HomeMy WebLinkAbout2026-06-27 Harry Kim Support TestimonyFrom:Roy Takemoto
To:Planning WPC Testimony
Subject:Submitting Testimony— Windward Planning Commission, July 2, 2026
Date:Saturday, June 27, 2026 11:24:02 AM
Attachments:Vacation Rental Testimony.pdf
Submitting on behalf of Harry Kim
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Testimony Supporting Bill 147 Relating to
Transient Vacation Rentals
(Agenda Item #6)
Windward Planning Commission, July 2, 2026
Harry Kim
Types of TVR’s
There are two types of TVR’s, as clarifled by deflnition in Bill 147: hosted (also known as
“bed and breakfasts or B&B”) and unhosted (also known as “short-term vacation rentals or
STVR”). They are currently both regulated disjointly in the zoning ordinance. Bill 147
attempts to regulate them more consistently under the common rubric as transient
vacation rentals by amending the zoning ordinance. Farmstays are a special type of hosted
TVR located in the agricultural district that provide an immersive experience with the host
farmer or rancher on a working farm or ranch. It is meant to supplement the income of a
working farmer or rancher. It would not make sense to allow an unhosted farmstay that
lacks the relationship nor the income supplementation with a working farmer or rancher.
The hosted TVR (B&B) requires less restrictions, and I support the proposed regulatory
improvements in Bill 147. My testimony focuses on the unhosted TVR (or STVR).
Purposes to Regulate Vacation Rentals
The public welfare purposes underlying the regulation of short-term vacation rentals
include:
1. Affordable Housing. Because of the stark difference in income generation potential
between long-term and short-term rentals, short-term vacation rentals would
displace the supply of long-term rentals if permitted in residential areas.
2. Neighborhood Character. The general neighborhood character changes as short-
term vacation rentals invade the neighborhood, and confiicts with local residents
start to emerge relating to noise, parking, and traffic.
3. Agricultural Lands Protection. The price of agricultural lands would soar with the
unrestricted permission of short-term vacation rentals within the agricultural
district.
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4. Accountable & Equitable Taxation. Just as hotels that accommodate “transients”
are subject to transient accommodation taxes (TAT) and general excise taxes (GET),
short-term vacation rentals also accommodate “transients” and should be
registered to ensure accountability. Bill 147’s proposed redeflnition of vacation
rentals as a unit rented for less than 180 days tracks with the deflnition of “transient
accommodations” in the TAT statute (HRS section 237D-1).
Effective Regulation
Effective regulation of the STVR reasonably channels the location and behavior of the STVR
industry without squelching it by restricting the industry as follows:
• Appropriate Location. Currently, STVRs are permitted in the Resort district (V),
selected commercial districts (CG, CV), and condominiums within the multi-family
residential district (RM). Where the General Plan designation is Resort or Resort
Node, then all commercial and residential zoning districts are permitted districts.
To the beneflt of the STVR industry, Bill 147 expands STVR to all commercial districts
without restricting to the General Plan Resort or Resort Node designations. Bill 147
also adds the Project District, which is acceptable but should be amended to be
consistent with the Project District’s master plan rather than the underlying zoning
(the Project District is not an overlay and therefore does not have any underlying
zoning). Bill 147 permits B&B’s in the agricultural district with a Special Permit (no
change from the current zoning ordinance), but does not permit STVRs. The two
zoning districts that should be protected from STVRs are residential and agricultural
districts. Bill 147 does this. The only question is the impact of STVRs on the RM
district, which should be researched based on past experience under the current
ordinance (i.e., whether STVR’s are displacing long-term rentals and/or increasing
the long-term rents in the RM district).
• Controlled Behavior. Should the unruly behavior of the transient tenant be the
responsibility of the absentee owner, or should the burden be placed on the police?
Bill 147 carries forward and improves upon the original ordinance’s policy
determination to place the primary responsibility on the owner by requiring the
owner to designate a “reachable” person to respond to the complaint within a
reasonable time, and to comply with reasonable operational standards.
• Grandfathered (Nonconforming) Permission. Nonconforming STVRs are in the
wrong location (i.e., residential or agricultural district), but were legitimate and paid
taxes prior to the adoption of the original STVR ordinance. They are allowed to
continue upon registering and complying with the operational standards.
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• Registration Requirement. The registration requirement identifles a STVR for
taxation and enforcement purposes. The registration process should not be
onerous; if it is, the Planning Department should be directed to administratively
streamline the process.
Effective Enforcement
Effective regulation relies upon effective enforcement, which entails:
• Deterrent Fines. If flnes are set too low, it may be worth a business decision to
ignore the law. Bill 147 proposes flnes that demand attention. No one in the
industry should be concerned about the level of flnes if they intend to abide by the
rules.
• Burden of Proof. The prima facie evidence listed in Bill 147 enhance the ability to
enforce. The STVR owner always has the opportunity to present overriding evidence.
• Adequate Resources. Bill 147 establishes a special fund for STVR enforcement to
retain sufficient personnel and other capabilities. However, the language of Bill 147
is confusing in that the heading seems limited to STVR enforcement yet one section
authorizes the funds for all TVRs. All references in this section to “STVR” should be
replaced to “TVR” to authorize the funds for enforcement of all TVRs, whether
hosted or unhosted.
Summary
Bill 147 strengthens the regulation of transient vacation rentals with a few minor suggested
amendments (italicized above). Without proper regulation, unhosted TVRs (STVRs) pose a
threat to affordable housing, particularly the supply of affordable rentals, and affordable
agricultural lands. While Bill 147 stems this threat, the ultimate goal is affordable housing
so we should continue to also persistently explore other innovative ideas to incentivize
affordable rentals (e.g. improving tax incentives for affordable rentals), and affordable
access to farmlands (e.g., community land trust).