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HomeMy WebLinkAboutBill 147 Supports Tsuneda, Kaci From:Andre Chabot <coconutpalmshawaii@gmail.com> Sent:Friday, August 28, 2026 5:59 PM To:Council Testimony Subject:Bill 147 Aloha, I think it’s fair that hosted vs unhosted rentals should obey the same rules so I am for it. Therefore, hosted renters should be paying their fair share of taxes and should not be opera?ng under the radar as before. Mahalo Andre Sent from my iPhone 1 OHA Testimony in Support of Bill 147 with Amendments Page 1 of 5 st September 1, 2026 Via Electronic Mail & Zoom Policy Committee on Planning, Land Use, and Economic Development Hawai’i County Building 25 Aupuni Street Hilo counciltestimony@hawaiicounty.gov Re: CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT ACCOMMODATIONS Aloha e ChairKierkiewicz, Vice ChairGalimba,andMembers of the Committee, The Administration of the Office of Hawaiian Affairs (OHA) SUPPORTS Bill 147 WITH AMENDMENTS vacation rentals (TVR), by clarifying the distinction between hosted and unhosted rentals, updating operational and permitting requirements, strengthening enforcement, and revising standards for violations. OHA supports the County’s effort to create a clearer and more consistent regulatory framework. At the same time, Bill 147 should preserve the distinction between hosted rentals and unhosted vacation rentals that remove an entire dwelling from residential use. OHA therefore recommends several amendments to better protect resident- serving zoning districts from expanding unhostedvacation rental use. OHA’s constitutional and statutorymandate includesadvocating for the betterment of conditions of NativeHawaiians.Housing stability is central to that kuleana, as access to safe, stable, and affordable housing directly affects the ability of Native Hawaiian families to remain 1 OHA believes that ensuring our housing supply is appropriately used to house our local residents, rather than vacation use, is one important way we can ensure access to housing for Native Hawaiian 1 Office of Hawaiian Affairs, Mana i Mauli Ola Strategic Plan 2020–2035, Strategic Direction: Quality Housing, Strategies 5–6, https://www.oha.org/wp-content/uploads/MiMO_StrategicPlan-1.pdf OHA Testimony in Support of Bill 147 with Amendments Page 2 of 5 families. -Term Vacation Rentals found with approximately 93% listed as entire homes. The study also noted that in Kailua-Kona, vacation 2 rentals represented approximately 40% of the housing stock.These figures underscore the connection between TVR regulation and long-term residential housing. While not every TVR will return to the long-term housing market, even a partial shiftofresidential units backtolocal use could create meaningful opportunities for families struggling to find affordable rentals or homes in their own communities. visitor economy and hosted rentals mayprovide supplemental income for some local families. However, economic considerations should not be evaluated in isolation. They must be weighed alongside housing availability, neighborhood stability, tax compliance, and the ability of Native families to remain in their communities. While some residents may rely on hosted rentals or bed and breakfast operations for supplemental income, unregulated or poorly enforced transient accommodations can place additional pressure on residential neighborhoods and the housing market. An unhosted STVR dedicates the dwelling to transient use while the host resides elsewhere. Bill 147 appropriately recognizes these different land-use impacts, and OHA supports maintaining clear regulatory pathways for these distinct uses. Bill 147 defines B&Bs as TVR properties where a host resides; establishes STVRs as rentals of less than 180 consecutive days on properties where a host does not reside; limits STVRs to five or fewer bedrooms; and clarifies where B&Bs and STVRs are permitted. These distinctions are important because hosted rentals may allow local property owners to earn supplemental income while continuing to reside on and care for their properties. At the same time, clearer regulation of unhosted rentals helps the County monitor the conversion of residential properties to visitor use and respond to areas where TVR concentration may be contributing to housing loss anddisplacement. Protect Residential Multifamily Housing OHA supports limiting the future expansion of unhosted STVRs in Residential Multifamily (RM) districts while appropriately recognizing existing legally established uses and previously approved developments. RM districts accommodate apartments, condominiums, and other forms of multifamily housing and represent existing and future housing capacity. This concern is particularly significant in Kona, where the 2 Hunden Partners, County of Economic Impact Study on Short-Term Vacation Rentals. Pg. 9–11 (June 2025). OHA Testimony in Support of Bill 147 with Amendments Page 3 of 5 County’s 2025 economic impact study identified the island’s largest concentration of short-term vacation rentals. The Kona Community Development Plan (CDP) Action Committee has similarly recommended removing unhosted STVRs as an allowable use in RM districts. The Kona CDP recognizes that maintaining affordable housing within the urban core is essential to ensuring that 3 local workers can continue to live near the communities and employment centers they serve. -distance commuting and help sustain a stable local workforce, particularly for families who may otherwise be pushed farther away from employment because of rising housing costs. OHA agrees that these adopted planning goals should inform Bill 147. As the County and infrastructure should primarily support permanent housing rather than create additional opportunities for entire dwelling units to be dedicated to transient visitor use. OHA therefore recommends that Bill 147 prevent the future expansion of unhosted STVRs within RM districts and ensure that any grandfathering provisions are clearly limited to legally established