HomeMy WebLinkAboutCOM 0739.152 2016-2018From:
MATT HUBNER
To:
Council Testimony
Subject:
Testimony on Bill 108
Date:
Monday, June 04, 2018 1:22:35 PM
Dear Members of the Hawai'i County Council,
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I am submitting my testimony in opposition of Bill 108 in its current form. Before doing so, I wish to state that my feeling is
that now is an inappropriate foolhardy time to consider this legislation, as scores of Puna residents (including quite a few VR
owners that would be subject to the Bill) are displaced due to the ongoing lower Puna eruption. The Bill in its current form
targets a majority of owners in the Puna District, which is severely economically impacted right now, if not directly impacted
by this eruption. I understand that there are State -driven financial aspects to enacting legislation, but the Council right now
should be asking whether implementing any legislation that could potentially reduce income to the County coffers is a smart
approach for a small amount of money from the State. Not only is the Country losing property income from the lost housing
in lower Puna, but from my personal experience renting my house a s a vacation rental, tourists are fearful to come and visit
the island as a whole. Businesses are suffering. My caretaker and housekeeper who has depended on my business for the last 7
years is having to scrounge for other work opportunities because of all the cancelations. Now is a perfect time to gather data
on the effect of vacation rental property income to the County.
While I do believe that Bill 108 has fundamental flaws that should require it to be re-evaluated, if not tabled until the eruption
emergency, abates, I believe that the following issues could be addressed to make it better:
1. Eliminate or reduce the registration fee and require it for all vacation rentals, regardless of zoning or property type.
Either option would be an equitable solution if all vacation rentals are indeed an issue worth regulating on Hawai'i
Island. This would also eliminate any perception of conflicts of interest by any members of the Council who may be
perceived to benefit from this regulation.
2. Establish a method for allowing new nonconforming use certificates to be issued and do not implement a moratorium.
I have heard that the moratorium is part of Bill 108 in order to allow the Council time to "hit the pause button" and
evaluate the situation. If the Council decides that it is necessary to implement a moratorium in order to allow time for
adequate evaluation, I suggest that an end date for the moratorium be established and be in place no longer.than a
calendar year after the Bill's adoption. This would ensure that the Council takes up the matter of evaluating the issue
in a timely manner and be held accountable for doing so.
3. If a moratorium and registration fees are enacted, I recommend that Bill 108 require funds be used to establish an
independent third party to objectively evaluate the status of vacation rentals on Hawai'i Island, which can then be
used to inform future action by the Council.
4. Establish whether non -conforming use certificates will be transferable with sale of the property. Bill 108 does not
elaborate on the lifespan of the non -conforming use certificates. In it's current location in the Bill, it is not clear if
transfers apply to all short term rentals or not.
5. Utilize the current State tax licenses that must be prominently displayed (per Act 204) as registration numbers for
purposes in the Bill and strike the requirement for an additional posting on the back of our door. This should allow
simplification of the process and eliminate some confusion for enforcement purposes. '
6. Evaluate the cut-off date due to the current eruption. Some VR owners have repurposed their rentals to serve as long-
term housing for evacuees. It is unclear in the Bill whether those who are assisting the community by doing so, will
not be allowed to be grandfathered in if this volcanic activity persists beyond the July 20 cutoff.
Mahalo for the opportunity to provide testimony.
Aloha and Malama Pono,
Matt Hubner
Volcano
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