HomeMy WebLinkAbout.PD Background & Recommendation Report (PL-CCI-2024-000003) Bill 121 BR-Mnitiated-TAR.doc 12/1/2023
COUNTY OF HAWAI`I PLANNING DEPARTMENT
BACKGROUND AND RECOMMENDATION
COUNTY COUNCIL INITIATED BILL NO. 121 (PL-CCI-2024-000003)
AMENDMENT TO CHAPTER 25,ARTICLE 1,ARTICLE 4,ARTICLE 5,AND
ARTICLE 6, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION,AS
AMENDED),RELATING TO TRANSIENT ACCOMODATION RENTALS AND
HOSTING PLATFORMS
The County Council has referred Bill No. 121 to the Planning Director and the
Windward and Leeward Planning Commissions for comments and recommendations.
PURPOSE OF BILL NO. 121
1. The Hawaii County Council has introduced Bill No. 121 (Planning Department
Exhibit 1), which seeks to amend Chapter 25 (Zoning Code), Article 1, Article 4,
and Article 5 of the Hawaii County Code 1983 (2016 edition, as amended),
relating to transient accommodation rentals (TARs) and hosting platforms for
TARs.
2. The purpose of this bill is to manage the impacts of TARs by: 1)repealing the
definition of"short term vacation rentals"; 2) establishing new definitions for
transient accommodations; 3) amending the rental period from thirty consecutive
days or less to 180 consecutive days or less; 4) clearly identifying three types of
TARs; 5) defining where these uses will be allowed; 6)providing an avenue for
existing TARs to apply for a nonconforming use certificate that would allow them
to continue to operate in a non-permitted district; 7) changing parking
requirements to a schedule set by the planning department rather than a formula;
8) clarifying applicable dates for the tax amnesty; 9) creating standards to regulate
hosting platforms; and 10)providing new enforcement regulations for TARs.
CHRONOLOGICAL BACKGROUND OF SHORT-TERM VACATION
RENTALS
3. In 2018, the Hawaii County Council adopted Ordinance 18 114 (Planning
Department Exhibit 2), also known as Bill 108, relating to short-term vacation
rentals (STVR's). With the adoption of Ordinance 18 114, the Zoning Code
(Chapter 25 of the Hawaii County Code)was updated to include a definition of
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short-term vacation rentals, which was defined as a dwelling unit where the owner
or operator does not live on the building site and is rented for a period of thirty
consecutive days or less. In addition to establishing certain standards and
guidelines for short-term vacation rental (STVR) operations, Bill 108 also
identified the following:
• Identified zoning districts and areas where existing and new STVR's could
operate as a permitted use;
• Included a registration process with filing fees and annual renewal
standards for STVR's.
• Provided standards for existing STVR's that were located outside of the
permitted zoning districts to operate as long as the Planning Director
issued a nonconforming use certificate;
• Prohibited STVR's from being located in single-family dwellings within
the State land use agricultural district on lots existing after June 4, 1976.
• Created a registration process for all existing and new STVR owners to
register with the Planning Department;
• Created standards for the operation of an STVR;
• Provided provisions for the loss of nonconforming STVR's when there is
a declared emergency;
• Established a short-term vacation rental enforcement account that is
administered by the Planning Director; and
• Required the Planning Director to receive and track complaints regarding
STVR's.
4. In the years since the adoption of Ordinance 18 114, the Planning Department has
been active in the administration of the standards and guidelines for STVR's,
which have encountered some challenges. One of the main challenges is the lack
of clarity on hosted vacation rentals and how"hosted"vacation rentals should be
regulated. After recognizing that Bill 108 only regulated"un-hosted rentals", the
County Council introduced Bill 121, which hopes to address hosted rentals and
clarify the standards of operations to make them easier to follow.
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PROPOSED DEFINITIONS
5. Bill 121 proposes to amend Hawaii County Code Chapter 25 (Zoning Code)to
delete the definition of`Short-term vacation rentals' and to include definitions for
`Booking services', `Event', `Gathering', `Hosting platform', `Operator',
`Operator-hosted', `Owner-hosted', `Principal home', `Transient' or `Transients',
`Transient Accommodation', `Un-hosted', and `Verified complaint'.
WHAT IS A TRANSIENT ACCOMODATION?
6. `Transient accommodation' as defined in Bill 121 is, "...the furnishing ofa room,
apartment, suite, single family dwelling, or the like to a transient for less than one
hundred eighty consecutive days for each letting in a hotel, apartment hotel,
motel, or condominium or unit as defined in chapter 514B, cooperative
apartment, dwelling unit, or rooming house that provides living quarters,
sleeping, or housekeeping accommodations, or other place in which lodgings are
regularly furnished to transients. "The definition goes on to offer examples of
what transient accommodations exclude, which include, hotels, motels, inns;
apartment hotels; boarding facilities; lodges; and timeshares.
7. Bill 121 establishes three (3)types of transient accommodation rentals which
include the following:
• Owner-hosted is defined as "...any transient accommodation rental
hosted by a person who uses the building site as their principal home
• Operator-hosted is defined as "...any transient accommodation rental
hosted by an operator". Bill 121 also defines an Operator as "...any
person operating a transient accommodation rental on behalf of a
property owner, who resides on the same building site as the transient
accommodation rental and uses it as their permanent address for legal
purposes"; and
• Lastly, Un-hosted is defined as "...any transient accommodation rental
that is not the principal home of the property owner and without an
operator located on the building site during rental operations".
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PROPOSED AMENDMENTS TO HCC CHAPTER 25 (ZONING)
8. In addition to the definitions above, Bill No. 121 seeks to amend HCC Chapter 25
by repealing all sections of the zoning code that reference STVR's in its entirety
in order to effectively regulate transient accommodation rentals.
9. Bill 121 requires that the three (3)types of TARs register with the Planning
Department. There are exceptions to the types of TARs that do not need to be
registered and those exceptions include: 1)the rental is not being provided to a
transient or a transients as defined by this chapter; 2)there is an emergency
declaration enabling temporary shelter for displaced persons; 3)the dwelling is
the principal home of the host is provided as a home exchange and no financial
exchange occurs; 4)the dwelling is being provided to a tenant under a month-to-
month lease subject to chapter 521, Hawaii residential landlord-tenant code.
WHERE ARE TARs PERMITTED?
10. Proposed Section 25-4-16.1 Owner-hosted transient accommodation rentals
describes that an Owner-hosted TAR may be permitted in any zoning district as
long as the TAR is subordinate and clearly or customarily incidental to its use as
the principal home of the owner. The TAR shall be located in the single-family
dwelling, inclusive of a detached bedroom or guesthouse and shall not be
permitted in an additional farm dwelling, second dwelling, or ohana dwelling.
Additionally, the owner of an Owner-hosted TAR shall live in the single-family
dwelling and not live in a guesthouse or detached bedroom of a single-family
dwelling. If an Owner-hosted TAR has been in regular use as an `ohana dwelling
on or before January 1, 2024, the owner shall have the burden of proof that the
`ohana dwelling was in use as a TAR and may register the `ohana dwelling as a
nonconforming use by securing a nonconforming use certificate from the
Planning Director.
11. Proposed Section 25-4-16.2 Operator-hosted transient accommodation rentals
describes that an Operator-hosted TAR can operate as a permitted use in the
following zoning districts:
• Resort-Hotel (V) zoning district;
• General Commercial (CG) zoning district;
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• Neighborhood Commercial (CN) zoning district;
• Village Commercial (CV) zoning district;
• Downtown Hilo Commercial District(CDH) zoning district;
• Residential districts, situated in general plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the
resort or resort node areas along the shoreline and areas within a project
district; and
• RM (Multiple-Family Residential) zoning district, for multiple family
dwellings within a condominium property regime as defined and governed
by Chapter 514A or 514B, Hawaii Revised Statutes, including within a
project district.
Outside of these areas, new Operator-hosted TARs are not permitted but
Operator-hosted TARs that existed prior to January 1, 2024, may continue to
operate if the TAR is registered and the Planning Director issues a
nonconforming use certificate. The owner shall have the burden of proof in
establishing that the property was in regular use as an Operator-hosted TAR
on or before January 1, 2024 and that the operator was residing on the
property.
12. Proposed Section 25-4-16.3 Un-hosted transient accommodation rentals
identifies that an Un-hosted TAR may be registered at any time in the same
zoning districts as Operator-hosted TARs that are listed above. Un-hosted TARs
within zoning districts that are not listed above, may only operate with an existing
nonconforming use certificate. No new nonconforming use certificates will be
issued for Un-hosted TARs.
HOW ARE EXISTING TARs PERMITTED?
13. Upon adoption of this bill, owners of existing Owner-hosted TARs located within
an existing `ohana dwelling and owners of existing Operator-hosted TARs located
outside of a permitted zoning district, will be required to register and secure a
nonconforming use certificate in order to continue to operate.
14. Owners of existing Owner-hosted TARs that are located within an `ohana
dwelling and owners of existing Operator-hosted TARs located outside of a
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permitted zoning district must provide the following evidence to be granted a
nonconforming use certificate:
• Owner-hosted TAR. For an Owner-hosted TAR, if the TAR has been in
regular use within an `ohana dwelling on the same building site as the
owner, the owner shall have the burden of proof in establishing that the
`ohana dwelling was in use as a TAR on or before January 1, 2024.
• Operator-hosted TAR. For an Operator-hosted TAR, the owner shall
have the burden of proof in establishing that the property was in regular
use as a TAR on or before January 1, 2024, and that the operator was
residing on the property.
• Un-hosted TAR. For Un-hosted TARS, no additional nonconforming use
certificates can be issued.
15. The owner must provide evidence to prove that the TAR was in operation prior to
the effective date listed in the ordinance. TARS located outside of a permitted
zoning district will have until January 30, 2025 to submit a registration
application to the Planning Department. The existing nonconforming Owner-
hosted and Operator-hosted TARs will be able to operate until their application is
either approved or denied by the Department.
16. Existing registered Un-hosted TARs will not be required to re-register, however
they will be required to renew their registration annually.
17. The bill specifically states that the following filing fees will be required:
• Owner-hosted TARs will require an initial registration fee of$500 and an
annual registration renewal fee of$100. In addition to these fees, the filing
fee to secure a nonconforming use certificate (NUC) is $250 and the
annual renewal fee for the NUC is $250.
• Operator-hosted TARs will require an initial registration fee of$750 and
an annual registration renewal fee of$150. In addition to these fees, the
filing fee to secure a nonconforming use certificate (NUC) is $375 and the
annual renewal fee for the NUC is $375.
• Un-hosted TARs will require an initial registration fee of$1,000 and an
annual registration renewal fee of$250. In addition to these fees, the filing
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fee for an Un-hosted nonconforming use certificate is $500 and the annual
renewal fee for the NUC is $500.
REGISTRATION PROCESS
18. Proposed Section 25-4-16.7 Rental registration process outlines the registration
process indicating that all TAR owners will need to submit the following
information to the Department: a registration form that includes the name and
contact information for the property owner or operator if different from the
owner; a site plan showing the location of all structures on site and the requisite
parking; a floor plan showing the location of the rooms for rent; a notarized
affidavit in the format determined by the director that the TAR meets health,
safety and code requirements; a maximum renter limit calculation; verification
that State of Hawaii general excise tax are in effect; and a verification of the
County of Hawaii real property tax clearance certificate. In addition, if
applicable, the owner will be required to submit a copy of their valid real estate
broker's license or real estate salesperson's license.
19. Any TAR that is not registered within the required deadlines is considered
unpermitted and subject to penalties, until the TAR becomes properly registered
and compliant with the requirements of the bill.
ANNUAL RENEWAL PROCESS
20. Proposed in Bill 121 in Section 25-4-16.9 Annual renewal of registration
required, all TARs will be required to submit a renewal registration to the
Planning Department on the dates prescribed by the Director.
21. Bill 121 further identifies in Section 25-4-16.10 Annual renewal of registration;
denial provisions that will allow the Director to deny renewal of registration of a
TAR for any of the following reasons: 1)the applicant has violated pertinent laws,
2)the affidavit affirming that the transient accommodation rental meets all health,
safety and code requirements is found to be inaccurate, 3)the owner is delinquent
in payment of County property taxes, transient accommodation taxes, fees, fines,
or penalties assessed in relation to the TAR, 4) evidence of non-responsive
management, such as issuance of a notice of violation,police reports, or verified
complaints of noise or other disturbances relating to the TAR operations, 5)the
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renewal request and renewal fee were not received withing ninety days of the
expiration date indicated on the certificate, and 6) any violation of standards set
forth in the proposed section 25-4-16.17.
22. The Director must provide the decision to deny renewal of a certificate in writing
and the owner may appeal the decision to the County Board of Appeals within 30
days of receipt of the decision.
CHANGE IN OWNERSHIP PROCESS
23. Bill 121 further provides provisions in Section 25-4-16.12 Transient
accommodation changes of information; ownership that requires owners of
TARs to notify the director when there has been changes to any of the following:
1) host or host's contact information; 2)the reachable person or the reachable
person's contact information; 3) the number of bedrooms included in the TAR; 4)
the site plan, floor plan, of the structure of the TAR; or 5)the TAR has
permanently ceased operations.
24. The change in ownership shall be submitted to the Department on a change of
ownership form alongside a $250 filing fee within ninety (90) days of the change.
ANNUAL RENEWAL OF REGISTRATION AND NONCONFORMING USE
CERTIFICATES REQUIRED
25. All TARs and nonconforming use certificates must be renewed annually. TAR
owners that have registered on or prior to June 30, 2025 shall submit their
registration renewal on or prior to a date specified by the director. TAR owners
that have registered after June 30, 2025, shall renew their registrations by the date
that the TAR registration number was issued by the department.
26. For nonconforming use certificate renewals submitted within ninety (90) days
after the due date, a late renewal fee of$100 shall be assessed. Furthermore,
nonconforming use certificates that are overdue by more than ninety (90) days
will not be accepted and renders the certificate ineligible for further renewal.
27. Renewal applications shall include evidence that the real property taxes and
County of Hawaii transient accommodation taxes for the rental were paid in full
during the previous year; and the annual renewal fee has been submitted.
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28. Renewal of a registration may be denied by the Director for the following
reasons: 1)the applicant has violated provisions of the bill or other pertinent laws;
2)the affidavit is found to be inaccurate; 3)the owner is delinquent in payment of
County taxes, transient accommodation taxes, fees, fines, or penalties assessed in
relation to the TAR; 4)if there is evidence of non-responsive management; 5)the
renewal request and renewal fee were not received within 90 days of the
expiration date indicated on the certificate; and 6) the TAR has violated the
responsive management standards, good neighbor standards, and advertising and
signage standards that are found in Section 25-4-16.17; or 7)the TAR has been
abandoned.
29. Renewal of a nonconforming use certificate include the same renewal
requirements for a registration but also includes that the Director may deny
renewal of a nonconforming use certificate if the use has been abandoned for any
reason for a continuous period of twelve calendar months.
30. The Director must provide the decision to deny renewal of a certificate in writing
to the property owner and the owner may appeal the decision to the County Board
of Appeals within 30 days of receipt of the decision.
STANDARDS FOR OPERATION OF A TAR
31. Bill 121 proposes Section 25-4-16.17 Transient accommodation rental
operation standards which requires that all TARS adhere to posted information
and responsive management standards; good neighbor standards; and advertising
and signage standards.
32. Posted information and responsive management standards.
• Responsive Management. Hosted rentals, which include Owner-hosted
and Operator-hosted TARs, shall have a host physically reside on the
building site of a TAR during the TAR operations and shall be reachable
at the request of renters, neighbors and County agencies within one hour
of the request. Un-hosted TARs shall have a reachable person that shall be
available via telephone to a request for his/her presence within 1 hour of
receiving the request and being physically present at the TAR within 3
hours of receiving a call from a renter, neighbor, or County agency.
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• Posted Information. Registrations and nonconforming use certificates, if
applicable, shall be displayed in a conspicuous place on the premises that
is readily visible to an inspector. For numerous nonconforming use
certificates that are associated with a single address, certificates may be
visible in a common area.
33. Good neighbor standards. All TARS must abide by a good neighbor policy and
include the following:
• Renter Limit. A renter limit that shall not exceed the renter limit
established at the initial registration; registration of all overnight renters
shall be included in the rental agreement.
• Gathering Sizes. The calculation of gathering sizes is limited to two times
the overnight limit with a requirement that gathering sizes must use the
off-street parking available.
• Breakfast Meals. Breakfast meals may be offered to registered guests in
hosted TARS. Owners who wish to serve breakfast shall be required to
secure a permit from the State Department of Health.
• Events. Special events such as weddings, wedding receptions, concerts or
events, are prohibited unless allowed by a special permit or use permit.
Conditions and terms of special use permits and use permits shall be
complied with in an effort to mitigate impacts to surrounding properties.
• Quiet Hours. Quiet hours shall be from 8:00 p.m. to 7:00 a.m.
• Parking. Off-street parking shall meet the requirements set forth in section
25-4-51 and all guests vehicles shall be parked in the designated onsite
parking areas.
34. Advertising and signage standards. Other standards that all TARS must abide
by include advertising and signage standard requirements that include the
following:
• All print and internet advertising shall include the TARs registration
number and, if applicable, non-conforming use numbers.
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• Advertising of unpermitted uses, such as weddings, wedding receptions,
concerts, or events is prohibited unless there is a special permit or use
permit granted to the subject parcel.
• Professional services shall only be provided to registered guests.
• All advertisements for the TAR shall comply with the Sign Code and
County Streets Code.
• Signage displaying the street address of the transient accommodation
rental and the registration number shall be visible from the main roadway
used to access the property.
COMPLAINTS AND ENFORCEMENT OF TARS
35. The bill requires the Director to receive and track complaints regarding TARS,
and provide information about TAR rules,policies and procedures to property
owners, managers, neighbors, and the general public. The Director is also
responsible for implementing the provisions of the bill as well as maintaining a
public list of all transient accommodation rentals that have registered or received
a nonconforming use certificate and include any violations associated with the
property.
36. To enforce the provisions of this bill, the inspectors will be able to rely on any
advertising offering the property as a TAR as evidence that a TAR is operating on
the property. Such evidence shall include advertising of any sort; the ability for
Department staff to book the rental; and Hawai`i County TAT receipts. In
addition,prima facie evidence shall include a third party hosting platform that can
generate a report that the Department may use. The burden of proof shall be on
the owner to establish that the property has been in use in a legal manner.
37. Bill 121 provides further provisions, that if a violation has been found on the
property, the Department is required to issue a notice of violation in writing
within 10 days of the director's determination that the violation has occurred.
38. Should a violation occur, Bill 121 requires that the Planning Director impose fines
located in Section 16-4-16.19 Transient accommodation rental fee and fine
schedule and can further assess fines that are two times the highest daily rate at
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which the TAR has been advertised. The owner and host shall be jointly liable for
all fees and fines imposed in connection with the TAR.
39. Bill 121 provides additional provisions for TARs that have received three or more
enforcement actions within a twelve-month period, which will then allow the
Planning Director to either suspend their TAR registration and, if applicable,
nonconforming use certificate for a period of two years, or refuse to renew a
certificate or registration if the applicant has not addressed an enforcement
violation.
40. Bill 121 also proposes to establish a transient accommodation rental enforcement
account administered by the Planning Director, for the purpose of enforcing this
proposed transient accommodation rental law. The account will be funded by fees
collected for registration of TARs, fees collected for annual renewal of TARs,
fines collected from enforcement actions and if applicable, nonconforming use
certificates.
PROPERTY TAX ASSESSMENTS
41. Bill 121 proposes eligibility requirements for homeowner tax assessments for
TARs pursuant to Chapter 19 (Property Tax). Bill 121 goes further to allow for a
tax amnesty period to be established for TARs.
LOSS OF NONCONFROMING TARs DUE TO EMERGENCY
42. Should a declared emergency occur, Bill 121 proposes a provision that requires
the Director to assess the effect of the permanent loss of a TAR when a declared
emergency occurs, such as lava inundation. The Director can initiate legislative
and administrative opportunities to restore the loss of TARs within the affected
judicial district.
HOSTING PLATFORMS
43. Proposed in Bill 121 is a registration process and registration fee for all hosting
platforms which includes submitting a registration form to the Department that
shall include written consent from all owners or operators of TARs.
44. The hosting platform may cancel its registration by written notice and the director
may cancel a hosting platforms registration for cause, including violations of this
Code.
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45. All hosting platforms registered with the Department shall submit monthly reports
to the Director and shall include: the name of the person responsible for each
listing; the physical address and tax map key number of each listing; the transient
accommodation tax identification number; the length of stay for each listing; and
the fee charged for each stay.
