HomeMy WebLinkAboutPD Recommendation Report (PL-CCI-2026-000016)1
RBill147 – 5.1.2026
COUNTY OF HAWAI‘I PLANNING DEPARTMENT RECOMMENDATION REPORT
COUNTY COUNCIL INITIATED BILL NO. 147 AMENDMENT TO CHAPTER 2 AND CHAPTER 25 OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT ACCOMMODATIONS
Since implementation of Ordinance No. 18-114 in 2018, which only regulated
un-hosted transient accommodations (STVRs), the Planning Department has
administered transient accommodation regulations through registration review,
permitting, complaint investigation, compliance monitoring, and enforcement activities.
Through administration of the existing framework, the Department has identified recurring
operational and enforcement challenges involving unregistered transient accommodation
operations, online advertising of unregistered units, verification of hosted occupancy
requirements, inconsistent responsiveness of local contacts and operators, complaint
investigation workloads, and coordination between zoning, registration, and enforcement
requirements.
Based on this implementation experience, the Planning Department finds that the
proposed amendments of Bill 147 generally advance the County’s land use and planning
objectives by maintaining the County’s existing transient accommodation framework while
improving operational accountability, regulatory consistency, and neighborhood
compatibility. The proposed amendments continue to allow transient accommodations
within areas where such uses have historically operated, while establishing clearer
operational standards intended to reduce land use conflicts involving parking, noise,
occupancy, and event-related activities within residential and agricultural communities.
The proposed amendments also improve consistency between zoning regulations,
registration requirements, and enforcement provisions applicable to hosted and un-
hosted transient accommodations.
Additionally, several provisions within Bill 147 are generally consistent with
recommendations contained within the 2025 Hunden Partners County of Hawaiʻi
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Economic Impact Study on Short-Term Vacation Rentals. The Hunden study concluded
that transient accommodations contribute substantial economic activity through visitor
spending, lodging revenue, employment, and tax generation, while also acknowledging
continuing concerns relating to housing affordability, neighborhood compatibility,
infrastructure impacts, and enforcement challenges. The study additionally concluded
that enhanced registration compliance, operational standards, and targeted enforcement
measures may provide more effective regulatory tools than broad prohibitions on transient
accommodations. The Department finds that Bill 147 generally reflects this policy
approach by maintaining the County’s existing regulatory framework while strengthening
operational standards, registration requirements, and enforcement capability.
The Department additionally reviewed the transient accommodation regulatory
frameworks adopted by neighboring counties within the State of Hawaiʻi and found that
several provisions proposed under Bill 147, including registration requirements,
operational standards, and enforcement mechanisms, are generally consistent with
regulatory approaches implemented elsewhere in the State.
The following table summarizes regulatory approaches adopted by neighboring
counties:
County Zoning Restrictions Permit/ Registration Initial Fees Annual Fee
City and County of
Honolulu
STRs generally limited to resort-zoned areas and a limited number of
apartment-zoned districts. Bed & Breakfasts (hosted rentals)
and Transient Vacation Units (TVUs) are regulated
separately under
the STR ordinance.
Requires registration and/or Nonconforming
Use Certificate (NUC) for grandfathered operations
B&Bs and TVUs require registration and compliance with operational
standards.
TVU Registration / NUC Fee: $1,000. Bed and
Breakfast or Initial Fee: $1,000
TVU
Renewal: $500. B&B
Renewal:
$500.
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Kauai
County
TVRs generally
restricted to Visitor Destination Areas (VDAs) and grandfathered
operations
Homestays generally limited to VDAs; owner-occupied
requirements and guest room limits apply
TVR permits and renewal
requirements
Homestay / Class IV Zoning Permit and annual recertification
requirements.
No registration
fee.
Homestay Permit: Approx. $800 Class IV Zoning Permit
fee.
$750 for a TVR outside
of VDA
Homestay Renewal: $750 annual recertificatio
n fee.
Maui County
STRHs heavily
regulated;
apartment-zoned TVRs being phased out under Bill 9
STRH permit
system; Minatoya
List grandfathered units; caps by community plan areas
STRH Permit: $1,370 application fee; additional $1,676
if public hearing
required. B&B Permit: $206 application
fee; additional $1,676 if public hearing required.
STRH Renewal:
$1,370
B&B Renewal: $206;
Hawaii County
(Existing)
Existing STVR (un-hosted) framework allows NUCs and hosted
rentals in certain zoning districts
Registration and NUC framework established under
Ordinance 18-114
$500 Filing Fee for all Un-hosted TVR (STVR)
$250 Annual Fee for STVRs with
NUCs
Hawaii County (Bill 147)
Retains existing
STVR and adds
B&B framework
while expanding operational standards for hosted
accommodations.
