HomeMy WebLinkAboutCOM 0739.002 2016-2018 Karen Eoff, Council Member y'•'• Dru M.Kanuha, Council Member
Council District 8-North Kona •cQ-�'`w "U'•�.,',., Council District 7—Central Kona
Phone:808/323-4280 ` ,1 Phone: 808/323-4267
Email:karen.eoff@hawaiicounty.gov ;i; �' %'� ;#' Email dru.kanuha@hawaiicounty.gov
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HAWAII COUNTY COUNCIL
•
County of Hawai`i
West Hawai`i Civic Center, Bldg A Gril
74-5044 Ane Keohokalole Hwy. , "
Kailua-Kona,Hawai'i 96740
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DATE: April 17, 2018
TO: Valerie T. Poindexter, Council Chair
and Members of the Hawai`i County Council
FROM: As-Karen Eoff, Council Member for Council District 8—North Kona
Dru M. Kanuha, Council Member for Council District 7—Central Kona
SUBJECT: Proposed Amendments to Bill No. 108, ORDINANCE AMENDING CHAPTER
25, ARTICLE 1,ARTICLE 2, ARTICLE 4, AND ARTICLE 5, OF THE
HAWAII COUNTY CODE 1983 (2016 EDITION,AS AMENDED),
RELATING TO SHORT-TERM VACATION RENTALS.
Please find attached proposed amendments to Bill No. 108. The proposed amendments are
illustrated below in Ramseyer format with respect to the contents of Bill No. 108;material to be
deleted is bracketed and stricken, material to be added is underscored.
A draft copy of Bill No. 108,Draft 2, with these amendments incorporated therein is attached.
1. SECTION 2 of Bill No. 108, section 25-4- is amended to read as follows:
"Section 25-4- Short-term vacation rentals.
(a) Short-term vacation rentals shall be permitted in the:
(1) V, CG, and CDH districts;
(2) CV district,provided that a use permit is obtained for each use; and
(3) General Plan Resort areas and Resort Node, except that RS districts in the
General Plan Resort areas and Resort Node shall require a use permit.
A ' _ • *•' • ••. - J ...•
[(c)](b)Registration of all short-term vacation rentals.
(1) Short-term vacation rentals in existence on or before the effective date of
this ordinance, shall register with the planning department on a form
prescribed by the director no later than one hundred eighty days after the
effective date of this ordinance, if they exist within the following zoning
districts:
(A) The V, CG, and CDH; or Comm. No. 3 3 , a,
Ref. To: Ci
Ref. Dote APR 1 7 2018
(B) The general plan resort areas and resort node, in any district other
than R,S.
(2) Any new short-term vacation rental established in a zoning district after
the effective date of this ordinance,where such use is permissible pursuant
to this section, shall register with the director prior to use of such rental.
(3) The registration form, at a minimum, shall require verification that State
of Hawaii general excise tax and transient accommodations tax licenses
are in effect, and certification that the requisite amount of parking
pursuant to section 25-4-51, is available.
(4) Upon change in ownership,the registration shall automatically continue,
subject to termination by the new owner.
(5) Any short-term vacation rental operating outside a permitted zoning
district shall be registered only with a nonconforming use certificate
obtained pursuant to section 25-4-_.1
(6) Any short-term vacation rental that has not lawfully registered within the
deadlines set forth in this section, whether in a permitted district or
nonconforming, shall be considered an unpermitted use and subject to the
penalties set forth in this chapter until such time proper registration and
compliance with applicable requirements of this section is obtained.
[(4)](c)A short-term vacation rental shall be subject to the following standards:
(1) The owner, operator, or designated contact person shall reside in the
County of Hawai`i and shall be available on a twenty-four hour, seven
days-per-week basis. The owner or operator shall notify the planning
department of any changes to their registration information forthwith.
(2) All print and internet advertising short-term vacation rentals, including
listings with a rental service or real estate firm, shall include the
registration or nonconforming use certificate number.
