The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Water & Land on Jan. 28, 2025.
_____________
Jan. 28, 2025, 9 a.m.
Hawaii State Capitol
Conference Room 411 and Videoconference
To: House Committee on Water & Land
Rep. Mark J. Hashem, Chair
Rep. Rachele F. Lamosao, Vice-Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN OPPOSITION TO HB29 — RELATING TO THE COUNTIES
Aloha Chair, Vice-Chair, and other members of the Committee,
The Grassroot Institute of Hawaii is concerned about the civil rights implications of HB29, which would allow Hawaii’s counties to sell private property — after the adoption of an ordinance and exhaustion of all notices, orders and appeals — and use the revenues to satisfy any unpaid civil fines related to those properties.
First, we urge the Committee to consider the possibility that the foreclosures and sales envisioned in this bill are not only ripe for corruption, but that it might also unfairly target vulnerable populations. It is possible that the effect of these foreclosures would fall most heavily on older individuals living on fixed incomes who do not have the resources to pay their fines, hire an attorney or otherwise navigate complicated legal and financial matters. According to the AARP, “tax authorities’ seizure of all of their home equity is nothing short of catastrophic” for older individuals.[1]
We sympathize with the desire of the counties to address nuisances and recoup fines, but the bill does not adequately protect the equity interests of homeowners. Unless those interests are protected, any county actions to recoup fines via foreclosure sales would be vulnerable to legal challenge.
In Tyler v. Hennepin County, Minnesota, the Supreme Court held that the county’s retention of the excess value of the plaintiff’s home above her tax debt violated the U.S. Constitution’s takings clause. Thus, it is important that the bill be amended to protect the homeowner’s equity interest.
We suggest that the committee add the following bolded language:
This would not address all of our concerns about HB29, but it would at least prevent the unconstitutional taking of private property.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
_____________
[1] Brief of Amici Curiae AARP and AARP Foundation Supporting Petition for Writ of Certiorari, Tyler v. Hennepin County, Minnesota, Sept. 22, 2022, p. 4.