Registration and
Special Permit for those in the State Land Use Agricultural District
$500 Special Permit (if required)
$500 New Un-hosted STVR Permit $250 New
Hosted B&B Permit
$100 Renewal Fee for
Hosted TVR
(B&B) $250 Renewal Fee for
Unhosted TVR STVR
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Compared to neighboring counties, Hawai‘i County generally maintains a less
restrictive regulatory framework while emphasizing operational standards, registration
compliance, and enforcement rather than broad zoning prohibitions. Hawai‘i County’s
current and proposed application fees also remain substantially lower than comparable
fees charged by neighboring counties, indicating that the County’s fee structure remains
relatively modest. The Department notes that under the County’s existing zoning
framework, bed and breakfast establishments within the RS zoning district currently
require approval of a use permit by the Planning Commission. Bill 147 proposes to
remove this requirement; thus should Bill 147 not be adopted, bed and breakfast
operations would continue to be subject to the use permit requirements under the existing
Code.
The Department supports the proposed operational standards relating to parking,
local contact responsiveness, advertising requirements, and good neighbor provisions
because these standards will improve neighborhood compatibility and enforcement
capability. Because Bill 147 relies primarily upon operational regulation, registration
compliance, and ongoing enforcement oversight rather than broad zoning restrictions,
effective implementation of the proposed amendments will require continued coordination
between registration, permitting, compliance monitoring, and enforcement functions.
The Department additionally recognizes that the proposed regulatory framework
distributes transient accommodation regulations between Chapter 6 (Businesses) and
Chapter 25 (Zoning), representing a significant administrative shift from the County’s
historical practice of regulating land use requirements primarily within Chapter 25. As
implementation proceeds, additional technical amendments, clarifications, or conforming
revisions may be identified to improve coordination and administration between the two
chapters.
PLANNING DIRECTOR’S RECOMMENDATIONS
While the Department generally supports the intent of Bill 147, staff identified several
areas where additional clarification may improve consistency in code interpretation,
permit administration, enforcement application, and coordination between land use,
registration, and operational requirements. The Department’s recommended revisions
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are intended to improve administrative consistency, reduce ambiguity, and facilitate more
predictable implementation of the proposed regulations.
The Director’s proposed text changes to Bill147 are shown below in Ramseyer format
with material to be added noted in underline and material to be deleted shown in brackets
and struck through.
Recommendation #1: Amend Title of TVR Enforcement Fund in Section 2 of the
Bill as follows:
"Section 2- . [STVR]TVR enforcement fund.
(a) There is established an [STVR] TVR enforcement fund to be administered by the planning director and funded by all fees, fines, and other monies collected in connection with the administration and enforcement of County transient vacation rental laws, rules, or land use regulations.
(b) Use of the fund is restricted to expenses and payments that support, expand, improve, or otherwise facilitate enforcement of County transient vacation rental laws, rules, or land use regulations."
Reason: The proposed amendment clarifies that the enforcement fund applies to
all transient vacation rentals, rather than only short-term vacation rentals. The
amendment improves consistency with the broader regulatory framework
established under Bill 147 and ensures that enforcement-related revenues may be
used to support administration, inspections, investigations, staffing, technology,
and compliance activities relating to all transient vacation rental operations.
Recommendation #2: Clarify the B&B Definition Residency Requirements as
follows:
“[“B&B” or] “Bed and breakfast” (B&B) means a TVR that is [incidental and
subordinate to use as the principal home of a host.]located on a building
site in which a host resides in a principal home.”
Reason: Clarifies that a B&B must be located on the same building site as the
host’s principal residence. The amendment is intended to improve consistency in
the administration and enforcement of hosted occupancy requirements applicable
to bed and breakfast operations.
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Recommendation #3: Clarify Host Definition Residency Requirements as follows:
““Host” means a reachable person who resides [on the same building site
as a TVR while is rented.] in a dwelling on the building site while the B&B
is rented.”
Reason: Clarifies that the host must reside on the same building site as the B&B
during rental activity. The amendment is intended to improve consistency in the
administration and enforcement of hosted occupancy requirements applicable to
bed and breakfast operations.
