HI HB845

Requires lessors to notify lessees no later than five years before expiration of a long-term residential ground lease whether they plan to develop the property, extend the lease, sell the leased-fee interest, or enforce expiration.

Allows lessees to request a minimum ten-year extension of the ground lease for land not subject to development or redevelopment within five years after expiration.

Permits owner-occupants and long-term renters (occupying for at least one year) to remain as tenants under Hawaii's landlord-tenant code after lease expiration if the lessor does not extend, with rent capped at existing maintenance fees plus lease rent or existing rental amounts, with increases limited to consumer price index adjustments.

Provides an income tax credit to lessors who extend long-term residential ground leases for thirty years or more, equal to a specified percentage of annual rental income collected from the extended property.

Takes effect July 1, 2050, except tax credit provisions apply to taxable years beginning after December 31, 2012.