HB 1338 Summary

• Prohibits landlords from terminating tenancies without just cause after a tenant has continuously occupied a dwelling unit for 12 months, with just cause defined as either at-fault reasons (non-payment of rent, lease violations, nuisance conduct) or no-fault reasons (landlord occupancy, property withdrawal, government orders, demolition, substantial remodeling, condo conversion, or vacation rental conversion).

• Requires landlords terminating tenancies for no-fault just cause to provide either one month's rent as relocation assistance (paid within 15 days) or waive the final month's rent, with failure to comply rendering the termination notice void.

• Limits rent increases to 2 percent plus the regional Consumer Price Index change (excluding housing costs) with a 7 percent annual cap, and restricts increases to no more than twice per 12-month period for the same tenant.

• Establishes the Hawaii Rent Board comprising 7 members (3 landlords, 3 tenants, 1 neutral party) to publish annual rent adjustment guidelines, oversee compliance, conduct rental arbitration and mediation, investigate wrongful evictions, and publish a tenant bill of rights.

• Creates a Rent Stabilization Special Fund financed by annual fees on rental units to support Hawaii Rent Board operations, with landlords able to charge tenants up to 50 percent of the required fee separately from rent.