2026-09-10 · Hawaii · Legislation · Did not pass

The Legislature had a bill on the table addressing what a foreclosing association may keep out of the rent it collects. Conferees were appointed in both chambers, no meeting was ever noticed, and the courts answered the question instead.¹

SB 2765 (2026) amended HRS § 514B-146.

What it proposed

A clean line drawn at the appointment of a commissioner in the lender’s later foreclosure. An association holding title through its own foreclosure would:

• retain rental income received before a commissioner is appointed; and
• be subject to a court order to remit rental income received after that appointment, held until an order of distribution.

How it died

House third reading April 8, 2026 was contested — eight noes. House conferees appointed April 20; Senate conferees April 24. Last action: “4/27/26: Received notice of Senate conferees (Sen. Com. No. 761).”

No conference committee meeting was ever noticed. The bill carried a defective effective date of July 1, 3000, the usual marker of a measure steered into conference. It never got there in any working sense.

What the courts did instead

Two Intermediate Court of Appeals decisions in 2026 drew the line in a different place: not at the commissioner’s appointment, but at how the association acquired title, and at the first judgment determining a senior mortgagee’s priority.

1. SB 2765 (2026), Hawaii State Legislature status feed ↩
2. AOAO of Kawaihae Crescent East v. Yang, No. CAAP-24-0000480, Hawaii ICA, July 22, 2026 ↩
3. US Bank Trust N.A. v. AOAO Haleakala Gardens, No. CAAP-24-0000505, Hawaii ICA, June 8, 2026 ↩