HomeMy WebLinkAboutCOM 0739.082 2016-2018Eileen O'Hara
Council Member
Council District 4
Chair., Environmental
Management Committee
Phone: (808) 965-2712
Fax: (808) 961-8912
Email: eileen.ohara@hawaiicounty.gov
Vice Chair., Planning Committee and
Agriculture, Water & Energy
Sustainability Committee
County of Hawaii_ .
Hawaii County Council
25 Aupuni Street, Suite 1402 Hilo, Hawaii 96720'"'
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DATE: June 4, 2018
TO: Valerie T. Poindexter, Chair
Hawaii County Council
FROM:Eileen O'Hara, Council Member
49eHawaii County Council
SUBJECT: Proposed Amendments to Bill No. 108, Draft 2, 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.
Attached please find proposed amendments to Bill No. 108, Draft 2. The proposed amendments
are illustrated below in Ramseyer format with respect to the contents of Bill No. 108, Draft 2;
material to be deleted is bracketed and stricken, material to be added in underscored.
A draft copy of Bill No. 108, Draft 3, with these amendments incorporated therein is attached.
1. SECTION 2 OF Bill No. 108, Draft 2, "Section 25-4- . Short-term vacation rentals."
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.
(b) Private covenants prohibiting use of any unit as a short-term vacation rental shall
not be invalidated by this chapter.
own No. � 39, 6;(
Ref. To:
Ref. Cate JUN 0 5
Hawai `i County is an Equal Opportunity Provider and Employer.
[(b)] Lc) Registration of all short-term vacation rentals.
(1) Short-term vacation rentals in existence on or before the effective date of
this ordinance:
(A) Shall register with the planning department pay a one-time fee of $100,
and an annual fee of $100, every year thereafter to the director of
finance, if they exist within the following zoning districts:
(i)The V, CG, and CDH; or
(ii)The general plan resort areas and resort node, in any district other
than RS.
(B) The initial registration form and associated fees, shall be submitted to
the planning department no later than one hundred eighty days after the
effective date of this ordinance[...], and every year thereafter on or
before the expiration date indicated on the registration.
(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[...], and
annually thereafter.
(3) Owners of short-term vacation rentals shall register by submitting a form to
the planning department in a format prescribed by the director.
The registration form, at a minimum, shall require:
(A) Verification that State of Hawaii general excise tax and transient
accommodations tax licenses are in effect;
(B) Certification that the requisite amount of parking pursuant to section
25-4-51, is available; [and]
(C) Submittal of a site plan showing the location of the rooms for rent and
requisite parking[...]; and
Verification that notification letters have been sent to all property
owners within five hundred feet of the perimeter boundary of the
affected property when a registration form for a short-term vacation
rental has been submitted to the planning director. The notification
letter shall provide detailed information about the short-term vacation
rental operations including; number of units being rented, maximum
number of guests permitted, number and location of required parking
spaces. The letter shall also include specific instructions on how to
provide comments to the planning_ department.
[(5)] Any short-term vacation rental that has not lawfully registered within the
deadlines set forth in this section 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.
[(e)]Ld� Standards.
A short-term vacation rental shall be subject to the following standards;
(1) The owner or designated contact person shall reside in the County of
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Hawaii and shall be reachable by guests, neighbors, and County agencies
on a twenty-four, seven days -per -week basis. The owner shall notify
the planning department of any changes to their contact 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 annual 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, Draft 2, "Section 25-4-_.1. Short-term vacation rental
nonconforming use certificate." is amended by amending subsection (f) through subsection (h) to
read as follows:
"(f) 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 the
applicant shall pay a renewal fee [0 0] based on the amount of Transient
Accommodations Taxes that were paid in the previous year, to the director of finance[.-];
as follows:
(1) Less than $500 $50;
(2) $500 to $2,000 $100;
(3) $2,001 to $5,000 $350;
(4) $5,001 to $10,000 $700; or
(5) More than $10,000 $1,000.
