HomeMy WebLinkAboutCOM 0600.033 2022-2024 P/FC
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My Name is Daniel Bona
I would like to give a Second testimony in regard to a second Issue with the
FOURTH draft of Bill 104.
I support this Bill, BUT,,, I would like the Council to address the intention of it to
better address the definitions and wording of it.
To address a few points that were brought up at the last meeting: `T}
1.Property owners currently enjoying the "Homeowners" Tax category by being
able to rent older, less quality units under the guidelines of"affordable rental, will
not want to double their property tax and switch to "Long Term Rental" category. ul 2.Multiple Unit properties will not switch from "Residential" to "Long-term"
rentals because veryfew of them are owner occupied as their primaryresidence.
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They also don't want or need any more bureaucratic hoops to jump through. There --
is enough profit to afford the Property tax because the cost is added to the rent.
What I sense you are trying to do, is to create another category to incentivize
Property owners to add more housing on their lots that will not increase the
Taxes on their present home by 400%. (But WILL increase it by 200%).
There is no possibility that ANY new construction can be rented under the
affordable Housing rules and maintain the Homeowners tax rate.
(The present"affordable" rates are so low that only very old, dilapidated
properties can use it.)
By allowing double density on all the lots in HPP and Orchid land (and now the
New Ohana rules bill), You are hoping that residents will use their own money to
add more housing AT NO COST TO COUNTY TAX PAYERS.
You will also be increasing tax revenue because the tax on these Lots will
increase from 0.0511% to 0.075%. (instead of the present 0.11%)
The County needs to acknowledge the huge investment required to build a second
home given that Hawaii's land and construction costs are the highest in the
County. Per UH Economic research Organization, Hawaii has the most restrictive
land use regulations in the Nation. Hawaii County also has the most restrictive
and costly Building code in the Nation as well.
I would recommend that you SIMPLIFY the definition and the Process to
make this Bill successful. The present conditions of mandating a six-month lease,
but forcing tenants to stay against their will for at least 12 months does not make
any sense, will disqualify most applicants. (and probably is NOT legal)
LOND-TERM rental is defined statewide as being 6 or more months
Adding the Complicated conditions of being rented for 12 months out of the year
to the same tenant is government over reach, and is impossible,because units
usually take one or two months to find qualified Renters.
Comm. No. 0. %
Ref. To:
Ref. Date E,E ® 6 2024
My Name is Daniel Bona
I would like to give testimony regarding deficiencies and contradicting language
in the FOURTH draft of Bill 104.
I favor this long overdue change that is finally going to give a tax break to primary
residents that invest in the community and use loans and savings to create
additional rental housing.But I have questions on the specific LANGUAGE of the
Definition of Long-Term rental.
This Last draft Defines long term rental as
""Long-term rental"means property occupied for twelve consecutive months and under a
signed lease for six consecutive months or more to the same tenant(s)."
We have already established that the State and only County agencies have
standardized on a 6-month lease that changes to a month to month.
You have added that the lease MUST be for 12 Consecutive months to the same
person to qualify for this tax break that an owner occupied, primary resident
should already have under any conditions.
If the lease is only binding for 6 months, what is your plan if the tenant decides to
leave after 6 months? The property could be rented again to someone else, but you
are going to Double the property tax because of this scenario?
What if, God forbid, the "normal" thing happens and it takes you a month (or two)
to find another tenant.
The "intention" is there to provide long term rental, but your definitions are
penalizing event that are Normal and to be expected.
The definition should be the property is occupied for 10 months out of the year
under signed leases of six consecutive months or more.
The "same tenant" part is NOT reality in Hawaii, especially in Puna.
Thank you for your consideration,