | Amended
Bill Title: Relating To Eviction Mediation.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Engrossed) 2024-03-15 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with Representative(s) Pierick voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ganaden, Gates, Martinez, Quinlan excused (5). [SB3332 Detail]
Download: Hawaii-2024-SB3332-Amended.html
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THE SENATE |
S.B. NO. |
3332 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.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:
SECTION 1. The legislature finds that, due to wildfires on Maui during 2023, thousands of Hawaii residents have lost their jobs and have been unable to pay their rent. The governor has issued proclamations relating to wildfires to provide protections for tenants struggling to pay rent during this time, including an eviction moratorium that prohibits any eviction from a residential dwelling unit for failure to pay rent. The legislature finds, however, that the eviction moratorium will expire. Therefore, a balanced approach is needed to encourage communications and facilitate mediation between landlords and tenants to help reduce the large number of summary possession cases that are expected to follow the expiration of certain wildfire proclamations.
Accordingly, the purpose of this Act is to:
(1) Establish a procedure that requires those landlords to engage in mediation and delay filing an action for summary possession if a tenant schedules or attempts to schedule a mediation, and restricts when those landlords may exercise certain remedies;
(2) Require tenants and landlords to be responsible for their own attorney's fees and costs related to pre‑litigation mediation;
(3) Establish an emergency rent relief program available to participants in pre-litigation mediation to provide resources that will help tenants avoid eviction and maintain stable tenancies; and
(4) Appropriate funds.
SECTION 2. Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§521- Pre-litigation mediation for tenancies subject to the emergency proclamation. (a) This section shall apply to any tenancy subject to suspension of sections 521-68, 521-71, and chapter 666, under emergency proclamations issued by the governor and relating to wildfires when it becomes legally permissible to terminate a residential tenancy for nonpayment of rent.
(b)
A landlord or the landlord's agent, any time after rent is due, may
demand payment thereof and notify the tenant in writing that unless payment is
made within a time period mentioned in the notice as provided in subsection
(c), not less than fifteen calendar days after receipt thereof, the rental
agreement 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, subject to
subsections (c) through (j). 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.
(c) The fifteen calendar day notice shall
provide, at a minimum, the following information:
(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
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 (d),
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 says: "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
tenant cancels the scheduled mediation or does not appear at the scheduled
mediation, the landlord may file the summary possession action immediately and
shall not be required to wait for the expiration of the thirty calendar
days. 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.
(d) Landlords or their agents shall provide the
fifteen calendar day notice to any mediation center funded by the State 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. The mediation center shall offer to
facilitate the mediation using remote means, such as video conferencing,
telephone, or other similar means, and shall not require in-person 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. If the
tenant schedules, but then cancels, a mediation, or if the tenant does not
appear at the scheduled mediation, the landlord may file the summary proceeding
for possession immediately and shall not be required to wait for the expiration
of the thirty calendar days.
(e) 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.
(f) 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.
(g)
If the mediation has occurred as of 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.
(h) If there is any defect in the fifteen
calendar day notice described in subsection (c) provided by the landlord, and
the court determines that the defect was unintentional and immaterial, the
court may allow the landlord to cure the defect without dismissing the action
for summary possession.
(i) No landlord may bring a summary proceeding
for possession for a tenant's failure to pay rent except pursuant to this
section and as follows:
(1) Beginning on the first day after the
expiration date of the final eviction moratorium through the thirtieth day
after the expiration date of the final eviction moratorium, the rent due shall
be equal to or greater than four months of rent;
(2) Beginning on the thirty-first day
after the expiration date of the final eviction moratorium through the
ninety-first day after the expiration date of the final eviction moratorium,
the rent due shall be equal to or greater than three months of rent;
(3) Beginning on the ninety-second day
after the expiration date of the final eviction moratorium through the one
hundred fifty-second day after the expiration date of the final eviction
moratorium, the rent due shall be equal to or greater than two months of rent;
and
(4) Beginning on the one hundred
fifty-third day after the expiration date of the final eviction moratorium
through the three hundred sixty-fifth day after the expiration day of the final
eviction moratorium, the rent due shall be equal to or greater than one month
rent.
(j)
Each tenant and landlord shall be responsible for bearing the party's
own costs, including attorney's fees, relating to the mediation.
