Eviction Mediation

The Governor has signed Act 278 (2025) (SB825 CD1), significantly altering the process for evictions by expanding mediation timelines and adjusting the steps housing provider must take before filing. Understanding these updates is essential for staying compliant and avoiding costly delays in regaining possession of your rental. The statute takes effect February 5, 2026.

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Why This Bill Matters to Housing Providers

The eviction mediation process is designed to encourage early communication between housing providers and tenants when rent is overdue. This could offer housing providers a chance to recover unpaid rent without going through lengthy court proceedings. However, it also introduces mandatory mediation steps, potentially slowing down the eviction process. For housing providers, especially DIY housing providers, it's important to understand how this bill can work for or against your interests.

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What Problem Is Act 278 Trying to Solve?

The Legislature recognized that:

• Tenants often fall behind on rent due to temporary hardship but still want to stay in their homes.

• Housing Providers, especially small property owners, face mortgage defaults and financial stress when tenants stop paying rent.

Act 278 attempts to address both by mandating earlier communication and structured mediation, with the goal of preventing unnecessary evictions and fostering mutual resolutions when possible.

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Key Highlights of Act 278

• Notice Period Extended: Housing Providers must now give 10 calendar days' notice (up from 5 business days) before terminating a lease for nonpayment of rent.

• Mandatory Notice Language: The 10-day notice must now include Housing Provider and tenant contact info, rental address, exact rent owed, confirmation that the notice is being sent to a state-funded mediation center, and a specific bold-faced warning about timelines and mediation rights.

• Mandatory Mediation: If the tenant schedules mediation within that 10-day period, the housing provider cannot file for eviction until 20 days after the notice is received.

• Mediation Must Occur Within 30 Days: Mediation sessions must be scheduled within 30 calendar days of contact by a mediation center.

• Housing Providers Can Recover Costs: If the tenant defaults on a mediation agreement or fails to attend, the housing provider can recover reasonable attorney fees and costs.

• Pilot Program Timeline: Begins February 5, 2026; Ends February 4, 2028. The 10-day notice period remains permanent even after the pilot ends.

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The pilot program is temporary but provides a glimpse into Hawaii's ongoing efforts to balance housing stability with housing provider rights. Understanding and preparing for these processes is key to protecting your rental income. Mandatory Mediation is ONLY required for actions related to non-payment of rent. For summary possession proceedings arising from a breach of the agreement not related to non-payment, no mediation is required.

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Practical Tip to Ensure Compliance

• Do not wait until the expiration of the grace period to send notice. Rent is typically due on the first of every month. By sending the required Notice to Pay Rent on the day after rent is due, the 10-day time period starts (add two days for mailing).

• Connect with Mediation Center. Do not wait until you are sending the 10-day notice to locate the contact information for the mediation center for your county.

• All timelines for Act 278 are calendar days. Whenever notice is given by regular US mail, you will add two days to the prescribed time.

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If mediation is: Not scheduled within the 10 days → housing provider may file on day 11; Scheduled by tenant → housing provider must wait until day 21; Attended but unsuccessful → housing provider may proceed without another mediation; Agreed to, but tenant defaults → housing provider may recover all costs (including reasonable attorney fees).

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Benefits and Challenges

For Hawaii's independent housing providers, Act 278 offers a mix of protections and procedural hurdles. On the one hand, the pilot program may reduce the need for costly court proceedings by encouraging early dialogue and mutually beneficial settlements through mediation. On the other hand, the legislation introduces a longer and more complex timeline before a housing provider can initiate an eviction.

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The Eviction Mediation pilot program will most directly affect small-scale and independent rental housing providers who manage their own properties without the support of a property manager or legal team. These "do-it-yourself" housing providers often rely on timely rent payments to meet their own financial obligations.