HomeMy WebLinkAbout2024-04-24 Bill 121 Harry Pritikin OP From: trustharry(aaloha.net
To: W PCtesti mons
Subject: KILL BILL 121
Date: Wednesday,April 24,2024 11:27:50 AM
Attachments: imaae001.ipa
Importance: High
Aloha Chairman Lin,
The Ohana Aina Association is asking that people write to you
suggesting that you ask the County Council to do an economic impact
study on bill 121. It doesn't take a million dollar study to know what will
happen if this bill passes.
Here is a letter I wrote to Heather Kimball several months ago:
I read the article in Civil Beat News about your attempt to further curb
vacation rentals on the Big Island. This argument:
""There's so much outside investment and speculation in the county.
Property is picked up and land-bagged by outside investors and used for
transient accommodations instead of being made available to local
residents," Kimball said."
This argument is not valid because the current bill 108 cut off the
availability of new STVR permits back in 2019. Since then, no more
STVR permits have been allowed to be granted. You should know this.
Did the article mis-quote you? Because the "'outside investor" argument
has been dead since 2019 and you said your bill was for hosted
vacation rentals anyway. That means the "'host" lives on the property.
So why bring up the old "'outside investor" argument?
Also, hosted vacation rentals are not owned by "'outside" investors; they
are owned by Big Island residents who use the income to offset the
high cost of living in Hawaii. When you have to pay a million dollars for
a house that would cost $350K on the mainland, the vacation rental
income helps to offset your high mortgage payment. It is really a good
idea to force homeowner's to sell at a loss and leave Hawaii because
they can't make their house payments anymore? (postscript: If
hundreds of people are forced to sell, the result will be a glut on the
market which will reduce home prices. Likewise, demand will go down
when people find out they won't be able to vacation rent a room in their
home; further reducing home prices.) Does reducing land value really
help the local people? I don't think any local person wants to see the
value of their property go down. Nor does the County; because that
will reduce the income from property taxes. You said your bill is not
intended to put anyone out of business, but why have the bill at all if
that is not your intention? What is the intension if not to put people out
of business? If vacation rentals don't go out of business how will more
rental housing be made available for local families?? If people aren't
forced to sell and move to the mainland, how will more housing be
made available for local families??
Of course the Hawaii Tourism Authority supports the bill; they are in the
pocket of the big hotel chains. But on the Big Island, hotel occupancy
has been 75% to 100%, so vacation rentals aren't harming the hotel
industry on the Big Island. In fact, private vacation rentals bring in
millions of dollars of tourist's money that benefits everyone, the home
owner, businesses and their employees. Many of these tourists only
come to the Big Island because they can afford the cost of private
vacation rentals, but not the exorbitant hotel room costs.
Bill 108 was also supposed to lower rents for local people and make
more housing available to purchase. This did not materialize. Rents
and home prices have actually sky rocketed.
Trying to further hamstring homeowners with your ill-advised bill will
actually do more harm than good. It's called "un-intended
consequences".
Respectfully, Harry M. Pritikin homeowner and resident of the big Island
for 44 years.
Mahalo, Harry
Harry M. Pritikin (PB) Hawaii Real Estate Professor, LLC
Big Island Real Estate UPdates
74-5090 Old Palani Road, Kailua-Kona, HI 96740
Website: www.konarealestateaaent.com
24 HOUR CELL: 808-989-3491
EMAIL: trustharry(&aloha.net
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