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Home My WebLink AboutCOM 0675.509 2022-2024Heather L. Kimball Council Chair & Presiding Officer Council District I Phone: (808) 961-8828 Fax: (808) 961-8912 Email: Heatl?er.kii7iballcLt)halvctiicoitnt�eov HAWAFI COUNTY COUNCIL 25 A upuni Street, Ste. 1402. Hilo, Hawai'i 96720 DATE: October 1, 2024 TO: Members of the Hawaii County Council FROM: Heather L. Kimball, Council Chair, Council District I SUBJECT: Proposed Amendments to Bill No. 121, Draft 4; An Ordinance Amending Chapter 25, Articles 1, 4, and 5, of the Hawaii County Code 1983 (2016 Edition, as Amended), Relating to Transient Accommodation Rentals and Hosting Platforms. Transmitted herewith are proposed amendments to Bill No. 121, Draft 4. Except as otherwise contained in the fourth enumerated amendment, which is shown with respect to the contents of the Hawaii County Code 1983 (2016 Edition, as amended) as hereinbelow provided, the proposed amendments are shown below in Ramseyer format with respect to the contents of Bill No. 121, Draft 4; material to be deleted is bracketed and stricken, and material to be inserted is underscored. 1. SECTION 2 of Bill No. 121, Draft 4, which amends chapter 25, article 1, section 25-1-5, of the Hawaii County Code 1983 (2016 Edition, as amended) by adding definitions, is amended to read as follows: ""Booking services" means intermediary services that facilitate the advertisements and listings of, reservations of, or collection of payment for transient accommodation rentals." ""Event" means an assembly, generally by invitation or ticket purchase, that extends beyond the scope of typical residential living, including but not limited to weddings, wedding receptions, promotional events, and concerts." ""Family trust" means a self -settled revocable or irrevocable trust where the trustee(s) is also the trustor(s) or grantor(s) or is related by blood, adoption, marriage, or civil union to the beneficiary(ies)." Comm. No 61 Ref. To: Hawai'i County is an Equal Opportunity Provider and Employer Ref. Dot )CT - 2 2024 ""Gathering" means an assembly that is consistent with activities of residential areas, informal in nature and with limited scale, including but not limited to a picnic, family dinner, birthday celebration, and fitness or educational activities." ""Host" means aLiy operator or an owner who resides on a transient accommodation rental building site as their principal home.." ""Hosting platform" means a business or person that provides a marketplace through which transient accommodation rentals may be offered for rent." ""Operator" means any natural person operating a transient accommodation rental on behalf of a property owner, who resides on the same building site as the transient accommodation rental during rental operations and uses it as their permanent address for legal purposes." "["OpefeAaf hosted" means any tfansieflt aeearamedation rental hosted by a.B.- E)pef I:- I" rK7F.j ""Principal home" means a principal home as defined in section 19-71 (e), Hawaii County Code." ""Transient" or "transients" means any visitor or person who rents or uses a lodging or dwelling unit, or portion thereof, for less than one hundred eighty days and whose permanent address for legal purposes is not the lodging or dwelling unit occupied by the visitor. 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 salary 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 governments whose rental periods are for durations shorter than sixty days; or (9) Occupants 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 religious, charitable, or educational corporation or association." IF) ""Transient accommodation" means the furnishing of a room, apartment, suite, single family dwelling, or the like to a transient for less than one hundred eighty consecutive days for each letting in a hotel, apartment, hotel, motel, condominium or unit as defined in chapter 51413, cooperative apartment, dwelling unit, or rooming house that provides living quarters, sleeping, or housekeeping accommodations, or other place in which lodgings are regularly furnished to transients. (Reference section 237D-1, Hawai`i Revised Statutes.)" ""Transient accommodation rental" means a transient [ ] accommodation with no more than five bedrooms for rent excluding: (1) Hotels, motels, and inns; (2) Apartment hotels; (3) Boarding facilities; (4) Lodges; (5) Timeshares; and (6) Tents." ""Un-hosted" means any transient accommodation rental that is not the principal home of the property owner and without an operator located on the same building site during rental operations." ""Verified 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 forwarded to the department and verified as a zoning code violation by the director." 2. SECTION 5 of Bill. No. 121, Draft 4, which amends chapter 25, article 4, of the Hawaii. County Code 1983 (2016 Edition, as amended) by adding a division, is amended to read as follows: "Division I.I. Use Regulations — Transient Accommodation Rentals. Section 25-4-16. Transient accommodation rental registration required; exceptions. (a) The County of Hawaii recognizes [three] two types of transient accommodation rentals: [^ heste,a epefatof hosted,] hosted and un-hosted[ l three type ^& transient ae ^.,,,, odat;^ feiA ls], both of which must be registered with the planning department as permitted in sections 25-4-16.1 [,] and 25-4-16.2 [and 25 ^ 16 3 e ear+ as idea in „bseetio (b)]. (b) [D^] Notwithstanding subsection (a), 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 this chapter; (2) There is an emergency declaration enabling temporary shelter for displaced persons; (3) There is a reciprocal exchange of principal homes between owners and no financial exchange or other compensation occurs; (4) The dwelling is being provided to a tenant under a month -to -month lease subject to chapter 521, Hawaii Revised Statutes, the Hawaii residential landlord -tenant code; or (5) The rental use is subject to a plan approval, use permit, or special permit duly issued prior to the effective date of this ordinance, which conditions contained therein shall continue to apply to such use and take precedence over this division, except insofar as section 25-4-16.17 is applicable to such use. (c) Any property 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 [Ownef frosted] Hosted transient accommodation rentals. [(a) Ix ere pofmit+oa ] when the transient accommodation rental is subordinate and clearly or customarily incidental to its use as the principal home of the owner[,] or the permanent residence of the operator, a transient accommodation rental may be registered at any time in any zoning district subject to the following requirements: (1) The transient accommodation rental shall be located in an accessory dwelling unit, additional dwelling guest house, or a single-family dwelling, inclusive of a detached bedroom [er guesthouse;], provided that no more than one transient accommodation rental shall be permitted on a building site; and (2) [The] Pursuant to section 205-4.5 Hawai`i Revised Statutes the transient accommodation rental shall not be permitted in an additional farm dwelling, [additional dwelling unit, of 1,,,n dwelling;] or in a first farm dwelling except that, where an owner or operator lives in a first farm dwelling and is engaged in bona fide agricultural practices in accordance with section 205-2, Hawai`i Revised Statutes, a transient accommodation may be permitted; and (3) [The] Except as maeprovided by a nonconforming use certificate under section 25-4-16.13: (A) The