HomeMy WebLinkAboutCOM 0739.316 2016-2018 • P/PC
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13-3540 KUMAKAHI STREET
PAHOA, HAWAII.96778
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October 15,2018
Ms.Valerie T. Poindexter,Chairwoman
Hawaii County Council em, cp
25 Aupuni Street,Suite 1402/2402,Aupuni Center
Hilo,Hawaii 96720
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Subject: Reject,Table or Rework the Seriously Flawed Bill#108 C)
Dear Chairwoman Poindexter, = 7.3
CD
It goes without saying that it is challenging to find the right balance for the management of short term cc —
vacation rentals when there are many competing interests and needs.Nevertheless,Hawaii County Bill
#108 fails miserably as a solution and should be shelved until an ordinance can be developed that is
incremental and proportional in its approach.Hawaii County Bill 4108 is a draconian approach that will
have all sorts of unintended consequences for an economy and population already reeling from the effects
of Hurricane Lane and the eruption of Kilauea.This ordinance is nothing short of a self-inflicted disaster.
Vacation rentals are the subject of attention and consternation in cities and rural areas throughout the
United States.There is no question that improperly managed vacation rentals are sources of neighborhood
frustration and stress.However,there seems to be a dearth of evidence proving vacation rentals generate a
statistically higher level of complaints than comparable resort or residential properties.Are there more
911 calls and complaints from short term vacation rentals than from long term rentals,resorts or owner
occupied housing.If so,this evidence should be made available to public.The fact that short term
vacation rentals are considered a systematic problem in a tourism based economy seems based largely on
anecdotal evidence.Aseveryone knows,anecdotal evidence is not a good foundation for public policies
with far reaching economic and social impacts.
We own property in Leilani Estates currently rented on a long term basis to a young couple.Our intention
has always been to eventually upgrade this property and convert it to a short term vacation rental we can
use ourselves intermittently during the year.This bill,while it grandfathers in existing short term vacation
rentals,makes it all but impossible for future vacation rentals to exist in areas outside of resort or
commercial nodes. How can anyone say this is a reasonable and equitable solution for property owners
who do not currently operate a short term vacation rental?Like most homeowners,we will have two
choices if this bill goes into effect. We can either rent our property on a long term basis or let the house sit
vacant for long period g of time.Like many of the property owners on the Big Island,we could have a
rental property anywhere in the world.Other than for investment purposes or permanent residence,why
would anyone choose to maintain a long distance rental property when their own use or ability to offset
some of the ownership costs is severely restricted?
It appears to us that most short term vacation rental ordinances are designed without a good understanding
of how vacation rentals are currently managed.The vacation rental sites we have used allow owners to
screen renters,require or provide optional insurance coverage and offer a rating system where renters and
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Comm. No.1311'
Ref. To: MC
Ref. Date OCT 15 2018
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owners have strong incentives to maintain their reputations.Anyone who does not abide by a uniform set
of house rules or standards,or who draws complaints from neighbors,will automatically have these
scores follow them whenever they try to use short term rentals in the future.Poorly managed properties
and those that draw complaints will not be competitive. Therefore,owners have a strong incentive to
maintain their properties and relationships with customers and neighbors.This is not the case for long
term residents who create nuisance conditions or who fail to maintain their property. There is no way to
similarly incentivize them to improve their behavior other than through code enforcement or punitive
police measures.
Bill#108 attempts to limit vacation rentals to resort zones or nodes, commercial areas,and grandfathers
in existing vacation rentals.This policy appears like it was designed by the resort industry.Tourists will
have fewer options if this ordinance goes into effect and will be forced to pay higher prices due to a lack
of competition and higher real estate values in resort and commercial zones. We have used vacation
rentals in Molokai,Kauai Maui,the Big Island,Florida and.Connecticut.Like many short term vacation
renters,I can assure you we are not the slightest bit interested in the offerings of traditional resorts or
hotels. Short term vacation rentals usually offer solitude,the amenities of home,a glimpse of the night
sky and a chance to learn something about the owners or neighborhood.Resorts and hotels cannot
compete in any of these areas,which is why vacation rentals are recognized as a threat to their business
models.
Our recommendation would be to pare down any short term vacation rental ordinance to a simple
licensing and registration process.It is only fair that vacation rentals pay taxes on par with resorts and
hotels. However,these properties do not have to be concentrated in specific geographic areas,nor should
they be grandfathered in as"spoils"to individuals who already operate such businesses.The tools already
exist to regulate nuisance short term vacation rental properties through community policing and the
reputation rating systems used by many of the larger vacation rental programs. The County and home
owner's associations also have ways to regulate short term vacation rentals through CCRs,building codes
and enforcement of nuisance laws. If neighbors feel like they do not have a way to hold property owners
accountable,then perhaps it would be possible to work with sites like VRBO or Home Away to provide
mechanisms for neighbors address"real grievances"and to suspend or terminate problematic properties.
We appreciate your consideration of these comments in connection with the attempt to regulate short term
vacation rentals.In our opinion,Bill#108 is a serious over-reach at a time when Hawaii Island can ill
afford to alienate its homeowners, businesses,residents or visitors.The City of St.Paul,Minnesota has a
fairer and more reasonable short term vacation rental ordinance and licensingprogress than proposed by
Hawaii County. It would be our recommendation that Hawaii County seriously consider enacting a
proposal of this type before embarking on the highly prescriptive and draconian approach of Bill#108.
(hUcs://www.stau
Mahalo,
a.
Brian L.Fredrickson Beth A.Fredrickson
Cc: Councilor Eileen O'Hara,Ph.D
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