HB 844 Summary

• Applies mandatory terms to leases of commercial and industrial properties where the lessor owns 50,000+ square feet of such property in Hawaii.

• Prohibits lessors from unreasonably withholding approval for lessee assignments, transfers, or encumbrances of leasehold property.

• Limits lessees on leases with less than 30 years remaining from making major improvements, restricting them to reasonable maintenance and repairs needed to comply with federal, state, and county laws.

• Requires lease rent increases to consider the financial feasibility of the increase relative to the current use of the property.

• Allows lessors a state income tax exclusion on gains realized from selling leasehold interests and improvements to lessees, effective July 1, 2011.