HomeMy WebLinkAboutCOM 0739.177 2016-2018Aloha Ms. Eoff,
o Tyr CLERK
10 JUN ! A 9
Thank you for your service on the Hawaii County Council. I live in the South Kohala
District and understand you represent the North Kona District but as you know, the
issues in one district are issues for all others. I am writing to you specifically
regarding your proposed Bill 108 regarding Vacation Rental rules and restrictions in
Agricultural (AG) and Residential (R) zoned properties.
I would like to know the answer to a few questions:
1. What rental activities are currently allowed in "R" and "AG" zoning? Do
they allow rentals of 30 days (Hotel) or less if the owner is not inhabiting the
structure being rented?
2. What is the County of Hawaii's response to violators of the County's
current zoning code including restrictions regarding (Hotel) vacation rental
activity? Is the County pursuing legal action for zoning violators and if so
how? If not why not?
It has always been my understanding that without a "V" zoning, the County of
Hawaii Zoning code prohibited vacation rental activity in "R" and "AG" districts as
these districts were specifically zoned for agricultural use or typical residential uses
due to the fact that vacation rental activity encourages "transient" activity similar to
a hotel with all the same management challenges a hotel incurs.
These unique transient activities and challenges include:
Increased vehicular traffic due to the presence of the transient guest,
cleaning and other service personnel necessary to manage these
unique transient occupancy circumstances.
Dissimilar demographic profiles of vacation rental guests in stark
contrast to the existing, surrounding inhabitants of the other homes.
Short term and possibly out of state visitors versus long-term
residents including kama'aina families with children and senior
citizens.
Potential for noise and other behavioral complaints that are difficult
to manage and resolve. Noise and behavioral complaints on Hawaii
Island are only enforceable by calling HPD. Even occasional
complaints between neighbors are often resolved easily and quicker
as the residents are forced to negotiate "peace" as there exists a
somewhat long-term relationship. Vacation renters are difficult to
manage as the only resolution for the offended, long term occupant is
to call the police to act as a referee as the actual owner is probably out
of State and the vacation renter is long gone. This results in reduced
property values as long-term residents move out when a conflict
cannot be resolved. That is why "hotel" activity is limited to specific
zones -V -zoning in this case.
• Potential for each room in a housing structure to be rented out
separately on a nightly basis, which increases occupancy turnover and
escalates further the problems previously mentioned.
After the fact legislation, due to the County's non enforcement and or
poorly written zoning and use restrictions puts the burden on small
and sometimes hard to organize, Community Associations to
retroactively pass rules to restrict the hotel activity. Community
documents, if present, are hard to change, as they usually require a
super majority of owners to vote for the amendment to the governing
documents. Owner complacency and lack of involvement make these
hard to achieve and should not be necessary if in fact the County is
enforcing their zoning rules.
• Resort real estate values are being diminished because
vacation rentals are being allowed illegally in non resort "V" -
zoned properties. The less expensive "R" and "AG" properties
rented at high, per night rates (vacation rental -short term) is a
great arbitrage!
"R" and "AG" zoned property values are increasing where vacation
rentals are being tolerated and allowed by non -enforcement, driving
owner occupied local families out of the purchase market. Look at
recent news reports of "Super" sized "houses" being built on the
relatively, inexpensive east side's coastal zones as an example. These
are "hotels" by any other description as the owners are counting on
higher vacation rental rates to justify their high investment costs in
these areas.
• Long-term rental rates for local families and individuals are being
escalated because of vacation rentals being allowed in non -resort (V)
zoned areas where they typically live.
I could compile a comprehensive list of many other points but I think you
understand where I am going with my correspondence. As a real estate professional
involved in development and other real estate activities, it has always been my
understanding that re -zoning is the only solution to allow a particular use in a
zoning district that precludes such use -on a very broad geographic basis.
I do understand the Special Use Permits process and approval as this process allows
public input for these permits and re -zoning actions from potentially effected,
surrounding property owners.
I do not understand the County of Hawaii not enforcing their zoning code if in' fact
they preclude vacation rentals in AG and R zoned districts. Your answers to my first
2 questions should clarify. An approved use is an approved use. The County's lack
of enforcement within a classification should not be interpreted to mean it's "ok"
and lead to activity that was never contemplated by thousands of owners who
purchased properties in these areas or approved by the County.
I believe your Bill 108_seeks to clarify and rectify some of the issues that I mention
at some level even thoughl would point out that increasing taxes on what are
commercial apartments (hotels) only drives the activity below the "radar" and still
does not address the other issues I mention especially the property rights of existing
owners.
Allowing a transient commercial activity which essentially is a "hotel" adjacent to
families with children and seniors who have invested in a particular community
because of perceived use restrictions and seeking something other than a
residential hotel as a neighbor should be the County of Hawaii's concern not raising
additional tax revenues from illegal "hotels". Those seeking vacation rental
properties and revenues (Hotel use) should purchase within the "V" zoned districts
where it is allowed and can be controlled, restricted or precluded by community
documents.
Many thanks for reading my correspondence. I have been a real estate broker
specializing in residential development for over 30 years. I have lived for 15 years
in a community that allows vacation rental within the Mauna Lani Resort so I know
first hand about "transient occupancy" use and guest behavior. In addition I was the
president of my community, The Villages at Mauna Lani community and managed
many of the issues I mention via their BOD. Lastly, I work for a residential
developer within the Mauna Lani Resort where we are planning and building
properties that do allow vacation rental activity. Our documents and house rules
are intended to manage many of the issues I mention. We have prepared our
community documents based on our experience.
Finally, are "R" and "AG" zoned communities where transient "hotel" use was not
necessarily contemplated equally prepared? I would say -probably not.
Aloha
Rick Oliver 68-1025 North Kaniku Drive #103 Kamulea, HI 96743