owner or operator shall live on the building site of the transient accommodation rental[...], and (B) No owner may register more than one hosted transient accommodation rental. [(b) Neneenfonning use. dwelling er- additional dwelling unit on the same building site, the awnef shall have the bufden of pfoof in esta lishing that the ahana dwelling or- additional ehange in ownef ship if the new awfief intends to use the pfepefty as t pfineipa1 b, r (3) Noneenfafming use eeAifieates must be renewed anntially in aeeer-danee wit seetien 25 4 16.14. n • • ,� IN Ift • I i RM . ...... K.; . ..... I i i / ♦10/ l�l �lSSl ('e) Neneov (1) in distr-iets other- than these speeified in (a), the ownef shall hawve the bttfden ef i � i • i _ _ i i .00, •ii i i ii� i Section [25 4-10.3:] 25-4-16.2. Un-hosted transient accommodation rentals. (a) [A1efe pefm ] Un-hosted transient accommodation rentals may be registered at any time in the following districts: (1) V, CG, CN, CV, and CDH 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 property regime as defined and governed by [eha -s 514 er1 chapter 51413, Hawaii Revised Statutes, including within a project district. (1) In distfiets othef than these speeified in subseetien (a), un hosted transient date ef this er-dinanee, the owner- may fegister- by obtaining a nonfefming use certificate subject to pafagfaph l 7The o°ncrsrrcmhavevaraerx-oTPro oz-rrc-establishing-1 (i) That the building site was in fegulaf use as a transient aeeomfnedatien rental befef!e the effective date ef this ordinance; and (ii) That at ne time after April 1, 2019 was the tfansient aeeommodation rental nted for i r-ef4al pefiedof thifty daysor- loses se do 25 ^ 16.1471 Except as may be provided by a nonconforming; use certificate under section 25-4-16.13, no owner ma_y register more than one un- hosted transient accommodation rental. fames. 1-) initial-regiPstratiefl! $1800 (2 Atintiai.fegistfationgeneoaa $254. (3) Noneenforming tise eertrfeate: $500. (4) n ,,,,u i „ of .......& ase„ro ee fti fie to ,-ene ,al , Q snn.] Section 25-4-16.3. Transient accommodation rental ownershi Registration shall only be issued to: (1)�An_y natural person or persons holding an interest of no less than fifty percent in the legal title of the building site; or (2) A family trust, corporation, limited liability partnership, or limited liability company -,provided that: (A) The registration application be submitted by a natural person or persons who represent more than fifty percent of the trustees, shareholders, partners, or members of the family trust, corporation, limited liability partnership, or limited liability company, respectively. (B) In the case of a corporation, limited liability partnership, or limited liability company, the corporation, partnership, or company is not publicly traded; and I (C) All trustees, partners, shareholders, or members, as the case may be, are natural persons and are related to each other by blood, adoption, marriage, or civil union. Section 25-4-16.4. Transient accommodation rental registration and nonconforming use fee schedule. Registration and renewal, including for a nonconforming use certificate, shall be accompanied by a fee in the applicable amount set forth as follows: TRANSIENT ACCOMMODATION RENTAL REGISTRATION AND NONCONFORMING USE FEE SCHEDULE Rental Type Initial ReLyistration Annual Registration Renewal NUC Initial & Annual Renewal $500 $100 $250 Hosted [Operator -Hosted V-50 &4-58 $3751 Un-hosted $1000 $250 $500 Section 25-4-16.5. Additional registration requirements; all transient accommodation rentals. To register, all transient accommodation rentals must also satisfy the following requirements: (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 applicable parking standards in this chapter; (2) The transient accommodation rental must meet health and safety requirements established by law; (3) Owners of transient accommodation rentals must have State of Hawaii general excise tax and transient accommodation tax licenses that are in effect; and (4) Owners of transient accommodation rentals must be current on their Hawaii County real property taxes, that is, they must be paid in full. Section 25-4-16.6. When to register. (a) Owners of transient accommodation rentals in operation on or before [ une 30202 ] the effective date of this ordinance who have submitted a registration application and the initial registration fee on or before June 30, 20 ] one year after the effective date of this ordinance 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. (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 new transient accommodation rentals shall be registered with the director prior to use of such rental and upon payment of the initial registration fee. 7 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 or persons if the transient accommodation rental is un-hosted; (3) If required pursuant to chapter 467, Hawaii Revised Statutes, a copy of a current, valid real estate broker's license or real estate salesperson's license; (4) Submittal of a site drawing, showing the location of all structures on the site, the transient accommodation rental, and requisite off-street parking; (5) A declaration in a format determined by the director that the transient accommodation rental meets health and safety requirements; (6) A maximum renter limit in accordance with section 25-4-16.17, paragraph (2); [] (7) Copies of a current State of Hawaii general excise tax license and current transient accommodation tax license[...]; and (8) In the case of a transient accommodation rental in a first farm dwelling, documentation of bona fide agricultural activities in accordance with section 205-2, Hawai`i Revised Statutes. (b) In the case of a transient accommodation rental hosted by an operator, the owner shall deliver to the department in person an affidavit authorizingthe he operator to remedy any condition with respect to the transient accommodation rental operation that is in violation of this chapter or that, in the determination of the director, otherwise presents a health or safety hazard. [(b))] LcJ 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. [(e)] (d, Issuance of a transient accommodation rental registration number shall not grant any right, privilege, immunity, or other allowance to the subject property except as herein provided, and shall not dispense with the necessity to comply with any applicable law to which the owner may be subject. Section 25-4-16.8. Failure to register. Any transient accommodation rental that has not lawfully registered shall be considered an unpermitted use and subject to the fines set forth in section 25-4-16.19 until the rental is properly registered or ceases to operate as a transient accommodation rental. Section 25-4-16.9. Annual renewal of registration required. (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 [ une 30 2025] one year after the effective date of this ordinance, on or prior to a date specified by the director; or (2) For transient accommodation rentals registered after [i,,,,0 30, 2025,] one year after the effective date of this ordinance 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; [] (2) Payment of an annual renewal fee[...]; and (3) Documentation of ongoing bona fide agricultural activities, if applicable. (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 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; or (6) Any violation of standards set forth in section 25-4-16.17. Section 25-4-16.11. Notice of denial of registration renewal and appeal. (a) Notice of a decision by the director