COMPLAINTS AND ENFORCEMENT OF HOSTING PLATFORMS
46. Proposed Section 25-4-17-3 Penalties indicates that the Planning Director can
fine hosting platforms with civil fines of not less than $1,000 and not more than
$10,000 for each day that the violation occurs.
47. Proposed Section 25-4-17.4 Notice of violation and order; cancelation of
registration; appeal of Bill 121 requires the Director to send any notice of
violation and order in writing to the hosting platform within ten days of
occurrence of the violation.
48. Should the Director determine that a cancellation of a hosting platforms
registration will occur, the Director is required to transmit in writing, the notice of
cancellation, to the hosting platform no later than ninety days prior to the effective
date of cancellation.
AGENCY—NO COMMENTS/CONCERNS
49. Department of Public Works-Engineering Division, Department of Water Supply,
Police, Department of Health, State Land Use Commission, State Office of
Planning and Sustainable Development
AGENCY—NO RESPONSE PROVIDED
50. Department of Public Works-Traffic Division, Department of Public Works -
Building Division, Department of Environmental Management, Civil Defense,
Department of Parks and Recreation, Fire, Office of Housing and Community
Development, State Department of Agriculture, Department of Research and
Development.
PUBLIC COMMENTS PROVIDED
51. Testimony from Tom Jones (Planning Department Exhibit 3 -March 6, 2024
Email)
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52. Testimony from Kim and Leska Ratliff(Planning Department Exhibit 4—
March 22,2024 Email)
53. Testimony from Robert Chung (Planning Department Exhibit 5—March 21,
2024 Email
54. Testimony from Mary Melnik (Planning Department Exhibit 6—March 21,
2024 Email)
55. Testimony from Maryann Wolf(Planning Department Exhibit 7—March 22,
2024 Email)
56. Testimony from Paige Bowlus (Planning Department Exhibit 8 —March 22,
2024 Email)
57. Testimony from Susan Barrackman (Planning Department Exhibit 9—
March 23,2024 Email)
58. Testimony from Leslie Blok (Planning Department Exhibit 10—March 23,
2024 Email)
59. Testimony from Liz Lees (Planning Department Exhibit 11 —March 23, 2024
Email)
60. Testimony from Sylvia Dahlby (Planning Department Exhibit 12 —March 24,
2024 Email)
61. Testimony from Joe Schneckenburger (Planning Department Exhibit 13 —
March 25,2024 Email)
62. Testimony from Anonymous (Planning Department Exhibit 14—March 26,
2024 Letter)
63. Testimony from Carol Petersson (Planning Department Exhibit 15 —March
26,2024 Email)
64. Testimony from Kohala Coast Resort Association (Planning Department
Exhibit 16—March 26, 2024 Email)
65. Testimony from Maren Purves (Planning Department Exhibit 17—March
27,2024 Email)
66. Testimony from David Do (Planning Department Exhibit 18 —March 27,
2024 Email)
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67. Testimony from Pattie Freeman (Planning Department Exhibit 19—March
27,2024)
68. Testimony from Hokulani Porter (Planning Department Exhibit 20—March
27,2024 Email)
PLANNING ANALYSIS OF THE IMPACTS OF BILL 121
Since 2018 the Planning Department has been instrumental in implementing and
regulating short-term vacation rentals, which are dwelling units of which the owner or
operator does not reside on the building site, that has no more than five bedrooms for
rent on the building site and is rented for thirty consecutive days or less. After Bill 108
(STVR law) came into effect, it became clear that some modifications were needed to the
Hawaii County Code in order to address all types of vacation rentals. Such
modifications, would be up to the County Council and/or Planning Department to take
the first initiative.
With the operational standards in place, the County Council started their initiative
over two years ago and held multiple webinars as well as numerous constituent and
departmental meetings. An initial draft was released over a year ago that took the
information from the 2018 Hawaii Appleseed Reporti which provided an overview of
the impacts of TARs on Hawai`i's housing market, and combined it with information
published by the University of Hawaii Economic Research Organization, which found
that approximately thirty thousand homes, or five percent of local housing units in the
State, operate as short-term vacation rentals, and thus Bill 121 was created to ensure that
all TARs are operating safely and legally.
Bill 121, expands and makes clearer the registration process and standards for
operation. Bill 121 goes further to identify higher fines for violations of the standards and
the possibility of having a registration revoked for repeat offenders, which is in alignment
with other counties that have substantial fines to discourage violations of the law. In
2018, the Planning Department made recommendations on Bill 108 to increase fines as
Maui County and Kauai County planning departments at the time had recommended that
the fines be high enough to discourage violations of the law. Bill 121, as proposed, has
'https://hiappleseed.org/publications/hawaii-vacation-rental-impact-study
2 https://uhero.hawaii.edu/short-term-vacation-rentals-and-housing-costs-in-hawai'i
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done just that by setting out a fine schedule that has substantial fines for TARS that
operate in an unpermitted manner.
Bill 121 also requires that all hosting platforms like Air B&B and VRBO, register
with the County, as well as include TAR registration numbers on all of their listings and
provide monthly reports to the Planning Department of such listings. These platforms
have been instrumental in helping with the operations of TARs on the island so therefore,
it is necessary that rules and regulations be in place to ensure that the TARs on the island
are operating safely and legally.
Bill 121 seeks to address all forms of transient accommodation rentals that were
not defined in the code since the adoption of Bill 108 in 2018. In addition, to Bill 121,
there are two other bills in that have been introduced by the County Council. Bill 122
proposes to repeal the definiton of Bed and Breakfast(B&Bs) and Bill 123 proposes to
amend the `ohana dwelling code to address long-term housings.
Historically, B&Bs have been the only type of hosted short-term vacation rentals
that is currently defined and regulated in the Zoning Code. B&B's currently require that
an owner/operator be on site and allow up to ten guests in up to five bedrooms and may
serve breakfast meals. Since Bill 121 is addressing all forms of hosted transient
accommodation rentals and B&B's are similar to either an Owner-hosted or Operator-
hosted TAR, the County Council has initiated Bill 122 to repeal B&B's to avoid
duplicated uses within Chapter 25 and provide clarity. By regulating B&B's as an
Owner-hosted or Operator-hosted TAR, there will be a more streamlined process which
will also require an annual review of the TARs. B&B's are currently not required to be
reviewed annually. This can often times allow for B&B's to operate in an unpermitted
manner but with the annual renewal and change in ownership requirements set forth in
Bill 121, there will be better regulation of these uses.
The County Council recognizes that for many local families, hosting vacationers
at their homes is something they enjoy and is critical to providing financial support for
their families. The impact of short-term rentals on communities varies significantly
across the State and use of these homes for short-term rental contributes to a statewide
shortage of homes for residents to live in and to the high cost of housing in Hawaii. Bill
123 aims to repeal and replace `ohana dwellings with accessory dwellings as well as
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making it easier to build accessory dwellings. Bill 123 aims to address housing
availablility for residents by keeping more housing in the long-term market. The three
bills attempt to strike a balance between allowing residents to continue or start to operate
TARs on their properties, while limiting the expansion of investor-owned TARs, repeals
existing uses that are seen as being duplicated and hopes to address long-term housing by
allowing accessory dwelling units.
Lastly, it is important to note that there are three specific legislative bills that are
currently in process with the State of Hawai`i Legislature that will have an impact to
TARs statewide: Senate Bill 2919 (SB 2919), House Bill 1838 (HB 1838) and House Bill
1759 (HB 1759) . SB 2919 hopes to expand the zoning powers of the counties, and
expands the scope of the transient accomoodations tax law to include certain shelters and
vehicles with sleeping accommodations. HB 1838 allows the counties to enact a zoning
ordinance to amortize or phase out nonconforming single-family transient vacation rental
units over a reasonable period of time. And HB 1759 proposes to require cesspools
attached to or used by housing or lodging that provides transient accommodations to be
upgrade, converted, or connected to a sewerage system before l/l/2023 for priority level
1 cesspools and before l/l/2040 for priority level 2 cesspools.
RECOMMENDATION
The Planning Director is generally supportive of the intent of Bill 121 and
appreciates the time and effort the County Council has taken to draft legislation to
regulate TARs in Hawaii County. The Director is recommending various revisions to
Bill 121 to address housekeeping changes that are needed to implement the intent of Bill
121, and more substantive changes so that the regulation of TARs, as proposed, is
consistent with other County and State land use laws.
Recommendation #1
Under Section 2. Amend the definition of transient to state: "Transient" or"transients"
means any visitor or person who rents or uses lodging or dwelling unit,portion thereof,
for [less tha one htmdFed o:g4y days] thirty consecutive days or less and whose
permanent address for legal purposes is not the [lodging of dwelling Nit oeeupied by -1+e
per] transient accommodation rental.
Based on the preceding, the definition of transient accommodation should also be
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amended to state: "Transient accommodation"means the furnishing of a room,
apartment, suite, single family dwelling, or the like to a transient for [less tha One
] thirty consecutive days or less. [
hotel, apa crmentrhatel, motel, een „4s as defined i reiapt2r- 514B7
cc » rental" l
•J
Reason: The Planning Department has been instrumental in implementing and regulating
short-term vacation rentals, which are dwelling units of which the owner or operator does
not reside on the building site, that has no more than five bedrooms for rent on the
building site and is rented for thirty consecutive days or less. Therefore, the Planning
Department has already established a set of operational standards and regulations in place
for short-term vacation rentals that are in operation for thirty consecutive days or less. If
there is going to be an amendment to the time period in which a TAR can be rented, then
a new class of nonconforming use certificates will need to be taken into consideration for
short-term rentals that operate between 31 and 179 days. Therefore, the Planning Director
is recommending amending the rental period within the definition of"transient" and
"transient accommodations"to match the existing rental period of thirty consecutive days
that are found in the existing definition of"short-term vacation rentals" found in Chapter
25.
Recommendation #2
Delete the term "second dwelling" in Section 25-4-16.1(a)(2) and Section 25-4-
16.2(b)(2) and replace the term with "additional dwelling unit"
Reason: The term "second dwelling" is not defined within the body of the bill, so
therefore the Director is proposing to remove the term "second dwelling" and to add
"additional dwelling unit" as structures in which a transient accommodation rental shall
not be permitted in.
Recommendation #3
Under Section 25-4-16.1(b)(1), amend as follows: (1) If the transient accommodation
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rental has been in regular use in an ohana dwelling or additional dwelling unit(excluding
an additional farm dwelling unit) on the same building site, the owner shall have the
burden of proof in establishing that the ohana dwelling or additional dwelling unit
(excluding an additional farm dwelling unit)unit)was in use as a transient accommodation
rental on or before January 1, 2024, and may register by obtaining a nonconforming use
certificate pursuant to this section.
Reason: In an effort to address the various types of dwellings that may be located on a
building site, the Director recommends adding "additional dwelling unit"which are
currently in use as a transient accommodation rental to be issued a nonconforming use
certificate so long as the structure can show that it has been in use as a TAR before
January 1, 2024. TARs are not permitted in additional farm dwelling units.
Recommendation #4
Section 25-4-161(b) and Section 25-4-16.2(c) should identify existing bed and breakfast
establishments that may become nonconforming uses should Bill 122 be adopted.
Therefore, under the two sections listed above, the following should be added: "Any bed
and breakfast which received approval prior to [effective date of Bill 1211 through
issuance of a use permit or special permit, is considered a legal use of the affected parcel
as a hosted transient accommodation rental and may continue to operate provided the
conditions of approval of the use permit or special permit have been met and the _good
neighbor standards and advertising and nd signage standards in section 25-4-16.17
(Transient accommodation rental operation standards) are met."
Reason: This provision will help the Planning Department to address existing bed and
breakfast establishments that have gotten prior approval to operate as a bed and breakfast.
Recommendation #5
Remove Section 25-4-16.3(c)(3) and 25-4-16.4 as follows: [(3) ofeofi fo f ifigg Use
GeAifieate: 500]
Reason: The intent of this provision is confusing and as there will be no issuing of new
nonconforming use certificates for Un-hosted TARs then there is no need for a
nonconforming use certificate registration fee.
Recommendation #6
Change Section 25-4-16.5(1) as follows: (1) The transient accommodation rental must
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have off-street parking as required by the department's transient accommodation rental
parking schedule set forth in section 25-4-51 or applicable parking standards in this
chapter;
Reason: This provision will ensure that the number of parking should correspond to the
number of dedicated stalls for a dwelling and are consistent with Section 25-4-51 of the
Zoning Code.
Recommendation #7
Clarify the conflict between the date in Section 25-4-161(b)(1) and Section 25-4-
16.2(c)(1) with the date that is found in Section 25-4-16.6(a)to ensure that the dates of
existing transient accommodation rentals are in alignment with acceptable dates for
nonconforming use.
Reason: Consider aligning this date to correspond with the date that is located within the
nonconforming use certificate section to provide consistency on the date in which an
existing transient accommodation rental should be in use by.
Recommendation #8
Amend Section 25-4-16.7(a)(6) as follows: (6) An [notarized affi aavi ] declaration in a
format determined by the director[, and s4 mit4e t der-renal y f rori,,.., ] that the
transient accommodation rental meets health, safety, and code requirements.
Reason: A notarized affidavit is a legal document in which the applicant will need to
swear before a notary public that the information provided is accurate. The Planning
Director recommends replacing the requirement for a notarized affidavit with a
declaration. A declaration is commonly used to submit factual evidence and will be
sufficient to assert the authenticity of the information provided by an applicant that the
transient accommodation rental meets all health, safety and code requirements. This will
assist applicants and allow for a more streamlined registration process.
Recommendation #9
Amend Section 25-4-16.7(a)(7) and Section 25-4-16.17(2)(A)to add that the renter limit
"...shall be limited to no more than 2 adults per bedroom and an additional two adults for
the transient accommodation rental unit as a whole, unless authorized by the Director."
Reason: This calculation will help the Planning Director determine the maximum renter
capacity between the different types of dwellings that exists. Such provisions will ensure
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that the safety standards are in place for transient accommodation rentals. As an example,
the renter limit for a 4-bedroom TAR would be 10 guests.
Recommendation #10
Under Section 25-4-16.7(8), add current transient accommodation tax license as a
requirement for registration.
Reason: In addition to the State of Hawaii general excise tax license, a landowner who
operates a transient accommodation rental is legally required to register a transient
accommodation tax license as well. This proposed provision would verify that a transient
accommodation tax license is in effect and allows for staff to ensure that all state and
local tax laws are current and up to date.
Recommendation #11
Delete the requirement to submit a certification of tax clearance shown in Section 25-4-
16.7(a)(9) as follows: [m) Gati, y f14awa . rear re4y t.,lr ell -.nee eei4 fieate]
Reason: In 2017 prior to the start of the County EPIC system the Planning Department
Rules, Planning Commission Rules and County Code were amended to remove the
requirement to submit a certification of tax clearance. In its place, Planning Department
staff have been verifying that an applicant's real property tax payment are current by
utilizing and reviewing the Real Property Tax website which has current tax status. The
Department will continue to not accept an application when real property taxes for the
property are delinquent, except as authorized by the Director of Finance in certain
situations, such as bankruptcy.
Recommendation #12
Under Section 25-4-16.13(a), consider adding a requirement that the notification be sent
to all surrounding property owners once the transient accommodation rental registration
number has been issued and remove the requirement to inform neighbors on instructions
on how to submit complaints to the planning department.
Reason: To ensure that residents near a proposed development get adequate notice on
proposed developments in their neighborhood, there are standards set forth in Chapter 25,
Section 25-2-4 in which an applicant must follow to notify the surrounding property
owners. It is important to note that the notice to surrounding property owners for
administrative applications versus planning commission applications are different in that
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a planning commission notification allows for a neighbor to file a Petition for a Contested
Case Hearing whereas an administrative application notification is mainly informational.
Therefore, to avoid confusion, the proposed provision still requires the applicant to
submit a notification once the transient accommodation rental number has been issued
and a reachable person is established on site.
Recommendation #13
Under Section 25-4-16.17(2)(C), consider adding the following formula to determine
how to calculate a gathering size, "The total gathering size shall not exceed double the
overall renter limit and shall only use [the] off-street parkin_ g or legal on-street parking
Reason: The amendment clarifies that the overall gathering size limit and would provide
the opportunity for those parking on the street as long as it is legally permitted within that
area.
Recommendation #14
While Section 25-4-16.17(2)(E) addresses special types of events such as weddings, in
an effort to provide clarity to inspectors and allow for easy identification of unpermitted
uses, consider adding the following: "...and the special permit or use permit numbers are
clearly displayed on the same platform as the registrations, any advertisements."
Reason: This provision will help the Planning Department to determine which transient
accommodation rentals have approval to host special events such as weddings, wedding
receptions or concerts on their building site.
Recommendation #15
Recommend amending Section 25-4-16.17(3)(D) to remove the transient accommodation
number from the roadway signage requirement.
Reason: The Planning Department has received complaints of transients traveling down
the wrong driveway and/or roadway when trying to find their TAR. In addition, Planning
Department staff have also received complaints that by posting transient numbers, there
has been an increase in theft in the dwellings that are easily viewed as unoccupied. This
provision clarifies that just the street address of the transient accommodation rental will
need to be visible from the main roadway for safety measures and the transient
accommodation rental registration number should not be required along the roadway.
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Recommendation #16
Recommend amending Section 25-4-16.20(4)to remove the"public list" and replace it
with"database".
Reason: This provision will allow for staff to create an online database with the required
information that could be easily accessed by members of the public.
Recommendation #17
Under Section 25-4-16.27, consider deleting the word"hosted".
Reason: The current code allows for the Planning Director to restore existing transient
accommodations that have been impacted by natural or manmade disasters to be
relocated. This provision will continue to allow the Planning Director the authority to
relocate any nonconforming use transient accommodation rental that could be impacted
by a disaster.
Recommendation #18
Under Section 25-4-17.4(a), consider removing the requirement that a notice of violation
be sent in writing within ten days of the occurrence of a violation and replace it with the
provision that the notice be sent within ten days of the directors determination that a
violation has been committed.
Reason: Over the past few years there has been an increase in the submittal of complaints
and the assigned inspectors have needed additional time to compile information for just
one complaint. It is the Department's full intention to complete these reviews as
expeditiously as possible, but this added time will bring relief during the times of
increased complaint submittals and will allow for additional time to review complicated
complaints.
Housekeeping Recommendation #19
Add "Transient Accommodation Rentals, Operator-hosted" as a permitted use in the
following sections: Article 5,Division 1, Section 25-5-3(a)(14) (Single-Family
Residential Districts), Division 2, Section 25-5-22(a)(16) (Double-Family Residential
Districts), Division 3, Section 25-5-32(a)(20) (Multiple-Family Residential Districts),
Division 4, Section 25-5-42(a)(24) (Residential-Commercial Mixed Use Districts),
Division 9, Section 25-5-92(a)(36) (Resort-Hotel Districts), Division 10, Section 25-5-
102(a)(37) (Neighborhood Commercial Districts), Division 11, Section 25-5-112(a)(55)
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(General Commercial Districts), Division 12, Section 25-5-122(a)(48) (Village-
Commercial Districts) and Article 7,Division 2, Section 25-7-22(a)(48) (Downtown
Hilo Commercial District)
Reason: Section 6 of Bill 121 references the sections in the code in which the word
"Short-Term Vacation Rental" shall be replaced with the word"Transient
Accommodation Rentals", however it does not correctly clarify the specific type of
transient accommodation rental that will be permitted. Therefore, consider clarifying the
sections listed above to coincide with Section 25-4-16.2 of Bill 121, which permits
Operator-hosted Transient Accommodation Rentals in the districts in which Operator-
hosted Transient Accommodation Rentals will be permitted. In addition to further
conform Bill 121 with the zoning code, Section 25-5-3(a)(14), Section 25-5-22(a)(16),
Section 25-5-42(a)(24) should state, "Transient Accommodation Rentals, Operator-
hosted, situated in any of the following: (A) General plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the resort or resort
node areas along the shoreline. (B) Areas within a project district." In addition to the
preceding, Section 25-5-32(a)(20) shall go further to also state that a transient
accommodation rental shall also be allowed in multiple family dwellings within a
condominium property regime as defined and governed by Chapter 514A or 514B,
Hawaii Revised Statutes.
