Eviction Mediation
Hawaii’s Eviction Mediation Pilot Program:
What Housing Providers Need to Know About
Act 278 (2025) (SB825 CD1 (2025))
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.
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.
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.
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 (after credits);
Confirmation that the notice is also being sent to a state-funded mediation center
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.
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.
Practical Tip to Ensure Compliance:
Hawaii’s rental landscape continues to evolve, and Act 278 represents the state’s push for collaborative solutions in housing disputes. Housing Providers should be proactive:
Do not wait until the expiration of the grace period to send notice. Rent is typically due on the first of every month. You may provide your tenants a grace period - but remember, a grace period does not extend the rent due date, it only provides that you will not charge a late fee if the rent is paid during the grace period. 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). Stay tuned for alerts relating to form availability.
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.
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)
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. This could be especially helpful in cases where tenants are temporarily behind on rent but genuinely want to stay and make good on their obligations. Additionally, housing providers who comply with the process and still encounter tenant defaults after mediation can seek reimbursement for reasonable attorney fees and other mediation-related costs — an important safeguard that wasn’t always clearly available under previous law. The bill also replaces the ambiguous five-business-day notice with a clear ten-calendar-day standard, offering consistency and reducing confusion for housing providers and tenants alike.
On the other hand, the legislation introduces a longer and more complex timeline before a housing provider can initiate an eviction. If a tenant engages the mediation process, the housing provider must wait at least twenty days from the date the notice is served before filing for summary possession. The new notice requirements also demand more detailed content and require housing providers to notify and coordinate with state-funded mediation centers — steps that can feel burdensome, especially for mom-and-pop housing providers managing their own properties. Furthermore, the requirement to participate in mediation, even when it appears unlikely to yield results, may lead to additional delays without guaranteed resolution. Overall, the pilot program brings a more structured process, but at the cost of added administrative responsibility and time.
The Eviction Mediation pilot program will most directly affect small-scale and independent rental housing providers — those 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, and any delay in regaining possession of a unit can strain their budgets significantly. Because the bill requires strict compliance with notice content, mediation timelines, and documentation, housing providers who are less familiar with legal procedures may face steep learning curves. Additionally, providers with tenants experiencing chronic or complex financial hardship — especially those who may use mediation to stall rather than settle — are more likely to feel the effects of the extended timelines and mandatory participation requirements. For housing providers with only one or two units, these added responsibilities and delays could be the difference between staying afloat and falling behind on their own housing costs.
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DISCLAIMER: The information and forms provided on this website, in this blog post, or in the newsletter is for general informational purposes only and does not constitute legal advice. If you need legal assistance specific to your property or situation, please contact a licensed attorney.