Recommendation #4: Clarify the definition of a Transient Vacation Rental as
follows:
[“TVR” or] “[transient]Transient vacation rental” (TVR) means a dwelling unit or portion thereof, containing no more than five bedrooms [or suites] on a building site, unless subject to a condominium property regime: (1) That is, or is offered to be, furnished and rented to a transient: (A) For a rental period less than one hundred and eighty consecutive
days; and
(B) In exchange for money, goods, services, or other consideration; and (2) Excluding hotels, motels, inns, apartment hotels, boarding facilities, lodges[,] and timeshares[, and tents]."
(3) Tents shall not be used as a transient vacation rental.
Reason: The proposed amendment expressly clarifies that tents shall not be used
as transient vacation rentals and further clarifies the applicability of bedroom
limitations to properties subject to a condominium property regime. The
recommendation is intended to improve regulatory clarity and support consistent
administration and enforcement of transient vacation rental regulations relating to
temporary accommodations. The amendment is also consistent with comments
provided by the Department of Public Works, Building Division.
Recommendation #5: - Remove sections relating to “TVR Enforcement;
Generally” and “TVR Enforcement; Cumulative Effect” within Section 5 of the Bill
as follows:
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"Division . Violations, Penalties, Enforcement; Transient Vacation Rentals.
[Section 25-2- TVR enforcement; generally.
(a) In administering County transient vacation rental laws and applicable
land use regulations, the planning director shall: (1) Establish enforcement and inspection procedures to investigate and determine the factual basis of a complaint and whether a violation of this chapter has occurred; and (2) Keep information regarding County transient vacation rental laws,
policies, rules. and procedures publicly accessible. (b) In the case of a B&B. the owner and host are jointly and severally liable for all fines, fees, and penalties assessed, whether under this section or any other provision of this
chapter.]
[Section 25-2- TVR enforcement; cumulative effect This division does not displace, dispense with, preclude, limit, or otherwise affect any other enforcement power, penalty, or legal remedy available under this chapter or other applicable law."]
Reason: The proposed removal is intended to avoid redundancy and potential
inconsistency within Chapter 25, as the Hawaiʻi County Code already contains
comprehensive administrative enforcement and cumulative remedies provisions
under Sections 25-2-35 (“Administrative enforcement”) and 25-2-36 (“Remedies
cumulative”). Retaining duplicative enforcement language specific to transient
vacation rentals may create confusion regarding applicability, interpretation, and
enforcement authority. Consolidating enforcement authority under the existing
countywide enforcement provisions promotes clarity, consistency, and efficient
administration of the Code.
Recommendation #6: Add TVR Enforcement Fund Provisions to Chapter 25 as
follows:
"Section 25-2- . TVR enforcement fund.
(a) There is established an TVR enforcement fund to be administered by
the planning director and funded by all fees, fines, and other monies collected in connection with the administration and enforcement of County transient vacation rental laws, rules, or land use regulations. (b) Use of the fund is restricted to expenses and payments that support,
expand, improve, or otherwise facilitate enforcement of County transient vacation rental laws, rules, or land use regulations."
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Reason: Bill 147 establishes a TVR enforcement fund in Chapter 2; however, these
same provisions should be added to Chapter 25 since it is the Planning Director’s
responsibility to enforce the TVR regulations. The proposed amendment
establishes TVR enforcement fund provisions within Chapter 25 to support
enforcement activities associated with the County’s zoning and land use
regulations applicable to transient accommodations. Because Bill 147 distributes
transient accommodation regulations and enforcement authority across multiple
code chapters, including Chapters 6 and 25, HCC, corresponding enforcement
fund provisions within Chapter 25 will improve administrative coordination and
clarify that enforcement-related revenues may be used to support zoning
compliance, permit administration, inspections, complaint investigation, and other
land use enforcement activities relating to transient accommodations.
Recommendation #7: Clarify permitted locations of Bed and Breakfast
Establishments as follows:
“Section 25-4- . Bed and breakfasts; where permitted. A B&B is permitted in the following zoning districts: (1) RS, RD, RM, RCX, RA, V, CN, CG, CV, CDH, and PD; and (2) Any agricultural district, other than IA, that is wholly situated within: (A) The State land use urban or rural district; or
(B) The State land use agricultural district, provided that: i. Where the B&B is located in a single-family dwelling or farm dwelling, as defined in Chapter 205 Hawaiʻi Revised Statutes, and the dwelling is also the principal home of the host;
ii. The dwelling is not an additional farm dwelling or farm
employee housing;[and]
iii. A host shall not live in the guest house or detached bedroom; and iv. A special permit is obtained[.], as defined in Chapter 205, Hawaiʻi Revised Statutes.”
