Some island landlords have rejected about $8 million in direct payments to cover the rents they’re owed because they do not have general excise tax licenses and are not paying taxes on their rental income.

Where that leaves renters who have qualified and been approved to have their back rent covered through the state’s Rent Relief & Housing Assistance Program is unclear once the current ban on evictions is scheduled to expire at the end of the year.

“We don’t know what happens in January,” said Kent Miyasaki, spokesman for the state Hawaiʻi Housing Finance and Development Corporation (HHFDC).

“One of the primary reasons for the gap, as we understand it, is some of the landlords are unwilling to participate in the program, unwilling to sign off to receive the payments — allegedly because they don’t have their GE (general excise tax) licenses,” Gavin Thornton, executive director of Hawaiʻi Appleseed Center for Law & Economic Justice told the and House Select Committee on COVID-19 Economic and Financial Preparedness.

“They’re not paying their taxes on that rental income. So that’s potentially a problem that could prevent tenants who otherwise are eligible for the program, not receiving those funds that they really need. So we’re hoping very much that those tenants somehow, some way, will ultimately be able to access those resources,” he added.