to deny a registration renewal 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, County Charter, and sections 25-2- 20 through 25-2-25. Section 25-4-16.12. Transient accommodation changes of information; ownership. (a) Owners shall notify the 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 plan[,, floor plan,] or the structure of the transient accommodation rental; or (5) A transient accommodation rental establishment permanently ceases to operate for any reason. (b) [Upeft] Except as provided in subsection (c), upon change in ownership, a change of ownership form and a change of registration fee of $250 shall be submitted to the planning department by the new owner within ninety days of the change in ownership. (c) Notwithstanding anyprovision to the contrary, a change of ownership with respect to a transient accommodation rental subject to a nonconforming use certificate shall expire the certificate and the subject use shall thereupon be deemed abandoned. Section 25-4-16.13. Transient accommodation rental nonconforming use certificate. (a) A transient accommodation rental shall be registered by obtaining a nonconforming use certificate when: (1) The owner seeks to register more than one transient accommodation rental; (2) The owner does not meet the criteria set forth in section 25-4-16.3; (3) The transient accommodation rental is located within two thousand five hundred feet of the owner's primary residence on a building site adjacent thereto; or (4) An un-hosted transient accommodation rental is in a zoning district other than those permitted under section 25-4-16.2. (b) In obtaining a nonconforming use certificate under this section, the owner shall have the burden of proof in establishing that: (1) The transient accommodation rental was in reaular use on or before the effective date of this ordinance; (2) In the case of a hosted transient accommodation rental, the transient accommodation rental has been hosted since April 1. 2019. (3) In the case of an un-hosted transient accommodation rental: (A) That the building site was in regular use as a transient accommodation rental before the effective date of this ordinance; (B) That at no time after April 1, 2019 was the transient accommodation rental rented for any rental period of thirty days or less; and (C) That, in accordance with section 205-4.5, Hawai'i Revised Statutes, the transient accommodation rental is not located in a farm dwelling. [(a)] Oc Any applicant who has received approval for a transient accommodation rental nonconforming use certificate 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. The notification letter shall provide detailed information about the transient accommodation rental operation including: the transient accommodation rental registration number; number of units being rented; maximum number of renters permitted; number and location of required off-street parking spaces; and contact information for the host or reachable person. [(b)] Cdj Owners of transient accommodation rentals who have submitted a nonconforming use certificate application and the application fee on or before [June 30, 242-5,] one year after the effective date of this ordinance, shall be allowed to continue to operate until such time as their application is determined to be accurate 10 and complete by the department subject to the standards in section 25-4-16.17 and fines in section 25-4-16.19. [(e)] (e) If at any time [an ownef hostedor- operator- haste,a] a 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. ([(d)] �D If at any time an un-hosted transient accommodation rental with a nonconforming use certificate subject to [seetio,, 25 4 16.3, subse do (b) par- gr-api (2),] subsection (b), Paragraph (3) is found to be rented for a rental period of thirty days or less, the transient accommodation rental registration and the 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 renewal, a renewal fee shall be remitted in accordance with the schedule in section 25-4-16.4. (c) For nonconforming use certificate renewals submitted within ninety days 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 voluntary forfeiture of the certificate, rendering the certificate ineligible for further renewal. Section 25-4-16.15. Annual renewal of nonconforming 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[.], or (8) There has been a change in ownership of the transient accommodation rental. 11 Section 25-4-16.16. Notice of denial of a nonconforming use certificate application or renewal and appeal. (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 transient accommodation rentals 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, or on an adjacent building site where an owner -hosted nonconforming use certificate has been obtained, 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. In emergency or unforeseen circumstances, the host may request a temporary exception from this standard from the director. (B) 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 requests the presence of the reachable person. 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. (C) The 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 otherwise by the director at the time of issuance of the transient accommodation rental registration number, the renter limit for adult occupants in a transient accommodation rental shall be the lesser of twelve or two more than twice the number of bedrooms for rent. (13) All overnight renters shall be registered with the owner or host and shall, in the rental agreement, agree to comply with the terms of use of the property. 12 (C) The maximum gathering size shall not exceed double the overall renter limit and shall only use off-street parking or legal on -street parking. (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. (E) Weddings, wedding receptions, concerts, or events, are prohibited unless allowed by special permit or use permit. (F) Applicants, owners, operators, reachable persons, and renters shall comply with the terms of special permit 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) Quiet hours shall be from 10:00 p.m. to 8:00 a.m., during which time the noise 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, Hawai`i Administrative Rules. For the purposes 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. (H) 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. (3) Advertising and signage standards. (A) All print and internet advertising of transient accommodation rentals, including listings with a rental service or real estate firm, shall include the registration number and the nonconforming use certificate number or hosted nonconforming use certificate number. (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 a transient accommodation rental is prohibited unless allowed by special permit or use permit. (C) Any commercial signage 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 should be clearly visible from the main roadway used to access the property. 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: 13 (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) Hawai`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 party. (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 Change in ownership $250 Late fee registration or nonconforming use certificate renewal $100 TRANSIENT ACCOMMODATION RENTAL FINE SCHEDULE First Violation $2,500 Second Violation $5,000 Third Violation $10,000 Section 25-4-16.20. Complaints, violations, and public information. The director shall: (1) Receive and track complaints regarding 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 keep available for public reference, both in the office of the director and in an electronic format, a current list 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. 