HI SB3135

Establishes a three-year pilot project allowing Hawaii Department of Health employees to cash out accrued vacation leave to fund down payments on a primary residence without separating from service.

Eligible employees must be U.S. citizens, Hawaii residents, first-time homebuyers (no ownership in prior three years), employed at least one year, and in good standing with satisfactory performance ratings.

Vacation payouts range from $5,000 minimum to $50,000 maximum per employee, paid directly to escrow or the lender at closing rather than to the employee.

Participants must occupy the purchased property within 90 days and intend to maintain it as their primary residence for at least three years.

Department of Health must submit annual reports to the legislature in 2027, 2028, and 2029, with the pilot program set to expire on June 30, 2029.