HomeMy WebLinkAboutCommunication No. 2026-12 AC Response to Kimball Bill 147 6-29-26DATE: July 14, 2026
TO: Leeward Planning Commission, Chair Dean Au and Members of the Leeward Planning
Commission
SUBJECT: Bill 147: Unhosted Transient Vacation Rentals
Aloha Chair Au and members of the Leeward Planning Commission,
We appreciate the discussion that followed the Kona Community Development Plan Action
Committee's May 14, 2026 testimony regarding Bill 147 and would like to clarify our
recommendations in light of Councilmember Heather Kimball's June 29, 2026 testimony.
As stated in our previous testimony, the Kona Community Development Plan’s Action
Committee recommends amending Bill 147 to exclude unhosted vacation rentals as an
allowable use in the Multiple-Family Residential (RM) districts. In response to Councilmember
Kimball's June 29 testimony, we understand that Bill 147 does not change the permitted use of
STVRs in RM. However, we suggest that the introduction of Bill 147 presents an opportunity to
correct a housing policy adopted in 2019 through Bill 108, which made STVRs a permitted use in
the RM district. With that in mind, the Action Committee supports the language
Councilmember Kimball provided that reads:
c) In any district or area not identified in subsection (a), an STVR may operate with a
nonconforming use certificate issued pursuant to Ordinance No. 18- 114 [.] or, in the RM
district, provided the STVR was in operation prior to the effective date of this ordinance.
In addition, the Action Committee also recommends amending Bill 147 to remove unhosted
vacation rentals as an allowable use in the Neighborhood Commercial (CN) districts. Please note
that STVRs are currently not permitted within Neighborhood Commercial (CN) districts under
HCC Section 25-4-16 (1) (A). We do not believe it is in the best interests of the County to further
expand STVRs into additional Districts, as is being recommended in Bill 147.
We suggest that consideration of STVRs as a permitted use within the CDH, Downtown Hilo
Commercial District, be deferred until the future South Hilo Community Development Plan is
adopted.
The language below offers our proposed amendments to Bill 147:
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];
Communication No. 2026-12
2) Any residential district [, other than RM,] that is 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 Hawaii Revised Statutes,
chapter 514B.
c) In any district or area not identified in subsection (a), an STVR may operate with a
nonconforming use certificate issued pursuant to Ordinance No. 18- 114 [.] or, in the RM
district, provided the STVR was in operation prior to the effective date of this ordinance.
d) In the event that the director, pursuant to section 6- of this Code, cancels the TVR
registration of a TVR operating under a nonconforming use certificate, such cancellation
shall also cause and constitute revocation of the nonconforming use certificate.
e) An STVR operating under a nonconforming use certificate may increase the number of
bedrooms available to rent; provided that the number of rooms available to rent does
not exceed five and that the owner registers the change with the director.
Mahalo for your consideration.
Ke aloha nō,
John Pelletier, Chair
Kona Community Development Plan Action Committee