Reason: Clarifies that B&Bs are permitted within the RA zoning district. This
recommendation incorporates comments from the Office of Planning and
Sustainable Development (“OPSD”) clarifying that applicable dwellings and special
permits are those defined pursuant to Chapter 205, Hawaiʻi Revised Statutes
(“HRS”). The recommendation additionally clarifies that the host must reside on
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the same building site, but not within the rented guest house or detached bedroom,
in order to improve consistency between hosted occupancy requirements and bed
and breakfast operational standards. The recommendation also recognizes that
House Bill 1737, currently pending the Governor’s signature, proposes revisions
to Chapter 205, HRS, terminology relating to additional farm dwellings and farm
employee housing, and is intended to improve consistency with potential future
amendments to State land use law.
Recommendation #8: Clarify STVR Zoning Applicability and Limitation of STVRs
to One Per Building Site as follows:
Section 25-4- . Short-term vacation rentals; where permitted; nonconforming use certificate. (a) An STVR is permitted in the following zoning districts:
(1) RM, V, CG, CN, CV, and CDH; (2) [Any residential district. other than RM,] RS, RD, RCX zoning districts that [is] are wholly situated within any of the following: (A) A Resort or Resort Node area, as designated in the General
Plan; or
(B) An area designated as Open in the General Plan that is adjacent to an area identified in subparagraph (A) and that is located along the shoreline[; and]. (3) A project district where consistent with the uses allowed in the underlying zoning district.
(b) [An STVR is not permitted in a multiple-family dwelling, unless the dwelling is defined and governed as a condominium property regime under the Hawai'i Revised Statutes. chapter 514B.] STVRs are limited to one per building site, unless the dwelling is defined and governed as
a condominium property regime under the Hawai'i Revised Statutes,
chapter 514B.
Reason: The proposed amendment clarifies the zoning districts in which STVRs
are permitted and further clarifies that STVRs are generally limited to one per
building site, except for condominium property regimes governed under
Chapter 514B, Hawaiʻi Revised Statutes. The recommendation is intended to
improve clarity and consistency in the administration and enforcement of transient
vacation rental regulations.
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Recommendation #9: Add Applicability Exemptions Consistent with Chapter 6 as
follows:
“Section 25-4-__. Applicability. This article does not apply to any accommodation, lease, letting, or rental activity:
(1) Exempt from Hawaiʻi Revised Statutes chapter 237D;
(2) Subject to Hawaiʻi Revised Statutes chapter 521; or (3) Furnished to a health care worker temporarily employed at a medical facility in the County; or (4) Authorized by a declaration of a state of emergency.”
Reason: The proposed amendment is intended to maintain consistency between
Chapter 25 and Chapter 6 of the Hawaiʻi County Code regarding activities exempt
from transient vacation rental regulations. The amendment incorporates existing
applicability exemptions already recognized under Chapter 6.
Recommendation #10: Clarify General Compliance and Permitting Requirements
for TVRs as follows:
“Section 25-4- General provisions. (a) Use of a TVR, including the structure or dwelling, the rental activity, and any other activity on the property in connection therewith, must be
done in accordance with the provisions of this division[.], and Chapter 6, Article 6 (Transient Vacation Rentals) of the Hawaiʻi County Code, which governs business registration for transient vacation rentals. (b) The owner and, if applicable, the host of a TVR are responsible for
compliance with the provisions of this division.
[(c)In the case of a conflict between the operational standards set forth in this division and the conditions of a use permit or special permit regulating the rental activity of a TVR, the latter shall control.] (c) No more than one accessory dwelling unit may be used as a transient vacation rental, provided there are no other transient vacation rentals
on the building site. (d) A TVR may only be established within a dwelling that has been issued final approvals by the building division for building, electrical, and plumbing permits and any land use permits that may be applicable
such as a special permit.
(e) The applicant may be granted a one-year period to come into compliance with the requirements listed in subsection (d). Additional time may be granted to the applicant if needed.”
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Reason: The proposed amendment clarifies compliance obligations applicable to
transient vacation rentals and improves consistency between zoning, permitting,
building code, and business registration requirements under the Hawaiʻi County
Code. The recommendation also incorporates existing accessory dwelling unit
limitations applicable to transient vacation rentals into the general TVR provisions
in order to improve clarity and consistency in administration and enforcement. The
recommendation further incorporates comments from the Department of Public
Works, Building Division, requesting clarification that required building, electrical,
and plumbing permits receive final approval prior to operation of a transient
vacation rental. The amendment additionally removes potentially conflicting
language regarding permit conditions and provides administrative flexibility for
existing properties working toward compliance.
