HomeMy WebLinkAboutCOM 0600.014 2022-2024Jenncftr Kagiwada
Council Alember Districl 2 South Hilo
Qf ,1ice:(808) 961-8272
jennifL,r. kagiwadicz,)hawaiicoidnPv.g(.)v
HAWAPI COUNTY COUNCIL - DISTRICT 2
25 Aupuni Street I Hilo, Flawai`i 96720
C.
Date: December 18, 2023
To. Heather L. Kimball, Council Chair
and Members of the Hawai'i County Council
From: Jennifer Kagiwada, Council Member
Council District 2, South Hilo
Re: Questions and Answers for Bill 104, Draft 2
Please see attached a Questions and Answers document to accompany discussion of Bill No.
104, Draft 2; an Ordinance Amending Chapter 19, Article 1, Section 19-2; Chapter 19, Article 7,
Section 19-53 and Chapter 19, Article 11, Section 19-90, of the Hawai'i County Code 1983
(2016 Edition, as amended), Relating to the Creation of a Long -Term Rental Class for Real
Property Taxes.
comrth. No. Yaq
Ref. To--
Ref. Date- Wit 1 9 2023
Long -Term Rental BW
Q&A
A: The inteirit of the Long . .... i Orim Rental Dill (104-23) is to incentivize i,,)ropeirty owneirs to
iirent their secoindary homes/investrnent properti�es to iiawai'i Couirity IIesidents,
especiaily those hornes that are cuirireinfly vacant. I he Office of liouslkirig aind
Coinn"Hinity Deveiopment reportedthat ouir courifty iureeds an additional 6,600 rental
[toii,nes bythe year 2025. Tl°fls bl1l aim us to increase flie nuniber, of' hoiirnes avaflabllle for
our, residerits,
2. Q: This incentive sounds expensive. How much will it cost and how will the county pay
for it?
A: Encouraging property owners to add their (already built) dwellings to the pooi of
housing options is extremely inexpensive way to provide additional housing to our
people. If we Ihelp imake 2,000 rentals avaiiaWe to Hawai'i County residents and it
costs us an average of $3,500 per horne ($7 imillion total) in tax reductions, 'there is not
a more cost effective way to increase the number, of homes available in HawaN
county
We will propose property tax increases to vacant hoirvies, vacation rentals, secondary
hornes and investment properties as a means to offset the cost of this prograrn. Reai
Property Management predicts that an increase of 5% or less would be sufficient to
make up the difference when applied to these catagories.
3. Q: If I have a long-term renter whose lease will be up mid -year, will I still qualify for
this program?
A: A, copy of the current contract reflecting the original leasethat was for aterm of at
least 10 months then going month to month Tweeds 'to be provided.
(If Bill 104 passes this will defined in Administrative Rules & Regulations)
4. Q: If I've been renting my property to a long-term tenant but their lease has now gone
to a month -to -month lease, am I still eligible to participate in the proposed Long -Term
Rental Program?
A: A, new contract woWd need 'to be signed with a terrin of at least 10 months wher'l
first entering 'this program, after which a inwor1t 140 rno nth lease is acceptable.
If Bill 104 passes this will defined in Adirninistrative Rules & Regulations)
S. m If I need to do renovations between long -tern tenants, will I become ineligible for
the program?
A: Not necessarily, however, the coostract of the most urecrrnt tenant needsto be
provided aiu°rd oiirrllly '.t year is also ed foir reoirovatforrs otherwise it will be irrehiigEble for
the lond.,terrn reiistal cuss,, (If Will 1,,0presses this MIHl defined iir�iu Adrifinistralive Miles &
ffedrrlatfoiu°rs)
6. Q: If I have a multi -family property with several units and I have to do major repairs on
one unit that takes several months, will the entire property become ineligible for the
program?
A: No. Refer to #5
i
7`
A: The Lorrd.•176irim Program Il eind proposed provides a pr eferentfal tax orate of
M $1,00 f net taxable value and do �ms of have a % cap on annual increases.
t"he Affordable litental Pro rai r provides a preferential tax rate of $6,15/$1,000 net
taxable value and rf have the " % cap on annual increases.
S. If 1 have a property with more than one unit, and I rent one as an STVR and one as a
Long-TerLong-Term Rental, what will I be charged?
r All irentals on a property must be rented as Long -'Terns Rentals to be eleiffible for the
Long -Term Dental Pro ran, and receive the lower rate.
® If I use electronic leases for my tenants, will I have to print out all the pages and send
in hard copies, or can I send electronic copies?
n electronic copy ('in pdf for°rn) can be sent in with the application to
f f pH cal.@hpYmifp yN (this is oine way we Currently accept all forrrrirr of
appl'icalonsm