(gj Renewal of a nonconforming use certificate shall be denied if the director finds that the
short-term vacation rental use has been abandoned pursuant to section 25-4-62. Renewal
may be denied if the director verifies any of the following:
(1) The applicant has violated provisions of this section or other pertinent laws:
(2) The owner is delinquent in payment of County taxes, fees, fines, or penalties
assessed in relation to the short-term vacation rental:
(3) The owner or designated contact person has not been reachable; or
(4) Police reports or verified neighbor complaints of noise and other disturbances
relating to the short-term vacation rental operations.
[(g)](W The decision by the director to deny renewal of a nonconforming use certificate shall
require written notice to the property owner.
[(h)](i1 Appeal. Within thirty days after the receipt of the notice, the owner may appeal to the
board of appeals as provided by section 6-9.2, County Charter and sections 25-2-20
through 25-2-24."
3. SECTION 2 OF Bill No. 108, Draft 2, "Section 25-4- .4. Short-term vacation rental
enforcement account." is amended to read as follows:
"Section 25-4- .4. 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.
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(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 annual registration and
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."
4. SECTION 3 OF Bill No. 108, Draft 2, is amended by adding a definition of "Designated
contact person" to the existing definitions to read as follows:
EO:bl
Att.
""Designated contact person" means a professional property manager licensed in the state
of Nawni `i "
M
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) Private covenants prohibiting use of any unit as a short-term vacation rental shall
not be invalidated by this chapter.
(c) Registration of short-term vacation rentals.
(1) Short-term vacation rentals in existence on or before the effective date of
this ordinance:
(A) Shall register with the planning department, pay a one-time fee of
$100, and an annual fee of $100, every year thereafter to the director
of finance, if they exist within the followingzoning oning districts:
(i) The V, CG, and CDH; or
(ii) The general plan resort areas and resort node, in any district
other than RS.
(B) The initial registration form and associated fees, shall be submitted to
the planning department no later than one hundred eighty da sy_ after
the effective date of this ordinance, and every year thereafter on or
before the expiration date indicated on the registration.
(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, and annually
thereafter_
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(3) Owners of short-term vacation_ rentals shall register by submitting a form to
the planning department in a format prescribed by the director.
The registration form, at a minimum, shall require:
(A) Verification that State of Hawai'i general excise tax and transient
accommodations tax licenses are in effect;
(B) Certification that the requisite amount of parking_ pursuant to section
25-4-51, is available;
(C) Submittal of a site plan showing the location of the rooms for rent and
requisite parking; and
(D) Verification that notification letters have been sent to all property owners
within five hundred feet of the perimeter boundary of the affected
property when a registration form for a short-term vacation rental has
been submitted to the planning director. The notification letter shall
provide detailed information about the short-term vacation rental
operations including; number of units being rented, maximum number of
guests permitted, number and location of required parking spaces. The
letter shall also include specific instructions on how to provide comments
to the planning department.
(4) Any short-term vacation rental that has not lawfully registered within the
deadlines set forth in this section 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.
(d) Standards.
A short-term vacation rental shall be subiect to the following standards:
( 1) The owner or designated contact person shall reside in the County of
Hawaii and shall be reachable by guests, neighbors, and County agencies
on a twenty-four hour, seven days -per -week basis. The owner shall notify
the planning department of any changes to their contact 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 annual 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 of any short-term vacation rental which operated outside of a permitted
zoning district prior to July 20, 2018 shall submit an application for a
nonconforming use certificate to the director no later than one hundred eighty days
after the effective date of this ordinance.
(b) Prior Use. The applicant seeking a short-term vacation rental nonconforming
use certificate shall have the burden of proof in establishing that the property
was in use prior to July 20, 2018. Evidence of such use prior to July 20, 2018
may include tax documents for the relevant time period, including: State of
Hawaii general excise tax filings; transient accommodations tax filings, and
federal and State of Hawaii 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 vacation rental nonconforming use certificate
may be issued for single-family dwellings on lots existing before June 4, 1976
located in the State land use agricultural district.
