HomeMy WebLinkAboutCOM 0675.319 2022-2024July 5, 2024
Aloha Members of the Hawaii County Council,
I am writing to extend my heartfelt gratitude to Chairwoman Heather Kimball and
CouncilmemberAshley Kierkiewicz for their unwavering dedication and hard work on the
proposed bill and its amendments. Your commitment to addressing the concerns of our
community and improving our local governance is deeply appreciated.
I am writing to express my support for the bill and most of the amendments provided by
Chairwoman Kimball. Since its introduction on November 23, 2022, 1 have been actively
engaged in the process, attending every public meeting and all commission meetings to c
ensure my voice and those of my fellow community members are heard.
I
In the attached testimony, I have shared my thoughts, concerns, and proposed v'
amendments to some sections of the bill that i believe will enhance its clarity and _
effectiveness. Additionally, I have provided a PDF version of the bill that includes all the N
amendments proposed by Chairwoman Kimball. The yellow highlighted sections are —
followed by the COM ##, and the red highlighted sections represent the changes I propose
in my testimony.
Once again, thank you, Chairwoman Kimball, Councilmember Kierkiewicz, and the entire
council for your tireless efforts and dedication to seeing this bill through. Your hard work
does not go unnoticed, and I am grateful for your commitment to our community.
Sincere
Eisert
Comm. V �� "I
Ref. To: UD
Ref. Date 411.. 8 2024
The below table of contents can be clicked to jump to desired section.
Table of Contents
1. TaxAmnesty.............................................................................................................................1
2. Event v. Gathering.....................................................................................................................3
3. Hosting Platform Definition and Penalties: ................................................................................. 5
4. Verified Complaint Definition.....................................................................................................6
5. Subordinate and clearly or customarily incidental......................................................................7
6. Date Updates............................................................................................................................9
7. Renter Limit............................................................................................................................10
8. Floor Plan...............................................................................................................................12
9. Complaints.............................................................................................................................13
10. Response Time........................................................................................................................14
11. Registration of Renters............................................................................................................15
12. Fines.......................................................................................................................................16
1. Tax Amnesty
Section 25- 4-16.26. (b) Ornners who have been operating an owner -hosted transient
accommodation rental who submit a notarized affidavit to the real property tax department by
December 31, 2024 indicating that they will cease transient accommodation rental operations as
of the date the affidavit is signed, shall remain irr the homeowner tax classification and shall not
be liable for rollback taxes based on the loss of the homeowners tax class for the tax years 2022,
2023, and 2024. If transient accommodation rental operations do not cease as indicated in the
affidavit, a rollback of the current year and hvo prior years, a ten percent penalty, and a fine will
be assessed.
Concern:
As a member of the Real Property Tax Board of Review, sharing independent testimony as a
private citizen, I would like to provide input on the proposed effective date of September 30,
2024, for the ordinance outlined in Section 25-4-16.26(b).
Based on my experience and understanding of the processes involved, I believe the proposed
December 31, 2024 date does not provide sufficient time, being only three months, for proper
notification and for owners to take advantage of the tax amnesty program set forth. I recommend
changing the effective date to the end of the next semi-annual deadline, which is June 30, 2025.
Here are the key points to consider:
Notification Period: The process of notifying property owners about the new ordinance,
including the necessary steps they need to take, is extensive. This involves preparing and
sending out notifications, ensuring that they are received, and allowing owners adequate
time to understand the requirements. The few months between September 30, 2024, and
December 31, 2024, is insufficient for this process to be completed effectively.
2. Owner Preparation: Property owners who wish to take advantage of the tax amnesty
program will need time to understand the new requirements, make necessary
arrangements to cease operations, if necessary, and prepare and submit their affidavits.
The proposed timefiame is too short for many owners to complete these steps adequately.
Additionally, many renters book more than three months in advance. Having such a short
deadline could result in cancelled trips and potential lawsuits between owners of short-
term rentals and future guests. This situation could discourage owners from participating
in the tax amnesty program, as they might prefer to continue operating covertly rather
than face these challenges.
3. Realistic Implementation Timeline: Given the above points, a more realistic timeline
would extend the effective date to at least the last day of June 2025. This allows for a
proper notification period, thorough administrative preparation, and sufficient time for
property owners to comply with the new ordinance.
4. Consistency with Semi -Annual Deadlines: Aligning the effective date with the semi-
annual deadlines makes the process more manageable for both the Real Property Tax
Department and property owners. It provides a clear and consistent timeline that fits
within the existing framework of tax administration.
In conclusion, changing the effective date to June 30, 2025, ensures a smoother transition and
greater compliance with the new ordinance. It allows for adequate notification, preparation, and
implementation, ultimately leading to a more successful outcome for all parties involved.
Thank you for considering this recommendation. I am available for any further discussion or
clarification needed.
2. Event v. Gathering
Current Definitions:
""Event" means a formal congregation, which may or may not inchide the engagement of
professional services, that is not typical in residential areas, such as ivedding receptions,
concerts, or promotional events. "
""Gathering" means an informal congregation typical of residential areas, such as a picnic,
family dinner, or small birthday party, ivhere attendees stay ii ithin the parking area
accompanying a transient accommodation rental. "
Concern:
The current definitions of "event" and "gathering" leave significant discretion to the planning
director, leading to inconsistent enforcement and uncertainty for TARS. Over the past couple of
years since I bought my home, I have had seven complaints filed on my property, mostly for
alleged "events" or activities. Every time, these complaints have been dismissed without enough
basis for it to be a violation. This inconsistency is inequitable and needs to be addressed. For
instance, the Planning Department stated in the Windward Planning Commission relating to this
bill that a weekly ukulele class with 30 people at a house is NOT an event, whereas I have
personally been told that I can't have a group of yoga practitioners stay in my home if they do
yoga together as that is an `event' and I would get a violation for allowing them rent my home.
Please see the Windward Planning Commission discussion about events, including the ukelele
class discussion with the planning department and Heather Kimball here:
(https://voutu.be/IFwf8i0mnWc?t=22947 ).
This disparity in interpretation highlights the need for clearer definitions. Additionally,
professional services like chefs, yoga instructors, massage therapists, tutors, etc. are at risk for
their jobs if this definition isn't clear enough and will be left up to the discretion of the planning
director. Many professional service representatives shared their concerns about these definitions
to the planning commissions.
Rationale:
The proposed definitions aim to provide greater clarity and reduce the discretion left to the
planning director, ensuring more consistent enforcement. By distinguishing between professional
services typically associated with residential activities and larger, more public assemblies, these
new definitions protect the character of residential areas. This clarity helps ensure that common
residential activities are appropriately classified as gatherings, while larger events are clearly
defined. These adjustments promote fairness and consistency in enforcement, supporting
residents in understanding and complying with regulations, thus making the definitions more
practical and reliable.
Proposed Definitions:
Edited per discussion in meeting with Councilmember Inaba: "Event" means an assembly,
generally by invitation or ticket purchase, that extends beyond the scope of typical residential
living. Examples include but are not limited to weddings, wedding receptions, or concerts.
"Gathering" means an assembly that is consistent with activities of residential areas,
characterized by its casual nature and limited scale. Examples could include a picnic, family
dinner, a birthday celebration, yoga instruction, or a casual get-together where the attendees stay
within the parking and accommodation space of the transient accommodation rental and public
parking areas. Professional services hired exclusively for the enhancement of the guests' or hosts'
experience, without extending the invitation to the public, do not transform a gathering into an
event.
