Bill Text: HI SB1133 | 2024 | Regular Session | Introduced

Hawaii Senate Bill 1133

Introduced

Bill Title: Relating To The Landlord-tenant Code.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [SB1133 Detail]

Download: Hawaii-2024-SB1133-Introduced.html

THE SENATE	S.B. NO.	1133
THIRTY-SECOND LEGISLATURE, 2023
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 one of the most instrumental actions taken during the coronavirus disease 2019 (COVID-19) pandemic was the creation of the mandatory landlord‑tenant mediation program. The legislature further finds that this program helped to ensure that tenants were not quickly and arbitrarily displaced by creating a venue for landlords and tenants to resolve financial shortfalls and other disputes and negotiate the time needed for tenants to find replacement housing and address other hardships. Additionally, this program provided a more efficient avenue for landlords to obtain resolutions for these types of disputes.

The legislature also finds that the rental market on Maui has become both exorbitant and scarce. Many tenants are given minimum legal notice to vacate, are unable to secure housing, and often do not have the time to submit the necessary paperwork to obtain rental assistance.

The legislature believes that the landlord-tenant mediation program should be continued. Many groups have found that the continuation of this program will provide stability and continuity to tenants throughout the State during this economically volatile time and in this overpriced rental market. The legislature also believes that continuation of this program will help to alleviate the cost borne by landlords and tenants by allowing both parties to avoid court costs.

Accordingly, the purpose of this Act is to reenact the COVID-19 era landlord-tenant mediation program by:

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

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

(3) Requiring landlords to provide specific information in the fifteen-calendar day notice to tenants and certain mediation centers.

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 shall state, at a minimum, the following:

(1) The name and contact information of the landlord or the landlord's agent, 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 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 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) 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) No landlord may bring a summary proceeding for possession for a tenant's failure to pay rent except pursuant to this section.

(h) 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the provision of rental assistance and to contract for services permitted by this Act and the guidance published by the United States Treasury to assist households that do not qualify under American Rescue Plan Act of 2021, section 3201, Emergency Rental Assistance, Housing Stability Services funds.

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. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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, 2023.

INTRODUCED BY:	_____________________________

Report Title:

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

Description:

Extends from 5 business days to 15 calendar days the period for a notice of termination of a rental agreement. Requires landlords to engage in mediation and delay the filing of an action for summary possession if a tenant schedules or attempts to schedule a mediation. Requires landlords to provide specific information in the 15-calendar day notice to tenants and certain mediation centers. Appropriates moneys.

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