SB2957 SD1

SECTION 1. The legislature finds that the State is facing an affordable housing shortage. Although significant efforts have been made to facilitate the production of more housing and remove barriers to the development of affordable housing, these developments have had the unintended consequence of displacing and dislocating the tenants who were living in rental housing marked for redevelopment.

The legislature further finds that displacement, whether due to redevelopment, rising rents, or other factors, has profound impacts on individuals, families, and communities. Tenants forced out of their housing due to redevelopment face the loss of social networks and economic stability in addition to their loss of housing. These disruptions are most keenly felt by vulnerable populations, who face the loss of critical support systems that buffer the effects of economic and social disadvantage.

The legislature additionally finds that residential instability caused by displacement is linked to numerous negative health and social outcomes, particularly for children and youth. Studies show that frequent moves are correlated with decreased academic performance, increased drug and alcohol use, behavioral issues, and diminished health outcomes. In addition to harming the individual, these outcomes also erode social support networks and communities, making it harder for families to thrive and neighborhoods to remain resilient. Communities that are able to maintain long-term stability provide vital connections to resources, support systems, a sense of belonging, and access to upward mobility.

The legislature believes that while the State must continue to prioritize the production of affordable housing, it is equally important to ensure that these developments do not result in the unnecessary displacement of the communities meant to benefit from the creation of additional affordable housing.

Accordingly, the purpose of this Act is to:

(1) Establish the tenant displacement working group within the Hawaii housing finance and development corporation to address tenant displacement and relocation in the State;

(2) Require the tenant displacement working group to report to the legislature; and

(3) Appropriate funds for the tenant displacement working group.

SECTION 2. (a) There is established the tenant displacement working group within the Hawaii housing finance and development corporation for administrative purposes only.

(b) The tenant displacement working group shall address tenant displacement and relocation in the State including but not limited to the effects of projects developed pursuant to section 201H-38, Hawaii Revised Statutes.

(1) The chair of the senate standing committee on housing, who shall serve as co-chairperson of the working group;

(2) The chair of the house of representatives standing committee on housing, who shall serve as a co‑chairperson of the working group;

(3) The executive director of the Hawaii housing finance and development corporation, or the executive director's designee;

(4) The executive director of the Hawaii public housing authority, or the executive director's designee;

(5) One tenant advocate, to be invited by the co‑chairpersons;

(6) One representative of private developers, to be invited by the co-chairpersons; and

(7) Any other persons with relevant experience or knowledge, as determined by the working group's members and invited by the co‑chairpersons.

(d) The tenant displacement working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.

(e) The tenant displacement working group shall consult with the landlord-tenant working group for the purposes of this Act.

(f) The members of the working group shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(g) No member of the tenant displacement working group shall be subject to chapter 84, Hawaii Revised Statutes, solely because of the member's participation in the working group.

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 2026-2027 for the establishment of the tenant displacement working group.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	2957
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII