Since October, when the Safe Travels program opened the door for visitors to bypass pandemic-related travel quarantine, statewide vacation rental occupancy rates have topped those for hotels. For Oahu, this trend underscores the need to assert county controls over the rental industry with a stepped-up sense of urgency.

In a state-issued report that does not distinguish between permitted and unpermitted (illegal) units, Hawaii’s overall vacation rental occupancy in June was nearly 80%; hotels, 77%. Both rates exceeded those for June 2019, when the state was on track to hit a record-busting annual tally of 10 million visitors pre-pandemic — while also grappling with heated community debate about proliferation of illegal short-term rentals.

In an effort to rein in the industry on Oahu, in August 2019 the city rightly enacted Bill 89, which cracks down on the advertising of illegal rentals, and initiated plans to issue roughly 1,700 new hosted vacation rental permits. It’s perplexing that now — two years later — Honolulu Hale is still trying to draft rules for the permits, which are tailored for bed-and-breakfast operations.

Under the most recent timeline, the rules were supposed to take effect Aug. 1. However, after an April public hearing, where dozens of community members voiced opinions, the Department of Planning and Permitting (DPP) determined that implementing proposed rules would be problematic and suspended the process in order to address apparent snags.

Among the most repeated concerns raised by testifiers: a separation requirement between B&Bs. Under the city’s plan, qualified applications for permits would be entered into a lottery. After a dwelling is selected, all the applications within a radius of 1,000 feet (roughly 330 yards) would then be disqualified. The process would then continue until a set neighborhood density limit is reached.

Many complained that with legal operations already nearby, they would be denied opportunity to even apply for a permit. However, given that preserving the character of established residential areas should outweigh demand to operate a new B&B, the separation provision seems sensible.

Other concerns included the still-low level of enforcement on illegal vacation rentals, and a lack of trust in a fair lottery process. The latter was fueled by the U.S. attorney this spring charging five DPP employees with allegedly soliciting thousands of dollars in bribes for giving favored treatment to building projects.

Within the next few weeks, DPP expects to submit an amended draft bill to the city’s Planning Commission, which will hold another public hearing, and then send its recommendation to the City Council for further hearings and action. More stalling. Mayor Rick Blangiardi must see to it that further undue delays are avoided.

Oahu’s current inventory of permitted hosted B&Bs and unhosted transient vacation units is estimated at about 800, an official count surely misaligned with reality. The community debate over precisely how tightly to set vacation rental rules and penalty for violations has been ongoing since the late 1980s, when the city stopped issuing permits in response to residents complaining that the units were becoming too intrusive in family neighborhoods.

While it’s unclear how many scofflaws are still in operation, a few years ago, due to weak rules and lax enforcement, the estimated count of illegal units was between 8,000 and 10,000.

The new city law, passed in August 2019 but yet to be fully implemented, struck a firm but fair oversight balance. Under it, online platform companies, such as Airbnb, are required to file booking reports that make it easier for the city to ensure operators hold permits and are properly taxed. As the city carefully expands its inventory of permits, it must do so with equitable rules and the backing of resources that ensure steadfast enforcement.