Housekeeping Recommendation#20
Add "Transient Accommodation Rentals, Owner-hosted" as a permitted use in the
following sections: Article 5,Division 1, Section 25-5-3(a)(15) (Single-Family
Residential Districts), Division 2, Section 25-5-22(a)(17) (Double-Family Residential
Districts), Division 3, Section 25-5-32(a)(21) (Multiple-Family Residential Districts),
Division 4, Section 25-5-42(a)(25) (Residential-Commercial Mixed Use Districts),
Division 5, Section 25-5-52(a)(19)(Residential and Agricultural Districts), Division 6,
Section 25-5-62(a)(19) (Family Agricultural Districts), Division 7, Section 25-5-
72(a)(22)(Agri cultural District), Division 9, Section 25-5-92(a)(37) (Resort-Hotel
Districts), Division 10, Section 25-5-102(a)(38) (Neighborhood Commercial Districts),
Division 11, Section 25-5-112(a)(56) (General Commercial Districts), Division 12,
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Section 25-5-122(a)(49) (Village-Commercial Districts) and Article 7, Division 2,
Section 25-7-22(a)(49) (Downtown Hilo Commercial District)
Reason: Section 6 of Bill 121 references the sections in the code in which the word
"Short-Term Vacation Rental" shall be replaced with the word"Transient
Accommodation Rentals", however it does not correctly clarify the specific type of
transient accommodation rental that will be permitted. Therefore, consider clarifying the
sections listed above to coincide with Section 25-4-16.1 of Bill 121, which permits
Owner-hosted Transient Accommodation Rentals in the districts in which Owner-hosted
Transient Accommodation Rentals will be permitted in as an outright use.
Housekeenin2 Recommendation#21
Add "Transient Accommodation Rentals, Un-hosted" as a permitted use in the following
sections: Article 5,Division 1, Section 25-5-3(a)(16) (Single-Family Residential
Districts), Division 2, Section 25-5-22(a)(18) (Double-Family Residential Districts),
Division 3, Section 25-5-32(a)(22) (Multiple-Family Residential Districts), Division 4,
Section 25-5-42(a)(26) (Residential-Commercial Mixed Use Districts), Division 9,
Section 25-5-92(a)(38) (Resort-Hotel Districts), Division 10, Section 25-5-102(a)(39)
(Neighborhood Commercial Districts), Division 11, Section 25-5-112(a)(57) (General
Commercial Districts), Division 12, Section 25-5-122(a)(50) (Village-Commercial
Districts) and Article 7, Division 2, Section 25-7-22(a)(50) (Downtown Hilo
Commercial District)
Reason: Section 6 of Bill 121 references the sections in the code in which the word
"Short-Term Vacation Rental" shall be replaced with the word"Transient
Accommodation Rentals", however it does not correctly clarify the specific type of
transient accommodation rental that will be permitted. Therefore, consider clarifying the
sections listed above to coincide with Section 25-4-16.3 of Bill 121, which permits Un-
hosted Transient Accommodation Rentals in the districts in which existing short-term
vacation rentals are permitted in addition to the CN and CDH zoning districts. In addition
to further conform Bill 121 with the zoning code, Section 25-5-3(a)(16), Section 25-5-
22(a)(18), Section 25-5-42(a)(26), should state, "Transient Accommodation Rentals,
Operator-hosted, situated in any of the following: (A) General plan resort and resort node
areas, including areas designated as open in the general plan which adjoin the resort or
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resort node areas along the shoreline. (B) Areas within a project district." To further
conform Bill 121, Section 25-5-32(a)(22) shall go further to also state that a transient
accommodation rental shall also be allowed in multiple family dwellings within a
condominium property regime as defined and governed by Chapter 514A or 514B,
Hawaii Revised Statutes.
For the reasons detailed above, the Planning Director recommends that the
Planning Commissions send a favorable recommendation of Bill No. 121 to the
County Council with the recommended revisions.
PLANNING COMMSSION ACTION
The Windward and Leeward Planning Commissions are required to take action on
Bill 121 as described in Section 25-2-43(b) of the zoning code (Planning Department
Exhibit 21). This bill was transmitted by the County Council to the Department on
January 30, 2024, which means the commissions are required to transmit their
recommendations to the council by May 29, 2024. The commissions may recommend
approval of all, some, or none of the Director's suggested recommendations. The
commissions may also recommend their own revisions to the bill. The Windward and
Leeward Planning Commission's recommendations will be forwarded separately, but at
the same time, to the County Council for their consideration and decision. In the event
the commissions fail to act on the proposed bill by this date, such inaction shall be
considered as an unfavorable recommendation by the commissions.
Once Bill 121 alongside Bill 122 and 123 is heard before the Windward and
Leeward Planning Commission, the recommendations will be sent back to the County
Council's Policy Committee on Planning, Land Use and Development, where the bills
will then be forwarded with a recommendation to Council. At Council, the bills will need
to go through the 1st and 2nd(Final) Reading in ordered to be passed as an ordinance.
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Ashley L. Kierkiewicz (808)961-8265
County Council District IV ashley.kierkiewicz@hawaiicounty.gov
Policy Committee on Planning ' Policy Committee on Infrastructure
Land Use and Development—Chair and Assets—Vice Chair
PIN'-*2024 °M2:24
HAWAI`I COUNTY COUNCIL
Hawaii County Building RECD HAND DELIVER`D
25 Aupuni Street • Hilo,Hawaii 96720
TO: Zendo Kern, Director
Planning Department
FROM: Ashley L. Kierkiewicz, Council Member
DATE: January 30, 2024
SUBJECT: Referral of Bill 121; an Ordinance amending Chapter 25, Articles 1, 4, and 5, of
the Hawaii County Code 1983 (2016 Edition, As Amended), relating to Transient
Accommodation Rentals and Hosting Platforms.
Pursuant to Section 25-2-43(b) of the Hawaii County Code, I am submitting Bill 121, enclosed for
your comment and recommendation. I also request that you forward the same to the Windward and
Leeward Planning Commissions for their comment and recommendation.
Bill 121 was referred for comment and recommendation to the Planning Director and the Windward
and Leeward Planning Commissions by the Hawaii County Council's Committee on Planning on
January 23, 2024.
After your and the Commissions review,please forward your comments and recommendations to
Council Chairperson Heather Kimball.
Thank you for your attention to this matter.
Enc.
AK/kj
Planning Dept.
Hawai'i County Is an Equal Opportunity Provider and Employer Exhibit ___ 1
os
COUNTY OF HAWAII •_ STATE OF HAWAI`I
1T�•GI.N'•1
BILL NO. 121
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 25,ARTICLES 1,4,AND 5, OF THE
HAWAPI COUNTY CODE 1983 (2016 EDITION,AS AMENDED), RELATING TO
TRANSIENT ACCOMMODATION RENTALS AND HOSTING PLATFORMS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I:
SECTION 1. Chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by repealing the definition of"short term vacation
rental".
rccccCl ,.� + vaeation .,tale ffieans ., dwelling p,t.,f.,.L ieh the ewner-of epera4er-does
not reside en the bttilding L site,thM site,
shaft tefm use of an and is fented for-a pefied ef thifty eenseeutive days or less. This definitieft does Ret inelude the
Revenue Cede."]
SECTION 2. Chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by adding the following new definitions to be
appropriately inserted and to read as follows:
""Booking services" means intermediary services that facilitate the advertisements and
listings of,reservations of, or collection of payment for transient accommodation rentals."
""Event"means a formal congregation,which m y or may not include the engagement of
professional services,that is not typical in residential areas, such as wedding receptions,
concerts, or promotional events."
""Gathering"means an informal congregation typical of residential areas, such as a picnic,
family dinner, or small birthday party, where attendees stay within the parking area
accompanying; a transient accommodation rental."
""Hosting_platform" means a business or person that provides a marketplace through which
transient accommodation rentals may be offered for rent."
4CC'Operator"means any_person operating a transient accommodation rental on behalf of a
property owner, who resides on the same building site as the transient accommodation rental and
uses it as their permanent address for legal purposes."
""Operator-hosted"means any transient accommodation rental hosted by an operator."
""Owner-hosted" means any transient accommodation rental hosted by person who uses
the buildings site as their principal home."
""Principal home"means a principal home as defined in section 19-71(e) Hawaii County
Code."
""Transient"or"transients"means any visitor or person who rents or uses a lodging or
dwelling unit or portion thereof, for less than one hundred eighty days and whose permanent
address for legal purposes is not the lodging or dwelling unit occupied by the visitor. This
definition shall not apply to:
(1) Nonpaying guests of the family occupying the unit;
(2) Clients in health care facilities,
(3) Full-time students enrolled in an educational institution in the County of Hawaii;
(4) Employees who receive room and/or board as part of their salary or compensation
including agricultural workers;
(5) Occupants of group living facilities authorized by the department of health-,
(6) Military personnel;
(7) Health care workers temporarily employed at a medical facility in the County of
Hawai`i;
(8) Low-income renters receiving rental subsistence from the state or federal
governments whose rental periods are for durations shorter than sixty dam or
(9) Occupants of lodging_provided by nonprofit corporations or associations for religious,
charitable or education purposes;provided that no income is produced, even if the
income is used for or in furtherance of the exempt activities of such religious,
charitable, or educational corporation or association."
""Transient accommodation"means the furnishing of a room, apartment, suite, single
family dwelling or the like to a transient for less than one hundred eighty consecutive days for
each letting in a hotel apartment hotel, motel, condominium or unit as defined in chapter 514B,
cooperative apartment, dwelling unit, or rooming house that provides living_quarters, sleeping, or
housekeeping accommodations, or other place in which lodgings are regularly furnished to
transients. (Reference section 237D-1, Hawai`i Revised Statutes.)"
""Transient" accommodation rental"means transient accommodations excluding:
(1) Hotels, motels, and inns;
(2) Apartment hotels;
(3) Boarding facilities;
(4) Lodges;_ and
(5) Timeshares."
""Un-hosted"means any transient accommodation rental that is not the principal home of
the property owner and without an operator located on the same building site during rental
operations."
""Verified complaint"means any complaint filed on a complaint form prepared by the
planning department pursuant to rule 9 of the planning department rules of practice and
2
procedure or forwarded to the department and verified as a zoning;code violation by the
director."
SECTION 3. Chapter 25, article 4, sections 25-4-16,25-4-16.1, 25-4-16.2, and
25-4-16.3, of the Hawaii County Code 1983 (2016 Edition, as amended), are repealed.
SECTION 4. Chapter 25, article 4, of the Hawaii County Code 1983 (2016 Edition, as
amended), is amended by adding the following new division to read as follows:
"Division 1.1. Use Regulations—Transient Accommodation Rentals.
Section 25-4-16. Transient accommodation rental registration required; exceptions.
(a) The County of Hawaii recognizes three types of transient accommodation rentals:
owner-hosted, operator-hosted, and un-hosted. All three types of transient
accommodation rentals must be registered with the planning department as permitted
in sections 25-4-16.1, 25-4-16.2 and 25-4-16.3, except as provided in subsection (b).
(b) Registration as a transient accommodation rental shall not be required if:
(1) The rental is not being provided to a transient or transients as defined by this
chapter;
(2) There is an emergency declaration enabling temporary shelter for displaced
persons-,
(3) The dwelling is the principal home of the host and is provided as a home
exchange and no financial exchange occurs; or
(4) The dwellingis s being provided to a tenant under a month-to-month lease
subject to chapter 521, Hawaii Revised Statutes,the Hawaii residential
landlord-tenant code.
(c) Any propeM owner that claims an exception set forth in this section where there is
prima facie evidence to the contrary, shall be considered to be in violation of this
chapter and subject to the fines set forth in section 25-4.16.19.
Section 25-4-16.1 Owner-hosted transient accommodation rentals.
(a) Where permitted. When the transient accommodation rental is subordinate and clearly
or customarily incidental to its use as the principal home of the owner, a transient
accommodation rental may be registered at any time in an zing;district subject to
the following requirements:
(1) The transient accommodation rental shall be located in a single-family dwelling
inclusive of a detached bedroom or guesthouse;
(2) The transient accommodation rental shall not be permitted in an additional farm
dwelling;, second dwelling, or ohana dwelling; and
(3) The owner shall live in a single-family dwelling on the building site of the home
and not live in a guesthouse or a detached bedroom of a single-family dwelling
(b) Nonconforming use.
(1) If the transient accommodation rental has been in regular use in an ohana
dwelling on the same building site, the owner shall have the burden of proof in
establishing that the ohana dwelling was in use as a transient accommodation
3
rental on or before January 1, 2024, and may register_ by obtaining a
nonconforming use certificate pursuant to this section.
(2) Owner-hosted nonconforming use certificates may only be transferred upon a
change in ownership if the new owner intends to use the property as their
principal home.
(3) Nonconforming use certificates must be renewed annually in accordance with
section 25-4-16.14.
c Fees.
(1) Initial registration: $500.
(2) Annual registration renewal: $100.
(3) Nonconforming use certificate: $250.
(4) Annual nonconforming use certificate renewal: $250.
Section 25-4-16.2 Operator-hosted transient accommodation rentals.
(a) Where permitted. When the transient accommodation rental is subordinate and clearly
or customarily incidental to the use as the residence and permanent address of the
operator, a transient accommodation rental may be registered at any time subject to
the following requirements in the following districts:
(1) V, CG, CN, CV, and CDH districts, including these districts situated within a
project district;
(2) Residential districts, situated in general plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the resort or
resort node areas along the shoreline and areas within a project district; and
(3) RM district, for multiple family dwellings within a condominium property
regime as defined and governed by chapters 514A or 514B, Hawaii Revised
Statutes, including within a project district.
(b) Additional conditions.
(1) The transient accommodation rental shall be located in a single-family dwelling,
inclusive of a detached bedroom or guesthouse;
(2) The transient accommodation rental shall not be permitted in an additional farm
dwelling, second dwelling, or ohana dwelling; and
(3) The operator shall live in a single-family dwelling unit on the building site of
the home and shall not live in a guesthouse or a detached bedroom of a single-
family dwelling,
(c) Nonconforming use.
(1) In districts other than those specified in (a),the owner shall have the burden of
proof in establishing that the property was in regular use as a transient
accommodation rental on or before January 1, 2024, and that an operator was
residing on the property. The owner may register by obtaining a nonconforming
use certificate pursuant to this section.
(2) Operator-hosted nonconforming use certificates granted may_only be transferred
upon change in ownership if the new owner provides evidence of an operator in
the form of a lease or contract with an operator or the new owner intends to use
the property as their principal home.
(3) Nonconforming use certificates must be renewed annually in accordance with
section 25-4-16.14.
4
d Fees.
(1) Initial registration: $750.
(2) Annual registration renewal: $150.
(3) Nonconforming use certificate: $375.
(4) Annual nonconforming use certificate renewal: $375.
Section 25-4-16.3 Un-hosted transient accommodation rentals.
(a) Where permitted. Un-hosted transient accommodation rentals may be registered at
any time in the following districts:
(1) V CG CN CV and CDH districts, including these districts situated within a
T project district,
(2) Residential districts, situated in general plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the resort or
resort node areas along the shoreline and areas within a project district, and
(3) RM district, for multiple family dwellings within a condominium property
regime as defined and governed by chapters 514A or 514B,Hawaii Revised
Statutes, including within a project district.
(b) Nonconforming use.
(1) In districts other than those specified in subsection(a), un-hosted transient
accommodation rentals may only operate with an existing nonconforming use
certificate.
(2) No additional nonconforming use certificates shall be issued for un-hosted
transient accommodation rentals.
(3) Nonconforming use certificates must be renewed annually in accordance with
section 25-4-16.14.
c Fees.
(1) Initial registration: $1000.
(2) Annual registration renewal: $250.
(3) Nonconforming use certificate: $500.
(4) Annual nonconforming use certificate renewal: $500.
Section 25-4-16.4. Transient accommodation rental registration and nonconforming
use fee schedule.
TRANSIENT ACCOMMODATION RENTAL REGISTRATION AND
NONCONFORMING USE FEE SCHEDULE
Initial Annual Registration NUC Initial &
Rental Type Registration Renewal Annual Renewal
Owner-Hosted $500 100 250
Operator-Hosted $750 150 $375
Un-hosted $1000 250 $500
5
Section 25-4-16.5. Additional registration requirements; all transient accommodation
rentals.
To register, all transient accommodation rentals must also satisfy the following
requirements:
(1) The transient accommodation rental must have off-street parkin as s required by
the department's transient accommodation rental parking schedule;
(2) The transient accommodation rental must meet health, safety, and construction
code requirements established by law;
(3) Owners of transient accommodation rentals must have State of Hawaii general
excise tax and transient accommodation tax licenses that are in effect-, and
(4) Owners of transient accommodation rentals must be current on their Hawaii
Counly real property taxes,that is, they must be paid in full.
Section 25-4-16.6. When to register.
(a) Existing owner-hosted and operator-hosted transient accommodation rentals in
operation on or before June 30, 2024, who have submitted a registration application
and the initial registration fee on or before June 30, 2025, shall be allowed to continue
to operate until such time as their application is approved or denied b the he department
subiect to the standards in section 25-4-16.17 and fines in section 25-4-16.19.
(b) Existing un-hosted transient accommodation rentals that were previously registered as
short term vacation rentals shall not be required to reregister,however,they will be
required to renew their registration annually n accordance with section 25-4-16.9.
(c) Any new transient accommodation rentals shall be registered with the director prior to
use of such rental and upon payment of the initial registration fee..
Section 25-4-16.7. Rental registration process.
.(a) Owners of a transient accommodation rental shall register by submitting a registration
application to the planning department in a format prescribed by the director. The
registration form, at a minimum, shall include:
(1) Property address and tax map key number;
(2) Name and contact information for the property owner.Name and contact
information for the operator, if different from the property owner, or the
reachable person if the transient accommodation rental is un-hosted;
(3) If required pursuant to chapter 467, Hawaii Revised Statutes a copes
current, valid real estate broker's license or real estate salesperson's license;
(4) Submittal of a site drawing, drawn to scale, showing the location of all
structures on the site,the transient accommodation rental, and requisite off-
street parking;
(5) Submittal of a floor plan showing the location of the rooms for rent the layout
of the transient accommodation rental and emergency exits-,
(6) A notarized affidavit in a format determined by the director, and submitted
under penalty of perjury,that the transient accommodation rental meets health
safety, and code requirements,
(7) A maximum renter limit calculation;
(8) Copies of a current State of Hawaii general excise tax license; and
(9) County of Hawaii real property tax clearance certificate.
6
(b) Upon acceptance of a registration application and determination that it is accurate and
complete the planning director shall issue the property owner a transient
accommodation rental registration number.
Section 25-4-16.8. Failure to register.
Any transient accommodation rental that has not lawfully registered shall be
considered an unpermitted use and subject to the fines set forth in section 25-4-16.19 until
the rental is properly registered or ceases to operate as a transient accommodation rental.
Section 25-4-16.9. Annual renewal of registration required.
(a) All transient accommodation rental registrations shall be renewed annually.
(b) Transient accommodation rental owners shall submit their registration renewal by the
following deadlines:
(1) For transient accommodation rentals registered on or prior to June 30, 2025, on
or prior to a date specified by the director; or
(2) For transient accommodation rentals,registered after June 30, 2025, on or before
the date that the transient accommodation rental registration number was issued
by the department.
(c) In addition to any requirements established by the department's rules, all renewal
applications shall include:
(1) Evidence that real property taxes and County of Hawaii transient
accommodation taxes for the rental were paid in full during the previous y==
and
(2) Payment of an annual renewal fee.
(d) If the renewal is submitted within ninety days after the due date, a late renewal fee of
$100 shall be assessed.
Section 25-4-16.10. Annual renewal of registration; denial.
Renewal of a registration may be denied if the director verifies any of the following_
(1) The applicant has violated pertinent laws;
(2) The affidavit affirming that the transient accommodation rental meets all health,
safety and code requirements is found to be inaccurate,
(3) The owner is delinquent in payment of County prope=taxes,transient
accommodation taxes, fees, fines, or penalties assessed in relation to the
transient accommodation rental;
(4) Evidence of non-responsive management, such as issuance of a notice of
violation, police reports, or verified complaints of noise or other disturbances
relating to the transient accommodation rental operations,
(5) The renewal request and renewal fee were not received within ninety days of the
expiration date indicated on the certificate; or
(6) Any violation of standards set forth in section 25-4-16.17.
Section 25-4-16.11. Notice of denial of registration renewal and anneal.
(a) Notice of a decision by the director to deny a registration renewal shall be transmitted
in writing to the property owner.
7
(b) Within thirty days after the transmittal of a notice of denial, the owner may appeal to
the board of appeals as provided by section 6-9.2, County Charter, and sections 25-2-
20 through 25-2-25.
Section 25-4-16.12. Transient accommodation changes of information; ownership.
(a) Owners shall notify the director by submittinga change of information form when
there have been changes to:
(1) The host or the host's contact information;
(2) The reachable person or the reachable person's contact information;
(3) The number of bedrooms included in the transient accommodation rental;
(4) The site plan, floor plan, or the structure of the transient accommodation rental;
or
(5) A transient accommodation rental establishment permanently ceases to operate
for any reason.
