SB 946 Summary

• Establishes a Commercial Rent Relief Grant Program for property owners of commercial, hotel/resort, or industrial properties who provide rent forgiveness to eligible tenants.

• Property owners are eligible for grants up to three percent of 2019 taxable revenue, annualized revenue for new businesses, or three months of full rent (whichever is less), provided they forgive rent to commercial tenants in an equal or greater amount.

• Eligible commercial tenants must demonstrate a 40 percent or greater decline in taxable revenue, be small businesses under SBA standards, be locally-owned and operated (with lease dated before March 20, 2020), and be currently open or unable to open due to government restrictions.

• Department of Taxation administers applications with county cooperation; fraudulent applications constitute a violation of Hawaii Revised Statutes section 661-21.

• Funding sourced from federal appropriations with priority given to this program; separate appropriation of unspecified amounts to emergency and budget reserve fund for fiscal years 2021-2022 and 2022-2023; effective date is July 1, 2050.