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HomeMy WebLinkAboutCOM 0675.347 2022-2024P / Pc pwo F8i(I ICI COUNT Y CL:_�I'`\K C6KH-676 Hawai `i Island REAL TORSO COUNTY OF f { A V1Y- ! ; West Hawai'i Association of REALTORS® 1321 Kino'ole Street Hilo, HI 96720 75-5660 Kopiko St. A2 Phone: (808) 935-0827 7�371I JUL — 5 Air 10- 19 Kailua-Kona, HI 96740 www.liawaiiislandrealtors.org www.westhawaiirealtors.com DATE: July 1 , 2024 TO: Chair Kimball, Councilmember Kierkiewicz, Hawaii County Council Policy Committee on Planning, Land Use, and Development FROM: Hawai'i Island REALTORSO & West Hawai'i Association of REALTORS@ SUBJECT: Proposed Amendments to Bill No. 121; 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. The Joint Government Affairs Committee of the West Hawaii Association of REALTORS® and the Hawai'i Island REALTORSO has been actively engaged in tracking Bill 121 since its release on 11/23/2022. Though we prefer that our County enforce the existing legislation pertaining to Transient Accommodations rather than creating new legislation, we do acknowledge registering hosted TARs may facilitate fair enforcement of transient accommodation regulations and the elimination of illegal operations. If adopted, Council Chair Kimball's amendments adequately address many of our previously communicated concerns. The proposed amendments pertaining to 30 vs. 180 days, revision of quiet hours, declaration vs affidavit, and the removal of host's required living location will make this ordinance much more enforceable. Without the inclusion of Chair Kimball's amendments and the consideration of the proposals outlined below, the bill should not be adopted. However, there are other portions of the bill, especially with definitions and registration requirements that could be refined. For example, the following should be reviewed for clarification: hosting platfonn and events vs gatherings. These definitions are too broad and leave too much discretion and interpretation in the hands of the planning director which could lead to inequitable enforcement. On the other hand, the maximum rental limit calculation is too limiting, and should be left to the discretion of the owner and planning director together based upon the configuration of the property. Our Associations respectfully request that the Council give further consideration to the following proposed amendments and rationale. The amendments are illustrated in Ramseyer format with respect to the contents of Bill No. 121; material to be deleted is bracketed and stricken, and new material is underscored. Clarify definition that the "reporting" in Section 5 is only for Yd party platforms and not individual owners or licensed property managers and clarify definitions for events and gatherings. Amendments to Section 2 ""Hosting platform" means a business or person, who is not also an individual property owner or real estate licensee, that provides a marketplace through which transient accommodation rentals may be offered for rent." RATIONALE: In Section 5, the reporting requirements and fines are burdensome and excessive, extending beyond what is reasonable for a "mom and pop" operation or a management company that p"n aril advertises on third -party platforms. Comm. Ref. To: Ref. Date JUL — 8 2024 "Event" means a re ,. aleengr-egatieii, t, eh fiiay of may t inelude Elio e t of Pfof l that is ii ,t t,.. ie fl, 4i ..esidential ar-easj formal and public assembly, generally by invitation or ticket purchase and extends beyond the scope of typical residential living Examples include but are not limited to weddings, wedding receptions, or concerts. "Gathering" means an informal , birdiday party, where aitendees sia), within (lie par -king afea aeeanipat �it aeeemmeda Fentah1 assembly that is consistent with activities of residential areas, characterized by its casual nature and limited scale. Examples could include apicnic, family dinner, a birthday celebration yoga instruction or a casual yet -together where the attendees stay within the parking and accommodation space of (lie 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 general public, do not transform a ratl� lering into an event. RATIONALE: The current definitions of "event" and "gathering" leave significant discretion to the planning director, which can lead to inconsistent enforcement and uncertainty for TAR's. While defining "event" and "gathering" is inherently challenging, these new definitions provide much greater clarity than the current ones. By distinguishing between professional services typically associated with residential activities and larger, more public assemblies, we establish a clearer precedent that protects 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 not only promote fairness and consistency in enforcement but also support residents in understanding and complying with regulations, thus making the definitions much more practical and reliable. Simplify the registration process by eliminating the need for the owner to submit to -scale drawings and floor plans, etc. Amendment to Section 25-4-16.7. Rental registration process. (a) Owners of a transient accommodation rental shall register 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. Name and contact information for the operator, if different from the property owner, or the reachable person if the transient accommodation rental is un- hosted; (3) If required pursuant to chapter 467, Hawai'i Revised Statutes, a copy of a current, valid real estate broker's license or real estate salesperson's license: t,-ans ent . datien ntal, and e +F ,, site a tr-eet .,long;] a ,.:t�•7 ,,lotion rental and (6) A [ it} declaration in a format determined by the director, [and submitted undef: pefiah�- of peiJur-y], that the transient accommodation rental meets health, safety, and code requirements; (COM (10 1-5.160) (7) Unless otherwise established by the director, a maximum renter limit, shall be no snore than 2 adults per bedroom and an additional two adults for the transient accommodation rental unit as a whole. (8) Copies of a current State of Hawai'i general excise tax license and current transient accommodation tax license; and (C0,11 0675.160) (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 registration number. RATIONALE: Requirements for site drawing and floor plans are unnecessary and irrelevant to the purposes of registration and enforcement. We support COM 0675.160 with the removal of items (4) and (5) and the addition of language to (7) as noted above. The planning director recommended amendment (7), 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 pen -nits 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. We acknowledge and appreciate the time and effort put forth by the authors to address the unique complexities of transient accommodation rentals on Hawai'i Island and recognize their willingness to allow this industry to coexist with other fonns of housing. We don't anticipate this legislation will increase the supply of housing, and may in fact, have the unintended consequence of decreasing potential housing and job opportunity for operator -hosted scenarios, so it will be important that the County employs an independent agency to perform an economic impact study of this legislation. HIR and WHAR remain cormnitted to working with the County and all interested parties to help create sensible solutions to the issues inherent in the housing sector. The solution to providing attainable, affordable, and workforce housing is not easily achieved. To effectively increase available housing, the County must remove barriers such as prohibitive zoning, address aging and non-existent infrastructure, and revise the cumbersome and unreasonable building and energy codes. We welcome the opportunity to work closely with the county to address the removal of these barriers. 2024 Board President Hawai'i Island REALTORSO Executive Officer Hawai'i Island REALTORS@ HA11'A t`l 1Sl.AND Al 2024 Board President West Hawai'i Association of REALTORSO Association Executive West Hawai'i Association of REALTORSO WEST HAWN AfEOEIATION OF AIAITOOSo?