Relating To The Hawaii Public Housing Authority.
SB1413 authorizes the Hawaii Public Housing Authority (HPHA) to sell, donate, or otherwise dispose of property that has been abandoned or seized in or around federal public housing projects, so long as the authority follows specified notice and disposition procedures. The bill requires certified-mail notice to a known owner at least five days before disposition, or posted notice on the premises if the owner cannot be identified or located. For items estimated at $500 or more per item, HPHA must also provide public notice and conduct a public auction in the county where the property was found, unless no bid is received.
The bill also creates a process for an owner or other entitled person to reclaim the property before disposition by proving entitlement and paying unpaid rent, debts, fines, and related handling, storage, appraisal, and advertising costs. Storage fees must be at least $25 per day. If property is sold, the proceeds are first applied to amounts owed to the State and HPHA, with any remainder held in trust for 30 days before being deposited into HPHA’s special fund. The measure also shields the State and its officers, employees, and agents from liability for actions taken under the new section.
SB1413 amends chapter 356D, Hawaii Revised Statutes, by adding a new section governing abandoned or seized property in federal public housing projects. It gives HPHA express statutory authority to dispose of such property and establishes procedural safeguards for notice, reclamation, public auction, and distribution of sale proceeds. The bill affects HPHA operations, residents, former residents, and any other persons claiming ownership of property left in or around covered housing projects.
The bill appears to have generally favorable support in the Legislature, passing the Senate Housing Committee, Senate Judiciary Committee, and both conference committees, with only one recorded dissent in the House Conference vote. The committee vote pattern suggests broad agreement on the need for a clear process for handling abandoned or seized property in public housing, while still preserving notice and reclamation rights for owners.
The main points of potential contention are the balance between HPHA’s administrative authority and property owners’ rights, including the short five-day notice period, the $500 threshold for public notice and auction, and the requirement that owners pay all outstanding charges and storage costs before reclaiming property. The bill’s storage fee floor of at least $25 per day and the liability waiver for the State may also be viewed as burdensome or protective, depending on perspective. The lone no vote in House Conference suggests at least some concern remained over these provisions or the scope of HPHA’s disposal authority.