(3) A copy of the registration or nonconforming use certificate, as well as the
designated contact person's name and phone number, shall be displayed in
the back of the front door of the sleeping quarters.
(4) Off-street parking shall meet the requirements set forth in section 25-4-
51(a)(8) and applicable parking standards in this chapter."
2. SECTION 2 of Bill No. 108, section 25-4- .1 is amended by amending subsections
(a), (b), and(c)to read as follows:
"(a) The owner or operator of any short-term vacation rental which operated outside of a
permitted zoning district prior to [January 20, 2018] July 20, 2018 shall obtain a
nonconforming use certificate issued by the director no later than one hundred
eighty days after the effective date of this ordinance.
(b) Good standing. The applicant seeking a short-term rental nonconforming use
certificate shall have the burden of proof in establishing that the property was in
use and in good standing prior to [January 20, 2018.] July 20,2018. Evidence
of prior use that shall be provided to the director may include tax documents for
the relevant time period, including: State of Hawai`i general excise tax filings;
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transient accommodations tax filings; and federal and State of Hawai`i income
tax returns. Other reliable information may also be provided. Based on the
evidence submitted,the director shall determine whether to issue a short-term
vacation rental nonconforming use certificate for the short-term vacation rental.
(c) [Special permit.]Agricultural lands. A short-term rental nonconforming use
certificate may be issued for lots located in the State land use agricultural
district only if the building site was in existence prior to June 4, 1976. [If
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special permit under section 205 6, Hawai`i Revised Statutes,was obtained
not be issued and the short term vacation rental operation must immediately
cease.]"
3. SECTION 2 of Bill No. 108, section 25-4- .3 is amended by amending
subsection(d)to read as follows:
"(d) The funds in this account shall be utilized to pay for expenses that facilitate
[inspection and] enforcement of the County's short-term vacation rental
enforcement law."
4. SECTION 3 of Bill No. 108 is amended to read as follows:
"SECTION 3. Chapter 25, article 1, section 25-1-5, of the Hawai`i County Code 1983
(2016 Edition, as amended), is amended by adding a new [definitions] definition to be
appropriately inserted and to read as follows:
"["" •- - 77 ..--. - .. - - . - . _ . - - -
hundred eighty days. This definition shall not apply to nonpaying guests of the family
occupying the unit; patients of clients in health care facilities; full time students;
military personnel; low income renters receiving rental subsistence from State or
no rental income is transacted."]
"Short-term vacation rental"means a residential dwelling of which the owner or
operator does not reside on the building site,that has no more than five bedrooms on
the building site [for transient use], and is rented [to transients] for a period of thirty
consecutive days or less. This definition shall not apply to the transient use of an
owner's primary residence as defined under the Internal Revenue Code. [The term
does not include:
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the building site; and
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5. SECTION 8 OF Bill No. 108 is amended to read as follows:
"SECTION 8. Material to be repealed [in] is bracketed and stricken. New
material is underscored. In printing this ordinance,the brackets,bracketed and
stricken material and underscoring need not be included."
Thank you.
KE/wpb
Attachment
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AN ORDINANCE AMENDING CHAPTER 25,ARTICLE 1,ARTICLE 2,ARTICLE 4,
AND ARTICLE 5, OF THE HAWAII COUNTY CODE 1983 (2016 EDITION,AS
AMENDED),RELATING TO SHORT-TERM VACATION RENTALS.
BE;IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Findings and Purpose. The short-term rental of residential units, as an
alternative to traditional resort and hotel accommodations, is an emerging trend in the visitor
industry that continues to grow in popularity.
The purpose of this ordinance is to manage the impacts of these short-term vacation rentals
by: 1) defining where this use will be allowed; 2) establishing provisions and standards to
regulate this use; and 3) providing an avenue for an existing use deemed to be improper by this
ordinance, to apply for a nonconforming use certificate that would allow them to continue to
operate in a non-permitted district.
