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Home My WebLink AboutCOM 0739.358 2016-2018 P/cel - COUNTY CLERK C44µ.'1 COUNTY OF HAWIII Hawaii County Council Members 111I8 OCT 31 AH 10= 35 October 30, 2018 Re: Testimony to Bill 108: Opposed. Dear Council Members: I'm once again writing to express my strong opposition to Bill 108. Some regulation may be needed for vacation rentals, but your legislation goes far beyond what is necessary and will effectively discourage and eliminate thousands of taxpaying citizens from renting'their homes as they see fit. I don't own an unhosted rental, so I'm not affected personally by this bill. But I do have many friends and colleagues who would be absolutely devastated by this regulation. I believe that the legislation in its current form is highly punitive and draconian and will punish an entire class of residents and homeowners suddenly, radically and unfairly. It will also have a cascading effect and start to cause economic downturn for the thousands of folks who help maintain and service the vacation rental industry. It will also impact the real estate market, especially the second home market. People will pass on buying real estate if they can't rent it out in the way they wish to. Have you thought about what this legislation is going to do to our delicate island economy? Presently, tourists visiting the island have lots of choice about where to stay. Many like to book affordable, circle-island trips and stay in South Kona, Pahoa, Volcano, Hawi and Kailua Kona during their trip. During these visits, they eat at restaurants, shop at souvenir stores, visit the national parks and purchase activities such as tours in the vicinity of where they stay. But when their only option is an expensive hotel, people simply won't come. They will choose Mexico and other destinations. . Short-term rentals bring many positive economic benefits to our island community, especially in the rural areas, where there are not a lot of jobs or opportunities. People in these rural areas work in management, maintenance, repairs, construction, service, housekeeping and other jobs supporting the vacation rental industry. What will they do when the vacation rentals are gone? The island has been hit very very hard by natural disasters in 2018. Hurricanes, volcanic eruptions, unhealthy air and more have caused a plummet in our tourist numbers. It will add insult to injury to eliminate a truly viable way for people to earn income through vacation rentals. It's also worth noting that vacation rentals and long term rentals are two different markets. If the right to vacation rent is removed from homeowners, that doesn't automatically mean those owners will desire to be landlords. Many won't, especially without eviction support and backup here on this island. So they will sell and/or close up their homes. I believe all legislation must be paused until a non-partisan and independent economic impact r,, Comm. No.1 M. Seg Ref.To: P!COU I Ref. Date NOV 01 2018 MirC.Mt • statement Is undertaken, at the very least. Specifically my objections to the bill include: --Notification of neighbors. Isn't this a perfect way to stoke bad blood between neighbors? If someone doesn't like the way your trees are growing or other reasons unrelated to your rental, they could turn you in and shut you down as retaliation. This seems very unnecessary and will do all harm and no good. --365/24/7 property manager rule. This is the provision I have the biggest problem with. It essentially shackles you down and makes you beholden to anyone who wants to complain about you. If you can't be there, you have to pay someone to be there in your absence. This requirement seems unconstitutional and even illegal. Why does no other business on the island have this requirement? That someone be at their business 24/7/365 to answer complaints? Not even long term rentals are regulated that harshly. I think this provision should be struck from the bill, or the county may find itself facing lawsuits. --$500 fee per property is far too much for the first permit. I'm not sure why this was raised from previous versions of the bill. Again, why does this business facing a higher permit fee than other businesses on the island? --Requirement to have a final permit. Again, is this required of long-term housing? It will also eliminate all the tiny shacks, little cabins and treehouses that make alternative traveling so different and interesting. I don't support the bill at all in its present form but I would like you to consider the following possible changes that might make the bill a little easier on on-island owners. --If the owner lives on the island, within a reasonable distance from the rental, it should be considered "hosted." These rentals previously operating and tax compliant should be. grandfathered and exempt from fees and registration. (Otherwise you are criminalizing and penalizing your own residents, many of who are still struggling to recover after the devastating eruption of this spring and summer. I personally know folks who are developing an exit strategy to leave the island. They can't make it here anymore especially after this activity becomes regulated. ) --Commission an economic impact study. How can you shut down a robust industry that has been operating for decades already without even considering the economic impacts? It will be a cascade of economic devastation to the workers who serve this industry and the tourist attractions that these visitors patronize. Can you not see that? • 4 . --Consider the travel experience of visitors. Many I know have just learned about the regulations you have proposed that will reduce or eliminate their choices of accommodations on this island. Many WILL NOT stay in a hotel instead. They just won't come at all. We have been hearing of 2019 cancellations ahead of the regulation because of the uncertainty. I personally hosted guests who came to look at real estate but decided to pass because the upcoming TVR regulations are too harsh and would affect their choice about how to use their property until they could retire here. One of the reasons we had such high visitor counts last year was due to their wide and free choice of accommodations. Vacation rentals are a favorite of seniors, who like the ability to cook, stay in a place with a single floor, and not walk a great distance to their cars. Families like vacation rentals because they offer the comfort of a home with bedrooms for all the kids. There's more, but I'm not here to extol the virtues of vacation rentals. They are obvious. --Regarding the council itself, I want to make my feelings known about the two council members who own vacation rentals who are voting on the regulation of them, Karen Eoff and Tim Richards. This is clearly a conflict of interest and they should recuse, no matter that the "ethics" board cleared them!!! How can they be fair in voting on legislation that they personally benefit from? Meanwhile, Puna deserves representation from their councilwoman who is too busy chasing historical curiosities of the Hawaiian Kingdom claims to serve the people who elected her. At the very least, the vote should wait until the newly elected full council is seated. In closing, I would like to restate my complete opposition to this really harsh regulation that will not help anyone but the hotels. Sincerely, Kristina Anderson South Kona