(a) In the lease rent renegotiation process, the renegotiated lease rent for an apartment owner-occupant may be set by arbitration as provided in § 39-1.4(b) or by voluntary agreement without arbitration.
(b) Each renegotiated lease rent set by an arbitrator or by voluntary agreement without arbitration shall not exceed the applicable maximum.
(c) After being set by an arbitrator or voluntary agreement, but before taking effect, each renegotiated lease rent shall be submitted to the department. The purpose of the submission to the department is for certification that the renegotiated lease rent is within the applicable maximum. The apartment owner-occupant and lessor shall jointly submit the renegotiated lease rent. Upon submission, the department:
(1) May hold an agency hearing on the renegotiated lease rent;
(2) May require the apartment owner-occupant and lessor to submit relevant information; and
(3) May conduct its own study and investigation.
(d) The renegotiated lease rent shall be deemed within the maximum if:
(1) The department so certifies within 30 days of the submission of the renegotiated lease rent; or
(2) The department fails to issue a certification by the 30th day following the submission of the renegotiated lease rent.
If, within 30 days of submission, the department certifies that the renegotiated lease rent is not within the maximum, the renegotiated lease rent shall be invalid and shall not take effect. The department shall order the apartment owner-occupant and lessor to renegotiate again.
(e) A party aggrieved by the department’s action or inaction under this section may appeal to the department. Upon receipt of an appeal, the department shall:
(1) Hold an agency hearing in accordance with the contested case procedures of HRS Chapter 91; and
(2) Issue an appropriate decision and order.
(f) If a court of competent jurisdiction rules or the State attorney general or corporation counsel opines that a renegotiated lease rent set by an arbitrator may be vacated, modified, or corrected only pursuant to HRS Chapter 658A, and not by action of the department, an action to vacate, modify, or correct the renegotiated lease rent set by an arbitrator shall be subject to HRS Chapter 658A, and no appeal of the renegotiated lease rent set by an arbitrator shall be made to the department.
(1990 Code, Ch. 39, Art. 1, § 39-1.9) (Added by Ord. 91-96)