(a) Every lease shall include or be deemed to include the following provisions:
(1) Renegotiation of lease rent shall occur no more frequently than every 10 years from and after the rent renegotiation date; provided that the first renegotiation shall not be scheduled before the 15th year following the initial date of the lease;
(2) After any renegotiation, the renegotiated lease rent for the residential apartment of an apartment owner-occupant shall not exceed the maximum under § 39-1.5;
(3) During a renegotiated rent period, the renegotiated lease rent for a residential apartment may be further adjusted biennially in accordance with § 39-1.6; and
(4) The renegotiated lease rent for a residential apartment may exceed the applicable maximum if administratively adjusted pursuant to § 39-1.7.
(b) In the event the parties to an apartment lease are unable to reach agreement under any reopening provision, the department or its designee shall arbitrate, and the maximum lease rent as determined by arbitration shall be certified by the department as provided for in § 39-1.9; provided that where HRS § 516D-12 applies, the arbitration shall proceed pursuant to HRS Chapter 516D. Arbitration proceedings under this subsection will be subject to the following requirements:
(1) An advance deposit, which amount shall be determined by the department, equal to projected expenses and fees of the department or its designees for arbitration proceedings shall be required and shall be paid equally by lessors and lessees. All additional expenses and fees incurred by the department or its designee while acting as the arbitrator shall be borne equally by the lessees and the lessors. These additional expenses and fees shall be subject to monthly billings or other arrangements, which may be specified by contract. If more than one lessee is involved in an arbitration proceeding, all lessess shall share equally in one-half of the arbitration costs. The same division of costs shall apply if more than one lessor is involved in a proceeding.
(2) Failure on the part of any lessee to comply with this subsection, including failure to make advance deposits on payments, shall result in forfeiture of any rights or remedies under this chapter for arbitration, and the lessee’s sole rights and remedies shall be as provided in the lease.
(3) If any lessor fails to comply with this subsection, including failure to make advance deposits or payments, then arbitration proceedings under this chapter will cease and lease rent shall be set at the most recent fixed lease rent. Upon compliance with the provisions set forth in this section, the arbitration may proceed, with the determination of the new lease rent effective from the date of compliance by the lessor.
(1990 Code, Ch. 39, Art. 1, § 39-1.4) (Added by Ord. 91-96)