Post by rhonda on Aug 21, 2017 19:22:10 GMT
Aloha Deborah,
I'm not sure if you can help me in getting this out to as many people and Airbnb staff as my g/f just emailed me this from the planning department which is open for discussion.
I can only copy and paste, as my computer is too old, not updated, or something.
I look forward to your assistance on where to go with this information.
AN ORDINANCE AMENDING CHAPTERS 25 AND 19, OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT VACATION RENTALS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Findings and Purpose. The short-term rental of residential units, as a preferred alternative to traditional resort and hotel accommodations, is an emerging trend in the visitor industry that will continue to grow. Lack of a policy to oversee Transient Vacation Rental uses impacts the County in a number of ways:
• Housing Shortage: A report released in March 2015 by the State Department of Business, Economic Development and Tourism (DBEDT) determined Hawaii will need 65,000 more homes by 2025. A study prepared for the Research Division of the Hawaii Tourism Authority (HTA) estimated that there were about 45,052 property owners who rented to visitors in the State in 2016. In tight housing markets with low vacancy rates, any reduction in supply naturally increases rents, particularly because neither the market nor the public sector can quickly add to housing stock. A recent Hawaii Housing Finance and Development Corporation (HHFDC) report indicated an alarming drop in long term rental listings over the last three years for both multi-family and single-family units on all islands.
• Indirect Economic Impacts: While the traditional hotel industry creates and sustains jobs for local residents, few jobs are created through the short-term vacation rental industry. Rather than eating in restaurants, Hawaii Business reported that: “Tourists often stay at IVUs (individual vacation units) to save money, both on the rent and because they can often cook their own meals.” Vacation rental guests spend less money overall during their stays than those staying in hotels.
• Guest Safety: The County lacks a means of requiring sufficient maintenance, safety, and health standards for the guests utilizing unpermitted Transient Vacation Rentals.
• Tax Revenue: Unpermitted TVRs often fail to pay the general excise tax and Transient Accommodation Taxes, depriving the state and county of key sources of revenue. Since this sector of the visitor industry benefits from government services, including roads, police, lifeguards and much more, these businesses need to help pay for those services.
• Homes are not hotels: One of the biggest reasons to limit the proliferation of Transient Vacation Rentals, especially within Residential and Agricultural Districts may be a quality of life issue. All of us who are fortunate enough to live and raise our families in Hawaii understand the important contribution that the Visitor industry provides to the economy. And our public infrastructure, cultural and environmental resources are shared with all visitors that come to the Island. But literally, “at the end of the day”, Hawaii’s residents need to be able to live in a community where we (and our children) can build long-term relationships with our neighbors. The most obvious activity taking place at the home or apartment next door shouldn’t be the rapid succession of incoming and outgoing luggage, or weekend party events. As the proportion of units used for vacation rentals within a residential community increases, they bring with them a host of social and logistical difficulties for neighbors that are changing the character and quality of life in Hawaii’s residential neighborhoods.
The purpose of this Bill is to respond to the need to address the rapidly growing segment of the visitor industry referred here as Transient Vacation Rentals by: 1) Defining the appropriate location within which to permit this use, 2) Establish conditions serving to regulate the use, 3) Provide an opportunity for a preexisting use to continue to operate through the granting of a nonconforming use certificate.
SECTION 2. Section 25-1-5 of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding new definitions to read as follows:
“Transient” or “Transients” means any person who owns, rents, or uses a lodge, hotel, or dwelling unit or a portion thereof for one hundred eighty (180) days or less, and which dwelling unit is not the person’s primary residence under the Internal Revenue Code. This definition shall not apply to nonpaying guests of the family occupying the unit, patients or clients in health care facilities, full-time students, employees who receive room and/or board as part of their salary or compensation, military personnel, low-income renters receiving rental subsistence from State or Federal governments, or overnight accommodations provided by nonprofit corporations or associations for religious, charitable, or educational purposes where no rental income is transacted.
