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The Honolulu Planning Commission took no action on a measure that would change the restriction of
a short-term rental to
180 days, from less than
30 days. After listening to over 200 testifiers, largely against the measure, the commissioners decided to close public testimony, but not make a decision until a Sept. 29 meeting.
Since the measure’s first public hearing last week, the Department of Planning and Permitting has added changes in response to testifiers’ and commissioners’ concerns.
Currently, homeowners without a special permit are allowed to rent a unit for a minimum of 30 days. Some owners have used that rule to continue renting to visitors. The measure would increase that to
180 days.
The main changes add
exemptions to the 180-day restriction for temporary employees at health care
facilities, full-time students, full-time remote workers, military personnel and homeowners in transition.
The measure’s main focus is to cut down on illegal short-term rentals. It would allow the current 808 legal bed-and-breakfast and transient vacation units to continue operating, but would not allow any new short-term rental properties in residential areas.
The only new permits would be given in resort
areas such as Kuilima, Ko Olina, Waikiki and Makaha. It also would require the properties to display their certification registration number on all of their advertisements for the property.
The measure also
plans to charge bed-and-breakfasts and transient vacation units in residential areas at the B&B property tax rate, which is higher than the residential rate. The new nonconforming units would be taxed at the resort rate, which is even higher. Up to $3.12 million in real property taxers from the B&B, hotel and resort tax classifications increase in tax revenue would then be used to staff the DPP’s special short-term rental enforcement unit.
Several years ago, the City Council granted the DPP seven positions specifically for enforcement. However, the positions were not funded and so were unable to be filled.
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