PD Background & Recommendation Report (PL-CCI-2024-000003) Bill 121

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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 Hawai`i. Bill 123 aims to repeal and replace `ohana dwellings with accessory dwellings as well as -16-