2018-09-06 Hearing Transcript - Council Initiated Bill 108, Draft 4

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So, moving on to the nonconforming use certificate process, but before I do that, does the Commission have any questions about the registration process? No? Okay. So, owners of existing short-term vacation rentals located outside of a permitted zoning district must submit an application for a nonconforming use certificate to the Director within a 180 days of the effective date of the ordinance should this bill become law. The owner must provide evidence to prove that the short-term vacation rental was in operation prior to the effective date of the ordinance. Evidence can include tax documents such as Hawaii State General Excise Tax filings or TAT tax filings and Federal and State income tax returns. Based on the evidence submitted, the Director shall determine whether to issue the nonconforming use certificate. Current nonconforming use certificates must be displayed on the premises so that it is clearly visible to the guests and to zoning inspectors. The bill indicates that a nonconforming use certificate may be issued for short-term vacation rentals on land in the State Land Use Agricultural District provided the lot existed before June 4th, 1976. The reason for this date is that all dwellings on lots created after June 4th, 1976, are considered by State law to be farm dwellings which are to be used to house farm workers rather than vacationers or renters. And, just for a little context, there are, compared to other islands, like I just spoke to Kauai yesterday and they have very few lots that were created before 1976, Hawaii County has a lot, a lot of lots created prior to '76. Most of the big subdivisions in Puna were created prior to '76 so State law considers the first dwelling on those lots to be a single-family dwelling rather than a farm dwelling. CLARKSON: But even a lot in an agricultural district that has a farm dwelling in which the farm operators live can also have guest houses, so would—let's see, wait a minute, that would be hosted then so that is not relevant to this. JACKSON: Yes. CLARKSON: Sorry. JACKSON: No problem. Okay, so the nonconforming use certificate once it's issued, it must be renewed annually on or before the expiration date indicated on the certificate and a $250 filing fee is required with the renewal request. Renewal of the certificate may be denied by the Director if the applicant has violated provisions of the bill or other pertinent laws or if the owner is delinquent in payment of County taxes, fees, fines, or penalties, if the owner or reachable person has not been reachable or available when needed, and if there have been police reports or verified neighbor complaints of noise or other disturbance. The bill says the Director must deny renewal of a certificate obviously if the use is abandoned for any reason for a continuous period of 12 calendar months. So, I just want to make a distinction here, too, that the new short and existing short-term vacation rentals in permitted districts are not required to renew annually. It's only those that require the nonconforming use certificate. EXHIBIT C 6