(b) Upon change in ownership, a change of ownership form and a change of registration
fee of$250 shall be submitted to the planning department by the new owner within
ninety days of the change in ownership,
Section 25-4-16.13. Hosted transient accommodation rental nonconforming use
certificate.
(a) Applicants for owner-hosted and operator-hosted transient accommodation rental
nonconforming use certificates must notify by letter all owners and lessees of record
of all lots of which any portion is within three hundred feet of any point along the
perimeter boundary of the transient accommodation rental property. The notification
letter shall provide detailed information about the transient accommodation rental
operation including: the number of units being rented; maximum number of renters
permitted, number and location of required off-street parking_spaces; contact
information for the host or reachable person; and instructions on how to submit
complaints to the planning department about the subject rental operation.
(b) Owner-hosted and operator-hosted transient accommodation rentals who have
submitted a nonconforming use certificate application and the application fee on or
before June 30, 2025 shall be allowed to continue to operate until such time as their
application is determined to be accurate and complete by the department subject to
the standards in section 25-4-16.17 and fines in section 25-4-16.19.
(c) If at any time an owner-hosted or operator-hosted transient accommodation rental
with a nonconforming use certificate is found to be un-hosted,the transient
accommodation rental registration and the hosted nonconforming use certificate shall
be revoked and a fine shall be imposed in accordance with the schedule established in
section 25-4-16.19.
Section 25-4-16.14. Annual renewal of nonconforming use certificates.
(a) Nonconforming,use certificates must be renewed every year on or before the
expiration date indicated on the certificate.
(b) At the time of renewal, a renewal fee shall be remitted in accordance with the
schedule in section 25-4-16.4.
(c) For nonconforming use certificate renewals submitted within ninety days after the
due date, a late renewal fee of$100 shall be assessed.
8
(d) Nonconforming use certificates overdue by more than ninety days will not be
accepted and the failure to renew shall be considered voluntary forfeiture of the
certificate, rendering the certificate ineligible for further renewal.
Section 25-4-16.15. Annual renewal of nonconforming use certificates; denial.
Renewal of a nonconforming use certificate may be denied if the director verifies any
of the following:
(1) The applicant has violated pertinent laws;
(2) The affidavit affirming that the transient accommodation rental meets all health
safety, and code requirements is found to be inaccurate;
(3) The owner is delinquent in payment of County property taxes transient
accommodation taxes, fees, fines, or penalties assessed in relation to the
transient accommodation rental;
(4) Evidence of non-responsive management, such as issuance of a notice of
violation, police reports, or verified complaints of noise or other disturbances
relating to the transient accommodation rental operations;
(5) The renewal request and renewal fee were not received within ninety days of the
expiration date indicated on the certificate;
(6) Any violation of standards set forth in section 25-4-16.17• or
(7) The transient accommodation rental has been abandoned pursuant to section
25-4-62.
Section 25-4-16.16. Notice of denial of a nonconforming use certificate application or
renewal and appeal.
(a) Notice of a decision by the director to deny a nonconforming use certificate or
renewal of a nonconforming use certificate shall be transmitted in writing to the
property owner.
(b) Within thirty days after the transmittal of a notice of denial the owner may appeal to
the board of appeals as provided by section 6-9.2, Hawaii County Charter, and
sections 25-2-20 through 25-2-25.
Section 25-4-16.17. Transient accommodation rental operation standards.
The transient accommodation rental operation shall comply with the following
standards, which shall be prominently displayed within the rental.
(1) Posted information and responsive management standards.
(A) For hosted rentals, a host shall physically reside on the same building site
as the transient accommodation rental during transient accommodation
rental operations and shall be reachable at the request of renters
neighbors, and County agencies within one hour of a request A copy of
the registration as well as the host's name and phone number, shall be
displayed in a conspicuous place on the premises that is readily visible to
any occupants. In emergency or unforeseen circumstances the host may
request a temporary xception from this standard from the director.
(B) For un-hosted rentals a reachable person shall respond via telephone to a
request from a guest,neighbor, or County agency within one hour of
receiving that request and shall be physically present at the transient
accommodation rental within three hours of receiving;a call from a renter,
9
neighbor, or County agency, when that renter, neighbor, or County agency
requests the presence of the reachable person. A copy of the registration as
well as the host's name and phone number, shall be displayed in a
conspicuous place on the premises that is readily visible to andpants.
(C) The registration and the nonconforminguse or hosted nonconforming use
certificates if applicable, shall be displayed in a conspicuous place on the
premises that is readily visible to an inspector. In the event that a single
address is associated with numerous nonconforming use certificates, a
listing of all units at that address holding current certificates may be
displayed in a conspicuous, readily visible common area instead.
(2) Good neighbor standards.
(A) The renter limit for adult occupants in transient accommodation rentals
shall not exceed the renter limit established at the initial registration of the
ro e
(B) All overnight renters shall be registered with the owner or host and shall,
in the rental agreement, agree to comply with the terms of use of the
properly.
(C) Gathering sizes are limited to two times the overnight renter limit and
shall only use the off-street parking provided for the transient
accommodation rental.
(D) In hosted transient accommodation rentals, only breakfast meals may be
offered to guests. The serving of breakfast meals on the building site, for a
fee to individuals other than registered guests shall be prohibited. Owners
shall secure M required permit from the State department of health for
the service of breakfast meals.
(E) Weddings, wedding receptions, concerts, or events, are prohibited unless
allowed by special permit or use permit.
(F) Applicants, owners, operators,reachable persons, and renters shall comply
with the terms of special use or use permit conditions to mitigate the
impacts of the event on surrounding properties, including but not limited
to: event size; type of event; temporary structures; use of sound
amplifying devices; parking requirements; and additional insurance
coverage.
(G) Quiet hours shall be from 8:00 p.m. to 7:00 a.m., during which time the
noise from the transient accommodation rental shall not disturb adjacent
neighbors. Sound that is audible beyond the property boundaries during
non-quiet hours shall not exceed the standards set forth in title 11, chapter
46, Hawai`i Administrative Rules. For the purposes of this section,
"audible"means sound perceptible by a person without the use of a sound
detection device or audio aides. Violations of this standard shall be
reported to the Hawaii County police department.
(H) Off-street parking shall meet the requirements set forth in section 25-4-51
and applicable parking standards in this chapter, and all guest vehicles
shall be parked in the designated onsit parking area.
(3) Advertising and signage standards.
(A) All print and internet advertising;of transient accommodation rentals,
including listings with a rental service or real estate firm, shall include the
10
registration number and the nonconforming use certificate number or
hosted nonconforming use certificate number.
(B) Advertising or promoting a transient accommodation rental as a venue for
weddings, wedding receptions, concerts, or events, and providing any
professional services to anyone other than registered guests of transient
accommodation rental is prohibited unless allowed by pecial permit or
use permit.
(C) Any commercial signage that advertises a transient accommodation rental
shall comply with the requirements of section 22-2.6 and chapter 3 of the
Hawai'i County Code.
(D) Except for multi-family units, signag_e indicating the street address of the
transient accommodation rental and the registration number should be
clearly visible from the main roadway used to access the property_
Section 25-4-16.18. Prima facie evidence; transient accommodation rentals.
(aa) The following shall constitute prima facie evidence that a transient accommodation
rental is operating on a propertYand the conditions under which it is operating_
() Advertising of any sort that offers a property as a transient accommodation
rental;
(2) The ability of the planning department to book the rental under any of the
conditions defined by this section as requiring transient accommodation rental
registration;
(3) Hawai`i County transient accommodation tax receipts; or
(4) In the event that the County enters into a contract with third party hosting
platforms to provide transient accommodation rental listing information, a
report provided by the engaged third party.
(b) The burden of proof shall be on the owner to establish either that the propem is not
being used as a transient accommodation rental or that it is being used for such
purpose legally.
Section 25-4-16.19. Transient accommodation rental fee and fine schedule.
TRANSIENT ACCOMMODATION RENTAL FEES
Change in ownership 250
Late fee registration or nonconforminp,use certificate renewal 100
TRANSIENT ACCOMMODATION RENTAL FINE SCHEDULE
First Violation 2 500
Second Violation 5 000
Third Violation $10,000
11
Section 25-4-16.20. Complaints,violations, and public information.
The director shall:
(1) Receive and track complaints regarding transient accommodation rentals-
(2) Establish and maintain administrative rules for determining if a complaint is
valid and there has been a violation;
(3) Provide information about rules, policies, and procedures pertaining to transient
accommodation rentals to property owners, operators, neighbors, and the
general public, and
(4) Maintain a public list of all transient accommodation rentals that have registered
or received a nonconforming use certificate and any violations associated with
the property.
Section 25-4-16.21. Transient accommodation rental enforcement account.
(a) The"short-term vacation rental enforcement fund"created pursuant to section 10-12,
Hawaii County Charter, shall be renamed the"transient accommodation rental
enforcement fund." This fund shall be administered by the director.
(b) This account shall be funded by all fees and fines collected in connection with the
administration and enforcement of the County's transient accommodation rental law.
(c) The funds in this account shall be utilized to pay for expenses that facilitate the
administration and enforcement of the County's transient accommodation rental law.
Section 25-4-16.22. Transient accommodation rental administrative enforcement.
(a) If the director finds that any persons have violated the provisions of this chapter, in
addition to the fines established in section 16-4-16.19 and any criminal fines, the
director shall impose additional fines in the amount of two times the highest daily rate
at which the transient accommodation rental has been advertised.
(b) The owner and host shall be jointly and severally liable for all fees and fines imposed
in connection with the transient accommodation rental.
Section 25-4-16.23. Notice of violation and anneal.
(a) Notice of a violation of the transient accommodation rental standards shall be
transmitted in writing within ten days of the director's determination that a violation
has been committed. Written notice of violation shall be provided via certified mail.
(b) Service of the notice of violation upon the operator shall be effective as though served
upon the host and the property owner. In the event that the operator is not the
property owner, a copy of the notice of violation shall also be mailed to the property
owner at the address of the property owner on file with the real property tax division
of the County of Hawaii.
(c) Within thirtydUs after the transmittal of the notice of violation and order, any person
adversely affected by the notice of violation and order may appeal the notice of
violation and order to the board of appeals as provided by section 6-9.2, Hawaii
County Charter and sections 25-2-20 through 25-2-25, Hawai`i County Code. An
appeal to the board of appeals shall not stay the provisions of the order pending the
final decision of the board of appeals.
12
Section 25-4-16.24. Suspension and nonrenewal of transient accommodation rental
registrations and nonconforming use certificates.
(a) If a transient accommodation rental receives three or more enforcement actions in
violation of this chapter within a twelve-month period, the director shall suspend their
transient accommodation rental registration and their nonconforming use certificate if
applicable, for a period of two years.
(b) The director may also refuse to renew a certificate of registration if the applicant has
not addressed an enforcement violation.
Section 25-4-16.25. Property tax assessment for transient accommodation rentals.
(a) When any portion of a dwelling is rented or leased for less than one hundred eighty
days at a time during the assessment year, the entire property will be ineligible for the
real property homeowner tax classification pursuant to section 19-53. The real
property tax homeowner exemption will apply proportionally to the area exclusive
occupied by the homeowner pursuant to section 19-71.
(b) When the entire dwelling is rented or leased for less than one hundred eighty days at a
time during the assessment year, the entire property will be ineligible for the real
property homeowner exemption and the real property homeowner tax classification
pursuant to sections 19-71 and 19-72.
(c) If there is more than one dwelling on a property, and the owner resides in one
dwelling and rents or leases another dwelling for anything other than affordable rental
housing (which requires an application be submitted to the real property tax division),
the entire property is ineligible for the real property homeowner tax classification
pursuant to section 19-53. The real property tax homeowner exemption will apply
proportionally to the area exclusively occupied by the homeowner pursuant to section
19-71.
(d) One hundred eighty days as referred to in this section is the consecutive total of days
rented to a single tenant. Advertising,or application for a transient accommodation
rental or nonconforming use certificate will be considered as prima facia evidence.
Section 25-4-16.26. Property tax amnesty for transient accommodation rentals.
(a) For the purpose of ensuring compliance with the registration requirements for
transient accommodation rentals, a tax amnesty period shall be established.
(b) Owners who have been operating an owner-hosted transient accommodation rental
who submit a notarized affidavit to the real property tax department by December 31
2024 indicating that they will cease transient accommodation rental operations as of
the date the affidavit is signed, shall remain in the homeowner tax classification and
shall not be liable for rollback taxes based on the loss of the homeowners tax class for
the tax years 2022, 2023, and 2024. If transient accommodation rental operations do
not cease as indicated in the affidavit a rollback of the current year and two prior
years, a ten percent penalty, and a fine will be assessed.
(c) Owners who have been operating an owner-hosted transient accommodation rental
and register the rental in accordance with this chapter by December 31 2024 shall be
assessed in accordance with chapter 19 for the subsequent tax year but shall not be
liable for rollback taxes based on the loss of the homeowners tax class for the tax
years 2023 and 2024.
13
(d) The amnesty program shall not retroactively apply to Qrope,M owners who have
already been subject to property tax adjustments based on previous transient
accommodation rental operations.
Section 25-4-16.27. Director duties in event of emergency.
In the event of a declared emergency, natural or manmade,where a significant
number of hosted nonconforming_use transient accommodation rentals are permanently lost
within any given judicial district,the director shall assess the effect of such loss upon the
affected district and if deemed necessary, initiate legislative and administrative
opportunities to restore hosted transient accommodation rental capacity to pdmary
residents who relocate within the affected district."
SECTION 5. Chapter 25, article 4, of the Hawaii County Code 1983 (2016 Edition, as
amended), is amended by adding the following new division to read as follows:
"Division 1.2. Hosting Platforms,Transient Accommodation Rentals.
Section 25-4-17. Booking services.
(a) Any person or entity acting as, or on behalf of, a hosting platform shall not provide and
collect, or receive a fee for booking services in connection with any transient
accommodation rental that is not lawfully registered or permitted pursuant to this chapter.
(b) Hosting platforms shall not collect nor receive a fee, directly or indirectly through an agent
or intermediary, for facilitating or providing services ancillary to a transient
accommodation rental that is not lawfully registered or permitted pursuant to this chapter or
does not have the appropriate use permit issued pursuant to this chapter. Prohibited
ancillary services shall include insurance, concierge services, catering, restaurant bookings,
tours, guide services, entertainment, cleaning_property management, or maintenance of the
residential Property or unit.
Section 25-4-17.1. Registration.
(a) Hosting platforms shall not provide booking services to owners or operators of transient
accommodation rentals without first registering with the department. To register, a hosting
platform shall complete and provide a hosting platform registration to the director in a form
prescribed by the director, pay a registration fee of$100, and agree in writing to:
(1) Obtain written consent from all owners or operators of transient accommodation
rentals for the disclosure of the information required by the director; and
(2) Furnish such information to the County in accordance with section 25-4-17.2.
(b) A hosting platform may cancel its registration by delivering written notice of cancellation
to the director.
(c) The director may cancel a hosting platform's registration for cause including any violation
of this Code.
(d) Nothing in this section relieves the owner or operator of a transient accommodation rental
from the registration requirements set forth in this chapter.
14
Section 25-4-17.2. Reporting.
(a) All hosting platforms registered pursuant to section 25-4-17.1 shall submit a monthly report
to the director on the date and in the format prescribed by the director, for any transient
accommodation rental located within the County for which the hosting platform provided
booking services in the preceding month.The report shall include:
(1) The name(s) of the persons responsible for each listing;
(2) The physical address and tax map key number of each listing;
(3) The transient accommodations tax identification number of the owner or operator of
the transient accommodation rental;
(4) The length of stay for each listing; and
(5) The fee charged for each stay.
(b) The director may disclose such information to the appropriate State or County officials to
ensure compliance with this Code, State tax laws, and County tax ordinances, and any
applicable land use laws and ordinances.
Section 25-4-17-3. Penalties.
Any violation of this division shall be subject to a civil fine of not less than $1,000 and not
more than$10,000 for each day that the violation continues.
Section 25-4-17.4. Notice of violation and order; cancelation of registration; appeal.
(a) A notice of a violation and order shall be transmitted in writing to the hosting platform
within ten days of occurrence of the violation.
(b) Notice of registration cancellation shall be transmitted in writing to the hosting platform no
later than ninety days prior to the effective date of cancellation.
(c) Within thirty days after the transmittal of the notice of violation and order or cancellation
of registration, any person adversely affected by the notice of violation and order may
appeal the notice of violation and order or cancellation of registration to the board of
appeals as provided by section 6-9.2, Hawaii County Charter, and sections 25-2-20
through 25-2-25.An appeal to the board of appeals shall not stay the provisions of the order
pending the final decision of the board of appeals."
SECTION 6. Chapter 25, article 1, section 25-1-5 and chapter 25, article 5, sections 25-5-
3(a)(13),25-5-22(a)(15), 25-5-32(a)(18),25-5-42(a)(24), 25-5-92(a)(32), 25-5-102(a)(35), 25-5-
112(a)(52) and 25-5-122(a)(45), Hawaii County Code, are amended by substituting the word
"transient accommodation rental" or similar term,wherever the word, "short-term vacation
rental" or similar term, appears, as the context requires.
SECTION 7. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance,the brackets, bracketed and stricken material, and
underscoring need not be included.
15
SECTION 8, Severability. If any provision of this ordinance, or the application thereof to
any taxpayer or circumstance, is held invalid, the invalidity does not affect other provisions or
applications of the ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 9. This ordinance shall take effect on June 30, 2024.
INTRODUCED BY:
A41 .3&1
tCOUNCIL MEMBER%C04TY OF HA `WAI I
OUNCIL MEMBER, COUNTY OF HAWAI`I
Hawai`i
Date of Introduction:
Date of 1 st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm. 675
16
V 0.MyL
COUNTY OF HAWAI`I STATE OF HAWAI`I
BILL NO. 108
ORDINANCE NO.
18 114 (DxaF-r 7)
AN ORDINANCE AMENDING CHAPTER 25, ARTICLE 1, ARTICLE 2, ARTICLE 4,
AND ARTICLE 5, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION,AS
AMENDED), RELATING TO SHORT-TERM VACATION RENTALS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I:
SECTION 1. Findings and Purpose. The short-term rental of residential units, as an
alternative to traditional resort and hotel accommodations, is an emerging trend in the visitor
industry that continues to grow in popularity.
The purpose of this ordinance is to manage the impacts of these short-term vacation rentals
by: 1) defining where this use will be allowed; 2) establishing provisions and standards to
regulate this use; and 3) providing an avenue for an existing use deemed to be improper by this
ordinance,to apply for a nonconforming use certificate that would allow them to continue to
operate in a non-permitted district.
SECTION 2. Chapter 25, article 4, division 1, of the Hawaii County Code 1983 (2016
Edition, as amended), is amended by adding the following new sections to be appropriately
designated and to read as follows:
"Section 25-4- Short-term vacation rentals.
(a) Short-term vacation rentals; where permitted, specific prohibitions.
(1) Short-term vacation rentals shall be permitted in the:
(A) V, CG, and CV districts;,
(B) Residential and commercial zoning districts, situated in the General.
Plan Resort and Resort Node areas; and
(C) RM district, for multiple family dwellings within a condominium property
regime as defined and governed by chapters 514A or 514B, Hawaii
Revised Statutes.
(2) Private covenants prohibiting use of any unit as a short-term vacation rental
shall not be invalidated by this chapter.
(b) Registration of all short-term vacation rentals.
(1) Short-term vacation rentals in existence on or before the effective date of
this ordinance shall register with the director and pay a one-time fee of
$500. The registration form and associated fee shall be submitted to the
planning department no later than one hundred eighty days after the
effective date of this ordinance.
Planning Dspi.
Exhibit. 2
(2) Any new short-term vacation rental established in a zoning district after the
effective date of this ordinance, where such use is permissible pursuant to
this section shall register with the director and pay a one-time fee of$500
prior to use of such rental.
(3) Short-term vacation rentals shall only be established within a dwelling that
has been issued final approvals by the building division for building,
electrical, and plumbing permits.
(4) Owners of short-term vacation rentals shall register by submitting a form to
the planning department in a format prescribed by the director.
