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HomeMy WebLinkAboutCOM 0675.380 2022-2024July 4, 2024 Hawaii County Council Members RE: bill 121 Oppose COUNTY 0- ! AV�wri'°', 7i37L1 �1[]1. - 5 A11 n. q PGP�u� Bill i'2� cow,06 Aloha and Happy 41" of July. I write this on the anniversary of our declaration of independence from the Tyranny of the English oppression. I wish we citizens could live independent lives, free from the overreach of local government. I strongly oppose passage of this ill thought out bill, even with the amendments outlined by the olannine department for your consideration_ This bill, if passed would dramatically alter the lives of so many residents who rely on vacation rental business to maintain a minimal lifestyle on this island. My wife and I are Kapuna in our 70's who host a small unit attached to our home in Kailua-Kona. Our HOA does not look favorable on STR and several board members and residents are openly hostile toward other STR hosts in our immediate neighborhood. My fear is that they will use the complaint and fines associated with complaints to drive us out of business, since no host can afford fines that start at $2500. We are already paying significant increases in property taxes and contribute thousands of dollars each annually to state and county coffers. The loss of this revenue would result in an economic disaster for this county. That is why an economic impact analysis needs to be conducted, as suggested in bill 556 which will come before council very soon. You as council members need to pass bill 556 and set aside bill 121 pending the recommendations and economic anticipated results from this study. If you move bill 121 forward, you will begin to see the ramifications of your actions not only at the upcoming election but also economically as str currently hosting guests will stop altogether and revert their tax basis back to pre str limits. Jobs associated with the vacation rental business will start to disappear and employment will increase. If your intent is to force conversion from TAR to long term rentals, you will be surprised that very few will convert. The reasons are multiple. First, laws is this state favortenant rights over landlord right. Second, the cost and time associated with obtaining a court eviction are considerably greater here in Hawaii than in other liberal states such as California, where as a former landlord, I evicted many tenants over the years in a process that took up to 90 days, but often times less. Once a judgement is secured by the court, a sheriffs eviction was performed within 20 days. Not so in this county where your Sheriffs office doesn't even perform evictions. One has to contract with a Maui Sheriff to fly over with a cost of $3000 or more. Then, finally, there is the lower rental value with high property taxes still in place which makes the conversion into a long term rental very difficult to obtain a reasonable return. From a legal and economic standpoint it is not worth the risk, It is important to point out that the guests we host often just stay 2 or 3 days while splitting there stay between the windward and leeward side of our island. I ask most of the guests if they stay in hotels or a hosted vacation rental and most would NOT stay in the more expensive resorts. If you want to cut out these tourists, eliminating STRV will certainly do that. Many extended families stay in our hosted unit, and we see increased Korean tourism. Does Hawaii county really want to eliminate that share of the market? Co No.. 5 3�} Ref. To: Ref. Mote ,J13L 20i 1 My suggestion for an amendment to this bill after the economic impact study is completed is to grandfather in all hosted TAR which can prove that they have paid property taxes and transient taxes to the county and have done so in the past year. There is no reason that we, hosted TAR's cannot continue to operate as we have in the past under the current law. My wife and I hope that you will listen carefully to the testimonies on June 81h and read the written testimony submitted and vote NO on bill 121 and Yes on bill 556 Sincerely Gordon N, Lindquist 77-6359 Ha lawa i Place Kailua-Kona, HI 96740