14 (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 [shall] may 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 appeal. (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, Hawai'i County Code. An appeal to the board of appeals shall not stay the provisions of the order pending the final decision of the board of appeals. 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 chapter within a twelve-month period, the director shall suspend their transient accommodation rental registration and their nonconforming use certificate if applicable, for a period of two years. (b) 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 apply proportionally to the area exclusively occupied by the homeowner pursuant to section 19-71. (b) When the entire 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 exemption and the real property homeowner tax classification pursuant to sections 19-71 and 19-72. 15 (c) 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 property 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 days 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 amnesty period 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, [2 2-4] 2025 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 a-n 2024] 2023 2024 and 2025. 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. (c) Owners who have been operating an owner -hosted transient accommodation rental and register the rental in accordance with this chapter by December 31, [2824] 2025 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 7n7^.] 2024 and 2025. (d) The amnesty program shall not retroactively apply to property owners who have already been subject to property tax adjustments based on previous transient accommodation rental operations. Section 25-4-16.27. Director duties in event of emergency. In the event of a declared emergency, natural or manmade, where a significant number of nonconforming use transient accommodation rentals are permanently lost within any given judicial 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 transient accommodation rental capacity to primary residents who relocate within the affected district." 3. SECTIONS 8 through 18, inclusive, of Bill No. 121, Draft 4, are deleted. 16 4. Bill No. 121, Draft 4, is amended by adding sections to be appropriately inserted and designated and to read as follows: "SECTION 8. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 4, section 25-5-42, and division 10, section 25-5-102 of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by repealing each paragraph in the respective subsections (a) thereof reading "Short-term vacation rentals situated in the general plan and resort node areas." SECTION 9. Chapter 25, article 5, division 9, section 25-5-92, division 11, section 25- 5-112, and division 12, section 25-5-122 of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by repealing each paragraph in the respective subsections (a) thereof reading "Short-term vacation rentals." SECTION 10. Chapter 25, article 5, division 3, section 25-5-32 of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by repealing paragraph (19) in subsection (a) as follows: WIN MORINO SECTION 11. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 3, section 25-5-32, division 4, section 25-5-42, division 5, section 25-5-52, division 6, section 25-5-62, division 7, section 25-5-72, division 9, section 25-5-92, division 10, section 25-5-102, division 11, section 25-5-112, and division 12, section 25-5-122, of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals. Hosted." SECTION 12. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 4, section 25-5-42, of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals. Un-hosted. situated in either of the following: (A) General plan resort and resort node areas, including areas designated as oven in the i2eneral elan which adioin the resort or resort node areas along the shoreline; or B) Areas within a project district." 17 SECTION 13. Chapter 25, article 5, division 3, section 25-5-32, of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by adding a paragraph to be appropriately inserted in subsection (a) and to read as follows: "Transient accommodation rentals, Un-hosted, situated in M of the following: (A) 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; (B) Areas within a project district, or (C) Outside the general plan resort and resort node areas, in multiple family dwellings within a condominium property regime as defined and governed by chapter 514B, Hawaii Revised Statutes." SECTION 14. Chapter 25, article 5, division 9, section 25-5-92, division 10, section 25- 5-102, division 11, section 25-5-112, and division 12, section 25-5-122, of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals, Un-hosted."" 5. SECTIONS 19 and 20 of Bill No. 121, Draft 4, are renumbered as SECTIONS 15 and 16, respectively. 6. SECTION 21 of Bill No. 121, Draft 4, is amended to read as follows: "SECTION [24-.] 17. This ordinance shall take effect [en September- 30, 2024.] "on approval." A copy of the new draft of this bill that will result if these proposed amendments are adopted is attached. Mahalo nui. HLK:dkb Att. 18 Cl� ► A • 4p � ✓L� �q STATE OF HAWAI`I )�tE OF BILL NO. 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 HAWAI`I: 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". IIE 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 listings of, reservations of, or collection of payment for transient accommodation rentals." ""Event" means an assembles generally y invitation or ticket purchase, that extends beyond the scope of typical residential living, including but not limited to weddings, wedding receptions, promotional events, and concerts." ""Family trust" means a self -settled revocable or irrevocable trust where the trustee(s) is also the trustor(s) orgrantor(s) or is related by blood, adoption, marriage, or civil union to the beneficiary (ies). " ""Gathering" means an assembly that is consistent with activities of residential areas, informal in nature and with limited scale, including but not limited to a picnic, family dinner, birthday celebration, and fitness or educational activities." ""Host" means ga operator or an owner who resides on a transient accommodation rental building site as their principal home." ""Hosting platform" means a business or person that provides a marketplace through which transient accommodation rentals may be offered for rent." ""Operator" means any natural person operating a transient accommodation rental on behalf of a property owner, who resides on the same building site as the transient accommodation rental during rental operations and uses it as their permanent address for legal purposes." ""Principal home" means a principal home as defined in section 19-71(e), Hawaii County Code." ""Transient" or "transients" means any visitor or person who rents or uses a lodging or dwelling unit, or portion thereof, for less than one hundred eighty days and whose permanent address for legal purposes is not the lodging or dwelling; unit occupied by the visitor. This definition shall not apples (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 salary or compensation including agricultural workers; (5) Occupants of group living facilities, authorized by the department of health; (6) Militga personnel; (7) Health care workers temporarily employed at a medical facility in