I Hosting Platform Definition and Penalties:
Current Definition: ""Hosting platform"means a business or person that provides a marketplace
through ivhich transient accommodation rentals may be of for rent. "
AND
Section 25-4-17-3. Penalties.
Any violation of this division shall be subject to a civil.frne of not less than $1, 000 and trot more
than $10, 000 for each day that the violation continues.
Concern:
The current definition of "hosting platform" is too broad and could unfairly include individual
property owners who have their property listed on a single website or real estate licensees who
primarily use third -party platforms like Airbnb and VRBO to list their properties. Additionally,
the fines outlined in Section 25-4-17-3 are excessively high and burdensome, particularly for
small-scale operators. These penalties are disproportionately severe and could place an undue
financial strain on small businesses.
Recommendation for Clarification and Adjustment:
To address these concerns, the definition of "hosting platform" should be revised to,exclude
individual property owners and real estate licensees. Here is the suggested revised definition:
Proposed: "Hosting platform" means a business or person, other than an individual property
owner or real estate licensee, that provides a marketplace through which transient
accommodation rentals may be offered for rent.
Rationale:
This approach recognizes the differences in operational capacities and prevents
disproportionately severe financial impacts on small businesses.
Examples:
1. Example: If a property owner uses their own website to book their single rental home,
they are subject to the same reporting requirements and fines. A fine of up to $10,000 and
no less than $1,000 would be devastating for such a small operation.
2. Example: Consider a property manager who exclusively lists properties on Airbnb and
VRBO for several homeowners. Due to an unexpected family emergency, they missed
the reporting deadline. Despite diligently providing a marketplace for property owners,
the property manager was fined $10,000. This fine is overwhelming for a small operation
and discourages participation in the legitimate rental market, potentially driving such
businesses underground.
4. Verified Complaint Definition
CURRENT. • ""Verifed complaint "means any complaint.filed on a complaint.form prepared by
the planning department pursuant to rule 9 of the planning department rules of practice and
procedure or fo► warded to the department and verified as a zoning code violation by the
director. "
Concern:
Verified complaint is only mentioned twice in the bill under Section 25-4-16.10. and Section 25-
4-16.15. as it relates to denial of annual renewal. It seems like these sections could be rewritten
as opposed to creating a definition of a `verified complaint. For example, is a complaint
considered "verified" before or after the determination becomes final? There are 30 days after a
violation has been served that the owner has to appeal or disprove the complaint. This period
should be taken into account to ensure that the verification process is fair and complete.
Recommendation for Clarification:
To address this concern, the definition should specify that a complaint is only considered
"verified" after the determination becomes final, including the completion of any appeal process.
Here is the suggested revised definition:
PROPOSED: ""Verified complaint" means any complaintf►led on a complaintform prepared by
the planning department pursuant to rule 9 of the planning department rules of practice and
procedure or, fo►svarded to the department and verified as a zoning code violation by the
director, and ►-,here the determination has become final after the expiration of the 30-day period
allowed, for appeal or after any appeal has been resolved. "
5. Subordinate and clearly or customarily incidental
Section 25-4-16.1 Oivner-hosted transiet7t acconnnodation rentals.
(a) Where permitted When the transient accommmodation rental is subordinate and clearly or
customarily incidental to its use as the principal home of the oivner, a transient accommodation
rental may be registered at any thne in any zoning district subject to the.following requirci)iews:
Concern:
The phrase "subordinate and clearly or customarily incidental" is ambiguous and lacks a clear
definition. It raises several questions:
• Who determines what is "subordinate and clearly or customarily incidental"?
• What criteria are used to make this determination?
• Does simply living in the home full-time make the transient accommodation rental
subordinate?
Rationale:
It doesn't seem like this phrase is needed in the bill at all. For property owners to comply with
the regulation, there needs to be a clear understanding of what "subordinate and clearly or
customarily incidental" means. Without clear criteria, this phrase leaves too much discretion to
the planning department, which can lead to inconsistent enforcement and confusion among
property owners.
Examples:
• Example 1: A homeowner has a 4-bedroom home. They live in 2 bedrooms and rent out
the other 2 bedrooms. Is this considered subordinate and incidental since the owner
occupies a significant portion of the home?
• Example 2: A homeowner has a 4-bedroom home. They live in 1 bedroom and rent out
the other 3 bedrooms. In this case, the majority of the home is used for rental purposes.
Does this mean it is no longer subordinate? Is the factor the number of rooms rented
versus the number occupied by the owner?
Proposed Amendment:
Section 25-4-16.1 Oivner-hosted transient accommodation rentals.
(a) Jf`here permitted. When the transient accommodation rental is the principal home of the
owner, a transient accommodation rental may be registered at any time in any zoning district
subject to the, following requirements:
AND
Section 25-4-16.2 Operator -hosted transient accounnodation rentals.
(a) 61'here permitted. When the transient accommodation rental is in use as the residence and permanent
address of the operator, a transient accommodation rental may be registered at any time subject to the
,follo►ving requirements in the following districts:
6. Date Updates
Section 25-4-16.6. When to register.
(a) Existing oivner-hosted and operator -hosted transient accommodation rentals in operation on
or before June 30, 2024, who have submitted a registration application and the initial
registration fee on or before June 30, 2025, shall be allowed to continue to operate until such
time as their application is approved or denied by the department subject to the standards in
section 25-4-16.17 and fines in section 25-4-16.19.
AND
Section 25-4--16.9. Annual renewal of registration rewired.
(a) All transient acconmtodation rental registrations shall be renewed annually.
(b) Transient accommodation rental owners shall submit their registration renewal by the
following deadlines:
(1) For transient accommodation rentals registered on or prior to June 30, 2025, on or
prior to a date specified by the director; or
(2) For transient accommodation rentals -registered after June 30, 2025, on or before the
date that the transient accommodation rental registration number was issued by the department.
AND
Section 25-4-16.13. Hosted transient accommodation rental nonconforming use certificate. (b)
Owner -hosted and operator -hosted transient accommodation rentals ivho have submitted a
nonconforming use certificate application and the application fee on or before June 30, 2025
shall be allowed to continue to operate until such time as their application is determined to be
accurate and complete by the department subject to the standards in section 25-4-16.17 and
fines in .section 25-4-16.19.
Concern:
The dates in the ordinance should be updated to represent one year from the effective ordinance
date to allow sufficient time for compliance and administrative processes. This ensures a
smoother transition and gives property owners adequate time to register and renew their transient
accommodation rental operations.
PROPOSED:
• Section 25-4-16.6. When to register: Update the dates to "September 30, 2025".
• Section 25-4-16.9. Annual renewal of registration required: Update the dates to
"September 30, 2025".
• Section 25-4-16.13. Hosted transient accommodation rental nonconforming use
certificate: Update the dates to "September 30, 2025".
7. Renter Limit
Section 25-4-16.7. Rental registration process .
