HI SB5

Establishes a Housing Savings Account System in Hawaii administered by a board within the Department of Budget and Finance, consisting of eight members including three state directors, four gubernatorial appointees, and two legislative advisory members.

Requires all employers in Hawaii to offer employees the opportunity to contribute to individual housing savings accounts through payroll deduction, with an optional employer match component.

Sets automatic employee contribution at 5 percent of compensation with the ability to opt out entirely or elect a different contribution amount at any time.

Allows tax-free withdrawals from housing savings accounts at any time without penalty for purposes including down payments, mortgage payments, rent, or security deposits.

Designates funds contributed to housing savings accounts as non-exempt from Hawaii income tax chapter 235 and ineligible for additional tax benefits.