SECTION 2. Chapter 25, article 4, division 1, of the Hawaii County Code 1983 (2016
Edition, as amended), is amended by adding the following new sections to be appropriately
designated and to read as follows:
"Section 25-4- . Short-term vacation rentals.
(a) Short-term vacation rentals shall be permitted in the:
(1) V, CG, and CDH districts,
(2) CV district, provided that a use permit is obtained for each use; and
(3) General Plan Resort areas and Resort Node, except that RS districts in the General
Plan Resort areas and Resort Node shall require a use permit.
(b) Registration of all short-term vacation rentals.
(1) Short-term vacation rentals in existence on or before the effective date of this
ordinance, shall register with the planning department on a form prescribed by the
director no later than one hundred eighty days after the effective date of this
ordinance, if they exist within the following zoning districts:
(A) The V, CG, and CDH; or
(B) The general plan resort areas and resort node, in any district other than RS.
(2) Any new short-term vacation rental established in a zoning district after the effective
date of this ordinance, where such use is permissible pursuant to this section, shall
register with the director prior to use of such rental.
(3) The registration form, at a minimum, shall require verification that State of Hawai'i
general excise tax and transient accommodations tax licenses are in effect, and
certification that the requisite amount of parking pursuant to section 25-4-51, is
available.
(4) Upon change in ownership,the registration shall automatically continue, subject to
termination by the new owner.
• (5) Any short-term vacation rental operating outside a permitted zoning district shall be
registered only with a nonconforming use certificate obtained pursuant to section 25-
4- .1
(6) Any short-term vacation rental that has not lawfully registered within the deadlines
set forth in this section,whether in a permitted district or nonconforming, shall be
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considered an unpermitted use and subject to the penalties set forth in this chapter
until such time proper registration and compliance with applicable requirements of
this section is obtained.
(c) i A short-term vacation rental shall be subject to the following standards:
(1) The owner, operator, or designated contact person shall reside in the County of
Hawaii and shall be available on a twenty-four hour, seven days-per-week basis.
The owner or operator shall notify the planning department of any changes to their
registration information forthwith.
(2) All print and internet advertising short-term vacation rentals, including listings with a
rental service or real estate firm, shall include the registration or nonconforming use
certificate number.
(3) A copy of the registration or nonconforming use certificate, as well as the designated
contact person's name and phone number, shall be displayed in the back of the front
door of the sleeping quarters.
(4) Off-street parking shall meet the requirements set forth in section 25-4-51(a)(8) and
applicable parking standards in this chapter.
Section 25-4- .1. Short-term vacation rental nonconforming use certificate.
(a) The owner or operator of any short-term vacation rental which operated outside of a
' permitted zoning district prior to July 20, 2018 shall obtain a nonconforming use certificate
issued by the director no later than one hundred eighty days after the effective date of this
ordinance.
(b) : Good standing. The applicant seeking a short-term rental nonconforming use certificate
shall have the burden of proof in establishing that the property was in use and in good
standing prior to July 20,2018. Evidence of prior use that shall be provided to the director
may include tax documents for the relevant time period, including: State of Hawai`i general
excise tax filings; transient accommodations tax filings; and federal and State of Hawai`i
income tax returns. Other reliable information may also be provided. Based on the evidence
submitted,the director shall determine whether to issue a short-term vacation rental
nonconforming use certificate for the short-term vacation rental.
(c) Agricultural Lands. A short-term rental nonconforming use certificate may be issued for
lots located in the State land use agricultural district only if the building site was in
existence prior to June 4, 1976.
(d) Display. Current nonconforming use certificates shall be displayed in a conspicuous place
on the premises that is readily visible to an inspector. In the event that a single address is
associated with numerous nonconforming use certificates, a listing of all units at that
address holding current certificates may be displayed in a conspicuous,readily visible
common area instead.