(7) A maximum renter limit, calculated at hvo more than twice the number of bedrooms.for rent
of the transient accommodation rental; and (COM 0675.160 6)
AND
Section 25-4-16.12. (3) The number of bedrooms included in the transient accommodation
rental; (if something changes during operations)
AND
(2) Good neighbor standards. (A) Unless established other►vise by the director, the (COM
0675.160 8) renter limit for adult occupants in transient accommodation rentals shall be as
calculated at the tirne of the registration application. (COM 0675.160 8)
Concern:
There is a conflict in the current sections regarding the renter limit. The provision for Director
authorization to allow more occupants has been removed, which poses a problem. Many homes
have unique characteristics that allow them to safely accommodate more people. If the limitation
is enforced as currently proposed, it could lead to the need for non -conforming use permits for
owners who are legally renting to larger groups. This creates an unnecessary burden and could
restrict the operations of these unique properties.
Rationale:
The planning director recommended amendment (7) (Planning Director Recommendation #9),
and it was supported by the Leeward Planning Commission. However, the phrase "unless
authorized by the Director" was removed in the current proposal (COM 0675.160). It is crucial
to retain this section because many homes have unique characteristics that allow them to safely
accommodate more people. If this limitation is enforced as proposed, it could lead to the need for
non -conforming use permits for owners who are legally renting to larger groups. Retaining the
provision for Director authorization ensures that these unique properties can continue to operate
within the law while maintaining safety and regulatory compliance.
Proposed Clarification:
To resolve the conflict and provide clarity, the sections should explicitly state that the maximum
renter limit can be adjusted with authorization from the Director. Here is the suggested revision:
Section 25-4-16.7. Rental registration process: (7) A maximum renter limit, calculated at two
more than twice the number of bedrooms for rent of the transient accommodation rental, unless
authorized by the Director;
OR
Section 25-4-16.7. Rental registration process: (7) A maximum renter limit, calculated at two
more than trinle the number of bedrooms for rent of the transient accommodation rental, unless
authorized by the Director;
Section 25-4-16.12. Good neighbor standards: (2) Good neighbor standards. (A) Unless
established otherwise by the director, the renter limit for adult occupants in transient
accommodation rentals shall be as calculated at the time of the registration application. (COM
0675.1608)
8. Floor Plan
Section 25-4-16.7. Rental registration process . (S) Submittal of a floor• plan shor+,ing the
location of the rooms for rent, the layout of the transient accommodation rental and emergency
exits;
Concern:
Requiring the submission of a floor plan showing the location of rooms for rent, the layout of the
transient accommodation rental, and emergency exits is overly detailed and will become
outdated as situations change. Additionally, requiring property owners to notify the director of
such changes could inadvertently affect the maximum renter limit and seems excessively
intrusive. It is also unclear why this level of detail is necessary for the registration process.
Rationale:
Property layouts and room usage can change over time based on the needs of the owner and
guests. Requiring a floor plan and updating the director with every change is burdensome and
unnecessary. This is something that is handled by the Building Department. The primary focus
should be on ensuring safety and compliance without demanding excessive information that
could change frequently.
Request for Clarification:
The requirement should be revised to ensure necessary safety information is provided without
imposing undue burdens on property owners. Specifically:
• Why is a detailed floor plan necessary? Clarify the purpose of requiring such detailed
information.
• Impact on Maximum Renter Limit: Ensure that changes in the floor plan do not
inadvertently affect the maximum renter limit in a way that disadvantages property
owners.
• Simplify Requirements: Consider simplifying the requirement to focus on essential
safety information, such as emergency exits, without needing a detailed floor plan.
Proposed Adjustment:
Revise the requirement to focus on essential safety information, such as:
• Submittal of a basic layout indicating emergency exits and areas designated for transient
accommodation rental use, without requiring a detailed floor plan of room locations.
9. Complaints
(4) Evidence of non -responsive management such as issuance of a notice of violation, police
reports, or verified complaints of noise or other disturbances relating to the h•ansient
accommodation rental operations;
Concern:
This provision can be misused, as demonstrated by my experience of having seven frivolous
complaints filed against my property and hearing about it from many others. The planning
department has been weaponized against me and others, leading to unnecessary stress and
potential penalties based on unfounded claims. There needs to be protection against such misuse
and clearer criteria for what constitutes non -responsive management.
Rationale:
To prevent the planning department from being misused or weaponized to harass property
owners with frivolous complaints, the criteria for what constitutes evidence of non -responsive
management should be clarified and strengthened. This will help ensure that only valid and
substantiated complaints are considered, protecting property owners from unwarranted penalties
and actions.
Proposed Adjustment:
Protection Against Frivolous Complaints: Include measures to protect property owners from
being penalized based on unsubstantiated or malicious complaints.
Revise the requirement to include the following:
• Evidence of non -responsive management must be based on substantiated and verified
complaints that have been investigated and confirmed by the planning department and not
just the issuance of a violation letter.
• Include a provision to dismiss complaints that are found to be frivolous or made with
malicious intent and to note that on future complaints from the same property owner.
Example Scenario:
1. Example: Over the past couple of years, I have had seven complaints filed against my
property. All of these complaints were dismissed as frivolous. This pattern indicates that
the complaint process is being misused to harass me. There needs to be clearer criteria
and protection against such misuse to ensure fairness.
By including these protections and clarifying the criteria, the regulation can help prevent the
planning department from being weaponized against property owners and ensure that only
legitimate complaints result in action.
10.Response Time
Section 25-4-16.17. Transient accommodation rental operation standards (1)(A) For hosted
rentals, a host shall physically reside on the same building site as the transient accommodation
rental during transient accommodation rental operations and shall be reachable at the request
of renters, neighbors, and Courtly agencies ►0thin one hour of a request. A copy of the
registration as ii,ell as the host's rnmne and phone nu»tber•, shall be displayed in a conspicuous
place on the premises that is readily visible to any occupants. In emergency or unforeseen
circumstances, the host may request a temporary exception from this slandcn-d ftom the director.
Concern:
The current requirement for hosts to be reachable within one hour does not account for
various realistic scenarios, such as nighttime, flights, or when they don't have cell service.
Request for Clarification:
The regulation should be revised to include specific exceptions and streamline the
process. Specifically:
• Exceptions for Nighttime and Flights: Allow for specific exceptions during
nighttime hours and when the host is on a flight or otherwise unavailable due to
unforeseen circumstances with a bit more flexibility than being at the directors
discretion.
Proposed Adjustment:
Revise the requirement to include the following:
• Hosts must be reachable within one hour during reasonable hours (e.g., 6 AM to 10
PM).
• Give people the ability to provide multiple Doints o contact in case the main
person is unreachable. Many hosts are likely married or have other people who can
help manage the property.
11.Registration of Renters
Section 25-4-16.17. Transient accommodation rental operation standards (2)(B) All overnight
renters shall be registered ►with the o►vner or host and shall, in the rental agreement, agree to
comply ►i,ith the terms of use of the property.
Proposed Amendment:
(2)(B) The primary renter shall be registered with the owner or host, and the rental agreement
mast include a clause requiring all guests to comply with the terms of use of the property.
Rationale:
The term "registered" is ambiguous and burdensome as it implies that hosts must obtain a
complete list of all guests' names, which is not a common practice. By requiring only the primary
renter to be registered and ensuring that the rental agreement includes compliance terms for all
guests, the regulation becomes more practical and less intrusive while still ensuring
accountability.
Additionally, another question to consider is whether the County have the ability to determine
what a rental agreement includes and doesn't include. If so, how is this section enforceable?
