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Home My WebLink AboutCOM 0236.145 2024-2026P/Cawld .dill V COMIA. 2Y., From: Steve Hwang Sent: Monday, June 2, 2025 4:21 PM To: Council Testimony Subject: Opposition to Bill 47 - Steve Hwang `n O� c._ z C D �.C_— Opposition to Bill 47: A Threat to Property Rights, Economic Opportunity, and Commun Vi ' Bill 47, which seeks to impose stringent regulations on short-term vacation rentals STVRs in wai represents an overreach of government authority that undermines property rights, stifles economi opportunity, and risks long-term harm to communities. By defining STVRs as stays under 180 days, mandating registration with the County, imposing high fees, requiring annual renewals, and seftingl unitive fines for non-compliance, this legislation unfairly burdens homeowners, disrupts the tourism economy, and fails to address housing challenges effectively. Below are the key reasons why Bill 47 mus be o posed.1 1. Violation of Property Ri hts Bill 47 restricts homeowners' fundamental right to use their property as they see fit. By imposing a broad definition of STVRs (stays under 180 days) and requiring registration with cost) fees—$250 for hosted and $500 for unhosted rentals —the bill penalizes individuals for leveraging their homes to generatel income. Property ownership includes the right to engage in short-term rentals, a practice that has become a vital source of financial stability for many residents. Such restrictions, as noted in broader discussions on STVR bans, infringe on personal freedoms and set a dangerous precedent for government overreach into private property decisions. . Economic Harm to Homeowners and Communities The registration and annual renewal fees, combined with the threat of fines for non-compliance, place an undue financial burden on homeowners, particularly those who rely on STVRs to supplement thei income. For many, short-term rentals are a lifeline to cover mortgages, property taxes, or livin ex enses in Hawaii's high -cost environment. The proposed fees—$500 annually for unhosted rental disproportionately affect small-scale operators, not large corporate investors, effectively pricingou everyday residents. Moreover, STVRs drive tourism revenue, which supports local businesses like restaurants, tour operators, and shops. Curtailing these rentals, as highlighted in critiques of similar bans, could deprive communities of significant economic benefits, including tax revenues that fund publi services. 3. Bureaucratic Overreach and Inefficienc The requirement for County registration and documentation, coupled with annual renewals, creates a complex and costly bureaucratic process that discourages compliance rather than facilitating it. Critics o similar regulations, such as those referenced in opposition to Hawaii's STVR policies, argue for a simplified registration process that supports homeowners rather than penalizing them. The administrative burden of Bill 47 risks driving STVR operators underground, fostering a black market that undermines the very oversight the bill seeks to establish. This approach is neither practical nor effective in achievinal regulatory oats. . Questionable Impact on Housing Affordabilit Proponents of Bill 47 claim it will address Hawaii's housing crisis by limiting STVRs and reserving] residential inventory. However, evidence suggests that STVR regulations do little to increase affordable housing. Studies, such as one from the Wharton School, indicate that home -sharing increases housinal flexibility without significantly driving up prices or reducing long-term rental availability. Banning or heavil regulating STVRs does not guarantee that these properties will convert to long-term rentals, as man owners may opt to sell or leave properties vacant, further tightening the housing market. The bill's focus Comm. a qo Ref. To: Ref, U - 4 2025 on STVRs distracts from addressinq root causes of the housing shortage, such as zoning restrictions and insufficient new construction. 5. Disproportionate Impact on Local Communities Bill 47 risks eroding the character of Hawaii's communities by limiting the economic benefits of tourism. STVRs allow visitors to experience authentic, local neighborhoods, fostering cultural exchange and supporting small businesses. By contrast, heavy-handed regulations could push tourism toward lar e hotels and resorts, concentrating economic gains in the hands of corporate entities rather than local homeowners. Additionally, the bill's broad definition of STVRs under 180 days) captures a wide range o rental activities, including those by part-time residents or seasonal hosts, unfairly penalizingdiverse use cases that contribute to communit vibranc . 6. Unfair Fines and Enforcement Challenges The imposition of fines for non-compliance creates a punitive environment that disproportionately affects small operators who may struggle to navigate the complex registration process. Furthermore, as noted in discussions on STVR platforms, enforcement of such regulations is often hampered by legal protectiono like Section 230, which limits localgovernments' ability to hold platforms accountable for illegal listings This creates a disjointed regulatory framework where homeowners bear the brunt of penalties while lar e platforms evade responsibility, undermining the bill's effectiveness. Call for a Balanced Approachl Rather than imposing restrictive and costly regulations, policymakers should pursue a balanced approach that supports both housing goals and economic opportunity. Simplifying registration, offering to incentives for long-term rentals, and investing in affordable housing development would address housin concerns without punishing propertyowners. Bill 47, as proposed, is a blunt instrument that fails to account for the diverse needs of Hawaii's residents and the economic realities of its tourism -driven econom . In conclusion, Bill 47 threatens the livelihoods of homeowners, undermines property rights, and risks economic harm without delivering meaningful solutions to Hawaii's housing challenges. We ur lawmakers to reject this bill and engage with stakeholders to craft policies that preserve the benefits o STVRs while addressing community needs responsibly] hanks for your consideration, Steve Hwangj