The registration form, at a minimum, shall require:
(A) Verification that State of Hawaii general excise tax and transient
accommodations tax licenses are in effect and verification that County
property taxes are paid in full;
(B) Certification that the requisite amount of parking pursuant to section
25-4-51 is available;
(C) Submittal of a site plan showing the location of the rooms for rent and
requisite parking; and
(D) Verification that notification letters from nonconforming use
applicants have been sent to all owners and lessees of record of all lots
of which any portion is within three hundred feet of any point along
the perimeter boundary of the short-term vacation rental property. The
notification letter shall provide detailed information about the short-
term vacation rental operation including: number of units being rented;
maximum number of guests permitted; number and location of
required parking spaces; and instructions on how to submit complaints
to the planning department about the subject rental operation.
(5) Owners of short-term vacation rentals shall notify the director when a
short-term vacation rental establishment permanently ceases to operate
for any reason.
(6) Upon change in ownership, the new owner shall notify the director
forthwith of the change in ownership and provide contact information
for the reachable person. Registration shall automatically continue,
subject to termination by the new owner.
(7) Any short-term vacation rental that has not lawfullyregistered within the
deadlines set forth in this section shall be considered an unpermitted use
and subject to the penalties set forth in this chapter until such time as
proper registration and compliance with applicable requirements of this
section are obtained.
2
(c) Standards.
All short-term vacation rentals shall be subject to the following standards:
(1) The owner or reachable person shall reside in the County of Hawaii and
shall be reachable by guests, neighbors, and County gencies on a twenty-
four hour, seven days-per-week basis. The owner shall notify the planning
department of any changes to their contact information forthwith.
(2) Good neighbor policy. The owner or reachable person shall be responsible
to ensure that activities taking place within the short-term vacation rental
conform to the character of the existing neighborhood in which the rental is
located. At a minimum, the following shall be prominently displayed within
the dwelling unit and recited in the rental agreement signed by the tenant:
(A) Quiet hours shall be from 9:00 p.m. to 8:00 a.m., during which time
the noise from the short-term vacation rental shall not unreasonably
disturb adjacent neighbors.
(B) Sound that is audible beyond the property boundaries during non-quiet
hours shall not be more excessive than would be otherwise associated with
a residential area.
(C) Guest vehicles shall be parked in the designated onsite parking area.
(3) All print and internet advertising of short-term vacation rentals, including
listings with a rental service or real estate firm, shall include the registration
or nonconforming use certificate number.
(4) A copy of the registration as well as the reachable person's name and phone
number, shall be displayed on the back of the front door of the sleeping
quarters.
(5) Off-street parking shall meet the requirements set forth in section 25-4-51
and applicable parking standards in this chapter.
(6) Any commercial signage that advertises a short-term vacation rental shall
comply with the requirements of section 22-2.6 and chapter 3 of this Code.
(d) Complaints and public information.
The director shall:
(1) Receive and track complaints regarding short-term vacation rentals;
(2) Provide information about rules, policies, and procedures pertaining to short-
term vacation rentals to property owners, managers, neighbors, and the general
public; and
(3) Maintain a list of all short-term vacation rentals that have registered or received
a nonconforming use certificate.
(e) Director duties in event of emergency.
In the event of a declared emergency, natural or manmade, where a significant
number of nonconforming short-term vacation rentals are permanently lost within
and given judicial district, the director shall assess the effect of such loss upon the
affected district and if deemed necessary, initiate legislative and administrative
opportunities to restore such loss in short-term vacation rental capacity within the
district of origin.
3
Section 25-4- .1. Short-term vacation rental nonconforming use certificate.
(a) Nonconforming use certificate. In addition to registering pursuant to
25-4- (b)(1) the owner of any short-term vacation rental which operated outside of a
permitted zoning district prior to the effective date of this ordinance, shall obtain a
short-term vacation rental nonconforming use certificate in order to continue to
operate. This certificate must be renewed annually. Applications for nonconforming
use certificates must be submitted to the director no later than one hundred eighty
days after the effective date of this ordinance.
(b) Evidence of prior use.
(1) The applicant seeking a short-term vacation rental nonconforming use
certificate shall have the burden of proof in establishing that the property
was in use prior to the effective date of this ordinance and that the dwelling
has been issued final approvals by the building division for building,
electrical, and plumbing_permits. Evidence of such use prior to the effective
date of this ordinance may include tax documents for the relevant time
period or other reliable information.
(c) Issuance of initial nonconforming use certificate.
(1) The director shall determine whether to issue a short-term vacation rental
nonconforming use certificate for a short-term vacation rental based on the
evidence submitted and other pertinent information.
(2) Issuance of an initial nonconforming use certificate may be denied if the
director verifies any of the following_
(A) The applicant has violated pertinent laws, such as not securing and
finalizing necessary building_permits for the dwelling;
(B) The owner is delinquent in payment of State of Hawaii general excise tax,
transient accommodations tax, or County property taxes, fees, fines, or
penalties assessed in relation to the short-term vacation rental; or
(C) Evidence of non-responsive management, such as issuance of a notice of
violation, police reports, or verified neighbor complaints of noise or other
disturbances relating to the short-term rental operations.
(d) Annual renewal.
(1) Nonconforming use certificates must be renewed every year on or before the
expiration date indicated on the certificate.
(2) At the time of renewal the applicant shall pay a renewal fee of$250 to the
director of finance.
(3) Renewal of a nonconforming use certificate shall be denied if the director
finds that the short-term vacation rental use has been abandoned pursuant to
section 25-4-62.
(4) Renewal of a nonconforming use certificate may be denied if the director
verifies any of the following_
(A) Any of the criteria for denial in section 25-4- .1.(c)((2);
(B) The owner or reachable person has not been reachable; or
4
(C) The renewal request and renewal fee were not received on or before the
expiration date indicated on the certificate.
(e) Agricultural lands. In the State land use agricultural district, a short-term vacation
rental nonconforming use certificate may only be issued for single-family dwellings
on lots existing before June 4, 1976.
(f) Notice of denial of a nonconforming use certificate and appeal.
(1) Notice of a decision by the director to deny the initial issuance or renewal of a
nonconforming use certificate shall be transmitted in writingto o the property
owner.
(2) Within thirty days after the receipt of a notice of denial, the owner may ppeal
to the board of appeals as provided by section 6-9.2, County Charter and
sections 25-2-20 through 25-2-24.
(g) Display. Current short-term vacation rental nonconforming use certificates shall be
displayed in a conspicuous place on the premises that is readily visible to an
inspector. In the event that a single address is associated with numerous
nonconforming use certificates, a listing of all units at that address holding current.
certificates may be displayed in a conspicuous, readily visible common area instead.
Section 25-4- .2. Prima facie evidence; short-term vacation rentals.
Advertising of any sort that offers a property as a short-term vacation rental shall
constitute prima facie evidence that a short-term vacation rental is operating on that
property. The burden of proof shall be on the owner or operator to establish either that the
property is not being used as a short-term vacation rental or that it is being used for such
purpose legally.
Section 25-4- .3 Short-term vacation rental enforcement account.
(a) Pursuant to section 10-12, Hawaii County Charter, a special fund to be known as the
"short-term vacation rental enforcement fund" is created. This fund shall be
administered by the director.
(b) The purpose of the fund is to support efforts to enforce the County's short-term
vacation rental law.
(c) This account shall be funded by all fees and fines collected in connection with the
administration and enforcement of the County's short-term vacation rental law.
(d) The funds in this account shall be utilized to pay for expenses that facilitate
enforcement of the County's short-term vacation rental enforcement law."
5
SECTION 3. Chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by adding new definitions to be appropriately inserted
and to read as follows:
""Reachable"means being able to:
(1) Respond via telephone to a request from a Quest, neighbor, or County agency within
one hour of receiving that request; and
(2) Be physically present at the short-term vacation rental within three hours of receiving
a call from a guest neighbor, or County agency, when that guest, neighbor, or County
agent requests the presence of the reachable person."
""Short-term vacation rental"means a dwelling unit of which the owner or operator does
not reside on the building site, that has no more than five bedrooms for rent on the building site,
and is rented for a period of thirty consecutive days or less. This definition does not include the
short-term use of an owner's primary residence as defined under section 121 of the Internal
Revenue Code."
SECTION 4. Chapter 25, article 2, division 3, section 25-2-30, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended to read as follows:
"Section 25-2-30. Violations.
Any approval or permit issued pursuant to the provisions of this chapter shall
comply with all applicable requirements of this chapter. Failure to comply with anY
provision of this chapter, any rule adopted pursuant to this chapter, or with conditions
imposed as part of any approval [or].,permit, [inel ding v ri nees] or variance from the
provisions of this chapter, shall constitute a violation of this chapter."
SECTION 5. Chapter 25, article 5, division 1, section 25-5-3, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a) to read as
follows:
"(a) The following uses shall be permitted in the RS district:
(1) Adult day care homes.
(2) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(3) Community buildings, as permitted under section 25-4-11.
(4) Crop production.
(5) Dwellings, single-family.
(6) Family child care homes.
(7) Group living facilities.
(8) Home occupations, as permitted under section 25-4-13.
(9) Meeting facilities.
(10) Model homes, as permitted under section 25-4-8.
6
(11) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(12) Public uses and structures, as permitted under section 25-4-11.
(13) Short-term vacation rentals situated in the general plan resort and resort node
areas.
(14) Temporary real estate offices, as permitted under section 25-4-8.
["](151 Utility substations, as permitted under section 25-4-11."
SECTION 6. Chapter 25, article 5, division 2, section 25-5-22, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection (a) to read as
follows:
"(a) The following uses shall be permitted in the RD district:
(1) Adult day care homes.
(2) Bed and breakfast establishments as permitted under section 25-4-7.
(3) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(4) Community buildings, as permitted under section 25-4-11.
(5) Crop production.
(6) Dwellings, double-family or duplex.
(7) Dwellings, single-family.
(8) Family child care homes.
(9) Group living facilities.
(10) Home occupations, as permitted under section 25-4-13.
(11) Meeting facilities.
(12) Model homes, as permitted under section 25-4-8.
(13) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(14) Public uses and structures, as permitted under section 25-4-11.
(15) Short-term vacation rentals situated in the general plan resort and resort node
areas.
16 Temporary real estate offices, as permitted under section 25-4-8.
[(- ] 17 Utility substations, as permitted under section 25-4-11."
SECTION 7. Chapter 25, article 5, division 3, section 25-5-32, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a) to read as
follows:
"(a) The following uses shall be permitted in the RM district:
(1) Adult day care homes.
(2) Bed and breakfast establishments, as permitted under section 25-4-7.
(3) Boarding facilities, rooming, or lodging houses.
(4) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
7
(5) Commercial or personal service uses, on a small scale, as approved by the
director, provided that the total gross floor area does not exceed one thousand
two hundred square feet and a maximum of five employees.
(6) Community buildings, as permitted under section 25-4-11.
(7) Crop production.
(8) Dwellings, double-family or duplex.
(9) Dwellings, multiple-family.
(10) Dwellings, single-family.
(11) Family child care homes.
(12) Group living facilities.
(13) Home occupations, as permitted under section 25-4-13.
(14) Meeting facilities.
(15) Model homes, as permitted under section 25-4-8.
(16) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(17) Public uses and structures, as permitted under section 25-4-11.
(18) Short-term vacation rentals situated in any of the following:
(A) General plan resort and resort node areas.
(B) Outside the general plan resort and resort node areas, in multiple family
dwellings within a condominium property regime as defined and governed
by chapters 514A or 514B, Hawaii Revised Statutes.
19 Temporary real estate offices, as permitted under section 25-4-8.
[(- ] 20 Time share units situated in any of the following:
(A) Areas designated as resort under the general plan land use pattern
allocation guide (LUPAG) map.
(B) Areas determined by the director to be within resort areas identified
by the general plan land use element, except for retreat resort areas.
(C) Areas determined for such use by the council, by resolution.
Utility substations, as permitted under section 25-4-1 L"
SECTION 8. Chapter 25, article 5, division 4, section 25-5-42, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection (a) to read as
follows:
"(a) The following uses shall be permitted in the RCX district:
(1) Adult day care homes.
(2) Bed and breakfast establishments, as permitted under section 25-4-7.
(3) Boarding facilities, rooming, or lodging houses.
(4) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(5) Churches, temples and synagogues.
(6) Commercial or personal service uses, on a small scale, as approved by the
director.
(7) Community buildings, as permitted under section 25-4-11.
(8) Convenience stores.
8
(9) Crop production.
(10) Day care centers.
(11) Dwellings, double-family or duplex.
(12) Dwellings, multiple-family.
(13) Dwellings, single-family.
(14) Family child care homes.
(15) Group living facilities.
(16) Home occupations, as permitted under section 25-4-13.
(17) Medical clinics.
(18) Meeting facilities.
(19) Model homes, as permitted under section 25-4-8.
(20) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(21) Public uses and structures, as permitted under section 25-4-11.
(22) Restaurants.
(23) Schools.
(24) Short-term vacation rentals situated in the general plan resort and resort node
areas.
j Utility substations, as permitted under section 25-4-11."
SECTION 9. Chapter 25, article 5, division 9, section 25-5-92, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection (a) to read as
follows:
"(a) The following uses shall be permitted in the V district:
(1) Adult day care homes.
(2) Amusement and recreational facilities, indoor.
(3) Art galleries, museums.
(4) Automobile service stations.
(5) Bars, night clubs and cabarets.
(6) Bed and breakfast establishments, as permitted under section 25-4-7.
(7) Business services.
(8) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(9) Churches, temples, and synagogues.
(10) Commercial parking lots and garages.
(11) Community buildings, as permitted under section 25-4-11.
(12) Day care centers.
(13) Dwellings, double-family or duplex.
(14) Dwellings, multiple-family.
(15) Dwellings, single-family.
(16) Family child care homes.
(17) Financial institutions.
(18) Group living facilities.
(19) Home occupations, as permitted under section 25-4-13.
9
(20) Hotels.
(21) Lodges.
(22) Medical clinics.
(23) Meeting facilities.
(24) Major outdoor amusement and recreation facilities.
(25) Model homes, as permitted under section 25-4-8.
(26) Parks, playgrounds, tennis courts, swimming pools, and other similar open area
recreational facilities.
(27) Personal services.
(28) Photography studios.
(29) Public uses and structures, as permitted under section 25-4-11.
(30) Restaurants.
(31) Retail establishments.
(32) Short-term vacation rentals.
Telecommunication antennas, as permitted under section 25-4-12.
[( 3}](34) Temporary real estate offices, as permitted under section 25-4-8.
[(34)](3 5) Theaters.
[(35)] 3366) Time share units.
[(36)] 3377) Utility substations, as permitted under [ tie ] section 25-4-11.
[(3 ) 3388) Visitor information centers."
SECTION 10. Chapter 25, article 5, division 10, section 25-5-102, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection (a)to read as
follows:
"(a) The following uses shall be permitted in the CN district:
(1) Adult day care homes.
(2) Automobile service stations.
(3) Bed and breakfast establishments, as permitted under section 25-4-7.
(4) Boarding facilities, rooming, or lodging houses, provided that the maximum
density shall be one thousand two hundred fifty square feet of land area per
rentable unit or dwelling unit.
(5) Business services.
(6) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(7) Churches,temples and synagogues.
(8) Community buildings, as permitted under section 25-4-11.
(9) Convenience stores.
(10) Crematoriums, funeral homes, funeral services, and mortuaries.
(11) Crop production.
(12) Day care centers.
(13) Dwellings, double-family or duplex, provided that the maximum density shall
be one thousand two hundred fifty square feet of land area per rentable unit or
dwelling unit.
10
(14) Dwellings, multiple-family, provided that the maximum density shall be one
thousand two hundred fifty square feet of land area per rentable unit or dwelling
unit.
(15) Dwellings, single-family.
(16) Family child care homes.
(17) Farmers markets. When the vending activity in a farmers market involves more
than just the sale of local fresh and/or raw produce, plant life, fish and local
homegrown and homemade products for more than two days a week, the
director, at the time of plan approval, shall restrict the hours of use, maintenance
and operations and may require improvements as determined appropriate to
ensure its compatibility with the existing character of the surrounding area.
(18) Financial institutions.
(19) Group living facilities.
(20) Home occupations, as permitted under section 25-4-13.
(21) Medical clinics.
(22) Meeting facilities.
(23) Model homes, as permitted under section 25-4-8.
(24) Museums.
(25) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(26) Offices.
(27) Personal services.
(28) Photography studios.
(29) Public uses and structures, as permitted under section 25-4-11.
(30) Repair establishments, minor.
(31) Restaurants.
(32) Retail establishments.
(33) Schools.
(34) Short-term vacation rentals situated in the general plan resort and resort node
areas.
315,) Telecommunication antennas, as permitted under section 25-4-12.
[(3-5)](36) Theaters.
[(-36)](37) Utility substations as permitted under section 25-4-11."
SECTION 11. Chapter 25, article 5, division 11, section 25-5-112, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a)to read as
follows:
"(a) The following uses shall be permitted uses in the CG district:
(1) Adult day care homes.
(2) Amusement and recreation facilities, indoor.
(3) Art galleries, museums.
(4) Art studios.
(5) Automobile service stations.
(6) Automobile sales and rentals.
11
(7) Bars, nightclubs and cabarets.
(8) Bed and breakfast establishments, as permitted under section 25-4-7.
(9) Boarding facilities, rooming, or lodging houses, provided that the maximum
density shall be one thousand two hundred fifty square feet of land area per
rentable unit or dwelling unit.
(10) Broadcasting stations.
(11) Business services.
(12) Car washing, provided that if it is mechanized, sound attenuated structures or
sound attenuated walls shall be erected and maintained on the property lines.
(13) Catering establishments.
(14) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(15) Churches,temples and synagogues.
(16) Cleaning plants using only nonflammable hydrocarbons in a sealed unit as the
cleansing agent.
(17) Commercial parking lots and garages.
(18) Community buildings, as permitted under section 25-4-11.
(19) Convenience stores.
(20) Crematoriums, funeral homes, funeral services, and mortuaries.
(21) Crop production.
(22) Day care centers.
(23) Display rooms for products sold elsewhere.
(24) Dwellings, double-family or duplex, provided that the maximum density shall
be one thousand two hundred fifty square feet of land area per rentable unit or
dwelling unit.
(25) Dwellings, multiple-family, provided that the maximum density shall be one
thousand two hundred fifty square feet of land area per rentable unit or
dwelling unit.
(26) Dwellings, single-family.
(27) Equipment sales and rental yards, and other yards where retail products are
displayed in the open.
(28) Family child care homes.
(29) Farmers markets. When the vending activity in a farmers market involves more
than just the sale of local fresh and/or raw produce, plant life, fish and local
homegrown and homemade products for more than two days a week, the
director, at the time of plan approval, shall restrict the hours of use,
maintenance and operations and may require improvements as determined
appropriate to ensure its compatibility with the existing character of the
surrounding area.
(30) Financial institutions.
(31) Group living facilities.
(32) Home occupations, as permitted under section 25-4-13.
(33) Hospitals, sanitariums, old age, convalescent, nursing and rest homes and other
similar uses.
(34) Hotels.
(35) Ice storage and dispensing facilities.
12
(36) Laboratories, medical and research.
(37) Laundries.
(38) Light manufacturing, processing and packaging, where the only retail sales
outlet for products produced is on the premises where produced.
(39) Medical clinics.
(40) Meeting facilities.
(41) Model homes, as permitted under section 25-4-8.
(42) Neighborhood parks, playgrounds, tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(43) Offices.
(44) Personal services.
(45) Photography studios.
(46) Public uses and structures, as permitted under section 25-4-11.
(47) Printing shops, cartographing and duplicating processes such as blueprinting or
photostating shops.
(48) Repair establishments, minor.
(49) Restaurants.
(50) Retail establishments.
(51) Schools.
(52) Short-term vacation rentals.
[( }] Telecommunication antennas, as permitted under section 25-4-12.
[(53)](54) Theaters.
[(54)] 55 Time share units.
[k5-5)](56) Utility substations, as permitted under section 25-4-11.
[{*]f5�7 Veterinary establishments."
SECTION 12. Chapter 25, article 5, division 12, section 25-5-122, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection (a)to read as
follows:
"(a) The following uses shall be permitted in the CV district:
(1) Adult day care homes.
(2) Amusement and recreation facilities, indoor.
(3) Art galleries, museums.
(4) Automobile sales and rentals.
(5) Automobile service stations.
(6) Bars.
(7) Bed and breakfast establishments, as permitted under section 25-4-7.
(8) Boarding facilities, rooming, or lodging houses, provided that the maximum
density shall be one thousand two hundred fifty square feet of land area per
rentable unit or dwelling unit.
(9) Business services.
(10) Cemeteries and mausoleums, as permitted under chapter 6, article 1 of this
Code.
(11) Churches, temples and synagogues.
13
(12) Commercial parking lots and garages.
(13) Community buildings, as permitted under section 25-4-11.
(14) Convenience stores.
