2024-04-20 Bill 121 Bruce Paoli OP

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From: Pu'uhonua House To: LPCtestimony Subject: Written testimony-Proposed Bill 121 Date: Friday,April 19,2024 3:51:44 PM To whom it may concern, My name is Bruce Paoli. I own a property in south Kona and have been running a hosted STVR on my property since 2006. It has done very well with thousands of happy visitors over the years of operation. My property is zoned AGI and the main house was built with permits in 1985 along with what is on county records as an additional building recorded at the time as shop with full bath. The smaller building which sits within 50 ft of the main house has been used as an ohana for close to 40 years. I have had a separate fire and hurricane policy for this home since 2006. The larger main house is the structure that has been functioning as the STVR since 2006. Some organized thoughts and notes below with respect to the new proposed legislation. The direct effect this legislation has if passed in its current form on my life, my family and local folks related to the operation of the STVR. -This vacation rental provides a steady income for me and my extended family. It also provides a substantial portion of income for two other people involved in the operation. My cleaner and my host. It also is a source of income that subsidizes my family farm in south kona and it allows me to subsidize the ohana rental on the STVR property as well as 3 other rentals on my farm, one of which my cleaner lives in. I am able to offer below market rents in these four homes because of the income generated by my vacation rental. If I lose the ability to continue with my hosted STVR, I will need to increase rents in four homes which I am quite sure will push those rents to a level that the current tenants will need to find other housing. And with respect to our family farm, the reduced income will have a substantial impact on farm expansion plans moving forward. It is also very likely I will need to sell the property with the STVR. This STVR home would not fetch enough as long term rental in south kona to offset the expenses. So,just to summarize; If I am forced to discontinue the STVR, 2 people who count on work related to my STVR would lose a substantial portion of their income and I would potentially need to ask four tenants to pay substantially more rent or to relocate. The potential impact of the sale of my STVR property with respect to the local housing if this bill passes in its current form. -My STVR property is worth somewhere close to 2 million dollars. This is not a price point that is anywhere near affordable for most of the population in south kona. It is most likely that because of this price point and the neighborhood it is in that it would most likely be purchased by retirees from the mainland as a primary residence or as a 2nd home. And if this was to be the outcome it would not help with the local housing problems. My thoughts related to reduced availability of SVTR's on our Island -Prior to purchasing my STVR property in 2006,my family and I had traveled to the islands many times. We really enjoyed having the ability to stay in STVR's in different places on the Island. It allowed for us to travel economically with the entire family and enjoy the culture of the area we were staying in. I only travel this way now no matter where I go. I would never stay in a hotel or condo. And over the years I have had conversations with many of the guests that have stayed in my STVR and they all say the some thing. I am surprised that the state of Hawaii is entertaining substantially reducing the inventory of STVR's. In my opinion, like myself and many others I have talked with, these travelers are a demographic that will only