HB1324 - Commercial Property Rent Relief Summary

• Establishes a commercial rent relief grant program administered by the Department of Business, Economic Development, and Tourism, funded through federal sources.

• Eligible property owners include those with commercial, hotel/resort, or industrial-classified properties who provide rent forgiveness to tenants equal to or exceeding the grant amount received.

• Grants are capped at three percent of 2019 taxable revenue, annualized revenue for businesses established before March 20, 2020, or three months of full rent, whichever is less.

• Eligible tenants must demonstrate at least 40 percent decline in taxable revenue due to COVID-19, be registered small businesses, occupy space under leases dated before March 20, 2020, and have majority owners who are Hawaii residents.

• Property owners receiving grants cannot evict or take retributive action against tenants for nonpayment of forgiven rent; fraudulent applications violate Hawaii Revised Statutes Section 661-21.