the County of Hawaii; (8) Low-income renters receiving rental subsistence from the state or federal governments whose rental periods are for durations shorter than sixty days; or (9) Occupants of lodging provided by nopprofit 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 religious, charitable, or educational corporation or association." ""Transient accommodation" means the furnishing of a room, apartment, suite, single family dwelling, or the like to a transient for less than one hundred eighty consecutive days for each letting in a hotel, apartment, hotel, motel, condominium or unit as defined in chapter 51413, cooperative apartment, dwelling unit, or rooming house that provides living quarters, sleeping, or housekeeping accommodations, or other place in which lodgings are regularly furnished to transients. (Reference section 237D-1, Hawai`i Revised Statutes" ""Transient accommodation rental" means a transient accommodation with no more than five bedrooms for rent, excluding: (1) Hotels, motels, and inns; (2) Apartment hotels; (3) Boarding facilities; (4) Lodges; (5) Timeshares; and (6) Tents." ""Un-hosted" means any transient accommodation rental that is not the principal home of the property owner and without an operator located on the same building site duringrental ental operations." ""Verified complaint" means anyplaint 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 Hawaii County Code 1983 (2016 Edition, as amended) is amended by amending the definition of "reachable" to read as follows: ""Reachable" means being able to: (1) Respond via telephone to a request from a guest, neighbor, or County agency within one hour of receiving that request; and (2) Be physically present at the [short terfn vacation] transient accommodation rental within three hours of receiving a call from a guest, neighbor, or County agency, when that guest, neighbor, or County agency requests the presence of the reachable person." 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 I.I. Use Regulations — Transient Accommodation Rentals. Section 25-4-16. Transient accommodation rental registration reauired: exceptions. (a) The County of Hawaii recognizes two types of transient accommodation rentals: hosted and un-hosted, both of which must be registered with the planning department as permitted in sections 25-4-16.1 and 25-4-16.2. (b) Notwithstanding subsection (a), 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 thi chapter (2) There is an emergency declaration enabling temporary shelter for displaced persons; (3) There is a reciprocal exchange of principal homes between owners and no financial exchange or other compensation occurs; The dwelling is being provided to a tenant under a month -to -month lease subject to chapter 521, Hawaii Revised Statutes, the Hawaii residential landlord -tenant code• or (5) The rental use is subject to a plan approval, use permit, or special permit duly issued prior to the effective date of this ordinance, which conditions contained therein shall continue to apply to such use and take precedence over this division, except insofar as section 25-4-16.17 is applicable to such use. (c) Any property 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 chanter and subiect to the fines set forth in section 25-4.16.19. Section 25-4-16.1 Hosted transient accommodation rentals. When the transient accommodation rental is subordinate and cleariv or customaril incidental to its use as the principal home of the owner or the permanent residence of the operator, a transient accommodation rental may be registered at any time in an. zoning oning district subject to the following requirements: (1) The transient accommodation rental shall be located in an accessory dwelling unit, additional dwelling, guest house, or a single-family dwelling, inclusive of a detached bedroom, provided that no more than one transient accommodation rental shall be permitted on a building site; and (2) Pursuant to section 205-4.5, Hawai`i Revised Statutes, the transient accommodation rental shall not be permitted in an additional farm dwelling, or in a first farm dwelling, except that, where an owner or operator lives in a first farm dwelling and is engaged in bona fide agricultural practices in accordance with section 205-2, Hawai`i Revised Statutes, a transient accommodation may be permitted; and (3) Except as may be provided by a nonconforming use certificate under section 25- 4-16.13: (A) The owner or operator shall live on the building site of the transient accommodation rental: and (B) No owner may register more than one hosted transient accommodation rental. Section 25-4-16.2. Un-hosted transient accommodation rentals. (a) Un-hosted transient accommodation rentals may be registered at any time in the following districts: (1) V, CG, CN, CV, and CDH 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 property regime as defined and governed by chapter 514B, Hawaii Revised Statutes, including within a project district. (b) Except as may be provided by a nonconforming use certificate under section 25-4- 16.13, no owner may register more than one un-hosted transient accommodation rental. Section 25-4-16.3. Transient accommodation rental ownership. Registration shall only be issued to: 1) Anv natural Berson or persons holding an interest of no less than fiftv percent in the legal title of the building site; o (2) A family trust, corporation, limited liability partnership, or limited liability company; provided that: (A) The registration application be submitted by a natural person or persons who represent more than fifty percent of the trustees, shareholders, partners, or members of the family trust, corporation, limited liability partnership, or limited liability company, respectiygl (B) In the case of a corporation, limited liability partnership, or limited liability company, the corporation, partnership, or compggy is not publicly traded; and (C) All trustees, partners, shareholders, or members, as the case may be, are natural persons and are related to each other by blood, adoption, marriage, or civil union. Section 25-4-16.4. Transient accommodation rental registration and nonconforming use fee schedule. Registration and renewal, including for a nonconforming use certificate, shall be accompanied by a fee in the applicable amount set forth as follows: TRANSIENT ACCOMMODATION RENTAL REGISTRATION AND NONCONFORMING USE FEE SCHEDULE Rental Type Initial Registration Annual Registration NUC Initial & Annual Renewal Renewal Hosted $500 $100 $250 Un-hosted $1000 $250 $500 Section 25-4-16.5. Additional registration requirements; all transient accommodation rentals. To register, all transient accommodation rentals must also satisfy the following requirements: (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 applicable parking standards in this chapter; (2) The transient accommodation rental must meet health and safety requirements established by law: (3) Owners of transient accommodation rentals must have State of Hawaii general excise tax and transient accommodation tax licenses that are in effect; and Owners of transient accommodation rentals must be current on their Hawaii County real property taxes, that is, they must be paid in full. Section 25-4-16.6. When to register. (a) Owners of transient accommodation rentals in operation on or before the effective date of this ordinance, who have submitted a registration application and the initial registration fee on or before one year after the effective date of this ordinance, 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. (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) AM new transient accommodation rentals shall be registered with the director prior to use of such rental and upon payment of the initial registration fee. 