(15) Crematoriums, funeral homes, funeral services, and mortuaries.
(16) Crop production.
(17) Day care centers.
(18) Dwellings, double-family or duplex,provided that the maximum density shall
be one thousand two hundred fifty square feet of land area per rentable unit or
dwelling unit.
(19) Dwellings, multiple-family,provided that the maximum density shall be one
thousand two hundred fifty square feet of land area per rentable unit or dwelling
unit.
(20) Dwellings, single-family.
(21) Family child care homes.
(22) Farmers markets. When the vending activity in a farmers market involves more
than just the sale of local fresh and/or raw produce,plant life, fish and local
homegrown and homemade products for more than two days a week, the
director, at the time of plan approval, shall restrict the hours of use, maintenance
and operations and may require improvements as determined appropriate to
ensure its compatibility with the existing character of the surrounding area.
(23) Financial institutions.
(24) Group living facilities.
(25) Home occupations, as permitted under section 25-4-13.
(26) Hospitals, sanitariums, old age, convalescent, nursing and rest homes and other
similar uses.
(27) Hotels, when the design and use conform to the character of the area, as
approved by the director.
(28) Laboratories, medical and research.
(29) Lodges.
(30) Manufacturing, processing and packaging light and general, except for concrete
or asphalt products, where the products are distributed to retail establishments
located in the immediate community, as approved by the director.
(31) Medical clinics.
(32) Meeting facilities.
(33) Model homes, as permitted under section 25-4-8.
(34) Neighborhood parks,playgrounds,tennis courts, swimming pools, and similar
neighborhood recreational areas and uses.
(35) Offices.
(36) Personal services.
(37) Photography studios.
(38) Public uses and structures, as permitted under section 25-4-11.
(39) Publishing plants for newspapers, books and magazines,printing shops,
cartographing, and duplicating processes such as blueprinting or photostating
shops, which are designed to primarily serve the local area.
(40) Repair establishments, major, when there are not more than five employees, as
approved by the director.
14
(41) Repair establishments, minor.
(42) Restaurants.
(43) Retail establishments.
(44) Schools.
(45) Short-term vacation rentals.
46 Telecommunication antennas, as permitted under section 25-4-12.
[{46}] 47 Temporary real estate offices, as permitted under section 25-4-8.
[(47)](448 Theaters.
[(48-)](49) Utility substations, as permitted under section 25-4-11.
SECTION 13. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed and stricken material, and
underscoring need not be included.
SECTION 14. Severability. If any provision of this ordinance, or the application thereof
to any person or circumstance, is held invalid, the invalidity does not affect other provisions or
applications of the ordinance that can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 15. This ordinance shall take effect on April 1, 2019.
INTRODUCED BY:
f � 0
COUNCIL MEMBER, C061M OF HAWAI`I
Kona , Hawai`i
Date of Introduction: November 2, 2018
Date of 1 st Reading: November 2, 2018
Date of 2nd Reading: November 20, 2018
Effective Date: April 1, 2019
REFERENCE Comm. 739.389
15
OFFICE OF THE COUNTY CLERK C0 COUNTY UNTY OF ►��'�CLERK
County of Hawaii
WAII
Kona Hawaii 7018 Orr _6 AM 9- 00
(Draft 6)
Introduced By: Karen Eoff/Dru Mamo Kanuha ROLL CALL VOTE
Date Introduced: November 2 , 2018 AYES NOES ABS EX
First Reading: November 2, 2018 Chung X
Published: November 10, 2018 David X
Eoff X
REMARKS': Kanuha X
Lee Loy X
O'Hara X
Poindexter X
Richards X
Ruggles X
Second Reading: November 20, 2018 5 1 3 0
To Mayor: November 29, 2018 (Draft 7)
Returned: December 6, 2018 ROLL CALL VOTE
Effective: April 1, 2019 AYES NOES ABS EX
Published: December 15, 2018 Chung X
David X
REMARKS:
— Eoff X
Kanuha
Lee Loy X
O'Hara X
— — Poindexter X
Richards X
Ruggles X
6 1 1 0
1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as
indicated above.
rov
co
L CHAIRPERSON
Disapproved this 5Mn day
of pLC+ b tY 20 (g C LERK
1�
Bill No.: 108 (Draft 7)
M.AJ1COUIT�0 HAWAI`I Reference: C-739.389/PC-74
_
Ord No.: IS 114
Camero, Trade-Lee
From: tom jones <thirdwheel415@gmail.com>
Sent: Wednesday, March 6, 2024 11:33 AM
To: LPCtestimony
Subject: RE: BILL 121 to: Leeward &Windward Planning Commission
Aloha,
Thank you for taking the time to read my testimony and I hope you consider each point and
recommendation for these important amendments.
Please don't paint us all with one brush. Puna IS NOT the mainland. We are not Oahu, Maui or Kauai
and PUNA IS NOT even Kona and we certainly DO NOT possess the wealth of Waimea or Hamakua ...
We are PUNA! and we are not the ones complaining to the county about our new neighborhoods
overflowingwith vacation rentals. In fact, Kehena Beach Estates, Puna Palisades and Seaview
developments were all originally built out with vacation renting in mind!
Here are some key points that I feel should be addressed in Bill 121.
-It is not uncommon for many PERMITTED STRUCTURES to have unpermitted uses, such as ... bedrooms
were called "storage rooms" or"workshops" during the original permitting process ... In most cases
parking requirements were not addressed per parcel at the time of permitting and construction as
sufficient parking is often on an adjacent parcel owned by the same owner. Many of these smaller lots
(<9,000 sq ft) are contiguously landscaped, It is not uncommon for these properties to consist of several
parcel numbers. IF we `merge' our lots to comply with Bill 121 to become hosted STVR's,we would
be denied insurance from HPIA AND from the very few commercial carriers available in Lava
Zones 1 &2. There is NO MIXED USE COVERAGE AVAILABLE
By keeping these lots separate it allows us to insure each DWELLING appropriately.
We were placated with the promise of Vacation Nodes in 2018 when Bill 108 passed for hosted
STVR's ... in the end, Vacation Nodes were ignored ...AGAIN, Vacation Nodes were promised during the
development of Bill 121, until the November 2013 ZOOM meeting when Council member claimed it
proved "TOO DIFFICULT TO ACHIEVE IN THE TIME FRAME NEEDED"
What is this time frame? Why the sense of urgency? and should we exchange a thorough job for a broken
law?
Vacation Nodes would resolve MANY of these issues in Volcano, Kehena, Kalapana, Pahoa and other
places where this one size fits all lawwould do more harm than good. By allowing unhosted Vacation
Rentals to be permitted in these small "Vacation Nodes" we could obtain proper insurance.
Keep the vacation business restricted to certain neighborhoods! We are zoned AG, but AG pursuits are
not feasible due to our small lots. We need to implement the Vacation Nodes concept. It works in these
areas. Eliminate STVRs outside of these Nodes altogether on AG land that does have the space for
i
Agricultural pursuits.
We could resolve most parking issues by allowing the required parking on adjacent lots through leases,
or easements. We can relieve the building and planning departments burden by allowing ALL permitted
structures to be rented SHORT TERM OR LONG TERM rather than picking apart details of the structure.
—Puna has No Hotels, No Resorts or any places for tourists to come bring their dollars which our
impoverished district relies on. Puna draws a different type of traveler, the ADVENTURE TRAVELER, and
quite often multi generational families needing large homes. It would not be financially feasible for
extended families of 12 or 15 to rent hotel rooms.
-ALL OF Puna relies on STVR's for income
-artists, farmers markets
-housekeepers
-yard maintenance
-repairs, painting, plumbing, electrical, carpentry
-sales tax generated from supplies and materials
-HCTAT income =$120M for Big Island
-our FEW local restaurants, grocery stores etc creating a more severe food desert in our community
-elderly property owners needing to fill their own income gap
-there are way too many GOTCHA TRAPS in this bill as written which would result in a $10,000 PUNITIVE
fine. The fines are TOO HIGH and too easily and arbitrarily assessed as written
RECOMMENDATIONS FOR BILL 121
-DELETE owner hosted &operator hosted, simply SIMPLY REPLACE WITH `HOSTED'
-affidavit under penalty of perjury, DELETE `PENALTY OF PERJURY'
-HOSTED REQUIREMENTS SHALL BE SATISFIED AS LONG AS THE "HOST" IS IN THE SAME
BUILDING, SAME PARCEL OR ADJACENT PROPERTY OWNED BY THE SAME PERSON. As it is
overreach to dictate or legislate where someone must sleep. (The ACLU argued this in San
Francisco while drafting their STVR laws)
-eliminate verbiage of`bedroom' and ALLOW ALL SPACES OF `PERMITTED STRUCTURES'to be
rented, short term as it is long term, regardless of the designation on the original permit(workshop,
storage room, craft room etc)
-remove arbitrary occupancy limits of 8, and limit occupancy based on square footage or site plan
or on site parking availability. Overcrowding issues can be resolved if complaints are filed
-allow parking requirements to be satisfied by leases or easements on neighboring properties
which are contiguously landscaped, Maui and other islands even allow for parking to be leased
within a specific distance for commercial businesses
-undue hardship clause should be implemented and applied in cases where this law would cause
2
-Lava Zones 1 &2 have no access to mixed use insurance
** let that sink in for a moment
homeowners to lose their homes due to lack of insurance etc. and exempt from enforcement
OVER REGULATION IS NOT THEANSWER, BETTER REGULATION IS...
Mahalo,
Puna Community Residents
3
From: Kim Ratliff
To: WPCtestimonv
Subject: Bill121
Date: Friday, March 22,2024 8:03:24 AM
I just received my new assessed value on my property in Hawaii and the assessed value has
increased by a big amount. If you based the assessed value on the marketvalue,you need to
think about whatyou will do to your tax base if you restrict my ability to rent my unit.The
market value will decrease which will(should) decrease the assessed value and the amount of
taxes you will ultimately receive. I purchased this property because I can rent it out while I am
not on the island. If that wasn't the case, I would never have purchased it. I am not sure what
your expectations are in the long haul this bill.
Kim & Leska Ratliff
77-6469 Alii Drive#327
Kailua-Kona, HI
96740
Kim 425-388-8957
Leska425-388-8956
Planning Dep'..
Exhibit. 4
From: Robert
To: WPCtestimonv
Subject: 3-21 sent to Tracie Urgent Concerns Regarding Bill 121 and Its Impact on Local Communities
Date: Thursday,March 21,2024 12:26:47 PM
Subj ect:
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
We all know this bill does not solve the issue of affordable housing even a small percentage
and will have significant negative consequences especially for our unique island.
I am also writing to express my deep concerns regarding Bill 121 and its potential impact on
our local communities,particularly in terms of enforceability, inequity, and the transformation
of neighborhoods. As a resident deeply invested in the well-being of our community, I urge
the Windward Planning Commission to consider the following recommendations to ensure
that any regulations implemented are fair, enforceable, and in the best interest of all Hawai'i
County residents.
Firstly, I request that the Planning Commission recommend removing the affidavit
requirement from Bill 121. This requirement places an undue burden on homeowners and
complicates the registration process unnecessarily. It is essential that we streamline these
processes to make compliance easier for all parties involved.
Secondly, I advocate for the continuation of defining short-term rentals as under 30 days. This
definition has worked well in the past and changing it could lead to confusion and further
complications in enforcement and compliance.
Lastly, I urge the Planning Commission to recommend that Hawaii County provide clarity for
tiny homes, tents, trailers, and other alternative accommodations. These types of housing are
becoming increasingly popular and necessary due to the unique challenges we face in Hawai'i.
Clear guidelines will help ensure that these alternative accommodations can be used safely and
effectively without unnecessary restrictions.
In conclusion, while I understand the intent behind Bill 121, I believe that without careful
consideration and adjustments, it could lead to unintended negative consequences for our
communities. I trust that the Planning Commission will take these concerns into account and
work towards regulations that respect private property rights, ensure equitable treatment, and
preserve the unique character of our neighborhoods.
Mahalo for your attention to these matters.
Me ke aloha pumehana,
Planning Dept.
Exhibit
Robert Chung
77-110 Nahale P1 - Kona, HI 96740
6198469500
From: mars melnik
To: WPCtestimony
Subject: 3-21 to Tracie Bill 121 A Plea for Consideration:The Real Impact of Bill 121 on Responsible Homeowners
Date: Thursday,March 21,2024 2:06:17 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
As a dedicated and responsible member of our island community, I am
reaching out to share my personal story and the potential real-life
consequences of Bill 121 on individuals like myself. I am a local resident, from
north Kohala deeply rooted in our island's culture and economy, working
full-time as a flight attendant. My ohana rental is not just a source of
income; it's a lifeline that allows me to maintain homeownership in our
increasingly expensive island.
want to emphasize that I am a conscientious taxpayer, contributing
significantly to our local economy through timely and full tax payments. This
financial contribution is substantial, reflecting my commitment to our
community's well-being. Additionally, my vacation rental has operated
discreetly and respectfully, with neighbors unaware of its existence for years.
This demonstrates my commitment to minimizing impact and preserving the
tranquility of our neighborhood.
My guests cherish the unique experience my ohana rental offers, a stark
contrast to the impersonal hotel scene. This not only supports our tourism
industry but also showcases the genuine aloha spirit of our island. However,
it's crucial to understand that my ohana rental cannot be converted into a
long-term rental due to its design limitations, such as lack of closet space
and a kitchen. Therefore, the argument that shutting down vacation rentals
like mine would alleviate the housing shortage does not hold in my case.
If Bill 121 forces the closure of my ohana rental, I face the heartbreaking
prospect of becoming one of the local families in desperate need of housing
or being compelled to leave the island I call home. This is not just my story;
it's a reality many local families might face.
Planning Dept.
Exhibit __. 6
respectfully urge the Planning Commission to consider the real impact of
this bill on responsible homeowners and our community. By recommending
the removal of invasive registration requirements and the inclusion of an
undue hardship clause, you have the power to protect the livelihoods and
homes of local families.
Please, I implore you to consider the broader implications of Bill 121 and the
genuine hardships it could impose on hardworking residents like myself.
Mahalo for your time and consideration. I trust in your compassion and
wisdom to make decisions that truly benefit our island and its people.
Me ka ha'aha'a,
Mary Melnik
73-1597 Ha'o Street
8083587270
Sent from Outlook
Planning Dept.
Exhibit 7
From: mswolf ricardooroup.com
To: WPCtestimonv
Subject: 3-22 to Tracie Concerns Over Bill 121"s Impact on Local Families"Livelihoods
Date: Friday,March 22,2024 3:42:03 AM
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am reaching out to express my deep concerns regarding the potential impacts of Hawaii Bill
121 on families like mine who rely on short-term rentals as a means of making a living in
Hawai'i. The proposed regulations threaten to significantly disrupt our livelihood and
exacerbate the already challenging economic conditions for local residents.
The requirement for property owners to navigate complex and potentially invasive registration
processes, coupled with restrictive operational guidelines,poses a substantial burden.
For many families, the income generated from short-term rentals is not merely supplemental;
it is essential for meeting basic living expenses and maintaining affordable housing for
ourselves.
Moreover, the bill's approach to regulating the short-term rental market overlooks the diversity
of circumstances among property owners and operators. The lack of consideration for those
who responsibly manage their rentals and contribute positively to the local economy and
community is particularly disheartening.
Given these concerns, I respectfully request the Planning Commission to:
Recommend removing intrusive reporting requirements that place undue burdens on
homeowners.
Recommend that Hawaii County provide clarity for ohana apartments, recognizing the unique
ways families in Hawai'i make their living.
Include an undue hardship clause in the bill to protect homeowners at risk of losing their
housing due to the new regulations.
It is crucial that the Commission considers the real-world impact of Bill 121 on families
striving to make ends meet in Hawai'i. We seek regulations that are fair, enforceable, and
sensitive to the needs of local communities.
Mahalo for your attention to these matters. I hope for a resolution that supports the well-being
of all residents and preserves the aloha spirit that defines our island home.
Mahalo nui loa,
Planning [kepi.
Exhibit 7
Maryann Wolf
74-853 Laimana St
Kailua-Kona, Hawaii
480-253-8493
Sent from my Verizon, Samsung Galaxy smartphone
Get Outlook for Android
From: Paige Bowlus
To: W PCtesti mono
Subject: Protecting Property Rights and Livelihoods in the Face of Bill 121
Date: Friday, March 22,2024 3:54:23 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding Hawaii Bill 121 and its potential
impact on my family and me. As a resident of the Big Island who has invested my life
savings into purchasing a home here, I intended to use this asset to generate income to
support my family. Despite my high level of education as a molecular biologist, job
opportunities in my field are scarce in Hawaii, particularly in Hawaii County. The ability
to utilize my property to participate in Hawaii's tourism economy is not just a choice; it's
a necessity for my survival.
The restrictions proposed by Bill 121 threaten to strip me of my property rights and limit
my participation in the tourism economy, which is the backbone of Hawaii's financial
ecosystem. I believe that the responsibility of providing affordable housing should not
fall on individual homeowners but should be addressed by our elected officials through
effective legislation and planning. It is crucial that efforts are made to streamline the
permitting process, make it easier to build housing, and allocate resources
appropriately for affordable housing development.
I respectfully request the Planning Commission to consider the following
recommendations to ensure fairness and protect homeowners like myself:
1. Remove restrictions about where hosts live and where guests stay, as
long as the owner is in the same building, on the same parcel, or on an
adjacent parcel.
2. Allow rentals of tiny homes,tents,trailers, and other alternative
accommodations.
3. Streamline the registration process and eliminate invasive requirements for
short-term rentals.
These measures would help preserve the rights of property owners to utilize their assets
Planning Depi.
Exhibit 8
in a manner that supports their livelihoods while also contributing to Hawaii's economy.
I have dedicated my life to building a future here, and the prospect of losing my home or
being forced onto public assistance due to restrictive legislation is both unfair and
unnecessary. I urge you to consider the impact of Bill 121 on families like mine and to
take action that supports both property rights and the broader economic health of our
community.
Mahalo for your attention to this matter.
Paige Bowlus
69-1677 Puako Beach Dr
435-901-3933
paige.bowlus(cbemail.com
From: susan barrackman <happysuenow@outlook.com>
Sent: Saturday, March 23, 2024 6:10 AM
To: WPCtestimony
Subject: Please just stop with trying to make new laws to make my life illegal. It's not pono!
Subject: Urgent Need for Reevaluation of Bill 121 Provisions
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
2S Aupuni St.
Unit 1 S02
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding the proposed measures in Bill 121. As
a resident of Hawaii County, I believe that while the intention behind the bill may be to
address certain issues, it inadvertently creates more problems than it solves, particularly in
terms of enforceability, inequity, and the impact on private property rights.
Firstly, the enforceability of this bill poses a significant challenge. Without sufficient human
resources, the Planning Department staff may be overwhelmed, leading to ineffective
implementation. This could result in a selective enforcement that unfairly targets certain
property owners while others may find ways to circumvent the rules.
Secondly, the bill introduces a level of inequity amongproperty owners. By imposing
9
restrictions that affect some more than others, it disrupts the balance and fairness that
should be inherent in any legislative measure. This is particularly concerning for those who
rely on their property for income through short-term rentals.
Lastly, the bill's impact on private property rights cannot be overlooked. The restrictions
on where hosts live and where guests stay, as well as the intrusive reporting requirements,
infringe upon the rights of property owners. This overreach into the personal domain of
property management is concerning and sets a precedent for further limitations.
Planning Dep.
1 Exhibit _.__
In light of these issues, I respectfully request the Planning Commission to consider the
following recommendations:
-
I Conduct an economic impact study to fully understand the implications of this bill.
2. Recommend the removal of restrictions about where hosts live and where guests
stay, as long as the owner is in the same building, on the same parcel, or on an
adjacent parcel.
3. Recommend streamlining the registration process and eliminating invasive
requirements like dimensioned drawings and the disclosure of private details of their
home.
I believe these steps will address the concerns raised while ensuring the bill achieves its
intended goals without unintended negative consequences.
Mahalo for considering my testimony.
With respect,
Susan Barrackman
15-2691 Opihi St Pahoa
8057093587
Sent via the Samsung Galaxy A13, an AT&T 4G LTE smartphone
Get Outlook for Android
2
From: Leslie Blok
To: W PCtesti mono
Subject: Concerns Over Bill 121: Enforcing Current Rules and Addressing Housing Affordability
Date: Saturday,March 23,2024 1:01:55 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my concerns regarding the proposed changes under Hawaii Bill 121
concerning Short-Term Vacation Rentals (STVRs). While I understand the intention behind
the bill is to address various issues within our community, I believe that the focus should be
on enforcing the existing rules before introducing new regulations.
