The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Water & Land on Feb. 10, 2026.
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Feb. 10, 2026, 9 a.m.
Hawaii State Capitol
Conference Room 411 and Videoconference
To: House Committee on Water & Land
Rep. Mark J. Hashem, Chair
Rep. Dee Morikawa, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY IN OPPOSITION TO HB1861 — RELATING TO THE COUNTIES
Aloha Chair, Vice Chair and other Committee members,
The Grassroot Institute of Hawaii opposes — and offers an amendment to — HB1861, which would allow the counties to sell property through non-judicial foreclosure, subject to certain conditions.
We sympathize with the desire of the counties to address nuisances and recoup fines, but this bill does not adequately protect the equity interests of homeowners. Unless those interests are protected, any actions taken 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 this bill be amended to protect a homeowner’s equity interest by ensuring that excess money from a sale be returned to the property owner.
Moreover, we are concerned that the sales envisioned in this bill are ripe for corruption. Without a provision that requires the property be sold promptly at or near market value, it is possible for a bad actor to deprive the owner of his or her equity interest in the property.
For example, in Michigan, corruption at the local level resulted in some foreclosed properties being sold far below market price to friends and families of local officials.[1]
If this bill were to move forward, we suggest that the Committee amend the language of the bill to include the bolded language as follows:
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Ending Home Equity Theft,” Pacific Legal Foundation, accessed Feb. 4, 2025.
