The Kauai County Council has voted to narrow the definition of a bed-and-breakfast operation to require that the owner live in the same dwelling.
Otherwise it’s a transient vacation rental, subject to a different set of rules, permits and fees.
Planning Director Michael Dahilig said the new definition closes the loophole of illegal TVRs attempting to seek refuge under a "home stay" or B&B permit.
"This is where they were hiding," Dahilig said at a Council meeting Wednesday.
Under Bill 2587, approved June 3, the owner of a B&B or home stay unit is required to reside in the same unit where overnight accommodations are provided to transient guests. The new definition clearly states that a guesthouse may not be used to accommodate guests at B&Bs.
"The County Council included this provision in the home stay bill because we believe that bed and breakfast units should be contained in the primary dwelling unit," Council Chairman Mel Rapozo said in a news release June 6. "Too often, we have seen guest houses being converted to illegal transient vacation rentals and we don’t want to see this trend continue."
The measure also caps the number of B&B applications at 10 to be reviewed by the Planning Department in 2015 and 2016, and prohibits B&Bs in the state land use agricultural district unless the owner obtains a special permit.
The Council voted 6-1 in support of the ordinance. Rapozo and Councilmen Mason Chock, Arryl Kaneshiro, KipuKai Kualii and Ross Kagawa voted in support, while Councilwoman JoAnn Yukimura cast a silent vote, which is counted as a yes vote. Councilman Gary Hooser voted against the bill due to concerns the measure is targeting B&Bs.
Kauai Mayor Bernard Carvalho said he is committed to signing the measure, slated to go into effect Saturday.
Meanwhile there’s a small window for owners of proposed B&Bs with guesthouses to submit applications for a use permit under the existing definition. They have until Friday to submit the applications to the Planning Department.
The department is now preparing to introduce a measure sometime in the fall for a comprehensive regulatory framework for B&B operations.
Kauai has been struggling to control the proliferation of vacation rentals in residential neighborhoods, primarily on the North Shore.
"It’s continuing to escalate," community advocate Caren Diamond said. "That’s why enforcement is necessary."
Diamond, who has lived in Hanalei for 36 years, said the town has almost half of the approved vacation rentals on Kauai.
A team with the Planning Department recently discovered 320 visitor accommodation sites that have paid transient accommodation taxes yet do not have the necessary permits.
Investigating further, they conducted on-site inspections and issued 90 to 100 citations.
The department also came across some B&Bs operating without a use permit. The team is reviewing another 220 visitor accommodation sites.