“Transient Vacation Rental” means a dwelling unit which is provided to transient occupants for compensation or fees, including club fees, with a duration of occupancy of one hundred eighty (180) days or less, excluding bed and breakfasts and transient use by owners.
SECTION 3. Chapter 25, Article 4, Division 1 of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding a new section to be appropriately designated and to read as follows:
Section 25-4- . Transient vacation rentals.
(a) Permitted zoning districts. Transient vacation rentals shall be permitted in the V, CG, and CDH districts. Transient vacation rentals shall also be permitted in the General Plan Resort and Resort Node, except that RS districts in the Resort and Resort Node shall require a Use Permit. TVR may be permitted in the CV districts, with the approval of a Use Permit. The permissibility of transient vacation rentals is subject to any restrictions in private covenants appurtenant to the unit.
(b) Registration of All Transient Vacation Rentals. All transient vacation rentals lawfully existing in a permitted zoning district identified in subsection (a) above on the effective date of this ordinance shall register with the Planning Department on a form prescribed by the Planning Department no later than one hundred eighty (180) days after the effective date of this ordinance. At a minimum, the form shall verify that State of Hawai'i general excise tax and transient accommodations tax licenses are in effect. Upon change in ownership, the registration automatically terminates subject to registration by the new owner. Any new transient vacation rental established in a permitted zoning district subsequent to the effective date of this ordinance shall register with the Planning Department prior to any such use of said rental. No transient vacation rental shall operate outside a permitted zoning district without a Nonconforming Use Certificate obtained under section (c) below. Any vacation rental that has not lawfully registered, whether in a permitted district or nonconforming, shall be considered illegal and subject to the penalties set forth in this chapter.
(c) Nonconforming Use Certificate. The owner or operator of any transient vacation rental which operated outside of a permitted zoning district prior to January 1, 2017 shall obtain a Nonconforming Use Certificate issued by the Planning Director.
1) The applicant seeking a TVR nonconforming use certificate shall have the burden of proof in establishing that the property was in use prior to January 1, 2107 . Evidence of prior use that shall be provided to the Planning Director may include: records of occupancy and tax documents, including all relevant State of Hawai‘i general excise tax filings, all relevant transient accommodations tax filings, Federal and/or State of Hawai‘i income tax returns for the relevant time period, reservation lists, and receipts showing payment. Other reliable information may also be provided. Based on the evidence submitted, the Planning Director shall determine whether to issue a TVR nonconforming use certificate for the transient vacation rental.
2) If located in the State land use agricultural or rural district, the applicant shall in addition provide evidence that the dwelling unit existed prior to June 4, 1976 or has obtained a special permit within six months of the effective date of this ordinance. If the special permit application has been denied or not timely obtained, the Nonconforming Use Certificate shall not be issued and the transient vacation rental operation must cease.
3) The owner, operator, or proprietor of any transient vacation unit who has obtained a nonconforming use certificate under this section shall display the certificate issued for the current period in a conspicuous place on the premises. In the event that a single address is associated with numerous nonconforming use certificates, a listing of all units at that address holding current certificates may be displayed in a conspicuous common area instead.
4) The owner, operator, or proprietor of any transient vacation unit who has obtained a nonconforming use certificate under this section shall apply to renew the nonconforming use certificate in accordance with the following schedule:
• no later than one hundred and eighty (180) days after the effective date of this ordinance; then
• between September 1 and October 15 of every even-numbered year thereafter.
5) Each application to renew shall include proof that:
• there were in effect a State of Hawaii general excise tax license and transient accommodations tax license for the nonconforming use during each calendar year covered by the nonconforming use certificate being renewed.
• there has been no period of 12 consecutive months during the period covered by the nonconforming use certificate being renewed without a transient occupancy.
• Failure to meet these conditions will result in the denial of the application for renewal of the nonconforming use certificate.
6) Renewal Fee. The applicant shall pay a renewal fee of seven hundred fifty dollars ($750.00) to the Director of Finance. All renewal fees shall be deposited to the Transient Accommodation Enforcement Account.
7) No Transfer. The nonconforming use certificate automatically terminates upon transfer of ownership.