Recommendation #11: Clarify that weddings, wedding receptions, concerts, and
other special events may be permitted at a TVR when authorized through an
approved use permit or special permit issued by the Planning Commission.
Proposed revisions:
Operational standards; good neighbor policy:
“(e) A guest or renter of a TVR may not use it for a wedding, wedding reception, concert, or other special event[.], unless approved by a use permit or special permit.”
Operational standards; advertising and signage:
“(b) No person may advertise a TVR as a venue for weddings, wedding
receptions, concerts, or other special events[.], unless approved by a use permit or special permit.”
Reason: The proposed revisions clarify that weddings, wedding receptions,
concerts, and other special events may be permitted where authorized through an
approved use permit or special permit pursuant to the Hawaiʻi County Code. The
clarification promotes consistency with existing land use entitlement processes
and avoids unintended interpretation that all special events are categorically
prohibited regardless of prior land use approvals. This recommendation does not
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independently authorize commercial event activity but recognizes that certain
properties may already possess separate land use approvals permitting such uses.
Recommendation #12: Remove Bed and Breakfast Parking Requirements and
Revise Transient Dwelling Parking Standards as follows:
“Section 25-4-51. Required number of parking spaces. (a) The number of parking spaces for each use shall be as follows: [(2) Bed and breakfast establishments: one for each guest bedroom, in addition to one for the dwelling unit.]
[(8)](7) Dwellings, single-family and double-family or duplex that are
occupied for any period of less than one hundred eighty days[:] if operated as a B&B: one space for each rented bedroom in addition to one space for the dwelling unit if rooms in the dwelling unit are rented individually, or two spaces if the dwelling unit is
rented as a whole and operated as a STVR.”
Reason: The proposed amendment consolidates parking requirements for all
TVRs. The amendment is intended to eliminate redundant code provisions,
improve clarity and organization within Section 25-4-51, and promote more
consistent administration and interpretation of parking requirements applicable to
bed and breakfast establishments and transient vacation rentals.
The following recommendations are proposed as housekeeping measures:
Recommendation #13: Revise Formatting of Defined Terms as follows:
“[“B&B” or] “Bed and breakfast” (B&B) means a TVR that is incidental and
subordinate to use as the principal home of a host.”
“[“STVR” or] “[short-term]Short-term vacation rental” (STVR) means a TVR located on a building site on which a host does not reside.”
Reason: The proposed amendment revises the formatting of defined terms to
improve readability and clarity by identifying the full defined term before the
acronym. The amendment is intended to make the definitions easier for the public
to read and interpret consistently.
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Recommendation #14: Remove Definition of “Audible” as follows:
Section 25-4-__. Operational standards; good neighbor policy.
(f) Quiet hours shall be from 10:00 p.m. to 8:00 a.m. during which time any
noise from a TVR may not disturb neighbors. During all other times, any noise from a TVR may not exceed the standards set forth in Title 11, Chapter 46 of the Hawaiʻi Administrative Rules. [For the purposes of this subsection, “audible” means perceptible by person without the use of a sound detection device or an audio aide.]
Reason: The proposed amendment removes the definition of “audible” because
the term is not otherwise used within Bill 147 and may create unnecessary
ambiguity in the interpretation and enforcement of applicable noise standards.
Recommendation #15: Clarify code references relating to signage requirements
applicable to TVRs as follows:
Section 25-4-__. Operational standards; advertising and signage. (a) Signage associated with a TVR must comply with [section 22-2.6 and chapter 3 of this Code.] Chapter 22 (County Streets), section 22-2.6,
and Chapter 3 (County Signs) of this Code.
Reason: This recommendation is intended to improve readability and clarify code
references.
Based on the analysis provided, the Planning Director recommends that the
Windward and Leeward Planning Commission forward a favorable
recommendation of Bill No. 147 to the County Council, with the additional
recommendations outlined in this report.
PLANNING COMMISSION ACTION
The Windward and Leeward Planning Commissions are required to take action on
Bill 147 as described in Section 25-2-43 (b) of the Zoning Code. This bill was transmitted
by the County Council to the Department on April 10, 2026, therefore the commissions
are required to transmit their recommendations to the council by August 8, 2026. The
commissions shall recommend approval in whole or in part, with or without modifications,
or rejection of the proposed bill. Each commission’s recommendations will be forwarded
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separately, but at the same time, to the County Council for their consideration and
decision. In the event the commissions fail to act on the proposed bill by this date, such
inaction shall be considered as an unfavorable recommendation by the commission.