(e) Annual renewal. Nonconforming use certificates must be renewed every year on or before
' the expiration date indicated on the certificate. At the time of renewal, if it has been
determined that the short-term rental use has been abandoned pursuant to section 25-4-62
or the applicant has violated provisions of this chapter or other pertinent zoning laws,
including section 25-4-62,the director may deny approval of a renewal application and
issue a cease and desist notice to the applicant.
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(f) Renewal fee. The applicant shall pay a renewal fee of$500 to the director of finance.
(g) ' Revocation. If the short-term vacation rental nonconforming use fails to comply with
conditions in this section or chapter,the short-term vacation rental nonconforming use
certificate shall be revoked by the director.
Section 25-4- .2. Prima facie evidence; short-term vacation rentals.
Advertising of any sort that offers a property as a short-term vacation rental shall constitute
prima facie evidence that a short-term vacation rental is operating on that property. The burden
of proof shall be on the owner or operator to establish either that the property is not being used as
a short-term vacation rental or that it is being used for such purpose legally. If any unit is found
to be operating unlawfully, enforcement shall be pursuant to article 2, division 3.
Section 25-4- .3. Short-term vacation rental enforcement account.
(a) Pursuant to section 10-12, Hawai`i County Charter, a special fund to be known as the
"short-term vacation rental enforcement fund is created. This fund shall be administered by
the director.
(b) , The purpose of the fund is to support efforts to enforce the County's short-term vacation
rental law.
(c) This account shall be funded by fees collected in connection with nonconforming use
certificate renewal applications.
(d) The funds in this account shall be utilized to pay for expenses that facilitate enforcement of
the County's short-term vacation rental enforcement law."
SECTION 3. Chapter 25, article 1, section 25-1-5, of the Hawai`i County Code 1983
(2016 Edition, as amended), is amended by adding a new definition to be appropriately inserted
and to read as follows:
"Short-term vacation rental"means a residential dwelling of which the owner or
operator does not reside on the building site,that has no more than five bedrooms on the building
site, and is rented for a period of thirty consecutive days or less. This definition shall not apply
to the transient use of an owner's primary residence as defined under the Internal Revenue
Code."
SECTION 4. Chapter 25, article 2, division 3, section 25-2-30, of the Hawai`i County
Code 1983 (2016 Edition, as amended), is amended to read as follows:
"Section 25-2-30. Violations.
Any approval or permit issued pursuant to the provisions of this chapter shall comply with
all applicable requirements of this chapter. Failure to comply with any provision of this chapter,
any rule adopted pursuant to this chapter, or with conditions imposed as part of any approval
[or]i permit, [' aria ]or variance from the provisions of this chapter, shall constitute
a violation of this chapter."
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SECTION 5. Chapter 25, article 2, division 6, section 25-2-61, of the Hawai`i County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a)to read as
follows:
"(a) The following uses shall be permitted within designated County zoning districts only if a
use permit is obtained for the use from the commission:
(1) Bed and breakfast establishments in RS, RA, FA, and A districts,provided that the
property is within the state land use urban district.
(2) Crematoriums, funeral homes, funeral services and mortuaries in RS, RD, RM,
RCX, RA,FA, A and V districts.
(3) Churches,temples and synagogues, including meeting facilities for churches,
temples, synagogues and other such institutions, in RS, RD,RM, RA, FA and A
districts; provided that a minimum building site area of ten thousand square feet is
required within the RS, RD, RM, and RA districts.
(4) Day care centers in RS, RD,RM, RA,FA and A districts,provided that a minimum
building site area of ten thousand square feet shall be required within the RS, RD,
RM, and RA districts.
(5) Golf courses and related golf course uses including golf driving ranges, golf
maintenance buildings, and golf club houses in the RS, RD,RM,RCX,RA,FA,A,
V, CG, CV, and 0 districts,provided that the property is within the state land use
urban or rural district. Golf courses and golf driving ranges shall not be permitted
within the state land use agricultural district unless approved by the County before
July 1,2005.
