Despite urging from Mayor Kirk Caldwell, members of the Honolulu Planning Commission on Wednesday stood by their earlier decision not to recommend his short-term vacation rental omnibus bill for approval by the Honolulu City Council.
Caldwell made a rare appearance before the commission to make his case. “My request is that you … reconsider your vote with a list of things you’d like us to look at, then send it to Council,” he said. “And then we will work with you on amending the bill or submitting a new one.”
Because the commission is advisory, the draft bill will still be forwarded to the Council for a final decision. But it will take six votes, rather than the standard five votes, of the nine Council members for a bill to become law.
The commission voted Sept. 19 to forward the bill on to the Council without a recommendation.
Commission Chairwoman Kai‘ulani Sodaro said after Wednesday’s meeting that members had no interest in reopening deliberations. “There wasn’t a sentiment to reconsider,” Sodaro said.
Two of the six commission members present had not sat through two days of testimony before making their decision, while three others who did attend those meetings were not at Wednesday’s gathering — likely adding to the commission’s lack of interest, Sodaro said.
B&Bs and transient vacation units (TVUs) both fall under the umbrella definition of short-term vacation rentals. B&B units are rented for less than 30 days by an owner living in the same dwelling. TVUs are units rented for less than 30 days where the owner does not live in the same dwelling at the same time.
The city stopped issuing permits for both in 1989-1990, except in hotel-resort zones, leading to the proliferation of unpermitted vacation rentals.
City officials have been struggling since then to come up with a compromise that would be satisfactory. Proponents say B&Bs and TVUs provide Hawaii visitors an alternative experience to the traditional hotel stay while providing supplemental income for property owners. But critics argue that city inspectors should do a better job enforcing existing laws on illegal vacation rentals, which gobble up street parking and other city infrastructure, all while reducing the housing supply.
Caldwell’s draft bill would allow for the permitting of an unlimited number of B&B establishments in residential districts, but only for owner-occupants with home exemptions. It bars TVUs in residential neighborhoods, allowing a limited number of them in apartment and business districts, also only for those with home exemptions. Permits would need to be renewed annually.
It would also create a new property tax classifications for both B&Bs and TVUs, which more than likely would require the owner-operators to pay at a higher rate than standard residential property owners.
On the enforcement end, the draft bill would make it illegal to advertise without displaying the number from one’s approved registration permit. It also establishes stiff penalties for those who violate vacation rental laws — a minimum of $10,000 for violating B&B provisions, a minimum of $25,000 for violating TVU provisions.