or previously approved uses. Protect Neighborhood Commercial Districts Neighborhood Commercial districts should likewise continue to serve the everyday needs of local communities rather than become an additional source of unhosted visitor accommodations. OHA recommends removing Neighborhood Commercial, or CN, districts from the list of zoning districts where new unhosted STVRs would be permitted. CN districts are intended to support neighborhoods by providing appropriately located commercial areas for goods, services, employment, and other uses that serve nearby residents. The Kona CDP Action Committee has also recommended removing STVRs from CN districts, emphasizing that RM and CN areas within the Kona Urban Area play an important role in achieving the CDP’s broader goals for workforce housing, reduced commuting, and a sustainable, resident-serving urban 4 core. This planning context is important. With limited land intended to support residents, care should be taken before opening our housing supply to be used as an additional visitor accommodation use. spending at local businesses. However, economic development should also account for the long- 3 Kona Community Development Plan Action Committee, Bill 147 testimony to the Leeward Planning Commission, July 14, 2026. OHA Testimony in Support of Bill 147 with Amendments Page 4 of 5 term value of maintaining neighborhoods where residents can live near employment centers and access the businesses and services necessary for everyday life Allowing new unhosted STVRs in CN districts could shift these limited areas toward visitor-serving uses and away from the resident-serving purposes envisioned in adopted community planning policies. Before expanding STVR eligibility into CN districts, the County should demonstrate that such an expansion is necessary and consistent with the applicable Community Development Plans. Until that analysis occurs, OHA recommends removing CN districts from the list of areas where new unhosted STVRs may be established. Defer Expansion into Downtown Hilo OHA recommends deferring the inclusion of the Downtown Hilo Commercial (CDH) district as an area where new unhosted STVRs may be established until there is broader community review and planning. Downtown Hilo serves as an important employment, commercial, government, and -serving urban core should remain a priority. Expanding unhosted visitor accommodations within the CDH district could place additional pressure on properties that may otherwise support housing, local businesses, and other uses serving Hilo residents and the local workforce. Moreover, allowing residents to live and work within the same area cuts commute times and is important to overall community wellbeing. Prioritizing unhosted opportunity for local residents to better grow and use downtown business rather than be trapped in long commutes. This is particularly important as broader planning and redevelopment discussions Peninsula. These efforts involve significant decisions regarding housing, economic development, visitor accommodations, cultural resources, public access, public lands, and the future character of the Hilo waterfront. Decisions made through Bill 147 should not unnecessarily preempt or influence those broader community planning discussions. OHA therefore recommends that the County defer allowing new unhosted STVRs within the CDH district until there has been additional community review and coordination with ongoing planning efforts. This would allow residents, local businesses, cultural practitioners, Native Hawaiian beneficiaries, and other stakeholders to consider how visitor accommodations fit within a broader vision for housing, workforce needs, economic development, and the future of downtown Hilo. OHA Testimony in Support of Bill 147 with Amendments Page 5 of 5 OHA recognizes concerns raised by resident hosts, small B&B operators, and ownersof older or agricultural properties regarding permitting requirements, compliance timelines, and substantial penalties. These concerns underscore the importance of clear definitions, adequate notice, consistent enforcement, and reasonable opportunities for existing operators to correct deficiencies. OHA supports provisions to align County’s zoning, permitting, building code, and business registration requirements while providing existing operators with a practical pathway toward legal compliance. Hosted B&Bs should not be treated identically to unhosted commercial vacation rentals where the land-use and housing impacts are different. At the same time, meaningful enforcement remains necessary for operators who fail to register or continue unlawful transient use after being provided a reasonable opportunity to comply. Implementation should be appropriately focused on investor-owned homes, second homes, speculative purchases, and commercial operators that convert residential properties to visitor use and contribute most directly to the loss of long-term housing. For families already facing rising housing costs and limited options, even incremental loss of permanent residential housing can contribute to displacement and make it harder for ion because it strengthens the County’s ability to monitor,regulate, and enforce TVR activity while preserving the flexibility to consider additional protections where TVRs may be contributing to housing loss or displacement pressures. When transient vacation rentals are not clearly regulated or consistently enforced, residential homes may be converted into visitor accommodations inways that reduce long-term housing availability, increase pressure on local rental markets, and change Accordingly, OHA respectfully supports PASSAGE of Bill 147 and encourages consideration of the suggested friendly amendments to further strengthen housing opportunities and support long-term community needs. Mahalo for the opportunity to testify. If you should have any questions, please contact leinaalal@oha.org, or Public Policy Advocate Kamaile Puluole-Mitchell, at kamailep@oha.org.