(6) Group living facilities that exceed the criteria in subsection 25-1-5(b),paragraph(b)
of the definition of"group living facility"in the RS,RD,RM,RCX,RA,FA,A,
CN, CG, CV, and V districts.
(7) Hospitals, sanitariums, old age, convalescent,nursing and rest homes, and other
similar uses devoted to the care or treatment of the aged, the sick, or the infirm in
the RS, RD, RM,RCX, RA, FA, A, and V districts,provided that a minimum
building site area of ten thousand square feet shall be required within the RS,RD,
RM,RCX and RA districts.
(8) Major outdoor amusement and recreation facilities in RS, RD, RM, RCX,RA,A,
CN, CG, CV, MCX, ML, MG and 0 districts.
(9) Schools in RS, RD,RM, RA, FA, A,V, MCX, ML, and MG districts,provided that
a minimum building site area of ten thousand square feet shall be required within
the RS,RD, RM,and RA districts.
(10) Short-term vacation rentals in the RS district in the general plan resort and resort
node and in the CV district.
(11) Telecommunication antennas and towers in RS, RD,RM, RCX, RA, FA,A, IA and
0 districts.
[(11)](12) Yacht harbors and boating facilities in the RS, RD, RM, RCX, RA, V, CG, CV,
MCX, ML, MG and 0 districts.
[(12)j(13) Wind energy facilities in the 0 district;provided that the property is within the state
land use agricultural district.
[(13)](14) Other unusual and reasonable uses which are not specifically permitted in any
zoning district with the approval of the director and the concurrence of the council
by resolution."
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SECTION 6. Chapter 25, article 5, division 1, section 25-5-3, of the Hawaii County Code
1983 (2016 Edition, as amended), is amended by amending subsection(b) to read as follows:
"(b) In addition to those uses permitted under subsection(a) above,the following uses may be
permitted in the RS district,provided that a use permit is issued for each use:
(1) Bed and breakfast establishments as permitted under section 25-4-7.
(2) Care homes.
(3) Churches,temples and synagogues.
(4) Crematoriums, funeral homes, funeral services, and mortuaries.
(5) Day care centers.
(6) Golf courses and related golf course uses, including golf driving ranges, golf
maintenance buildings and golf club houses,provided that the property is within the
state land use urban or rural district. Golf courses and golf driving ranges shall not
be permitted within the state land use agricultural district unless approved by the
County July before 1, 2005.
(7) Hospitals, sanitariums, old age, convalescent,nursing and rest homes.
(8) Major outdoor amusement and recreation facilities.
(9) Schools.
(10) Short-term vacation rentals in the general plan resort and resort node.
(11) Telecommunication antennas and towers.
[(11)1(12) Yacht harbors and boating facilities."
SECTION 7. Chapter 25, article 5, division 12, section 25-5-122, of the Hawai`i County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(b)to read as
follows:
"(b)! In addition to those uses permitted under subsection(a) above,the following uses may be
permitted in the CV district,provided that a use permit is issued for each use:
I (1) Golf courses and related golf course uses, including golf driving ranges, golf
maintenance buildings and golf club houses,provided that the property is within the
state land use urban or rural district. Golf courses and golf driving ranges shall not
be permitted within the state land use agricultural district unless approved by the
County before July 1, 2005.
(2) Major outdoor amusement and recreation facilities.
(3) Short-term vacation rentals.
(4) Yacht harbors and boating facilities."
SECTION 8. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance,the brackets,bracketed and stricken material, and
underscoring need not be included.
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SECTION 9. Severability. If any provision of this ordinance, or the application thereof to
any person or circumstance, is held invalid, the invalidity does not affect other provisions or
applications of the ordinance that can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 10. This ordinance shall take effect upon approval.
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