(k) 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.
(l) For purposes of this section, "final
eviction moratorium" means an emergency proclamation or supplementary
proclamation, or any extension thereof, issued by the governor and relating to
wildfires, that prohibits any eviction from a residential dwelling for a
failure to pay rent, and either is not renewed by the governor or, if renewed
or extended, does not include any prohibition related to evictions from a
residential dwelling unit for failure to pay rent; provided that nothing in
this section shall prevent the governor from either reinstating or issuing a
new emergency proclamation that contains a prohibition against eviction from a residential
dwelling for failure to pay rent."
SECTION 3. The suspension of sections 521-68 and 521-71, Hawaii Revised Statutes, and chapter 666, Hawaii Revised Statutes, under the various proclamations issued by the governor and relating to wildfires may continue until termination of the proclamation by the governor or expiration of the proclamation.
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 2024-2025 for the judiciary to contract for mediation services required by this Act.
The sum appropriated shall be expended by the judiciary for the purposes of this Act.
PART II
SECTION 5. (a) There shall be established within the Hawaii public housing authority an emergency rent relief program available only to participants in pre-litigation mediation pursuant to section 521- , Hawaii Revised Statutes, as added by this Act, to provide resources that will help tenants avoid eviction and maintain stable tenancies.
(b) Participants in the emergency rent relief program shall be eligible to receive rent relief payments after completing mediation. A participant shall be limited to receiving a maximum of $ under the program and may elect to receive one of the following forms of payment:
(1) A one-time payment of $ to be used for back rent, plus an additional four monthly payments of $ ; or
(2) Ten monthly payments of $ .
(c) The total amount of payments made to participants each fiscal year under the emergency rent relief program shall not exceed $ .
(d) The Hawaii public housing authority may enter into memoranda of agreement with the counties or qualified non-profit organizations, as necessary, to implement this section.
(e) The Hawaii public housing authority shall be exempt from chapter 103D, Hawaii Revised Statutes, in selecting a qualified non-profit organization to administer the emergency rent relief program and shall, without regard to chapter 91, Hawaii Revised Statutes, establish rules and qualification standards for the emergency rent relief program; provided that the rules, at a minimum, shall prohibit a tenant from participating in the emergency rent relief program more than once.
SECTION 6. 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:
(1) For an emergency rent relief program to be made available only to participants in the pre-litigation mediation pilot program, pursuant to section 521- , Hawaii Revised Statutes, as added by section 2 of this Act, for the purposes of avoiding eviction and maintaining stable tenancies; and
(2) To fund the cost of administering the emergency rent relief program, including administrative and monitoring expenses incurred by the Hawaii public housing authority and the nonprofit organization acting as the intermediary recipient.
The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.
PART III
SECTION 7. 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 8. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date; provided that any contract in effect prior to the effective date of this Act that is subsequently renewed or extended on or after the effective date of this Act shall comply with the requirements of this Act.
SECTION 9. This Act shall not be applied so as to impair any contract existing as of the effective date of this Act in a manner violative of either the Hawaii State Constitution or article I, section 10, of the United States Constitution.
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 2040; provided that the governor shall notify the chief justice, legislature, and revisor of statutes no later than twenty days prior to the expiration of the final eviction moratorium identified in section 3 of this Act, that the governor will not issue any further eviction moratoria in response to the wildfires; provided further that section 2 of this Act shall take effect on the date of the expiration of the final eviction moratorium identified in section 3 of this Act.
Report Title:
Housing;
Landlord-Tenant Code; Remedies; Notice; Failure to Pay Rent; Mediation; Wildfires;
Governor Notice; Judiciary; Hawaii Public Housing Authority; Emergency Rent
Relief Program; Appropriations; General Fund Expenditure Ceiling Exceeded
Description:
Establishes an alternative process for the termination of
the rental agreement that involves mediation.
Requires the Governor to notify the Chief Justice, Legislature, and
Revisor of Statutes when the final wildfire proclamation will expire. Establishes an Emergency Rent Relief
Program. Makes appropriations. Declares that the appropriation exceeds the
state general fund expenditure
ceiling for 2024-2025. Effective 7/1/2040. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
