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Vacation rental bill shelved: City Council decides contentious measure too complicated in current state
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Vacation rental bill shelved: City Council decides contentious measure too complicated in current state

A Hawaii County Council proposal to revamp how the county regulates short-term vacation rentals could start over from scratch.

At Friday’s meeting of the council’s Planning, Land Use and Development Committee, council members once again discussed House Bill 121, a controversial measure that would set new conditions and standards for how short-term vacation rentals , redefined in the bill as “transitional accommodation rentals.” ”, or TAR, are operated on.

The bill has been under discussion for almost a year and has been amended four times. But although the committee on Friday again postponed making a decision on the measure, this time members considered whether the bill had become too unwieldy.

After lengthy discussions about five new proposed amendments to Bill 121, Hamakua Councilwoman Heather Kimball, the bill’s presenter, asked her colleagues if the council should continue to amend the existing bill, or if it should be scrapped and replace it with a new bill that streamlines the now 30-page proposal.

Kimball said she would be comfortable with either decision and acknowledged that the measure may have become too confusing after so many reviews, something other council members echoed.

“I think it’s really hard for people to understand all of these changes,” said outgoing Kohala Councilwoman Cindy Evans. “There is confusion among our constituents about what we are trying to do.”

Puna Councilman Matt Kaneali’i-Kleinfelder agreed, noting that two new members will join the council within a month: James Hustace, replacing Evans, and Dennis “Fresh” Onishi, replacing the councilwoman. of Hilo, Sue Lee Loy, and they will face a very complicated situation. and contentious measure to unravel.

“The first bill I dealt with after taking office was Bill 108,” Kaneali’i-Kleinfelder said, referring to another vacation rental bill from 2018 that also established regulations for how STVRs are operated. “It had already had two revisions and… it just pissed people off.”

Should the measure be replaced by a new version, Kimball acknowledged that the new draft will have to be discussed in the Windward and Leeward Planning Commissions just as House Bill 121 already did, which will likely take months.

As currently drafted, House Bill 121 would classify STVRs as “owner-hosted,” “operator-hosted,” and “non-hosted,” with each category subject to various requirements and fees. Some categories would not be allowed in certain zoning districts, but all would have to meet certain standards, such as having a manager available on site within three hours of a complaint, a maximum gathering size of no more than double the total limit of tenants, quiet hours, parking requirements and more.

The possible death and rebirth of Bill 121 will likely not comfort its critics, who once again testified en masse against the bill on Friday, warning that the proposed changes will spell the end for short-term vacation rental operators in the whole island.

Josh Montgomery, president of the Ohana Aina Association, an organization that advocates for the island’s transient rental operators, said the move is “directly aimed at families like mine,” who he warned would be forced out of the rental market. rent and could potentially leave the island. as a result.

Jennifer Wilkinson, board president of the Hawaii Island Rental Property Alliance, presented a list of potential minor violations or technicalities that would cause current STVR operators to be out of compliance with the new Bill 121 regulations, such as renting two separate rooms in a four-bedroom apartment. home with only two on-site parking spaces or host a small backyard lunch for four people. He noted that after just two violations, operators will be charged $10,000 for each subsequent violation.

“What is the problem we are trying to solve?” Wilkinson wrote. “What evidence is there that implementing this bill will do more to solve those problems?”

Wilkinson and many others urged the committee to, if not kill the bill outright, then at least await the results of an economic impact study the council commissioned in July. Puna Councilwoman Ashley Kierkiewicz made the same recommendation.

Ultimately, the committee voted once again to postpone any action on the measure until a future date.

Email Michael Brestovansky at [email protected].