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HomeMy WebLinkAboutKennedy, John Tsuneda, Kaci From:Da Kine Windows LLC <dakinewindow@gmail.com> Sent:Monday, August 31, 2026 8:12 AM To:Council Testimony; Hustace, James Subject:Bill 147: Written Testimony in Opposition for Current Regulations Aloha Council Member Hustace and Council Members, My name is John Kennedy. I own and operate a small window and exterior cleaning company here on Hawai ʻ i Island, and I am writing to ask you to reconsider several parts of Bill 147. I employ six people, and while this bill would have a direct effect on my business, I am also concerned for the effect it could have on the many local businesses and families that depend on the vacation-rental industry. My company services a number of vacation rentals, and over the years I have built relationships with the owners and operators of these properties. They hire local cleaners, landscapers, maintenance companies, handymen, window cleaners, and other tradespeople. When these properties are no longer able to operate, the effect doesn't stop with the property owner. It spreads to the small businesses and employees who rely on that work. I want to be clear that I am not opposed to regulation. I support requiring hosted rentals to register with the County, pay the appropriate taxes, and follow reasonable rules that protect the surrounding neighborhood. I believe owners who operate these properties should be accountable and good neighbors. My concern is with changing the rules in a way that effectively eliminates existing hosted rentals that have been operating legally and responsibly for years. THE ECONOMIC IMPACT MATTERS I believe the Council should give serious consideration to the County's own Economic Impact Study completed by Hunden Partners in 2025. The study states that existing hosted vacation rentals are important to the livelihood of thousands of families on Hawai ʻ i Island. It also estimates that the vacation-rental industry contributes nearly $1 billion a year to the local economy. The potential employment impact is especially concerning. The study estimates that changes such as those being considered could put approximately 12,000 full-time and 30,000 part-time jobs at risk. For me, those aren't just numbers on a page. They represent my employees, my customers, other local contractors, and the families who depend on the income generated by this industry. 1 I also question whether eliminating existing hosted rentals will actually create the amount of long-term housing that is being anticipated. According to the same study, only 4% of current vacation-rental owners and operators said they would definitely convert their properties to long-term rentals. That tells me we could eliminate a significant amount of economic activity without necessarily creating a meaningful amount of additional housing. Many of these properties are small, family-run operations. They are not necessarily properties that can simply be converted into conventional long-term rentals. In many rural areas, the income from these properties helps families remain here and helps support other local businesses. THE HOST REQUIREMENT NEEDS TO BE CLEAR I also think the language regarding where a host must live needs to be clarified. The bill refers to the host living on the same “building site” as the TVR. That wording is unclear to me and could create unnecessary confusion about which properties qualify. The current rules allow a host to live on the same property without necessarily being in the same building. The County's own study indicates that this is how the vast majority of hosted vacation rentals on the island currently operate. If the intent is simply that the host must live on the same property, then I believe the ordinance should say that clearly by referring to the same Tax Map Key (TMK). That would give everyone a straightforward standard and avoid having otherwise compliant owners caught up in an ambiguous definition. PLEASE PROTECT EXISTING OPERATIONS I believe there is a reasonable middle ground here. I am not asking the Council to stop regulating vacation rentals or to prevent the County from establishing stricter rules going forward. I am asking that properties that are already operating legally and complying with the current requirements be allowed to continue. Specifically, I would ask the Council to grandfather existing hosted vacation rentals as long as they:  Are properly registered with the County;  Pay the required taxes;  Have the host living on the same TMK;  Continue to comply with good-neighbor requirements; and  Continue to meet the other applicable County regulations. The County could then apply new bedroom limits and other requirements to new hosted rentals going forward, without putting existing families and businesses in the position of losing an established source of income. 2 I also hope the Council will take a closer look at Agricultural-zoned properties. In many cases, carefully regulated short-term rentals and agritourism can provide an additional source of income that helps local farmers deal with the extremely high cost of producing food here. I would encourage the County to look for ways to support and regulate those operations rather than simply eliminating them. Finally, I don't believe the answer to our housing shortage should be to take away existing ways for local families to earn income. If the goal is to increase housing for local residents, I would much rather see the County focus on encouraging smaller-scale housing and workforce housing developments and making it easier to build appropriate housing for local families, rather than continuing to favor large lots with large homes. I respectfully ask you to amend Bill 147 so that existing, compliant hosted vacation rentals can continue operating under the rules that were in place when they were established. I appreciate your time and your willingness to consider the impact this legislation could have on the small businesses, employees, property owners, and families who make up our local community. Mahalo nui loa, John KennedyJohnny Kennedy PO Box 121 Honokaa, HI 96727 (808)990-1318 3