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HomeMy WebLinkAboutOffice of Hawaiian Affairs OHA Testimony in Support of Bill 147 with Amendments Page 1 of 4 th September 15, 2026 Via Electronic Mail & Zoom Policy Committee on Planning, Land Use, and Economic Development 25 Aupuni Street Hilo counciltestimony@hawaiicounty.gov Re: 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT ACCOMMODATIONS Aloha e Chair Kierkiewicz, Vice Chair Galimba, and Members of the Committee, The Administration of the Office of Hawaiian Affairs (OHA) SUPPORTS Bill 147 WITH AMENDMENTS vacation rentals (TVR). Importantly, this measure distinguishes hosted and unhosted rentals, where an entire home is dedicated to vacation rental use. The measure also updates permitting requirements, strengthens enforcement, and revises standards for violations. OHA supports the amendments to better protect resident-serving zoning districts from further expansion of un- hosted vacation rental use. constitutional and statutory mandate includes advocating for the betterment of conditions of Native Hawaiians. Housing stability is central to that kuleana, Native Hawaiian , and communities if they cannot afford to live 1 here. Protecting residential housing from unnecessary conversion to visitor accommodations is one part of addressing housing access for our beneficiaries. Study on Short- vacation rental listings as of March 2025, with approximately 93% listed as entire homes. The 1 Office of Hawaiian Affairs, Mana i Mauli Ola Strategic Plan 20202035, Strategic Direction: Quality Housing, Strategies 56, https://www.oha.org/wp-content/uploads/MiMO_StrategicPlan-1.pdf OHA Testimony in Support of Bill 147 with Amendments Page 2 of 4 study also noted that in Kailua-Kona, vacation rentals represented approximately 40% of the 2 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 shift of residential units back to local use could create meaningful opportunities for families struggling to find affordable rentals or homes in their own communities. The public investment required to build just one new unit of housing demonstrates that regulation and enforcement of vacation use in appropriate areas is key to housing policy. visitor economy and hosted rentals may provide supplemental income for some local families. However, economic considerations should not be evaluated in isolation. For OHA, an important distinction is whether a vacation unit is hosted. Hosted B&Bs can provide supplemental income that helps local families remain on their property. An unhosted STVR, by contrast, dedicates an entire dwelling to transient use while the owner or host resides elsewhere. These uses have different impacts on our housing supply and should not be regulated as though they are the same. Bill 147 appropriately recognizes these different land-use impacts, and OHA supports maintaining clear regulatory pathways for these distinct uses. 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 -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. Preserving housing close to jobs can reduce the need for long-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. 2 Hunden Partners, County of Economic Impact Study on Short-Term Vacation Rentals. Pg. 911 (June 2025). 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 3 of 4 OHA agrees with the CDP. As the County continues to face substantial unmet housing needs, residentially zoned land located near jobs, services, and infrastructure should primarily support permanent housing rather than the expansion of entire dwelling units to be dedicated to transient visitor use. OHA therefore recommends that Bill 147 remove unhosted STVRs as allowable use in 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 (CN) are intended to serve the everyday needs of local communities. OHA recommends removing CN districts from the list of zoning districts where new unhosted STVRs would be permitted. The Kona CDP Action Committee has also recommended removing STVRs from CN districts, emphasizing that RM and CN areas within 4 housing, reduced commuting, and a sustainable, resident-serving urban 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- 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. These are limited, resident-serving areas. OHA does not believe Bill 147 should expand unhosted visitor accommodations into these districts without first demonstrating that the expansion is necessary and consistent with applicable Community Development Plans. Accordingly, OHA recommends removing CN districts from the list of areas where new unhosted STVRs may be established. Defer Expansion into Downtown Hilo OHA recommends that Bill 147 does not include the Downtown Hilo Commercial (CDH) district among the areas where new unhosted STVRs may be established until broader community review and planning have occurred. Downtown Hilo serves as an important employment, commercial, government, and OHA Testimony in Support of Bill 147 with Amendments Page 4 of 4 future should be considered comprehensively, including opportunities for housing near jobs and a vibrant, resident-serving urban core. Opening the district to additional unhosted visitor rentals now could foreclose some of those opportunities before that broader conversation occurs. This is particularly important as broader planning and 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. Bill 147 should not prematurely and unnecessarily preempt or influence those broader community planning discussions. Support Effective Enforcement and Administration OHA recognizes concerns raised by resident hosts, small B&B operators, and owners of older or agricultural properties regarding permitting requirements, compliance timelines, and code, and business registration requirements while providing existing operators with a practical pathway to comply 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. The County should focus its strongest enforcement tools where the housing impacts are greatest: unhosted and commercial operations that convert residential properties to visitor use. Bill 147 provides an opportunity to establish clearer rules without losing sight of what here. OHA believes the County can recognize legitimate hosted operations while protecting residential housing from continued conversion to unhosted visitor use. Bill 147 should prevent new unhosted STVRs in RM districts, remove CN districts from eligibility for new unhosted STVRs, defer expansion into the CDH district pending broader community planning; and maintain a reasonable compliance pathway for hosted B&Bs while directing meaningful enforcement toward unlawful unhosted and commercial operations. 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.