12.Fines
Section 25-4-16.19. Transient accommodation rental fee and ,rne schedule.
TRANSIENT ACCOMMODATION RENTAL FINE SCHEDULE
First Violation $2 500
Second Violation S5 000
Third Violation S10 000
1JVIJI
Section 25-4-16.22. Transient accommodation rental administrative enforcement.
(a) If the director finds that any persons have violated the provisions of this chapter, in
addition to the fines established in section 16-4-16.19 and any criminal fines, the
director shall impose additional fines in the amount of hvo times the highest daily rate
at which the transient acconnnodation rental has been advertised
Concern:
There is ambiguity regarding whether these fines reset or are cumulative. If the fines do not reset,
they could be excessively punitive, especially when combined with additional fines for violating
HRS or Chapter 25. The cumulative effect of $500 per incident, plus $2,500 to $10,000, plus
double the highest rental amount can be disproportionately harsh. The fines for first, second, and
third violations should reset every twelve months to avoid excessive penalties for ongoing
operations.
Rationale:
To ensure fairness and proportionality in enforcement, it is important that fines reset every
twelve months which is similar to Section 25-4-16.24(a) as it relates to violations on the
property. This allows property owners an opportunity to rectify their operations without facing
compounding penalties indefinitely. Clear guidelines on how fines are imposed and reset will
help property owners understand their responsibilities and the consequences of violations.
Request for Clarification:
The regulation should clearly state whether the fines reset every twelve months and how they
interact with other fines for violations of HRS or Chapter 25.
Specifically:
• Fine Reset Period: Clarify that fines for first, second, and third violations reset every
twelve months similar to Section 25-4-16.24(a).
Proposed Adjustment:
Revise the requirement to include the following:
• Fine Reset: Fines for first, second, and third violations shall reset every twelve months
from the date of the first violation.
Example Scenario:
1. Example: A property owner is fined $2,500 for a first violation. Within the same year,
they are fined $5,000 for a second violation and $10,000 for a third violation. If these
fines do not reset, any subsequent violation would result in $10,000 fines plus twice their
highest rental limit, even if it is years later. Clarifying that these fines reset every twelve
months will ensure that penalties are fair and not overly punitive.
COUNTY OF HAWAPI
• STATE OF HAWAI`I
l�rt •O1'ihN
BILL NO. 121
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 25, ARTICLES 1, 4, AND 5, OF THE
HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO
TRANSIENT ACCOMMODATION RENTALS AND HOSTING PLATFORMS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAVI:
SECTION 1. Chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by repealing the definition of "short term vacation
rental".
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noreside errt#re more tanfive bedr9s-far-1'ent-en-the-bu l(ling-sites
and-is-mnted4er-a-per-iod afthiFt�y�eiMseeHfiV day"F- 89. i"ef ritienAees net -melt e-tke
short-term use-ofan-owner's-primary-residenee as defined ;2 dn 124-okhe-lriternal
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SECTION 2, Chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by adding the following new definitions to be
appropriately inserted and to read as follows:
"`Booking services" means intermediary services that facilitate the advertisements and
listin s of, reservations of, or collection of payment for transient accommodation rentals."
""Event" means a formal congregation, which may or �r may not include the engagement of
professional services, that is not typical in residential areas, such as wedding receptions,
concerts, or promotional events,"
""Gathering' means an infomial congregation typical of residential areas, such as a Pit epic,
family dinner, or small birthday arty,_where attendees stay within the parking area
accompanying a transient accommodation rental."
""I-losting platform" means a business or erson that provides a marketplace through which
transient accommodation rentals may be offered for rent."
""Operator" means any person operating a transient accommodation rental on behalf of a
property owner, who resides on the same building -site as the transient accommodation rental and
uses it as their permanent address for legal purposes."
""Operator -hosted" means any transient accommodation rental hosted by an operator."
""Owner -hosted" means any transient accommodation rental hosted by a person who uses
the building site as their principal home."
""Principal home" means a principal home as defined in section 19-71(c) Hawaii County
Code."
""Transient" or "transients" means any visitor or person who rents or uses a lodging or
dwelling unit, or portion thereof, for thirty consecutive days or less jCOM0675.165)and
whose permanent address for legal purposes is not the transient accommodation rental (COM
0675.165). This definition shall not apply to:
(1) Nonpaying guests of the family occupying the unit;
(2) Clients in health care facilities;
(3) Full-time students enrolled in an educational institution in the County of Hawaii;
(4) Employees who receive room and/or board as part of their salan, or compensation
including agricultural workers;
(5) Occupants of group living facilities authorized by the department of health;
(6) Military personnel;
(7) Health care workers temporarily employed at a medical facility in the County of
Hawai `i;
(8) Low-income renters receiving rental subsistence from the state or federal
govenunents whose rental periods are for durations shorter than thirty ,(COM 0675.165) days;
(9) (6ccupants of lodging provided by nonprofit corporations or associations for religious,
charitable or education purposes, provided that no income is produced, even if the
income is used for or in furtherance of the exempt activities of such relipicnrs,
charitable or educational corporation or association."
"'Transient accommodation" means the fumishing of a room apartment, suite, single
family dwelling, or the like to a transient for thirty jCOM0675,165) consecutive days or less.
�COM 0675,165 large deletiorx)
""Transient" accommodation rental' means transient accommodations excluding:
(1) Hotels, motels, and inns;
(2) Apartment hotels;
(3) Boardinp_ facilities;
(4) Lod e� s; and
(5) Timeshares."
""Un-hosted" means any transient accommodation rental that is not the principal Ironic of
the property owner and without an operator located on the same building site during rental
operations."
""Verified complaint" means any c=laint filed on a complaint form prepared by the
planning department pursuant to rule 9 of the planning department rules of practice and
procedure or forwarded to the department and verified as a zoning code violation by the
director."
SECTION 3. Chapter 25, article 1, section 25- 1- 5, of the Haivai' i County Code 1983
2016 Edition, as amended) is amended by anrendirrg the definition of reachable" to read as
follows:
Reachable" means being able to:
1) Respond via teleplrorre to a request from a guest, neighbor, or County agency within
one hour of receiving that request; and
2) Be physically present at the J short term vacation) transient accommodation recital
within three hours of receiving a call from a guest, neighbor, or County agency,
ivherr thatguest, neighbor, or County agency requests the presence of the reachable
person.' (COM 0675.161 1)
SECTION 4. Chapter 25, article 4, sections 25-4-16, 25-4-16.1, 25-4-16.2, and
25-4-16.3, of the Hawaii County Code 1983 (2016 Edition, as amended), are repealed.
SECTION 5. Chapter 25, article 4, of the Hawaii County Code 1983 (2016 Edition, as
amended), is amended by adding the following new division to read as follows:
"Division 1.1. Use Regulations — Transient Accommodation Rentals,
Section 25-4-16. Transient accommodation rental reeistration required; excentions.
(a) The County of Hawaii recognizes three types of transient accommodation rentals:
owner -hosted, operator -hosted, and un-hosted. All three types of transient
accommodation rentals must be registered with the planning department as permitted
in sections 25-4-16.1, 25-4-16.2 and 25-4-16.3, except as provided in subsection (b)..
