HomeMy WebLinkAboutCOM 0675.661 2022-2024HAWAII COUNTY COUNCIL
POLICY COMMITTEE ON PLANNING, LAND USE AND ECONOMIC DEVELOPMENT
MEETING DATE: Wednesday, November 8, 2024 -a
TIME: 9:00 am
PLACE: Hilo
RE: IN OPPOSITION TO CURRENT FORM of BILL NO. 121-24 (Draft 4)
Dear Chair Kierkiewicz, Vice Chair Inaba, and Council Committee Members:
Thank you for the opportunity to testify and your continuing efforts to shape a bill that balances the
potential consequences against the desired outcomes. I continue to offer comments for discussion
and consideration on various concepts in this bill:
Maile lives on a large parcel in Ocean View. She commutes an hour and a half each way to take
her daughter to school and go to work at the Kona Community Hospital. In addition to her
home, she has built an off -grid yurt on her property to host visitors, offset the increasing cost of
living in Hawaii, and house travel nurses when needed.
Stephen, a widower, rents two separate rooms individually in his four -bedroom home. He has
two on -site parking spaces.
Celine and her two sisters recently inherited a property that their mother had run as a Bed and
Breakfast. They have equal ownership interests.
Jean rents a single room in her Hilo home. She books a couple who are coming from Oahu
to watch their daughter graduate from UH Hilo. Jean allows her guests to host a celebratory
lunch in her backyard for the guest's daughter and 2 of her daughter's friends.
Michael has a gravel parking spot on -site. His elderly guests park on the paved street near the
house rather than the gravel spot. From the street, there is a concrete sidewalk and pathway
directly into the house, where it is much easier for him to push his wife's wheelchair.
Cathy had a neighbor complaint of noise in the first year she was permitted to operate. She
then had a guest park legally on the street in front of the neighbor's house a couple of years
later. Then, a guest had a small children's birthday party at her home, and after a complaint, it
was determined there were two more total guests than allowed at that gathering, so Cathy was
fined $2500, $5000, and $10,000, respectively— even though the violations were over more than
5 years. She is told every violation afterward (and forever) will be $10k each.
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Maka'i is 76 and lives next door to a short-term rental with new renters every week, coming in
and out of the neighborhood all year. Sometimes, he's concerned about parking, late -night
arrivals, and people looking for an address rather than kids running into the street after a ball.
Makai's neighbor hosts the rental and receives the homeowner exemption. Maka'i decides,
after many years, to travel to the mainland to visit his newest granddaughter. He rents his home
to longtime friends from Oahu for just the cost of electricity for the week while he is gone to
offset the cost of travel. He then receives notice that he has lost his homeowner's exemption
and rate class, is being penalized and charged 2.5 years back taxes, and will lose his rate cap.
These changes are enough to exceed his social security income, and he will now be forced to
find work at 76 years old to try to pay his increased taxes.
Each of these examples represents scenarios in which the rental will be unable to be registered, are
technical violations of the bill's standards, and/or highlight flaws in the draft bill or existing law that
are unreasonable or inconsistent with the bill's original stated purpose and the reality of living on
this island.
What is the problem we are trying to solve? What evidence is there that the application of this bill
will do more to solve those problems? This bill, as written, will have broader effects than
anticipated. That doesn't include the "proposed and withdrawn" amendments of October 2, which
would undoubtedly result in substantial and quantifiable harm if reintroduced.
The best, most fiscally responsible, and equitable path forward would be to delay further work on
this bill until the council can review the economic impact study. As the study is due in the first
quarter of 2025, this seems reasonable and appropriate for public funds and good faith efforts.
After analyzing the results, the makers can further refine the bill, balancing the known effects with
the desired outcomes and passing legislation that will, at the very least, limit unintended
consequences.
Respectfully submitted,
Jennifer Wilkinson, Board Chair
Hawaii Island Rental Property Alliance
Hawaii Island
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