S.B. 946 Summary

• Establishes a Commercial Rent Relief Grant Program to provide grants to owners of commercial, hotel and resort, or industrial properties who forgive rent to eligible tenants affected by COVID-19 pandemic closures.

• Property owners are eligible for grants not to exceed three percent of 2019 taxable revenue, annualized revenue for businesses with less than twelve months' operating history, or three months of full rent, whichever is less.

• Property owners must provide rent forgiveness to commercial tenants in a cumulative amount not less than the value of the grant received.

• Eligible commercial tenants must demonstrate at least a forty percent decline in taxable revenue, be registered small businesses with leases dated before March 20, 2020, be majority-owned by Hawaii residents, and not be publicly traded national or international chains (except locally-owned franchises).

• Grants are funded through federal stimulus funds appropriated to the emergency and budget reserve fund, with the Department of Taxation administering the program; effective July 1, 2050.