(b) Registration as a transient accommodation rental shall not be required if:
(1) The rental is not being provided to a transient or transients as defined by
chapter;
(2) There is an emergency declaration enabling temporary shelter for displaced
persons-,
(3) The dwelling is the principal home of the host and is provided as a home
exchanp,e and no financial exchange occurs,
(4) The dwelling is being provided to a tenant under a month -to -month lease
subject to chanter 521, Hawaii Revised Statutes, the Hawaii
residential landlord -tenant code. or
�5) The rcutal use is subject to a use permit or special permit duly issued prior to the effective date ofthis
ordinance, which conditions contained therein shall continue to ably to such use and tape precedence over this
division, except insoini- as section 25- 4- 16. 1 ? is applicable to such use. "(a)NI 0675.1601)
(c) Any Properiv owner that claims an exception set forth in this section where there is
prima facie evidence to the contrary, shall be considered to be in violation of this
chapter and subject to the fines set forth in section 25-4.16.19.
Section 25-4-16.1 Owner -hosted trnnsient accommodation rentals.
(a) Where permitted When the transient accommodation rental is subordinate and clearly
or customarily incidental to its use as the principal home of the owner, a transient
accommodation rental may be registered at any time in any zoning district subiect to
the following requirements:
(1) The transient accommodation rental shall be located in a single-family dwelling,
inclusive of a detached bedroom or guesthouse;
(2) The transient accommodation rental shall not be permitted in an additional farm
dwelling additional dwelling unit (COM 0675.1602) or ohatia dwelling; and
(3) The owne • shall live on the building site of the transient accommodation rentaL_
, CUlI 0675163 I)
(b) Nonconforming use.
(1) If the transient accommodation rental has been in regular use in an ohana
dwelling or additional dwelling unit (CUM 0675,1602)on the same building
site, the owner shall have the burden of proof in establishing that the ohana
dwelling or additional drvellinp,.�niit (COII-I 0675.160 2) was in use as a
transient accommodation
rental on or before the effective date of this ordinace fCOM
0675.1602), and may register by obtaining a nonconforming use
certificate pursuant to this section.
2) Owner-liosted nonconforming use certificates may only be transferred upon a
change in ownership if the new owner intends to use the property as their
principal home._
(3) Nonconforming use certificates must be renewed annually in accordance witli
section 25-4-16.14.
c Fees.
(1) Initial registration: $500.
(2) Annual registration renewal: $100..
(3) Nonconforming use certificate: $250..
(4) Annual nonconforming use certificate renewal: $250.
Section 25-4-16.2 Operator-liosted transient accommodation rentals.
a Where-Dcrmitted. When the transient accommodation rental is subordinate and clearly
or customarily incidental to the use as the residence and permanent address of the
operator, a transient accommodation rental may be registered at any time subject to
the following requirements in the following districts:
(1) V CG CN, CV, and CDII districts, including these districts situated within a
project district;
2 Residential districts situated in general plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the resort or
resort node areas along the shoreline and areas within a project district, and
(3) RM district, for multiple family dwellings within a condominium properly
regime as defined and governed by chapters 514A or 514B. Hawaii Revised
Stattacs, including within a project district._
(b) Additional conditions.
(1) The transient accommodation rental shall be located in a_single-family dwelling,
inclusive of a detached bedroom or guesthouse;
(2) The transient accommodation rental shall not be permitted in an additional farm
dwelling, additional dwelling unit XOM 0675.160 3), or ohana dwelling, and
CIbc - WUue on the building site of 063 21 � ital.
(c) Nonconforming use.
proof in establishing that the property was in regular use as a transient
accommodation rental on or before the effective date of this ordinance fGIOM
0675.1603) and that an operator was residingon n the property. The owner may
register by obtaining a nonconforming use certificate pursuant to this section.
(2) Operator -hosted nonconfonning use certificates granted play only be transferred
upon change in ownership if the new owner provides evidence of an operator in
the form of a lease or contract with an operator or the new owner intends to use
the property as their principal home._
(3) Nonconforming use certificates must be renewed annually in accordance with
section 25-4-16.14.
d Fees..
(1) Initial registration: $750.
(2) Annual registration renewal: $150.
(3) Nonconforming use certificate: $375.
4 Annual nonconforming; use certificate renewal: $375.
Section 25-4-16.3 Un-hosted transient accommodation rentals.
a Where permitted. Un-hosted transient accommodation rentals may -be registered at
any time in the following districts:
(1) V, CG, CN, CV, and CnH districts, including these districts situated within a
project district;
(2) Residential districts, situated in general plan resort and resort node areas,
including areas designated as open in the general plan which adjoin the resort or
resort node areas along the shoreline and areas within a project district; and
(3) RIM district, for multiple family dwellings within a condominium kopier y
regime as defined and governed by chapters 514A or 514I3, Hawaii Revised
Statutes, including within a project district.
(b) Nonconforming use.
(1) In districts other than those specified in subsection (a), un-hosted transient
accommodation rentals may only operate with an existing nonconforming use
certificate.
(2) No additional nonconfornun use se certifica_t_es shall he_is_s_u_ _e_d_ _for un-hosted
transient accommodation rentals.
(3) Nonconforming, use certificates must be renewed annuallv in accordance with
section 25-4-16.14.
c Fees.
(1) Initial registration: $1000.
(2) Annual registration renewal: $250.,
(02M 0675,160 4)
(3) Annual nonconforming use certificate renewal: $500.
Section 25-4-16.4. Transient accommodation rental registration and nonconformine
Ilse fee schedule.
TRANSIENTACCOMMODATION RENTAL REGISTRATION AND
NONCONFORMING USE FEE SCHEDULE
Initial I Annual RegistrationI NUC Initial &
?istr•ation Renewal Annual Renewal
M
G1I
Section 254-16.5. Additional registration rcouirements; all transient accommodation
rentals.
To register, all transient accommodation rentals must also satisfy the following
requirenmcnts:
(1) The transient accommodation rental must have off-street parking as required by
the department's transient accommodation rental parking schedule set forth in section 25- 4- 51 or applicablepalke instandards in this/uchapter, �COiN 0675.160 51
(2) The transient accommodation rental must meet licalth, safety, and constniction
code requirements established by law,
(3) Owners of transient accommodation rentals must have Stale of I Iawai`i general
excise tax and transient accommodation tax licenses that are in effect; and
(4) Owners of transient accommodation rentals must be current on their I-lawai`i
County real property taxes, that is, they nuist be paid in full.
Section 2.5-4-16.6. When to register.
a) Existing owner -hosted and operator -hosted transient accommodation rentals in
operation on or before June 30, 2024, who have submitted a registration application
and the initial registration fee on or before June 30, 2025, shall be allowed to continue
to operate until such time as their application is approved or denied b, tly is department
subject to the standards in section 25-4-16.17 and fines in section 25-4-16.19.
(b) Existing un-hosted transient accommodation rentals that were previously registered as
short term vacation rentals shall not be required to reregister, however, they will be
required to renew their registration annually in accordance with section 25-4-16.9.
(c) Any nc\V transient accommodation rentals shall be retistered with the director prior to
use of such rental and upon payment of the initial registration fee.
Section 254-16.7, Rental registration process.