(d) Display. Current short-term vacation rental 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 ma be displayed in a conspicuous, readily visible common area instead.
(e) Good neighbor policy. The owner or designated contact person shall be responsible
to ensure that activities taking place within the short-term vacation rental conform
to the character of the existing_ neighborhood in which the rental is located.
At a minimum, the following shall be prominently displayed within the dwelling
unit and recited in the rental agreement signed by the tenant:
(1) Quiet hours shall be from 9:00 p.m. to 8:00 a.m., during which time the noise
from the short-term vacation rental shall not unreasonably disturb adjacent
neighbors.
(2) Sound that is audible beyond the property boundaries during non -quiet hours
shall not be more excessive than would be otherwise associated with a
residential area.
(3) Amplified sound that is audible beyond the property boundaries of the short-
term vacation rental is prohibited.
(4) Guest vehicles shall be parked in the designated onsite parking area.
�f) 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 the
applicant shall pay a renewal fee based on the amount of Transient
Accommodations Taxes that were paid in the previous year, to the director of
finance, as follows:
(1) Less than $500 $50;
(2) $500 to $2,000 $100.
(3) $2,001 to $5,000 $350;
(4) $5,001 to $10,000 $700; or
(5) More than $10,000 $1,000.
(g) Renewal of a nonconforming use certificate shall be denied if the director finds that
the short-term vacation rental use has been abandoned pursuant to section 25-4-62.
Renewal may be denied if the director verifies any of the following:
(1) The applicant has violated provisions of this section or other pertinent laws:
(2) The owner is delinquent in payment of County taxes, fees, fines, or penalties
assessed in relation to the short-term vacation rental;
(3) The owner or designated contact person has not been reachable; or
(4) Police reports or verified neighbor complaints of noise and other disturbances
relating to the short-term vacation rental operations.
(h) The decision by the director to deny renewal of a nonconforming use certificate
shall require written notice to the property owner.
(i) Appeal Within thirty days after the receipt of the notice, the owner may appeal to
the board of appeals as provided by section 6-9.2, County Charter and sections 25-
2-20 through 25-2-24.
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_
Section 25-4- .3. Enforcement. If any short-term vacation rental is found to be
operating unlawfully, enforcement shall be pursuant to section 25-2-35.
Section 25-4- .4 Short-term vacation rental enforcement account.
(a) Pursuant to section 10-12, Hawaii 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 annual
registration and nonconforming use certificate renewal applications.
(d) The funds in this account shall be utilized to pa 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 Hawaii County Code 1983
(2016 Edition, as amended), is amended by adding new definitions to be appropriately inserted
and to read as follows:
"Designated contact person" means a professional property manager licensed in the
state of Hawai`i."
""Reachable" means being able to answer the telephone at all times, being able
to be physically present at the short-term vacation rental within one hour following a
request by a guest, a neighbor, or a County a eg ncy."
""Short-term vacation rental" means a dwelling unit of which the owner or
operator does not reside on the building site, that has no more than five bedrooms for
rent on the building site, and is rented for a period of thirty consecutive days or less.
This definition shall not apply to the short-term 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 Hawaii 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 aM
provision of this chapter, any rule adopted pursuant to this chapter, or with conditions
imposed as part of any approval [of], permit, [inel ding —",,.,a„ -os] or variance from the
provisions of this chapter, shall constitute a violation of this chapter."
SECTION 5. Chapter 25, article 2, division 6, section 25-2-61, of the Hawaii 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 O 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 O 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.
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(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 O districts.
[(M]LU2 Yacht harbors and boating facilities in the RS, RD, RM, RCX, RA, V, CG,
CV, MCX, ML, MG and O districts.
[(1-2)]fj3� Wind energy facilities in the O district; provided that the property is within
the state land use agricultural district.
[{� 3)] 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."
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 before July 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.
["]tL21 Yacht harbors and boating facilities."
10
SECTION 7. Chapter 25, article 5, division 12, section 25-5-122, 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 CV district, provided that a use permit is issued for each use:
(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.
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.
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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