STVRs have the potential to be excellent neighbors and contribute significantly to our
community when managed correctly. They can offer unique accommodations for visitors,
support local businesses by increasing tourism, and provide additional income for local
families. However, I acknowledge that there are instances where STVRs have caused issues
due to a lack of enforcement of current regulations.
Before we consider imposing new rules, I urge the Windward Planning Commission to
recommend the removal of any rules or regulations that already exist in law, such as quiet
hours and parking requirements, and focus on enforcing these existing regulations. This
approach will address the concerns of both residents and STVR operators without adding
unnecessary complexity and burden.
Moreover, I request the Planning Commission to recommend streamlining the registration
process for STVRs and eliminating invasive requirements that do not directly contribute to
resolving the issues at hand. This will ensure that responsible STVR operators can continue
to contribute positively to our community without being unfairly penalized.
Additionally, I am concerned that the new regulations proposed by Bill 121 could
inadvertently create new problems, particularly in making housing even less affordable for
long-time residents. By potentially limiting the ability of homeowners to generate income
through STVRs, we risk exacerbating the affordability crisis, pushing more local families out
of their homes.
Therefore, I believe that by focusing on enforcement and simplification, we can create a
balanced environment where STVRs can coexist harmoniously with the community. This
approach respects the rights of property owners while addressing the concerns raised by
the community and avoiding unintended consequences on housing affordability.
Planning Dept.
Exhibit 10
Thank you for considering my perspective on this matter. I look forward to seeing a fair
and effective resolution that benefits all parties involved.
Mahalo,
Leslie Blok
77-6504 Princess Keelikolani Dr
Kailua-Kona Hi 96740
5418154906
From: Liz Lees
To: WPCtestimonv
Subject: Subject: Urgent Concerns Regarding Bill 121 and Its Impact on Local Families
Date: Saturday, March 23,2024 3:13:37 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding Bill 121 and its potential impacts on our local
community, particularly in terms of affordable housing and the livelihoods of many families, including my
own. As a resident deeply invested in the well-being of our island, I urge the Windward Planning
Commission to consider the broader implications of this measure.
Firstly, it is crucial to acknowledge that the primary industry on Hawai'i Island is tourism. This industry not
only supports our economy but also provides a means for local families to participate beyond being mere
wage earners for mainland-based corporations. By imposing stringent regulations on vacation rentals, Bill
121 threatens to undermine this vital economic pillar, potentially leading to job losses and financial
hardship for many.
Moreover, the bill's approach to regulating vacation rentals seems to overlook the fact that many families
rely on this income to make their housing affordable. For some, the revenue generated from short-term
rentals is what allows them to meet their monthly financial obligations. The proposed restrictions could,
therefore, inadvertently exacerbate the very issue of affordable housing that the bill seeks to address.
Given these concerns, I respectfully request that the Planning Commission consider the following
recommendations:
1. Conduct an economic impact study to fully understand the implications of Bill 121 on local families
and the broader community.
2. Recommend the removal of restrictions about where hosts live and where guests stay, as long as
the owner is in the same building, on the same parcel, or on an adjacent parcel.
3. Recommend streamlining the registration process and eliminating invasive requirements, thereby
reducing the burden on homeowners wishing to operate vacation rentals.
These measures, I believe, would help strike a balance between regulating vacation rentals and
preserving the economic well-being of our community.
Mahalo for your consideration of these important issues. I trust that the Commission will take a thoughtful
and balanced approach in its deliberations on Bill 121.
Me ka mahalo nui,
Liz Lees
77-110 Nahale PL 96740
727-898-6708
Planning Depi.
Exkibit 11
Liz
From: Sylvia Dahlby
To: WPCtestimonv
Subject: Opposition to Bill 121 with concerns&recommendations
Date: Sunday,March 24,2024 12:51:49 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my concerns about Hawaii County Bill 121. As a resident of Hilo, I
believe this bill could have significant negative impacts on our community, particularly in
terms of enforceability, unfair treatment and punitive taxation on small business
owners/AlrBnB hosts like myself.
I'm a retiree and rent a room in my home for supplementary income. It's a finished
basement apartment with a private bath, but has no kitchen so not suitable for long-term
rental. In fact, most of my guests are kama'aina business travelers from Oahu and the Kona
side. Bill 121 threatens to increase MY housing costs with unfair taxation and possibly shut
down my business by making it unprofitable.
In addition:
The enforceability of Bill 121 raises concerns. With the current resources of the Planning
Department, it seems unrealistic to expect effective enforcement of the new regulations.
This could lead to selective enforcement, where only a few are penalized, creating inequity
among local property owners.
The transformation of neighborhoods is a significant & legitimate concern. Bill 121 does
nothing to crack down on existing illegal rentals and those which create a nuisance or get
complaints from neighbors. How about enforcing existing laws before creating new ones?
I respectfully request the Planning Commission to consider the following
recommendations:
1) Remove restrictions about where hosts live and where guests stay, as long as the owner
is in the same building, on the same parcel, or on an adjacent parcel.
2) Streamline the registration process and eliminate invasive requirements like
dimensioned drawings and the disclosure of private details of their home.
3) Stop scapegoating the STVR owners for creating the affordable housing shortage that
has been going on for decades. Bill 121 may as well have been written by the hotel industry
lobby, which has wanted to shut down STVRs and small business hosts from taking a slice
of their pie. Since the Maui fire, there are other, more sensible steps being taken to
increase inventory by easing construction requirements, zoning and other barriers to
Planning Dept.
Exhibit 12
building new homes and residential properties.
Mahalo for considering my concerns and recommendations. I hope we can find a balanced
approach to regulating short-term rentals that respects the rights of property owners and
preserves the unique character of our neighborhoods.
Me ka mahalo nui,
Sylvia Dahlby
16 Malanai Street, Hilo HI 96720
808-769-4774
From: schneckenburoerCcbcomcast.net
To: WPCtestimony
Subject: Concerns Regarding the Impact of Bill 121 on Local Communities
Date: Monday,March 25,2024 5:17:25 PM
Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I hope this letter finds you well. I am writing to express my concerns regarding
Hawaii Bill 121 and its potential impact on our local communities. I am deeply
invested in the well-being of our island, I believe it is crucial to address several
issues that Bill 121 may exacerbate if not carefully reconsidered.
First, the bill's approach to regulating short-term rentals seems to overlook the
importance of enforceability. Without a clear and feasible enforcement plan, the
regulations may prove ineffective, leading to continued challenges in managing
short-term rentals within our communities.
Moreover, the bill raises concerns about inequity. By imposing restrictions that
disproportionately affect certain groups of property owners and operators, we
risk creating an uneven playing field. This could lead to unintended
consequences, such as limiting the ability of smaller operators to compete or
contribute to the local economy.
Additionally, the bill's impact on private property rights cannot be overlooked.
The restrictions proposed may be seen as an overreach, infringing on the rights
of property owners to utilize their properties as they see fit, provided they do so
responsibly and in accordance with community standards.
Given these concerns, I respectfully request the Planning Commission to
consider the following recommendations:
i. Recommend the removal of the affidavit requirement to simplify
compliance and reduce administrative burdens.
Recommend streamlining the registration process and eliminating invasive
requirements, making it easier for responsible operators to participate in
the short-term rental market.
3. Recommend conducting an economic impact study to fully understand the
implications of Bill 121 on our local economy and housing market.
I believe that by addressing these concerns, we can work towards regulations
that balance the needs of our communities, property owners, and visitors,
ensuring a sustainable and equitable future for Hawaii County.
Mahalo for your attention to these matters.
Planning Dept.
Exhibit 13
�Me ke aloha pumehana,
Joe Schneckenburger
78-228 Kahaluu Rd
March 26, 2024
Windward Planning Commission,
First off, I want to start with thanking you all for your service to our community. I'm
writing this on behalf of my family, our employees and local business we support,
in opposition of several portions of Bill 121.
1 moved to the island 20 years ago as an African American woman because I fell in
love with the island and the reputation of the islands being more welcoming to
those of mixed race. Our 5 children were born and raised on the island. My
husbands and his family were athletic coaches for local school and we were all
very involved in our community. We have both long term rentals and one short
term rental and several amazing local people who work with us to keep them in
operation. During COVID, like many other people, my husband lost his job in the
hospitality industry due to heavy restrictions placed on the island. Our boys, high
school football players, were also just short of being forced to get the "Mrna jab"
(despite health conditions that prevent us from doing so) in order to play the sport
they loved. We had to make a hard decision, and despite our plan to never leave
the island, our home, friends and family...we were forced to move to the mainland
with just one week notice. We knew we would do everything to keep our forever
home,the one we worked so hard for,that we all put in sweat equity to remodel.
Financially it didn't make sense for us to rent it long term, however, we didn't want
to sell it.That is when we decided to short term rent it. Our tenants who live on
property next door, a local family who have lived there since we purchased it,
agreed to be our on site hosts and property managers. They were able to stay in
their home at an affordable price and we were able to supplement their income in
a declining economy.
We have put in a lot of work to create a nice place for visitors to stay.We have had
zero issues with guest and no complaints. We do not allow large gatherings and
ensure we properly vet who will be staying in our home. We live in an agricultural
zone and chose this when we purchased it to have sustainability. Sustainability
with farming, chickens, and also the space to potentially rent in the future. We
employ 9 people to help support their families at this property, as well as
providing affordable long term housing for 12 people.We pay all GE,TA, HCTAT,
non homeowner exclusion nor cap property taxes, and income taxes...for a total
of 38%to the County and State. Our property taxes have doubled in one year.
Planning Dees.
Exhibit __14
Our insurance has increased significantly to cover the cost of short term rentals
and kept it with a local insurance company.We are making just enough to cover
the bills and help us provide a living for our family and supplement several others
on island. We have gone through the process to make our home ADA compliant
and accessible. We, like other hosts, direct many of our guests to several local
restaurants and businesses on the island. We strongly encourage our guests to
participate in several agritourism activities that support the recent state initiative to
promote this.
Being able to have the freedom to short term rent our home has allowed us to
temporarily provide education to our kids while allowing them to play the sport
they have played since they were children. It has allowed my husband to secure a
job so he can provide for our large family, and keep the cost of living affordable.
Our long term plan was to move back to our home, on the Big Island, once our
older children are off to college and we are back on our feet.
According to the most recent bill, we would be grandfathered in, however are
concerned with the County's ability to not renew under extremely vague
circumstances referenced in the bill (i.e. "pertinent violation of the law").We are
also concerned with all the additional costly and timely permitting and registration
requirements.The other issue with under the current bill, we cannot have the
option to move back and live in our guest house while continuing to short term
rent the other on the same property.
Due to all the aforementioned reasons, if this bill passes as is, we feel it would be
best to sell the property. We will not long term rent it due to the expenses versus
rental income and lax landlord rental protections. We would no longer be paying
the taxes to the County and State. We would list it, more than likely it will sell for
cash to someone on the mainland or Asia,thus further increasing the cost of
housing (and requirement for cash offers in the state).We would have to terminate
our long term lease with our on-site hosts who have lived there for the past 8 years
as well as their employment. We would then be forced to sell our other long term
properties or have to increase our rent to be able to afford to keep them to
supplement the loss of short term rental income. We would have to terminate our
9 employees and no longer direct guests to local businesses. The worst part of
this is our family, 5 kids born and raised on island, would probably never return to
the island as we would be priced out of Hawaii like many others before us.
I understand you are hearing lots of testimonies and received several similar
letters. Our family is just one story to you. But this is our life and livelihood. We left
Hawaii and tried our best to bring the feeling of Aloha and Ohana to those we are
in contact with on the mainland. They call us the Hawaii refugees in our town,
knowing that someday our plan is to return. How sad that the message that is
given to the world is that the State of Hawaii pushes hardworking families and
businesses out with unnecessary and ineffective regulations. I understand you
have some valid reasons and intentions for this bill, I just feel it needs some more
thorough research and alignment, including listening to those impacted,to ensure
it is the best for the county and all of the local community.
Thank you for your time and taking our family, and families we support on island,
into consideration.
Sincerely,
Anonymous (in Kona)
From: carola
To: W PCtesti mono
Subject: Proposal for Inclusive Subletting Regulations in Bill 121
Date: Tuesday, March 26,2024 12:55:00 AM
Chairman Dennis Lin Windward Planning Commission County of Hawaii 25 Aupuni St. Unit
1502 Hilo, HI 96720
Aloha Chairman Lin,
I hope this letter finds you well. I am reaching out to discuss a specific aspect of Hawaii Bill
121 that, in its current form, could significantly limit the flexibility and economic
opportunities for long-term tenants in Hawaii. The issue at hand is the ability of long-term
tenants to sublet their rented units for periods of less than 30 days, provided they continue
to reside on the property long-term.
The current draft of Bill 121 does not adequately address the rights and opportunities for
tenants to participate in the short-term rental market. This oversight not only restricts
tenants' potential to earn additional income but also limits the availability of short-term
rental options for visitors, which can have broader implications for our local tourism
economy.
To address this concern, I respectfully request that the Planning Commission consider
recommending the inclusion of a clause in Bill 121 that explicitly allows tenants, not only
property owners, who are renting a property long-term to sublet part of their unit for
periods of less than 30 days, as long as they continue to reside on the property. This
amendment would ensure that long-term tenants are afforded the same opportunities as
property owners to benefit from HawalTs vibrant tourism industry, provided they adhere
to the same regulations and standards expected of all short-term rental operators.
Furthermore, this recommendation aligns with the principles of equity and fairness,
ensuring that all members of our community have the opportunity to participate in and
benefit from the economic activities that define our island. It also addresses concerns
related to the transformation of neighborhoods by ensuring that long-term tenants remain
an integral part of the community.
In conclusion, I believe that by adopting this recommendation, the Planning Commission
can take a significant step towards creating a more inclusive, fair, and economically vibrant
framework for short-term rentals in Hawaii. I appreciate your consideration of this matter
and look forward to your response.
Mahalo nui loa for your attention to this important issue.
Me ke aloha pumehana,
Carol Petersson, Captain Cook
Planning Dept.
Exhibit 15
From: kohaIacoastresortassnCcbomai1.com
To: WPCtestimony
Subject: Written testimony for Windward Planning Commission hearing on 4/5/24-Bills 121, 122 and 123
Date: Tuesday, March 26,2024 12:31:00 PM
Attachments: Testimony in support of Bills 121^1_3 122 and 123-TAR Windward Plannino Commission -3.26.24.pdf
AlltheRooms Hawaii County TAR Report 3.8.24.pdf
Aloha Chair Lim and Members of the Windward Planning Commission,
Attached please find:
1. Testimony from the Kohala Coast Resort Association on Bills 121, 122 and 123
2. Hawaii County Report—AlltheRooms.com—showing the impact ofTARs on Hawaii
Island
Mahalo for the opportunity to provide our testimony.
Aloha,
Stephanie Donoho
Administrative Director
Kohala Coast Resort Association
PO Box 6991
Kamuela, HI 96743
kohalacoastresortassn(abj�mail.com
(808)747-5762
Punning Dept.
Exhibit 16
Kohala ofist
RESORT ASSOCIATION
March 26, 2024
Dennis Lin, Chair
Windward Planning Commission
Hawaii County Aupum Center
101 Pauahi Street, Suite 3
Hilo,Hawaii 96720
Support for and Comments on Bills 121, 122 and 123
Dear Chair Lin and Members of the Windward Planning Commission,
The Kohala Coast Resort Association(KCRA)is in support of Bills 121, 122 and 123,updating our short-term
vacation rental laws, and incentivizing homeowners to build more accessory dwelling units for local residents to use.
We are grateful to Councilmembers Heather Kimball and Ashley Kierkiewicz, Planning Director Zendo Kern and
Deputy Planning Director Jeff Darrow, for stewarding this process during the last year-and-a-half.
There are several reasons we support these bills:
1) They will create a more equitable playing field in terms of taxation and regulations by addressing all types of
transient accommodations rentals (TAR)—owner-hosted, operator-hosted and un-hosted,
2) They will help protect and hopefully create new affordable workforce and residential housing across the island
with the clarification on accessory dwelling units,
3) They will aid Civil Defense in communicating with our visitors during natural disasters and emergencies,
4) They will provide an oversight framework to make sure that accommodations being offered are safe, secure, and
follow our required building codes and county laws,
5) They will help us avoid bait-and-switch scams where one property is advertised,but another property, or none at
all is delivered,
6) They will help us obtain more accurate visitor counts and distribution models island-wide,
7) They will make sure the hosting platforms are transparent and accountable for reporting to the government, and
8) They will provide more comprehensive data, so that economic forecasting can be more accurate, and planning for
key infrastructure improvements can be considered.
There are a few comments we would like to make on specific sections of Bill 121:
1) Section 25-4-16.7 Rental Registration Process, Sub-section (a), Number(6) a notarized affidavit in a format
determined by the director, and submitted under penalty of perjury, that the transient accommodation meets
health, safety and code requirements. As has been the lawful standard, any time there is a change in use of any
structure or property,the owner is required to go through the existing planning,building and engineering
processes. The County of Hawaii is then responsible for verifying that the owner is meeting health, safety and
code requirements before the new use is allowed. Allowing the owner to simply provide an affidavit stating that
they have met those requirements,without the necessary follow-up, skirts the checks and balances the public
requires. This puts visitors' and residents' health, safety and welfare in danger. We suggest that this section be
amended so that the County of Hawaii requires, at minimum an inspection of all TARS to verify that they are
structurally sound,have adequate means of access and egress, and comply with all other code requirements,
before they are issued a TAR license. While later sections of Bill 121 assess penalties and violations if sections of
the owner's affidavit are found to be false,we believe the information contained in the affidavit should be verified
at the outset.
2) Section 25-4-16.7 Rental Registration Process, Sub-section (a), Number(8) copies of a current State of Hawaii
general excise tax license. Many testifiers on these bills during the January meeting of the Planning Committee of
the Hawaii County Council stated that they "pay all their taxes."We would suggest that in addition to the State of
Hawaii general excise tax license,that the County of Hawaii also require the registrant to submit their transient
accommodations tax license,if the unit has been operating as a TAR prior to this bill's passage.
These bills are in complete alignment with Hawaii County's Destination Management Action Plan (DMAP)2021-2025,
which was completed with community,government and industry stakeholder involvement in partnership with the Hawaii
Tourism Authority(HTA), the Island of Hawaii Visitors Bureau(IHVB)and County of Hawaii Department of Research
and Development. Efforts are currently underway at the Hawaii State Legislature to codify the DMAPs into Hawaii state
law. Better management of TARS was identified in the top 10 needs for Hawaii Island and can be found here -HTA
Hawaii Island Action Plan(hawaiitourismauthori . .or .
As a board member for the Hawaii Island Safety and Security Professionals Association (HISSPA),I am grateful that this
suite of bills helps to address visitor safety. As a member of the Kona-Kohala Chamber of Commerce's Government
Affairs and Economic Development Committees, and the Vibrant Hawaii Housing Coalition, I appreciate that these bills
provide measures to address our housing crisis. And as a former Executive Director of the Visitor Aloha Society of
Hawaii, Hawaii Island(VASH)I am grateful that these bills will ensure that accommodations offered online are safe,
secure, and actually exist, as I had to find alternate accommodations for multiple visitors during my tenure who were the
victims of bait-and-switch scams online.
Finally, I'm attaching a report from www.AlltheRooms.com as an addendum to our written testimony. It shows that there
were more than 19,000 units on Hawaii Island advertised through Airbnb,VRBO, HomeAway and similar websites
during the last year. Those units range from studios,to a single bedroom in someone's home,to entire homes with up to
12 bedrooms. If the average unit had just 2 bedrooms,that would mean more than 38,000 rooms were advertised on our
island last year. In comparison,the hotels along the Kohala Coast of Hawaii Island(Mauna Kea Beach Hotel,Westin
Hapuna, Waikoloa Beach Marriott, Hilton Waikoloa,Auberge Mauna Lam, Fairmont Orchid, and Four Seasons Hualalai)
have a combined total of 2,915 hotel rooms.
The Kohala Coast Resort Association is a collection of master-planned resorts, situated north of the Ellison Onizuka Kona
International Airport at Keahole. KCRA members employ more than 5,000 Hawaii Island residents, supporting 20,000
family members,at our hotels,timeshares,golf courses,restaurants, shopping centers and spas. The members of the KCRA
annually pay more than $40 million in TAT and $40 million in GET to the State of Hawaii and the County of Hawaii.
KCRA's members, as well as the businesses and residents within the resorts along the Kohala Coast,paid more than $135
million in property taxes to Hawaii County in 2022, accounting for one-third of all property taxes collected island wide,
according to Hawaii County's Real Property Tax office.