(a) Owners of a transient accommodation rental shall rccister by submitting a registration
application to the planning department in a format prescribed by the director. The
registration form, at a minimum, shall include:
(1) Property address and tax map key number,
(2) Name and contact information for the property owner. Namme and contact
information for the operator, if different from the property owner, or the
reachable person if the transient accommodation rental is urn -hosted;
(3) If required pursuant to chapter 467, Ilawai'i Revised Statutes, a copy of a
current, valid real estate broker's license or real estate salesperson's license,
(4) Submittal of a site drawini?, drawn to scale, showing the location of all
structures on the site, the transient accommnmodation rental, and requisite off-
street parking,
(5) Submittal of a floor plan showing the location of the rooms for rent, the lam
of the transient accommodation rental and emergency exits,
(6.) A declaration (COA10675160 6) in format determined by the director
that the transient accommodation rental nieets health, safety, and code
rcguircnients;
f7,) A maximum renter limit, calculated at two more than twice the number of bedrooms for
rent of the transient accommodation rental; and XOM 0675.160 6)
(8) Copies of a current State. of Hawaii general excise tax licence and current Ingnsicllt
accommodation tax license.. COM 0675.160 6)
(b) Upon acceptance of a registration application and determination that it is accurate and
complete, the planning director shall issue the property owner a transient
accommodation rental retistration number.
Section 254-16.8. Failure to register.
Anti transient accommodation rental that has not lawfully registered shall be
considered an unpermitted use and subject to the fines set forth in section 254-16.19 until
the rental is properly registered or ceases to operate as a transient accommodation rental.
Section 25-4-16.9. Annual renewal of registrations repaired.
(a) All transient accommodation rental registrations shall be renewed annually.
(b) Transient accommodation rental owners shall submit their registration renewal by the
following deadlines:
(1) For transient accommodation rentals registered on or prior to June 30, 2025, on
or prior to a date specified by the director: or
L2) For transient accommodation rentals- registered after June 30.2025, on or before
the date that the transient accommodation rental registration number was issued
by the department.
(c) In addition to any requirements established by the department's rules, all renewal
applications shall include:
(1) Evidence that real property taxes and County of Hawaii transient
accommodation taxes for the rental were paid in full during the previous year,
and
(2) Payment of an annual renewal fee.
(d)_ If the renewal is submitted within ninety days after the due date, a late renewal fee of
$100 shall be assessed.
Section 25-4-16.10. Annual renewal of registration; denial.
Renewal of a registration may be denied if the director verifies any of the following
(1) The applicant has violated pertinent laws:
(2) The affidavit affirming that the transient accommodation rental meets all health,
safety and code requirements is found to be vnaecurate,
(3) The owner is delinquent in payment of Countyy propertv.taxes, transient
accommodation taxes, fees, fines, or penalties assessed in relation to the
transient accommodation rental:
(4) Evidence of non -responsive management. such as issuance of a notice of
violation, police reports, or verified complaints of noise or other disturbances
relating to the transient accommodation rental operations:
(5) The renewal request and renewal fee were not received within ninety days of the
expiration date indicated on the certificate; or
(6) Any violation of standards set forth in section 254-16.17.
Section 25-4-16.11. Notice of denial of registration renewal and anneal.
O Notice of a decision by the director to denyregistration renewal shall be transmitted
in writing to the_propeM owner.
(by_Within thirtydays after the trail smittal_of a notice of clenial the owner may Z acal to
the board of appeals as provided by section 6-9.2, County Charter, and sections 25-2-
20 throueh 25-2-25.
Section 25-4-16.12. Transient accommodation changes of information; ownership.
a Owners shall notify tine director by submitting a change of information form when
there have been changes to:
(1) The host or the host's contact information;
(2) The reachable person or the reachable person's contact information;
(3) The number of bedrooms included in the transient accommodation rental;
4 The site 1 lan, floor lan or the structure of the transient accommodation rental,
or
(5) A transient accommodation rental establishment permanently ceases to operate
for any reason.
(b) Upon change in ownership, a cliaiigc of ownership form and a change of registration
fee of $250 shall be submitted to the planning department by the new owner within
nincty days of the change in ownership.
Section 25-4-16.13. Hosted transient accommodation rental nonconforming use
certificate.
(a) Applicants that have been approved fCOM 0675160 7] for owner -hosted and
operator -hosted transient accommodation rental nonconforming use certificates must
notify by letter all owners and lessees of record of all lots of which any portion is
within three hundred feet of any point along the perimeter boundary of the transient
accommodation rental property within sixty days of approval, fCOA1 0675160 7)
The notification letter shall provide detailed information about the transient
accommodation rental operation including: the transient accommodation rental
registration number; fCOM 0675160 7) number of units being rented; maximum
number of renters permitted; number and location of required off-street parking
vaces, attd contact information for the host or reaclable person;
(b) Owner -hosted and operator -hosted transient accommodation rentals who have
submitted a nonconforming use certificate application and the application fec on or
before June 30, 2025 slrall be allowed to continue to operate until such time as their
application is determined to be accurate and complete by the department suhiect to
the standards in section 25-4-16.17 and fines in section 25-4-16.19.
(c) If at any time an owner -hosted or operator -hosted transient accommodation rental
with a nonconforming use certificate is found to be un-hosted, the transient
accommodation rental registration and the hosted nonconforming use certificate shall
be revoked and a fine shall be imposed in accordance with the schedule established in
section 25-4-16.19.
Section 25-4-16.14. Annual renewal of nonconforming use certificates.
a Nonconforming use certificates must be renewed every year on or before the
expiration date indicated on the certificate.
(b) At the time of retiewal, a renewal fee shall be remitted in accordance with the
schedule in section 25-4-16.4.
(c)or nonconforming use certificate renewals submitted within nincty clays after the
due date, a late renewal fee of $100 shall be assessed.
(d) Nonconforming use certificates overdue by more than ninety days will not be
accepted and the failure to renew shall be considered volunta!Y forfeiture of the
certificate rendering the certificate ineligible for further renewal.
Section 25-4-16 15 Annual renewal of ►ionconforming use certificates; denial.
Renewal of a nonconforming use certificate may be denied if the director verifies any
of the following:
(1) The applicant has violated pertinent laws;
(2) The affidavit affirming that the transient accommodation rental meets all health,
safety, and code requirements is found to be inaccurate;
(3) The owner is delinquent in payment of County property taxes, transient
accommodation taxes fees fines or penalties assessed in relation to the
transient accommodation rental,•
(4) Evidence of non -responsive management such as issuance of a notice of
violation police reports or verified complaints of noise or other disturbances
relating to the transient accommodation rental operations;
(5) The renewal request and renewal fee were not received within ninety days of the
expiration date indicated on the certificate,
(6) Any violation of standards set forth in section 25-4-16.17; or
(7) The transient accommodation rental has been abandoned pursuant to section
25-4-62.
Section 25-4-16 16 Notice of denial of a nonconforming use certificate application or
renewal and anneal.
(a) Notice of a decision by the director to deny a nonconforming use certificate or
renewal of a nonconforming use certificate shall be transmitted in writing to the
property owner.
(b) Within thirty days after the transmittal of a notice of denial the owner may appeal to
the board of appeals as provided by section 6 9.2 Hawaii County Charter, and
sections 25-2-20 through 25-2-25.
Section 25-4-16 17 Transient accommodation rental operation, standards.
All hansient accommodation rentals fC()M 06Z5. 1608) shall comply with
the following standards, which shall be prominently displayed within the rental.
