Report Title:

Residential Landlord-tenant Code; Foreclosures

 

Description:

Requires landlord to give tenant prior notice of a foreclosure action and 30-day notice of foreclosure sale.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

443

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to landlord-tenant code.

 

 

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

 


SECTION 1. Chapter 521, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . FORECLOSURE OF DWELLING UNIT

521-A Notice of foreclosure; foreclosure sale. (a) Before the commencement of a tenancy, the landlord or any person authorized to enter into a rental agreement on the landlord's behalf shall disclose to the tenant in writing if the dwelling unit being rented is the subject of a pending foreclosure action pursuant to chapter 667. If the dwelling unit is subject to a pending foreclosure action, the landlord or authorized person shall provide the tenant with a copy of:

(1) The decree of foreclosure pursuant to section 667-1;

(2) Notice of foreclosure pursuant to section 667-5; or

(3) Notice of default pursuant to section 667-22,

together with a written notice substantially in the following form:

"As is set forth in the attached notice, this property is undergoing foreclosure. For more information on this action, you should contact the mortgagee, attorney of the mortgagee, or person responsible for issuing the attached notice

A sale at auction may or may not occur as a result of this foreclosure. Currently, the sale of this property has been set for           (time, date, and place) or no date for sale of this property has been established. You will receive written notice of the sale at least thirty days before it takes place.

If there is a sale of this property at auction, the following will occur:

If you entered into your rental agreement before            (date the foreclosure action was initiated), your current rental agreement converts to a month-to-month tenancy upon the sale of the property.

If you entered into your rental agreement after           (date the foreclosure action was initiated) and the agreement included a notice of the foreclosure, your rental agreement will become a month-to-month rental agreement on the date a court approves the sale. The new owner may offer to honor your current rental agreement but is not required to do so. You may accept or reject any such offer.

If you entered into your rental agreement after            (date the foreclosure action was initiated) and the agreement did not include a notice of the foreclosure, within fourteen days after purchasing the home, the new owner must give you a written offer to honor your current rental agreement. If you do not accept that offer, your rental agreement will become a month-to-month agreement.

Note: With a month-to-month rental agreement, either the tenant or the landlord may terminate the agreement by providing written notice of termination to the other at least thirty days prior to a date on which the rent payment normally is due. The rental agreement then terminates on that date."

(b) At least thirty days prior to a foreclosure sale, the landlord shall provide to the tenant a copy of the notice of foreclosure sale pursuant to part I of chapter 667 or public notice of public sale pursuant to section 667-27.

521-B Foreclosure sale. (a) Except as provided in this section, any rental agreement for a residential property that is the subject of a foreclosure action shall convert to a month-to-month rental agreement upon the approval of a sale at auction by a court pursuant to part I of chapter 667 or the recordation of the affidavit and conveyance document pursuant to section 667-33.

(b) If a tenant entered into a rental agreement after foreclosure begins and the tenant was not provided the notice of a foreclosure action or notice of sale as required by section 521-A, an owner who purchases the property at auction, within fourteen days after that purchase is concluded with the issuance of a court order pursuant to part I of chapter 667 or recordation of the affidavit and conveyance document pursuant to section 667-33, shall offer to honor the existing rental agreement. If the tenant does not accept that offer within fourteen days, the rental agreement shall convert to a month-to-month rental agreement.

521-C Remedies. If a landlord or a successor in interest either fails to honor a rental agreement as required by section 521-B; or fails to provide the written notices as required by section 521-A, a tenant may recover, in addition to any other remedy under law:

(1) The greater of the actual damages or one month's rent plus the security deposit amount and reasonable attorney's fees; or

(2) Obtain injunctive relief to enforce the rental agreement,

or both."

SECTION 2. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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