The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Water & Land on Feb. 5, 2026.
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Feb. 5, 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 HB1990 — RELATING TO RESIDENTIAL REAL PROPERTY
Aloha Chair, Vice Chair and other Committee members,
The Grassroot Institute of Hawaii opposes HB1990, which would allow county permitting agencies or the attorney general — or a private entity under certain circumstances — to commence foreclosure procedures upon private property and use the revenues to satisfy unpaid civil fines for unaddressed zoning violations related to the property.
First, we urge the Committee to consider the possibility that the foreclosures and sales envisioned in this bill might 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 attorneys 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 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 the bill be amended to protect the homeowner’s equity interest, which would include the removal of the provision directing a percentage of the fines assessed to the general fund.
Moreover, we are concerned that the sales envisioned in this bill are ripe for corruption especially given the ability of a private entity to act in foreclosure. 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.[2]
If this bill were to move forward, we suggest that the Committee remove section 3(c), which allows private entities to commence foreclosure proceedings, in its entirety. In addition, we suggest that the Committee amend the language of the bill to include the bolded sections as follows:
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[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.
[2] “Ending Home Equity Theft,” Pacific Legal Foundation, accessed Feb. 4, 2025.
