Hawaii Senate Bill SB1121

Hawaii 2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/27/23
• Report Pass: 2/17/23
• Refer: 2/17/23

Caption

Relating To Homestead Exemptions.

Impact

The bill mandates the Hawaii State Bar Association's Real Property and Financial Services Section to conduct a comprehensive study aimed at determining an appropriate increase to the homestead exemption as it relates to bankruptcy proceedings. This study will identify similarities and differences in homestead exemptions in comparable states and assess the fiscal implications for the state and its counties. By requiring an in-depth analysis of claim frequency and the structure of exemptions elsewhere, the bill aims to align Hawaii's practices with the current economic landscape and family needs.

Summary

Senate Bill 1121, introduced in the legislature of Hawaii during the 2023 session, focuses on the topic of homestead exemptions. The bill recognizes the economic challenges faced by Hawaii families, particularly stemming from the COVID-19 pandemic. It highlights the high cost of living and increasing mortgage debt that have impacted homeownership over recent years. Critically, the homestead exemption amount has remained unchanged since 1978, which has led to significant changes in property values and the need for an adjustment that reflects these circumstances.

Contention

Key points of contention around SB1121 may revolve around the implications of adjusting the homestead exemption. Advocates argue that a higher exemption is essential to protect families in financial distress, especially considering the dramatic rise in property values. Critics, however, may raise concerns about the fiscal impact of such changes on state and local revenues. The extent of the adjustment and its potential effects on housing affordability and availability will likely be pivotal components of the discussion as stakeholders weigh the benefits against the fiscal responsibilities of the state.