HomeMy WebLinkAbout2024-04-16 Bill 121 Rachel Nack From: Rachaelle
To: LPCtestimonv
Subject: Written Testimony for Proposed Bill 121
Date: Tuesday,April 16,2024 8:53:20 AM
My name is Rachel Nock, and I am a member of National Association of Realtors
and Hawaii Island Board of Realtors. I am writing to the County of Hawaii
Council to state my opposition to some of the issues of Proposed Bill 121: An
Ordinance for Hosting Platforms Amending Chapter 25, Articles 1, 4, and 5 of
the Hawaii County Code 1983 (2016 Edition, as Amended), Relating to Transient
Accommodation Rentals and Hosting Platforms.
Bill 121 takes property rights away. As homeowners, we have the right to use our
homes for residential purposes and length of tenancy occupancy should not be
regulated, nor should the areas in which we rent our homes. Also, we should not
be required to place signage at the curb to inform the public we are a vacation
rental due to security issues.
Bill 121 conflicts with Hawaii state law. Eliminating existing unhosted transient
rentals of 31 days or greater without allowing nonconforming use permits for
homeowners is prohibited by State Law. Increasing the minimum duration for
short-term rentals from 30 to 180 days poses legal complexities and could result
in unnecessary litigation. This change unfairly strips many homeowners of their
current usage rights, impacting the value and utility of their properties. This is
especially relevant considering a recent Oahu ruling (Hawaii Legal Short-Term
Rental Alliance v. City and County of Honolulu), where a judge maintained the 30-
day minimum and highlighted the legal and equitable issues of extending the
minimum period.
Bill 121 will disproportionately hurt those on the lower socio-economic spectrum.
No evidence has been presented by the County to demonstrate that property
currently used for transient accommodation will convert to long-term or
affordable housing.
The inherent risks (Landlord-Tenant code and emergency proclamations) in
providing residential housing combined with lower rental rates deter many
owners from offering their rentals in the long-term market. Residents who
specialize in servicing such properties, offering maid service, handyman
assistance, and landscaping, especially in rural areas, will be affected. If these
individuals have fewer opportunities for work, they may be compelled to either
leave the island or commute long distances for lower-paying employment. These
unintended consequences further hinder residents' ability to secure housing. Bill
121's exemptions, by focusing on specific professional groups such as nurses and
doctors, even as outlined in state legislation, inadvertently create a
discriminatory framework. This selective approach not only overlooks the
broader spectrum of housing needs across various occupational sectors but also
fails to address the overarching housing shortage issue on the island.
I am opposed to punishing local homeowners with unreasonable fines, fees and
processes. The onerous application process, initial, and renewal fees outlined in
this bill, create an undue financial burden on lower income residents. Fines up to
$10,000 in addition to Director imposed fines at twice the highest advertised
daily rate are exorbitant and disproportional to the violations proposed in the
bill. These issues are in direct conflict with existing fines stated in the Hawaii
County Chapter 25 which start at $500 on first offense. Additionally, if a host
receives three complaints within a 12-month period, the TARMUC may be
suspended for up to two years. This concentration of power, combined with the
nontransparent complaint and appeal process for operators is unreasonable. The
proposed bill's reporting requirements are overly demanding, requiring monthly
detailed submissions not just from large hosting platforms but also from
individual owners and small-scale operators, including 'mom and pop' setups
managing direct bookings. This overreaching demand for comprehensive rental
information is impractical and places an unreasonable workload on these
services.
I am opposed to additional regulations in lieu of full enforcement of Ordinance
2018-114. Ordinance 2018-114 (Bill 108) and the resulting Planning Department
Rule 23 have had little to no impact on deterring illegal vacation rentals or
curbing non-compliant behavior. The lack of proactive enforcement measures by
the county failed to adequately address the underlying issues that Ordinance
2018-114 sought to solve. The County has an obligation to actively pursue and
terminate illegal transient rental operations as well as equally enforce existing
regulations to protect all residents. This responsibility extends beyond a
complaint-driven enforcement model which only contributes to the erosion of
community character. Until Ordinance 2018-114 is proven effective in preserving
the character of our residential and agricultural areas, reducing speculative
investment in properties within these markets, and adding to housing availability
for residents, further regulatory changes should NOT be considered.
For the reasons above, I strongly oppose this legislation and believe a completely
different approach is necessary. As a member of HIBR, I wish to see a sensible
solutions to the issues inherent in the housing sector. We acknowledge that the
solution to providing attainable, affordable, and workforce housing is not easily
achieved. To effectively increase available housing, the County must remove
barriers such as prohibitive zoning, address aging and nonexistent
infrastructure, and revise the cumbersome and unreasonable building and energy
codes. Punishing those who have chosen to create business here, pay taxes,
create jobs, contribute to their communities, and call Hawai'i their home is not a
solution to the County's need for housing. Hawaii Island REALTORS@ and the
West Hawaii Association of REALTORS@ adamantly OPPOSE BILL 121.
Thank you,
Rachel Nock
15-2714 Pahoa Village Road, Suite H-2, #158