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 nronerty owner. Name and contact information for the operator, if different from the property owner, or the reachable person or persons if the transient accommodation rental is un-hosted; (3) If required pursuant to chapter 467, Hawaii Revised Statutes, a copy of a current, valid real estate broker's license or real estate salesperson's license; (4) Submittal of a site drawing, showing the location of all structures on the site, the transient accommodation rental, and requisite off-street parking; (5) A declaration in a format determined by the director that the transient accommodation rental meets health and safety requirements; (6) A maximum renter limit in accordance with section 25-4-16.17, paragraph (2); (7) Copies of a current State of Hawaii general excise tax license and current transient accommodation tax license-, and (8) In the case of a transient accommodation rental in a first farm dwelling, documentation of bona fide agricultural activities in accordance with section 205-2. Hawai`i Revised Statutes. (b) In the case of a transient accommodation rental hosted by an operator, the owner shall deliver to the department in person an affidavit authorizingthe he operator to remedy any condition with respect to the transient accommodation rental operation that is in violation of this chapter or that, in the determination of the director, otherwise presents a health or safety hazard. (c) 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. (d) Issuance of a transient accommodation rental registration number shall not grant any right, privilege, immunity, or other allowance to the subject property except as herein provided, and shall not dispense with the necessity to comply with any applicable law to which the owner may be subject. Section 25-4-16.8. Failure to register. Any transient accommodation rental that has not lawfully registered shall be considered an unpermitted use and subject to the fines set forth in section 25-4-16.19 until the rental is properly registered or ceases to operate as a transient accommodation rental. Section 25-4-16.9. Annual renewal of rel4istration required. (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 one year after the effective date of this ordinance, on or prior to a date specified by the director; or (2) For transient accommodation rentals registered after one year after the effective date of this ordinance on or before the date that the transient accommodation rental registration number was issued b theepartment. (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; (2) Payment of an annual renewal fee; and (3) Documentation of ongoing bona fide agricultural activities, if applicable. (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 relzistration; 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 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-resbonsive 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 25-4-16.17. Section 25-4-16.11. Notice of denial of registration renewal and appeal. (a) Notice of a decision by the director to deny a registration renewal shall be transmitted in writingto o 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, County Charter, and sections 25-2- 20 through 25-2-25. Section 25-4-16.12. Transient accommodation chanIZes of information; ownership. (a) Owners shall notify the 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 ren (4) The site plan or the structure of the transient accommodation rental; or (5) A transient accommodation rental establishment permanently ceases to operate for any reason. (b) Except as provided in subsection (c), Lipon change in ownership, a change of ownership form and a change of registration fee of $250 shall be submitted to the planning department by the new owner within ninety days of the change in ownership. (c) Notwithstanding any provision to the contrary, a change of ownership with respect to a transient accommodation rental subject to a nonconforming use certificate shall expire the certificate and the subject use shall thereupon be deemed abandoned. Section 25-4-16.13. Transient accommodation rental nonconforming use certificate. (a) A transient accommodation rental shall be registered by obtaining a nonconforming use certificate when: (1) The owner seeks to register more than one transient accommodation rental: (2) The owner does not meet the criteria set forth in section 25-4-16.3; (3) The transient accommodation rental is located within two thousand five hundred feet of the owner's primary residence on a buildingsite to adjacent thereto; or (4) An un-hosted transient accommodation rental is in a zoning- district other than those permitted under section 25-4-16.2. b) In obtaining a nonconforminia use certificate under this section, the owner shall have the burden of proof in establishing that: (1) The transient accommodation rental was in regular use on or before the effective date of this ordinance; (2) In the case of a hosted transient accommodation rental, the transient accommodation rental has been hosted since April 1, 2019. (3) In the case of an un-hosted transient accommodation rental: (A) That the building site was in regular use as a transient accommodation rental before the effective date of this ordinance; (B) That at no time after April 1, 2019 was the transient accommodation rental rented for any rental period of thirty days or less; and (C) That, in accordance with section 205-4.5, Hawai`i Revised Statutes, the transient accommodation rental is not located in a farm dwelling. (c) Any pplicant who has received approval for a transient accommodation rental nonconforming use certificate 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. The notification letter shall provide detailed information about the transient accommodation rental operation including: the transient accommodation rental registration number; number of units being rented; maximum number of renters permitted; number and location of required off-street parking spaces; and contact information for the host or reachable person. (d) Owners of transient accommodation rentals who have submitted a nonconforming use certificate application and the application fee on or before one year after the effective date of this ordinance, 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. (e) If at any time a 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. �f) If at any time an un-hosted transient accommodation rental with a nonconforming use certificate subject to subsection (b),paragraph(3) is found to be rented for a rental period of thirty days or less, the transient accommodation rental registration and the 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 nonconforminIZ 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 renewal, a renewal fee shall be remitted in accordance with the schedule in section 25-4-16.4. (c) For nonconforming use certificate renewals submitted within ninety days 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 voluntary forfeiture of the certificate, rendering; the certificate ineligible for further renewal. Section 25-4-16.15. Annual renewal of nonconforming 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 CountAproperty 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; (7) The transient accommodation rental has been abandoned pursuant to section 25- 4-62; or (8) There has