HI SB5

Establishes a Housing Savings Account System in Hawaii with a board of eight members, including state department directors, employer and employee representatives, and legislative appointees.

Requires all employers in Hawaii to offer employees the opportunity to contribute to housing savings accounts through payroll deduction, with employers permitted to match contributions.

Sets automatic employee enrollment with a default contribution rate of 5% of compensation, allowing employees to opt out or elect a different contribution amount.

Permits employees to withdraw funds at any time without penalty for housing-related expenses including downpayments, mortgage payments, rent, or security deposits.

Specifies that housing savings account contributions are not exempt from state income tax and do not receive additional tax benefits.