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The HTA study also surveyed the people statewide who own short-term rentals and found that "70% of <br /> residents who indicated that they make their living unit available for home and vacation rentals report that <br /> they do so to either make incremental income or meet housing gaps (40% and 30%, respectively)." <br /> Further: "Responses in 2019 track with reasons and proportions provided by respondents in 2016, where 60% <br /> of respondents indicated that they make their living unit available for home and vacation rentals to subsidize <br /> housing costs. The increased proportion can be partly explained by the ongoing rise in housing costs in <br /> Hawaii:i3 <br /> This indicates that many existing STR hosts — who maybe rent out a room or a second unit on their properties <br /> — use their STR income to afford Hawaii's high cost of housing. <br /> These existing hosted STRs also offer everyday folks the opportunity to participate in Hawaii's tourism <br /> economy and build wealth for their families. <br /> Because no economic impact study has been conducted for STRs in Hawaii County, we would encourage the <br /> Commission to request the County Council conduct such a review before moving this legislation forward. <br /> We are also concerned about the steep fines to be charged to those who violate the new law, as a $10,000 per <br /> day fine could quickly add up to an unpayable amount — and even result in the loss of property itself. Not only <br /> would such a fine be excessively harsh, but it could be unconstitutional. <br /> Both the state and federal constitutions bar excessive fines, and the U.S. Supreme Court's decision in Timbs v. <br /> Indiana'establishes that the federal excessive fines clause applies to state and municipal actions as well. <br /> Recent cases, such as Tyler v. Hennepin County,5 indicate that courts are increasingly prepared to strike down <br /> aggressive state action that impairs individual property rights. Thus, we suggest that the penalties associated <br /> with noncompliance be reconsidered and restructured. <br /> Should this bill move forward, we would urge the Commission to remove the language from the sections <br /> governing owner-hosted and operator-hosted STRs that dictate where the owners or operators can sleep. <br /> a"Hawaii's Home and Vacation Rental Market: Impact and Outlook,' prepared for the Hawaii Tourism Authority by Rus Hotels& <br /> Hospitality Group,April 20,2020,p. 16. <br /> 4 586 U.S._(2019). 139 S. Ct. 682. <br /> 5 598 U.S. 631(2023). <br /> 1050 Bishop St.#508 Honolulu,HI 96813 808-864-1776 info@grassrootinstitute.org <br /> 2 <br />