been a change in ownership of the transient accommodation rental. Section 25-4-16.16. Notice of denial of a nonconforming use certificate application or renewal and appeal. (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 writingto o the property owner. (b) Within thirtydays after the transmittal of a notice of denial, the owner m4y ppeal 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 transient accommodation rentals 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, or on an adjacent building site where an owner -hosted nonconforming use certificate has been obtained, rental operations and shall be reachable at the request of renters, neighbors, and Countyagencies 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. In emergency or unforeseen circumstances, the host may request a temporary exception from this standard from the director. B) For un-hosted rentals. a reachable Berson shall respond via telephone to a request from a guest, neighbor, or County agency within one hour of receivingthat at request and shall be physically present at the transient accommodation rental within three hours of receiving a call from a renter, neighbor, or Countyagency, when that renter, neighbor, or County agency requests the presence of the reachable person. 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. .(C) The 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 displayed in a conspicuous, readily visible common area instead. (2) Good neighbor standards. (A) Unless established otherwise by the director at the time of issuance of the transient accommodation rental registration number, the renter limit for 10 adult occupants in a transient accommodation rental shall be the lesser of twelve or two more than twice the number of bedrooms for rent. (B) All overnight renters shall be registered with the owner or host and shall, in the rental agreement, agree to comply with the terms of use of the property. (C) The maximum gathering size shall not exceed double the overall renter limit and shall only use off-street parking or legal on -street parkin. (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. (E) Weddings, wedding receptions, concerts, or events, are prohibited unless allowed by special permit or use permit. (FApplicants, owners, operators reachable persons, and renters shall comply_ with the terms of special permit or use permit conditions to mitigate 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) Quiet hours shall be from 10:00 p.m. to 8:00 a.m., during which time the noise 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, Hawai`i Administrative Rules. For the purposes 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. (H) 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. (3) Advertisingand signage standards. (A) All print and internet advertising of transient accommodation rentals, includinglistings istings with a rental service or real estate firm, shall include the registration number and the nonconforming use certificate number or hosted nonconforming use certificate number. (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 a transient accommodation rental is prohibited unless allowed by pecial permit or use permit. (C) Any commercial signage that advertises a transient accommodation rental shall comply with the requirements of section 22-2.6 and chapter 3 of the Hawaii County Code. 11 (D) Except for multi -family units, signage indicating the street address of the transient accommodation rental should be clearly visible from the main roadway used to access the property. 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 ggy of the conditions defined by this section as requiring transient accommodation rental registration; (3) Hawai`i County transient accommodation tax receipts; or (4) In the event that the County enters into a contract with third part,, hag platforms to provide transient accommodation rental listing information, a report provided by the engaged third party. (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 25-4-16.1.9. Transient accommodation rental fee and fine schedule. TRANSIENT ACCOMMODATION RENTAL FEES Change in ownershi $250 Late fee registration or nonconformin use certificate renewal $100 TRANSIENT ACCOMMODATION RENTAL FINE SCHEDULE First Violation $2,500 Second Violation $5,000 Third Violation $10,000 Section 25-4-16.20. Complaints, violations. and public information. The director shall: .(1) Receive and track complaints regarding 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. bolicies. and procedures Dertaining to transient accommodation rentals to property owners, operators, neighbors, and the general public; and (4) Maintain and keep available for public reference, both in the office of the director and in an electronic format a current list of all transient accommodation rentals that have registered or received a nonconforming use certificate and any violations associated with the property. 12 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 finnd." 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 arpersons 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 may 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 appeal. (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, Hawai`i County Code. An appeal to the board of appeals shall not stay the provisions of the order pending the final decision of the board of appeals. 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 chapter within a twelve-month period, the director shall suspend their transient accommodation rental registration and their nonconforming use certificate if applicable, for a period of two ,years. (b) 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 13 real property homeowner tax classification pursuant to section 19-53. The real property tax homeowner exemption will apply proportionally to the area exclusively occupied by the homeowner pursuant to section 19-71. (b) When the entire dwelling is rented or leased for less than one hundred eighty days time during the assessment year, the entire property will be ineligible for the real property homeowner exemption and the real property homeowner tax classification pursuant to sections 19-71 and 19-72. (c) If there is more than one dwelling on a property, and the owner resides in one dwelling and rents or leases another dwelling for Mthing 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 property tax homeowner exemption will apply proportionally to the area exclusively occupied by the homeowner pursuant to section 19-71. (d) One hundred eightyddays as referred to in this section is the consecutive total of days 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 amnesty period 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, 2025 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 2023, 2024, and 2025. 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. (c) Owners who have been operating an owner -hosted transient accommodation rental and register the rental in accordance with this chapter by December 31, 2025 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 2024 and 2025. (d) The amnesty program shall not retroactively applesproperty owners who have already been subject to property tax adjustments based on previous transient accommodation rental operations. Section 25-4-16.27. Director duties in event of emergency. In the event of a declared emergency, natural or manmade, where a significant number of nonconforming use transient accommodation rentals are permanently lost within any given judicial 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 transient accommodation rental capacity to primary residents who relocate within the affected district." 