(1) Posted information and responsive management standards.
(A) For hosted rentals a host shall physically reside on the same building site
as the transient accommodation rental during transient accommodation
rental operations and shall be reachable at the request of renters,
neighbors and County agencies within one hour of a request. A copy of
the registration as well as the host's name and phone number, shall be
displayed in a conspicuous place on the premises that is readily visible to
any occupants. hi emergency or unforeseen circumstances, the host may
request a temporary exception from this standard from the director.
(13) For un-hosted rentals a reachable person shall respond via telephone to a
request from a guest, neighbor, or County agency within one hour of
receiving that request and shall be physically present at the transient
accommodation rental within three hours of receiving a call from a renter,
neighbor, or County agency, when that renter, neighbor, or County agency
renuests the presence of the reachable person. A copy of tine registration as
Well as the host's name and phone number, shall be displayed in a
conspicuous place on the premises that is readily visible to any occupants._
(C) "flre registration and the nonconforming use or hosted nonconforming use
certificates if applicable shall be displayed in a conspicuous place on the
Premises that is readily visible to an inspector. In the event that a single
address is associated with numerous nonconforming use certificates, a
listing of all units at that address holding current certificates may be
displayed in a conspicuous readily visible common area instead.
(2) Good neighbor standards..
(A) Unless established otherivise bs, the director the :['CO1110675.160 8) renter
limit for adult occupants in transient accommodation rentals shall be as
calculated at the lime of the registration application. 4 OM 0675.160 81
(B) All overnight renters shall be registered witli the owner or host and shall,
in the rental agreement agree to comply with the terms of use of the
Properly
(C) The maYirnum gathering size shall not exceed double the overall _1COA10675.160 8)
renter limit and shall only use off-street parking or legal on -street parking.. COM 0675160 8)
(D) In hosted transient accommodation rentals only breakfast meals may be
offered to guests The serving of breakfast meals on the building site, for a
fee to individuals other than registered guests shall be prohibited. Owners
shall secure any required permit from the State department of health for
the service of breakfast meals.
(1✓) Weddings wedding receptions concerts or events, are prohibited unless
allowed by pecial permit or use permit.
with the terms of special permit 1CUM 1167mou tf1 or use permit
conditions to mitigate the impacts of the event on surrounding
properties, including but not limited to: event size; type of event;
temporary structures; use of sound amplifying devices; parking
requirements; and additional insurance coverage.
(G)Qui t hours shall be from 10.0012rn to SOO a.m. (COM 06751609). during which
time tgt@ise from the transient accommodation rental shall not disturb adjacent
neighbors Sound that is audible beyond the property boundaries during
non -quiet hours shall not exceed the standards set forth in title 11, chapter
46 I-Iawai`i Administrative Rules. For the pun)oses of this section,
"audible" means perceptible by a person without the use of a sound
detection device or audio aides. Violations of this standard shall be
reported to the Hawaii County police department.
(I I) Off-street parking shall meet the requirements set forth in section 25-4-51.
and applicable parking standards in this chapter, and all guest vehicles
shall be parked in the designated onsite parking area.
(33) Advertising and signage standards.
(A) All print and Internet advertising of transient accommodation rentals,
including listings witli a rental service or real estate firm, shall include the
El
registration number, the nonconforming use certificate number or
hosted_ nonconforming use certificate number, and any special
permit or use pennit numbers associated with the transient
accommodation rental. WOM 06751641)
(B) Advertising or promoting a transient accommodation rental as a venue for
weddings wedding receptions concerts or events, and providing any
professional services to anyone other than registered guests of transient
accommodation rental is prohibited unless allowed by special permit or
use permit..
(C) Any commercial signagc that advertises a transient accommodation rental
shall comply with the requirements of section 22-2.6 and chapter 3 of the
Hawaii County Code.
(D) Except for multi -family units, signage indicating the street address of the
transient accommodation rental WOM 0675160 8 deletion) should
be clearly visible from the main roadway used to access the property.
(E) An owner -hosted transient accommodation rental may be advertised as a bed and
breakfast, provided that the requirements of section 25-04-16a'l2)(D) are met. XOM
067S_1641)
Section 25-4-16.18. Prima facie evidence; transient accommodation rentals.
(a) The following shall constitute prima facie evidence that a transient accommodation
rental is operating on a property and the conditions under which it is operating:.
(1) Advertising of any sort that offers a property as a transient accommodation
rental;
(2) The ability of the planning department to book the rental under any of the
conditions defined by this section as requiring transient accommodation rental
registration;
3 I-Iawai`i County transient accommodation tax receipts; or
(4) In the event that the County enters into a contract with third party hosting
platforms to provide transient accommodation rental listing information, a
report provided by the engaged third parh,.
(b) The burden of proof shall be on the owner to establish either that the property is not
being used as a transient accommodation rental or that it is being used for such
purpose legally.
Section 25-4-16.19. Transient accommodation rental fee and fine schedule.
TRANSIENT ACCOMMODATION RENTAL FEES
TRANSIENT ACCOMMODATION RENTAL DINE SCHEDULE
First Violation
Second Violation
Third Violation
Section 25-4-16.20. Complaints, violations, and public information.
The director shall:
(1) Receive and track complaints regarding, i�ding transient accommodation rentals
(2) Establish and maintain administrative rules for determining if a complaint is
valid and there has been a violation,
(3) Provide information about rules policies and procedures pertaining to transient
accommodation rentals to property owners operators neighbors, and the
general public, and
(4,) Maintain and keel available for -public reference, both in the office of the dirWol' and in
an electronic format, a current list . COM 0675.160 9) of all transient accommodation rentals that
have registered or received a nonconforming use certificate and any violations associated with
the property.
Section 25-4-16.21. Transient accommodation rental enforcement account.
(a) The "Short-term vacation rental enforcement fund" created pursuant to section 10-12,
Hawaii County Charter, shall be renamed the "transient accommodation rental
enforcement fund." This fund shall be administered by the director.
(b) This account shall be funded by all fees and fines collected in connection with the
administration and enforcement of the County's transient accommodation rental law.
(c) The funds in this account shall be utilized to pay for expenses that facilitate the
administration and enforcement of the County's transient accommodation rental law.
Section 25-4-16.22. Transient accommodation rental administrative enforcement.
(a) If the director finds that any persons have violated the provisions of this chapter, in
addition to the fines established in section 16-4-16.19 and any -criminal fines, the
director sliall impose additional fines in the amount of two times the highest daily rate
at which the transient accommodation rental has been advertised.
(b) The owner and host shall be jointly and severally liable for all fees and fines imposed
in connection with the transient accommodation rental.
Section 25-4-16.23. Notice of violation and anneal.
a) Notice of a violation of the transient accommodation rental standards shall be
transmitted in writing within ten days of the director's determination that a violation
has been committed Written notice of violation shall be provided via certified mail.
(b) Service of the notice of violation upon the operator shall be effective as though served
upon the host and the property owner. In the event that the operator is not the
Property owner, a copy of the notice of violation shall also be mailed to the property
owner at the address of the property owner on file with the real property tax division
of the County of Hawaii.
