2024-04-02 PL-CCI-2024-000003 Bill 121 Taylor Rodamer Testimony

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April 2, 2024 'VEST HAWAII ASSOCIATION OF R E A LT O R S" Opposition Testimony Against Bill 121: Protecting Property Rights and Local Livelihoods Members of the Windward Planning Commission: The West Hawaii Association of REALTORS®is opposed to Bill 121. The proposed Bill,referred to the Windward Planning Commission by the County Council, aims to impose stringent regulations on short- term vacation rentals (STVRs)in Hawaii County. However,this legislation is deeply flawed and threatens the livelihoods of numerous communities across the Island. Our testimony is on behalf of over 950 members and industry partners and highlights the detrimental impacts on property owners, local businesses, and residents alike. Violation of Property Rights: At its core, Bill 121 represents a blatant erosion of constitutionally protected private property rights. Homeowners should retain autonomy over the use of their properties, regardless of tenancy duration or occupancy levels. Mandating disclosure of living arrangements and imposing public-facing signage requirements not only infringes upon property rights but also compromises security and privacy. Conflict with State Law: Bill 121 directly conflicts with Hawaii Revised Statutes, disregarding permissible uses of residential properties and arbitrarily extending minimum rental durations. This legal ambiguity poses significant risks,potentially triggering unnecessary litigation and devaluing properties, as highlighted by recent legal precedents (HILSTRA v City and County of Honolulu). Endangering Housing Security: The proposed legislation exacerbates housing insecurity,particularly for lower-income individuals and residents reliant on short-term rental income to make ends meet. There is no concrete evidence to suggest that STVR properties would transition to long-term rentals, and the Bill fails to address the underlying challenges of housing availability and affordability. STVR's offer housing security for occupants and cater to a diverse range of travelers, including locals in need of transitional housing or medical care. Additionally,the Bill's exemptions for specific professional groups create a discriminatory framework, overlooking diverse housing needs and exacerbating the housing shortage. Unreasonable Fines and Fees & Further Unintended Economic Impact: Bill 121 imposes exorbitant fines, fees, and administrative processes, burdening local homeowners and small-scale operators. The disproportionate financial penalties and complex reporting requirements are unjustifiable and hinder economic opportunities for residents. The economic impact of short-term rentals cannot be understated and extends island wide. These rentals contribute significantly to local economies by injecting money into communities and providing job opportunities for residents. REALTOR