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Home My WebLink AboutCOM 0675.099 2022-2024 January 22, 2024 Heather Kimball Office of the County Clerk 25 Aupuni Street Hilo, HI 96720 C)_ CC: County Council --c— Re: Bill 121 Dear Councilor Kimball, ., Since many of these owners don't want to bring this up for fear of reprisal by the Planning Department I want to point out that this bill still doesn't address the hundreds of families who earn their living through rentals in unique accommodations like tiny homes, yurts, glamping tents, camper vans, etc. As Bill 121 stands now these families will lose their livelihoods. They also have a cause of action related to "regulatory taking" which should give Hawaii County pause. If the intent is not to regulate them, then you should include that language in the bill. If the intent is to regulate them out of business you owe it to these families to make that clear. The first time we spoke I asked you the question "why are you proposing this bill". The answer? Complaints and promises made by a past administration. When we pointed out the complaint rate was .00063% and that "promises" don't justify taking our livelihoods you changed the tune. Since then your reasons have been a moving target. Most recently you told the newspaper"to preserve the character of our neighborhoods". I'll give you be benefit of the doubt and assume you are unaware of it, but this language is commonly referred to as "a racist dog-whistle". Racist zoning rules were often justified through this reasoning and although the legislation you've proposed isn't overtly racist, it is certainly classist. It eliminates opportunities for lower income families while protecting the economic interests of the wealthy. Wealthy homeowners who have the time and resources to navigate the bureaucracy will be able to participate in the tourism economy by hosting guests. Renters? No. They will be locked out. Though the organization I lead has offered over and over and over to work with your office to craft legislation that takes a data-driven and science based approach to this problem, we've been ignored. You haven't held any study sessions, seminars or public meetings. Instead, you've chosen to broadcast draft after draft after draft and call it"public engagement". Your public statements about this legislation make it clear that you don't have accurate information about the state of our industry today. I am also 100% certain you don't have the Comm. NR I Ss Ref. To: Ref. Date JAN 2 3 [u24 ability to accurately forecast the impact of this legislation. Driving while blind causes injuries. I'd prefer it if it wasn't my family's livelihood smashed by the bumper. So I thought I'd present some data for you and the other counselors. First I'd like to address the question of"why". Why this legislation. Here is my guess summed up in a single chart: Hawai'i Visitor Accommodation Trends (Hotel v. STR) 82% 81% 82% 81% 77% 76% 76% 76% 74% 74% 0.75 — 69% 68% 0.5 — 31% 32% 23% 24% 24% 24% 26% 26% 0.25 — 18% 19% 18% 19% 0 — 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Hotels/Timeshares i % STRs(Condos. homes. B&B) Someone in the hotel industry has this chart on their bulletin board and has been assigned a task by their mainland corporate overlords. "Put a stop to vacation rentals in Hawaii so we don't lose more market share". They bought a lobbyist and circulated a bunch of misinformation and here we are. As a side note, I enjoyed the book you recommended - "Land and Power In Hawai'i" - and I learned a lot from it. If you want to know what is behind a law in Hawaii, follow the money. So here is my guess as to the second reason. Zendo Kern made a significant amount of money when Bill 108 passed as one of the go-to consultants to help the wealthy to navigate Hawaii County's process. As you and I both know, Zendo is one of the major drivers of this legislation. I suspect Zendo plans to end his public service with Mayor Roth's term and go back to the private sector. If bill 121 passes, he stands to make a giant heaping pile of money helping wealthy homeowners navigate the process. But I digress. Data. Let's talk about data. Next I want to talk about hosted vs. non-hosted rentals because much of the language surrounding our industry is coming from the other islands. On Oahu, Maui and Kauai the locals make a case that our industry impacts housing because on those islands a vast majority of the rentals are un-hosted. That isn't the case on the Big Island. On the Big Island nearly '/z of the rentals are operated by people like me- local residents who rent a part of their home in order to make ends meet. Hawai'i Oahu (2) Maui(3) Island(4) Kauai(5) Total Total 2023(1) 6,932 13,984 8,650 5,808 35,374 Non-hosted 6,898 13,810 4,441 5,746 30,895 Hosted 34 174 4,209 62 4,479 Simply put, we live in a different market from the other islands and in our market more than 7,000 families depend on tourist dollars as part of their financial livelihood. You can argue that they'll be allowed to continue until you are blue in the face, but we can all see the writing on the wall. You are against our industry. If you could shut us down, you would. This legislation is one more incremental step toward taking our livelihoods. We all see it and we plan to fight it. Finally, I want to put to bed the idea that our industry is growing in a way that is consuming more housing. Hawai'i Year Oahu* Maui County Island Kauai 2023 6,932 13,984 8,650 5,808 2022 9,899 13,904 7,554 5,030 2021 9,228 13,623 7,208 4,828 2020 10,820 11,959 8,039 5,099 2019 12,511 11,821 8,515 4,933 2018 12,563 11,452 8,365 4,692 5 yr change -45% 22% 3% 24% Total growth of our industry over the past 5 years is a modest -r300 units, some of which are like mine- homes reclaimed from neglect and put into production as both low income housing and a vacation rental. That study you keep bringing up is a state-wide study. It doesn't apply to the Big Island where the number of units has stayed relatively static for years. In summary, I believe our industry can benefit from further government involvement, specifically protecting both hosts and guests from exploitation by monopolist platforms, but the only way we can get there is if we do what my group has been telling you to do since November of 2022 - stop, listen, and collaborate. The alternative is going to be a knock down, drag out fight that won't end until election day 2024 and may not end then. Why don't you table Bill 121 and leave us alone. We can all support Bill 123 and everyone can go back to living Aloha. Sincerely, Joshua Montgomery 75-1097 Keopu Mauka Dr. Holualoa, HI 96725 (785) 840 6155 joshua.montgomery@guardwellfarm.com