2024-04-02 PL-CCI-2024-000003 Bill 121 Christi L. Mallicoat Testimony

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proclamations) in providing residential housing combined with lower rental rates deter many owners from offering their rentals in the long-term market. Residents who specialize in servicing such properties, offering maid service, handyman assistance, and landscaping, especially in rural areas, will be affected. If these individuals have fewer opportunities for work, they may be compelled to either leave the island or commute long distances for lower-paying employment. These unintended consequences further hinder residents' ability to secure housing. Bill 121's exemptions, by focusing on specific professional groups such as nurses and doctors, even as outlined in state legislation, inadvertently create a discriminatory framework. This selective approach not only overlooks the broader spectrum of housing needs across various occupational sectors but also fails to address the overarching housing shortage issue on the island. OPPOSED to punishing local homeowners with unreasonable fines and fees and processes. The onerous application process, initial, and renewal fees outlined in this bill, create an undue financial burden on lower income residents. Fines up to $10,000 in addition to Director imposed fines at twice the highest advertised daily rate are exorbitant and disproportional to the violations proposed in the bill. These issues are in direct conflict with existing fines stated in the Hawaii County Chapter 25 which start at$500 on first offense. Additionally, if a host receives three complaints within a 12-month period, the TAR/NUC may be suspended for up to two years. This concentration of power, combined with the non- transparent complaint and appeal process for operators is unreasonable. The proposed bill's reporting requirements are overly demanding, requiring monthly detailed submissions not just from large hosting platforms but also from individual owners and small-scale operators, including 'mom and pop' setups managing direct bookings. This overreaching demand for comprehensive rental information is impractical and places an unreasonable workload on these services. OPPOSED to additional regulations in lieu of full enforcement of Ordinance 2018-114 Ordinance 2018-114 (Bill 108) and the resulting Planning Department Rule 23 have had little to no impact on deterring illegal vacation rentals or curbing non-compliant behavior. The lack of proactive enforcement measures by the county failed to adequately address the underlying issues that Ordinance 2018-114 sought to solve. The County has an obligation to actively pursue and terminate illegal transient rental operations as well as equally enforce existing regulations to protect all residents. This responsibility extends beyond a complaint-driven enforcement model which only contributes to the erosion of community character. Until Ordinance 2018-114 is proven effective in preserving the character of our residential and agricultural areas, reducing speculative investment in properties within these markets, and adding to housing availability for residents, further regulatory changes should NOT be considered. For the reasons above,we strongly oppose this legislation and believe a completely different approach is necessary. HIR and WHAR are committed to working with the County and all interested parties to help create sensible solutions to the issues inherent in the housing sector. We acknowledge that the solution to providing attainable, affordable, and workforce housing is not easily achieved. To effectively increase available housing, the County must remove barriers such as prohibitive zoning, address aging and non- existent infrastructure, and revise the cumbersome and unreasonable building and energy codes. Punishing those who have chosen to create business here,pay taxes, create jobs, contribute to their communities, and call Hawai'i their home is not a solution to the County's need for housing. Hawaii Island REALTORSO and the West Hawaii Association of REALTORSO adamantly OPPOSES BILL 121.