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Kat was Hannah's neighbor and friend at one time, before most of the events described in the book. She dated Justin for a brief while.
She moves away to another city before the start of the class year, and gives a going-away party during the summer.
Her going-away party is mentioned very early on as the event where Hannah caught Clay's eye and Justin caught Hannah's. Zach attended that party as well and attempted to impress Kat and Hannah at the time. Even though Kat still had a thing for Justin she let Hannah be with him because Kat is going away and will not be here.