14 SECTION 6. 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 1.2. Visitor Destination Areas. Section 25-4-17. Purpose and applicability. The visitor destination area is a land use designation that allows transient accommodation rentals to lawfully operate in an zoning district. This designation applies to areas that have high concentrations of transient accommodation rentals ensuring these operations are consolidated in appropriate locations. It also applies to areas without adequate hotels or resorts, and in proximity to visitor -related establishments or activities, such as beaches, golf courses, landmarks, entertainment venues and other scenic commercial or recreational facilities. Section 25-4-17.1. General provisions Notwithstandin4 anv provision to the contrarv, transient accommodation rentals within a visitor destination area may be registered at any time, subject to the following requirements: (1) Registration shall be made in accordance with division 1. 1; (2) In the case of an un-hosted transient accommodation rental established after January 1, 2025, the owner must maintain their principal residence within the County; (3) Except as to the registration fees set forth therein, sections 25-4-16.1, 25-4- 16.2, and 25-4-16.3 shall not apply to transient accommodation rentals within a visitor destination area; and (4) The transient accommodation rental shall comply with division 1.1 in all other respects not otherwise provided for by this division. Section 25-4-17.2. Designated visitor destination areas; boundaries. The following areas are designated as visitor destination areas: (a) Hamakua (b) North Hilo (c) South Hilo d Ka`u (e) Kohala Mf Kona W. Puna" 15 SECTION 7. 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 1.3. Hosting Platforms, Transient Accommodation Rentals. Section 25-4-18. Booking services. (a)My 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) Hosting platforms shall not collect nor receive a fee, directly or indirectlythrough 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 cha ter 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 25-4-18.1. Reizistration. (a) Hosting platforms shall not provide booking services to owners or operators of transient accommodation rentals without first registering with the department. To 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 County in accordance with section 25-4-18.2. (b) A hosting platform may cancel its registration by delivering written notice of cancellation to the director. (c) The director may cancel a hosting platform's registration for cause, including any violation of this division. (d) Nothing in this section relieves the owner or operator of a transient accommodation rental from the registration requirements set forth in this chapter. Section 25-4-18.2. Reporting. (a) All hosting platforms registered pursuant to section 25-4-18.1 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: (1) The tax map key number of each listing; and (2) The transient accommodations tax identification number of the owner or operator of the transient accommodation rental. (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 25-4-18-3. Penalties. Any violation of this division shall be subject to a civil fine of not less than $1,000 and not more than $10,000 for each day that the violation continues. 16 Section 25-4-18.4. 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. (b) Notice of registration cancellation shall be transmitted in writing to the hosting platform no later than ninety days prior to the effective date of cancellation. (c) Within thirtyays 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 may appeal the notice of violation and order or cancellation of registration to the board of appeals as provided by section 6-9.2, Hawaii County Charter, and sections 25-2-20 through 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." Section 25-4-18.5. Exemptions. (a) This division shall not apply to an owner advertising any transient accommodation rental under their ownership, or to a property manager, or real estate salesperson or broker advertising for no more than one transient accommodation rental under their management or operation. (b) A real estate salesperson or broker advertising for more than one transient accommodation rental shall comply with this division, except that: (1) The report required in section 25-4-18.2 may be submitted on an annual basis no later than the last day of each January and cover the preceding calendar year; and (2) Failure to file an annual report under this section shall incur a fine of $250." SECTION 8. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 4, section 25-5-42, and division 10, section 25-5-102 of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by repealing each paragraph in the respective subsections (a) thereof reading "Short-term vacation rentals situated in the general plan and resort node areas." SECTION 9. Chapter 25, article 5, division 9, section 25-5-92, division 11, section 25- 5-112, and division 12, section 25-5-122 of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by repealing each paragraph in the respective subsections (a) thereof reading "Short-term vacation rentals." SECTION 10. Chapter 25, article 5, division 3, section 25-5-32 of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by repealing paragraph (19) in subsection (a) as follows: 17 SECTION 11. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 3, section 25-5-32, division 4, section 25-5-42, division 5, section 25-5-52, division 6, section 25-5-62, division 7, section 25-5-72, division 9, section 25-5-92, division 10, section 25-5-102, division 11, section 25-5-112, and division 12, section 25-5-122, of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals Hosted." SECTION 12. Chapter 25, article 5, division 1, section 25-5-3, division 2, section 25-5- 22, division 4, section 25-5-42, of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals Un-hosted situated in either of the following: (A) 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; or (B) Areas within a project district." SECTION 13. Chapter 25, article 5, division 3, section 25-5-32, of the Hawaii County Code 1983 (2016 Edition, as amended) is amended by adding a paragraph to be appropriately inserted in subsection (a) and to read as follows: "Transient accommodation rentals, Un-hosted, situated in any of the folloAjD (A) 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; (B) Areas within a project district; or (C) Outside the general plan resort and resort node areas, in multiple family dwellings within a condominium property regime as defined and governed by chapter 51413, Hawaii Revised Statutes." SECTION 14. Chapter 25, article 5, division 9, section 25-5-92, division 10, section 25- 5-102, division 11, section 25-5-112, and division 12, section 25-5-122, of the Hawaii County Code 1983 (2016 Edition, as amended) are amended by adding a paragraph to be appropriately inserted in the respective subsections (a) thereof and to read as follows: "Transient accommodation rentals. Un-hosted."" 18 SECTION 15. 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. SECTION 16. Severability. If any provision of this ordinance, or the application thereof to any taxpayer or circumstance, is held invalid, the invalidity does not affect other provisions or 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 17. This ordinance shall take effect upon approval. 19