Thank you for your consideration of our comments and suggested amendments to Bill 121. We encourage your support of
Bills 121, 122, and 123 to better manage TARS across Hawaii Island.
Sincerely,
- P
Stephanie Donoho
Administrative Director, Kohala Coast Resort Association
Craig Anderson,VP Operations,Mauna Kea Resort—President
Pat Fitzgerald, CEO,Hualalai Investors—Vice President
Charlie Parker, General Manager, Four Seasons Hualalai— Secretary
Charles Head, General Manager, Fairmont Orchid—Treasurer
Mike Hoover, Director, Kona Villag Operations—Board of Directors
Daniel Scott,Managing Director Rosewood Kona Village— Board of Directors
Scott Head,VP Resort Operations, Waikoloa Land Company—Board of Directors
David Givens, General Manager, Hilton Waikoloa Village— Board of Directors
Rob Gunthner, Area VP Resort Operations, Hilton Grand Vacations —Board of Directors
Pete Alles,Regional VP and GM,Mauna Lam, Auberge Resorts Collection—Board of Directors
Steve Yannarell, General Manager, Waikoloa Beach Marriott—Board of Directors
PO Box 6991, Kamuela, HI 96743*(808) 747-5762*kohalacoastresortassn(&-gmail.com*www.kohalacoastresorts.com
Market ■Selected Market Boundary
Characteristics ` � '
SELECT MARKET Provider
Hawaii County,Hawaii,United States o... X - (4)airbnb,booking,... X - +
Filters CO) a O
Property Type Instant Bo... Sleeps Min... Max... Beds Number Of Revi...
Select values - (3)True,Fals.. - - -
Is Managed Is Active Rooms Min Stay L... Max... Bath... Rating
(2)True,False False True _
X 0 100
Revenue LTM Average Da... Average Ac... Booked Nig... Hosts Properties
$213M $275.05 6,947 775,094 41546 19,655
Provider Listing Distribution Rooms Sleeps
airbnb 0—1.31 k(6.67%) 0—196(1.00%)
booking 1—6.63k(33.72%) ® 1—153(0.78%)
homeaway 2—6.78k(34.47%) 2—3.69k(18.75%)
vrbo .I. 3—3.45k(17.53%) I 3—1.07k(5.42%)
4—1.01 k(5.12%) . 4—5.43k(27.63%)
5—344(1.75%) 5—871(4.43%)
6—83(0.42%) 6—5.2k(26.43%)
7—31(0.16%) 7—259(1.32%)
8—15(0.08%) 8—1.51 k(7.681A)
9—1 (0.01%) . 9—89(0.45%)
10—4(0.02%) 10—594(3.02%)
12—1(0.01%) 12—252(1.28%)
—11 i n fn n[Ul 1� 1 Q/n no°4)
Property Types Bathrooms Is Super Host
aparthotel 195 0-1.35k(6.85%) False
barn q 2.36k 1-8.04k(40.88%) True
boutique hotel 8 2-7.08k(36.04%) null
. 0 3-2.25k(11.44%) null-4.92...
bus 2 4-596(3.03%) false-6....
campervan 649 5-197(1.00%)
casa particular 6-113(0.57%)
chalet 7-22(0.11%)
condo 4 6.081 8-12(0.06%)
cottage 189 11-2(0.01%)
true-8.59k(43
earth house ....
farm stay 4 6
guest suite ��
homestay o3
hotel 322
house 4.89k Min Length Stay Max Length Stay
igloo
lodge 7 1-5.97k(30.39%) 1-7(0.04%)
minsu ®2-3.62k(18.43%) 2-13(0.07%)
other 3-3.13k(15.90%) 3-38(0.19%)
recreational ve... 4-1.33k(6.79%) 4-22(0.11%)
resort village 517 5-1.38k(7.01%) / 5-54(0.27%)
294 6-177(0.44%) 6-59 (1.695)
shipping contai... 0 7-677(3.4445) 7-333(1.6945)
tent 8-7(0.04%) 8-24(0.12%)
tipi 9-5(0.03%) 9-11(0.06%)3
townhouse 77 W'V'A
10-33(0.17%) 10-112(0.57%)
3
vacation home 1.23k 12-3(0.02%) 11-4(0.02%)
yurt 14-45(0.23%) 12-19(0.10%)
0 5k 15-3(0.02%) 13-7(0.04%)
L 9---1 1A ALA--N
Hosts, Gross Revenue and Properties by Portf... Gross Revenue by Properties Under Managem...
Gross Revenue Hosts $750M 100--267
$0.00 $400,000,000,000.00 Gross Revenue 10--19
Properties 1--1
IR 20--45
1 1 2--3
_d 4--9
50--91
8170--8170
2--3
4--9
$55013
w
N 10--19
Ln
0
Property Operator Groups by Revenue by Port...
LL
r
00 20--45 Portfolio
a Bin PORTFO...
Group Hosts SIZE Gross Revenue Properties
2 3,228 1 --1 $61,948,623.41 3,228
50--91 3 888 2--3 $97,856,290.27 2,025
4 310 4--9 $153,965,754.18 1,686
5 54 10--19 $145,683,568.01 730
6 43 20--45 $576,382,144.11 1,334
100--267 7 12 50--91 $752,687,862.38 777
8 11 100--267 $5,499,339,246.20 1,640
9 0 8170 $545,833,050,991.13 8,235
8170--8170
0 2,000 4,000 6,000 8,000
Hosts,Properties
Of a AIITheRooms. Summary for Hawaii County, null
Supply, Demand & Revenue KPIs at a glance
The market overview lets you analyze the key performance metrics of the selected market in a quick
snapshot.The key metrics are aggregated by month. Use the SELECT MARKET dropdown to toggle between
purchased markets. Use the PLATFORM dropdown to toggle between Airbnb,VRBO,and booking.com. The
Timeframe menu allows you to view the data for various periods.
SELECT MARKET* TIMEFRAME PLATFORM*
Hawaii County,Hawaii,United States of America-county x 8 Last 12 months(02/2023... x Airbnb x -
ADR Booked Nights Revenue
$325.28 59,049 $19,207,436.48
Monthly Metrics
Mo... Revenue ADR RevP... Occup... Active S... Available S... Mean Stay L... Booked ... Month N...Sum of Available...
202... $19,207,4... $32... $4,06... 40.31% 7,298 4,725 5 59,049 January 146488
202... $19,481,2... $31... $3,81... 39.31% 7,224 5,103 5 62,182 December 158200
202... $16,165,2... $27... $3,02... 37.15% 7,167 5,351 5 59,647 November 160539
202... $16,716,5... $26... $3,03... 36.58% 7,188 5,510 5 62,486 October 170818
202... $15,306,5... $25... $2,68... 35.77% 7,145 5,695 5 61,119 September 170855
202... $17,907,4... $27... $3,23... 38.22% 7,003 5,535 5 65,585 August 171591
202... $17,091,3... $28... $3,25... 37.19% 6,991 5,248 5 60,507 July 162679
202... $16,514,5... $26... $3,06... 38.57% 6,794 5,393 5 62,402 June 161785
202... $17,352,0... $24... $3,12... 40.30% 6,808 5,557 5 69,422 May 172264
202... $17,836,4... $26... $3,41... 43.65% 6,717 5,226 5 68,425 April 156776
202... $20,803,4... $27... $4,20... 49.17% 6,557 4,951 5 75,453 March 153466
202... $18,804,8... $27... $3,97... 51.96% 6,425 4,730 5 68,817 February 132452
SUMMARY $213,187,011.92 40.68% 6,943 $275.61 $3,407.67
12 rows-16 columns Sum of Revenue - Avg of Occupancy - Avg of Active Supply - Avg of ADR - Avg of RevPAL -
Key Summary Metrics for Hawaii County
Market Revenue
$20,000,000.00
$213,187,011.92
Gross Market Revenue
$15,000,000.00
a
c
a
$10,000,000.00
$5,000,000.00
775,094
Total Nights Booked
$0.00
2023-02 2023-04 2023-06 2023-08 2023-10 2023-12
Month
From: Maren Purves
To: WPCtestimonv
Subject: Testimony in opposition to Bill 121
Date: Wednesday,March 27,2024 12:40:19 AM
Aloha County Council and Planning Commission,
I oppose Bill 121 which would allow outlawing all single family short term vacation rentals
independent of zoning - as few single family homes as there are in resort zoned areas to start
with. There are no short term rental facilities other than single family homes that allow for
families, independent of whether they are relocating, getting their homes fixed, this may
include families temporarily displaced by disaster, or even only getting their homes tented in
all of East Hawaii. While the bill exempts medical professionals that temporarily work here in
medical facilities, it does not make any mention of other professionals who work for other
places (e.g. the university or other educational or professional facilities) -unless housing is
provided by their workplace, which in this economic climate is unlikely to be the case.
My own short term rental is a 4 bedroom house in Hilo which was just recently occupied by 3
generations of a family aged 1 to 70 where one part came from the mainland and the other part
from Asia. Hawaii is a great place for them to meet in the middle. Of course they wanted to
stay together and very much appreciated having a full kitchen for their dietary requirements.
Later it was rented by somebody who works for one of the telescopes but is currently not able
to be here permanently because of taking care of an older family member elsewhere. A person
like that who only gets paid when here is unlikely to be able to afford a hotel room even in
Hilo.
My short term rental is not listed on any of the platforms in order to keep rental prices down
but I'm sure the planning department can look up my STVR and NUC permits by my email
address. It would be good if they went after the allegedly large number of illegal ones instead,
even if they will be hard to find because they are unlikely to pay taxes and only take cash
payments.
I bought it with the STVR and NUC in place but it had been on the market for about a year. If
anybody had wanted it they could have bought it before I did.
While Hilo at least has hotels, Puna does not. Phasing out all short term rentals there will
likely cause hardship not only for those owning and operating short term rentals but also to the
economy in e.g. Pahoa in general, including shops, stores, restaurants and quite possibly even
farmers markets because people who stay in areas like that are likely to want to support the
local economy, similar is true in upper Puna and likely also Ka'u. They also are likely to want
it quiet, as far as coqui frogs and feral chickens and pigs allow. People who stay in our rural
areas, even in Hilo, are not the parrying people that people who live on the North Shore of
Oahu complain about ruining their neighborhoods.
Mahalo,
Maren Purves
Planning aepi.
Exhibit 17
From: dcdo628
To: WPCtestimonv
Subject: Urgent Concerns Regarding the Implications of Bill 121
Date: Wednesday,March 27,2024 2:15:37 AM
Subject: Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding the proposed Hawaii County Bill 121.
As a resident and homeowner in our beautiful state, I believe that while the intentions
behind this bill may be to address certain issues, its implementation could have unintended
negative consequences on our community.
Firstly, the bill's approach to regulating short-term rentals seems to overlook the
importance of these accommodations in supporting our local tourism industry. Tourism is
notjust a major economic driver but also a way for us to share our aloha spirit with visitors
from around the world. By imposing stringent regulations, we risk diminishing the unique,
local experiences that many travelers seek, potentially driving them towards more
commercialized options.
Moreover, the bill's requirements could place an undue burden on homeowners who rely
on short-term rentals as a means of making their housing affordable. For many, the
income generated from hosting visitors is what allows them to keep their homes in the
face of Hawaii's high cost of living. The bill's restrictions could therefore inadvertently
exacerbate the very issue of housing affordability it seeks to address.
In light of these concerns, I respectfully request that the Planning Commission consider the
following recommendations:
Conduct a comprehensive economic impact study to fully understand the implications of
Bill 121 on both our local economy and housing market.
Recommend the removal of restrictions about where hosts live and where guests stay, as
long as the owner is in the same building, on the same parcel, or on an adjacent parcel.
Recommend streamlining the registration process for short-term rentals to make it more
accessible for homeowners, without compromising on safety and compliance.
I believe that by taking these steps, we can find a balanced approach that respects the
rights of homeowners, supports our tourism industry, and addresses concerns about
housing affordability.
Mahalo for considering my perspective on this important issue.
Me ke aloha pumehana,
(Tanning Dept.
Exhibit 18
David C Do
15-1051 Kupaoa Road
8182717480
From: Pattie Freeman
To: WPCtestimony
Subject: Testimony regarding Bill 121
Date: Wednesday,March 27,2024 8:39:34 AM
Attachments: imaae002.ona
Subject: Urgent Concerns Regarding Bill 121 and Its Impact on Local Communities
Chairman Dennis Lin
Windward Planning Commission
County of Hawaii
25 Aupuni St.
Unit 1502
Hilo, HI 96720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding Bill 121 and its potential impacts on
our local communities, particularly in terms of enforceability, inequity, and the
transformation of neighborhoods. As a resident of Hawaii County, I believe it is crucial to
address these issues before moving forward with the bill. These proposed regulations
appear to take away PROPERTY RIGHTS. I had gone through the entire process of
acquiring the Non-Conforming permit and much to my surprise, I was charged 3 years of
back property taxes, never realizing that would happen. At that time, I gave up my non-
conforming permit as the only time I was renting my home, was when I traveled. This is
my only home, my primary residence and I have been greatly impacted by not being able
to rent my home. I actually owned a vacation rental business for many years and had the
pleasure of meeting guests from all over the world who truly enjoyed being in a home as
opposed to a hotel. There is so much to offer when staying in a private home. It appears
that the hotels are against this and their revenue stream, but what about individuals losing
their income stream?
Firstly, the enforceability of Bill 121 raises significant concerns. Without sufficient human
resources, the Planning Department may struggle to enforce the new regulations
effectively, leading to uneven application and potential disregard of the rules. This could
result in a lack of compliance, undermining the bill's objectives.
Secondly, Bill 121 introduces inequity by not treating all property owners equally.
Planning Depi.
Exhibit 19
Specifically, the bill does not provide equal treatment for property owners who live on-site
and operators who do not own the property but live on-site as lessors or caretakers. This
discrepancy could disadvantage certain groups, contributing to a sense of unfairness within
the community.
Lastly, the transformation of neighborhoods is a critical issue. Bill 121 could lead to
significant changes in the character of our neighborhoods, potentially disrupting the sense
of community and belonging that is so valued in Hawaii. It is essential to consider the
long-term implications of these changes on our communities.
In light of these concerns, I respectfully request the Planning Commission to consider the
following recommendations:
Recommend the removal of restrictions about where hosts live and where guests stay,
ensuring fairness and flexibility for property owners.
Recommend streamlining the registration process and eliminating invasive requirements,
making it easier for homeowners to comply with regulations.
Recommend the inclusion of an undue hardship clause to protect homeowners at risk of
losing their housing due to the new regulations.
These recommendations aim to address the key issues with Bill 121, ensuring that any new
regulations are fair, enforceable, and considerate of the impacts on our communities.
Mahalo for your attention to these concerns. I hope the Planning Commission will take
these recommendations into account and work towards a more equitable and effective
approach to regulating short-term rentals in Hawaii County.
Me ka mahalo nui,
Pattie Freeman
62-592 Emmalani St
8089360399
2t/an��t,g�ola.
7.
Pattie Freeman Realtor- RB-15648
Corcoran Pacific Properties- Mauna Lani Portfolio
808.936.0395 Cell Direct
808.885.6688 Office
Pattie@PattieHawaii.com
68-1400 Mauna Lani Drive
Mauna Lani Auberge Hotel
Kohala Coast, HI 96743
C(l1(()Iall MAUNALANI
PACIFICP—PERnEs 111)12 I ., I C)
From: H. Hokulani Porter
To: W PCtesti mono
Subject: Bill 121
Date: Wednesday, March 27,2024 9:43:04 AM
Subject: Urgent Request for Reconsideration of Bill 121 Provisions
Chairman Dennis Lin
Windward Planning Commission
County of Hawai'i
25 Aupuni St.
Unit 1502
H i lo, H 196720
Aloha Chairman Lin,
I am writing to express my deep concerns regarding the current provisions of Bill 121,which I
believe could have unintended negative impacts on our local community and economy.As a
resident of Hawai'i, I understand the importance of maintaining the delicate balance between
supporting our tourism industry and preserving the unique character of our neighborhoods.
However, I am worried that Bill 121, in its current form, might not achieve these goals
effectively.
Firstly, I am concerned about the enforceability of the bill.Without clear guidelines and
sufficient resources for enforcement,there is a risk that the bill could lead to inequitable
treatment of property owners.This could inadvertently harm those who rely on short-term
rentals for their livelihood,without effectively addressing the issues the bill aims to solve.
Moreover,the bill's current restrictions on where hosts live and where guests stay seem to
infringe upon private property rights.As long as the owner is in the same building, on the same
parcel, or on an adjacent parcel, it seems overly restrictive to dictate where they can and
cannot sleep.This not only impacts homeowners' rights but could also transform the
character of our neighborhoods in ways that do not necessarily benefit the community.This
Bill also affects those of us living in rural areas. I live near mile marker 88, a largely agricultural
area. My family and I are farmers, however, because our state has prioritized tourism over
producing our own food for sustainable income,we rely on our short-term rentals to keep us
financially afloat. Without the support or rental brings in,we could not afford our mortgage
that becomes more expensive every day because of surmounting costs in property taxes;
another large discussion that is not being addressed here. I am a native Hawaiian born and
raised in Hawai'i, if this bill passes, it will yet another catalyst adding to the horrible paradigm
of being"priced out of paradise."
Also,the enforceability of Bill 121 raises significant concerns.Without adequate human
resources,the Planning Department may struggle to enforce the new regulations effectively,
leading to a potential misallocation of staff and resources.This could inadvertently prioritize
the enforcement of short-term rental regulations over other critical planning and development
issues.
Lastly,the lack of data supporting the need for such stringent regulations is concerning.
Without a thorough economic impact study or an affordable housing study, it is difficult to
understand the full implications of Bill 121 on our community.
Therefore, I respectfully request the Planning Commission to consider the following
recommendations:
1. Recommend the removal of restrictions about where hosts live and where guests stay,
as long as the owner is in the same building, on the same parcel, or on an adjacent
Planning Depi.
Exhibit-__ 20
parcel.
2. Recommend conducting an economic impact study to better understand the
implications of Bill 121.
3. Recommend streamlining the registration process and eliminating invasive
requirements,to make compliance more accessible for property owners.
I believe these changes could help ensure that Bill 121 achieves its intended goals without
causing undue harm to our community.
Mahalo for considering my concerns and recommendations. I hope we can worktogether to
find a balanced approach that supports both our local economy and the unique character of
our neighborhoods.
Me ka ha`aha`a,
Heather Hokulani Porter
88-1525 Ala Pakaua St
8083041015
Hokulani Porter
ZONING § 25-2-43
Section 25-2-43. Amendments initiated by the council and director.
(a) Any amendment initiated by the director shall be reviewed by the commission.
(1) The amendment shall be submitted to the commission with the director's
justification and recommendation on the amendment.
(2) Upon receipt of a proposed amendment from the director, the commission shall
hold at least one public hearing. Notice of the hearing by the publication shall
be provided by the commission in accordance with section 25-2-5, except that
when a proposed amendment involves a specific parcel of land, notice shall be
provided by the commission in accordance with subsections (c) and (d).
(3) Within sixty days after receipt of the amendment from the director, the
commission shall transmit the proposed amendment together with its
recommendations thereon through the mayor to the council. The commission
shall recommend approval in whole or in part, with or without modifications,
or rejection of such amendment. In the event that the commission fails to act
on the amendment within the sixty-day period, such inaction shall be
considered as unfavorable recommendation by the commission, and the
amendment shall then be submitted through the mayor to the council with
such recommendation.
(b) The council shall refer any proposed council-initiated amendment to this chapter to
the director and the commission with requests for their respective comments and
recommendations thereon, prior to the first reading of any such amendment. The
director and the commission shall each submit comments and recommendations on
the proposed amendment to the council within one hundred twenty days from the
date that the amendment is transmitted by the council to the director and the
commission.
(1) The director shall submit comments and any recommendations to both the
commission and the council within the one-hundred-twenty-day review period.
(2) The commission shall hold at least one public hearing on the proposed
amendment. Notice of the hearing by publication shall be provided by the
commission in accordance with section 25-2-5, except that when a proposed
amendment involves a specific parcel of land, notice shall be provided by the
commission in accordance with subsections (c) and (d).
(3) The commission shall transmit the amendment together with its
recommendations thereon through the mayor to the council. The commission
shall recommend approval in whole or in part, with or without modifications,
or rejection of such amendment. In the event that the commission fails to act
on the amendment within the one-hundred-twenty-day review period, such
inaction shall be considered as an unfavorable recommendation by the
commission.
(4) After the one-hundred-twenty-day review period has expired, the council may
proceed to act on the proposed amendment as it deems appropriate.
25-27 Planning Dspi.