(c) Within thirty days after the transmittal of the notice of violation and order, any person
adversely affected by the notice of violation and order may appeal the notice of
violation and order to the board of appeals as provided by section 6-9.2 Hawaii
County Charter and sections 25-2-20 through 25-2-25 Flawai`i County Code. An
meal to the board of appeals shall not stay the provisions of the order pending the
Filial decision of the board of anneals.
12
Section 25-4-16.24. Suspension and nonrenewal of transient accommodation rental
registrations and nonconforming use certificates.
(a) if _a_transient accommodation rental receives three or more enforcement actions in
violation of this cbapter within a twelve-month period, the director shalt suspend their
transient accommodation rental registration and their nonconforming use certificate if
applicable, for a period of two ,years.
jb) The director may also refuse to renew a certificate of registration if the applicant has
not addressed an enforcement violation.
Section 25-4-16.25. Property tax assessment for transient accommodation rentals.
{a) When any portion of a dwelling is rented or leased for less than one hundred eighty
days at a time during the assessment year, the entire property will be ineligible for the
real property homeowner tax classification pursuant to section 19-53. The real
property tax homeowner exemption will applYproportionally to the area exclusive
occupied by the homeowner pursuant to section 19-71.
(b) When the entire dwelling is rented or leased for less than one hundred_ejghty days at a
time during: the assessment year, the entire property will be ineligible for the real
propeM homeowner exemption and the real property homeowner tax classification
pursuant to sections 19-71 and 19-72.
Lc) If there is more than one dwelling on a property, and the owner resides in one
dwelling and rents or leases another dwelling for anything, other than affordable rental
housing (which requires an application be submitted to the real property tax division),
the entire property is ineligible for the real property homeowner tax classification
pursuant to section 19-53. The real propegiy tax homeowner exemption will apply
proportionally to the area exclusively occupied by the homeowner pursuant to section
19-71.
(d) One hundred eighty days as referred to in this section is the consecutive total of dam
rented to a single tenant. Advertising or application for a transient accommodation
rental or nonconforming use certificate will be considered as prima facia evidence.
Section 25-4-16.26. Property tax amnesty for transient accommodation rentals.
(a), For the purpose of ensuring compliance with the registration requirements for
transient accommodation rentals, a tax amnegyperiod shall be established.
(b) Owners who have been operating an owner -hosted transient accommodation rental
who submit a notarized affidavit to the real property tax department by December 31,
2024 indicating_ that they will cease transient accommodation rental operations as of
the date the affidavit is signed, shall remain in the homeowner tax classification and
shall not be liable for rollback taxes based on the loss of the homeowners tax class for
the tax Years 2022, 2023, and 2024. If transient accommodation rental operations do
not cease as indicated in the affidavit, a rollback of the current year and two prior
years a ten percent penalty, and a fine will be assessed.
(cL Owners who have been operating an owner -hosted transient accommodation rental
and register the rental in accordance with this chapter by December 31, 2024 shall be
assessed in accordance with chapter 19 for the subsequent tax year but shall not be
liable for rollback taxes based on the loss of the homeowners tax class for the tax
years 2023 and 2024.
13
(d) 'rhe amnesty program shall not retroactively pply to property owners who have
already been subject to property tax adjustments based on previous transient
accommodation rental operations,
Section 25-4-16.27. Directo►• ditties in event of emergency.
In the event of a declared emergency, natural or manmade, where a significant
number of ICOM 0675.160 10 deletion) nonconforming use transient accommodation
rentals are permanently lost within any given iudicial district, the director shall assess the
effect of such loss upon the affected district and if deemed necessary, initiate legislative
and administrative opportunities to restore fCOM 0675.16010 deletion) transient
accommodation rental capacity to primary residents who relocate within the affected
district."
SECTION 6. Chapter 25, article 4, of the Hawaii County Code 1993 (2016 E'dition, as
amended), is amended by adding the following new division to read as follows:
"Division 1.2. Hosting Platforms, Transient Accommodation Rentals.
Section 25-4-17. Booking services.
a) Any person or entity acting as or on behalf of a hosting platform shall not provide and
collect or receive a fee for booking services in connection with any transient
accommodation rental that is not lawfully registered or permitted pursuant to this chapter.
(b) Ilostingplatforms shall not collect nor receive a fee directly or indirectly through an agent
or intermediary, for facilitating or providing services ancillary to a transient
accommodation rental that is not lawfully registered or permitted pursuant to this chapter or
does not have the appropriate use permit issued pursuant to this chapter. Prohibited
ancillary services shall include insurance concierge services catering restaurant bookings,
tours guide services entertainment cleaning property management, or maintenance of the
residential property or unit.
Section 25-4-17.1. Redstt•ation.
a Hosting platforms shall not provide booking services to owners or operators of transient
accommodation rentals without first -registering with the department. Tb register, a hosting
platform shall complete and provide a hosting platform registration to the director in a form
prescribed by the director, pay a registration fee of $100, and agree in writing to:
(1) Obtain written consent from all owners or operators of transient accommodation
rentals for the disclosure of the information required by the director; and
(2) Furnish such information to the Counh, in accordance with section 25-4-17.2.
(b) A hosting platform may cancel its registration by delivering written notice of cancellation
to the director.
(c) The director may cancel a hostingplatfonn's registration for cause, including any violation
of this divisions fCOM 0675.1621),
(d) Nothing in this section relieves the owner or operator of a transient accommodation rental
from the registration requirements set forth in this chapter.
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Section 25-4-17.2. Reporting,
(a) All hosting, platforms registered pursuant to section 25-4-17.1 shall submit a monthly report
to the director on the date and in the format prescribed by the director, for any transient
accommodation rental located within the County for which the hosting platform provided
booking services in the preceding month. The report shall include:
L1a The tax map key number of each listing,. and
(�l The transient accommodations tax identification number of the owner or oppU1to • o
the transient accommodation rental. , COM 0675.162 2)
(b) The director may disclose such information to the appropriate State or County officials to
ensure compliance with this Code State tax laws and County tax ordinances, and any
applicable land use laws and ordinances.
Section 25-4-17-3. Penalties.
Any violation of this division shall be subiect to a civil fine of not less than $1,000 and not
more than $10,000 for each day that the violation continues.
Section 25-4-17.4. Notice of violation and order; cancelation of registration; appeal.
a) A notice of a violation and order shall be transmitted in writing to the hosting platform
within ten days of determination by the director that a violation has been committed. COM 0675.162 3)
(b) Notice of registration cancellation shall be transmitted in writing to the hosting platform no
later than ninetyprior to the effective date of cancellation.
(c) Within thirty days after the transmittal of the notice of violation and order or cancellation
of registration any person adversely affected by the notice of violation and order tnay
appeal the notice of violation and order or cancellation of registration to the board of
appeals as provided by section 6-9.2, I-Iawai`i County Charter, and sections 25-2-20
throwdi 25-2-25 An appeal to the board of appeals shall not stay the provisions of the order
pending the final decision of the board of appeals.'
(CO-t10675.1614-15amend Chapter25itsesin each respective district)
SECTION 18. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed and stricken material, and
underscoring need not be included.
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SECTION 19.. Severability. If any provision of this ordinance, or the application thereof
any taxpayer or circumstance, is held invalid, the invalidity does not affect other provisions or
to applications of the ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 20. This ordinance shall take effect on September30, 2024. (COM067.5.16116)
, Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm h75
INTRODUCED BY:
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