(d) Operating Standards. A transient vacation rental shall be subject to the following standards:
1) The owner or operator of a transient vacation rental shall designate a contact person who shall be available on a twenty-four (24) hour, seven (7) days-per-week basis. The owner or operator shall provide the name and contact information to neighbors adjacent to and directly across the subject vacation rental, the Planning Department, the Police Department, the Civil Defense Agency, and the Visitors Bureau upon issuance of the registration or nonconforming use certificate. The owner or operator is responsible for keeping information updated with all agencies and neighbors.
2) The owner or operator shall provide guests with a list of use requirements and information entitled “For the Safety and Comfort of You and Your Neighbors.” This document shall provide essential information to include any relevant homeowner, condominium association, or other private conditions, covenants, or restricitons to the visitor and shall seek to reduce negative impacts on the surrounding neighborhood. A copy of this document shall be provided to the Planning Department at the time of registration or application for nonconforming use certificate and shall be posted in a conspicuous place in the rental unit along with a copy of the registration or nonconforming use certificate. The list shall include, but not be limited to, suggested curfews, guidance with respect to the character of the neighborhood and gatherings and noise, and what to do in cases of emergency and natural disaster.
3) All print and internet advertising transient vacation rentals, including listings with a rental service or real estate firm, shall include the registration or nonconforming use certificate number.
4) A copy of the registration or nonconforming use certificate shall be displayed in the back of the front door of the sleeping quarters.
5) A site and floor plan shall be filed with the registration or nonconforming use certificate application.
6) If the dwelling is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions is required. The correspondence shall be used to assist the Planning Department in determining whether or not the proposed vacation rental use is allowed.
7) Applicant for a registration or nonconforming use certificate must provide a copy of the transient accommodation tax license and a general excise tax license.
8) The Planning Department may physically inspect a transient vacation rental prior to a registration or nonconforming use certificate being issued.
9) One paved (with materials such as bricks, concrete, asphalt concrete surface or chip-seal, pavers, stones) off-street parking stall shall be provided for each guest bedroom.
(e) Prima Facie Evidence. Advertising of any sort which offers a property as a transient vacation rental shall constitute prima facie evidence of the operation of a transient vacation rental on said property and the burden of proof shall be on the owner, operator, or lessee to establish that the subject property is not being used as a transient vacation rental or that it is being used for such purpose legally. If any unit is found to be operating unlawfully, enforcement shall be pursuant to article 2, division 3.
(f) Transient Vacation Rental Enforcement Account. There is hereby established and created an account to be known as the “Transient Vacation Rental Enforcement Account”. The fees collected pursuant to Section 25-4-_(c)(6) are hereby deemed appropriated upon receipt and may be expended to retain independent contractors to assist in the enforcement of illegally operating transient vacation rentals. The fees may also be expended for materials, supplies, equipment, and training that facilitate inspection and enforcement of such violations. The Planning Department shall annually report to the Council, as part of the Mayor’s budget submittal, the expenditures and outcomes of said account.
SECTION 4. Chapter 19, section 19-53(e) of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding a new real property tax class for transient vacation rental.
SECTION 5. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included.
SECTION 6. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.
SECTION 7. This ordinance shall take effect ______.
INTRODUCED BY:
________________________________________
COUNCIL MEMBER, COUNTY OF HAWAI‘I
_______________, Hawai‘i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
I thank you for your time, patience, expertise, and direction as we all wish Hawaii would allow Airbnb to collect the taxes upon booking and paid directly to the state instead of the convoluted booking mess we are forced to deal with on a monthly basis in my case.
As always,
With much aloha,
Rhonda
I'm not sure if you can help me in getting this out to as many people and Airbnb staff as my g/f just emailed me this from the planning department which is open for discussion.
I can only copy and paste, as my computer is too old, not updated, or something.
I look forward to your assistance on where to go with this information.
AN ORDINANCE AMENDING CHAPTERS 25 AND 19, OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT VACATION RENTALS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Findings and Purpose. The short-term rental of residential units, as a preferred alternative to traditional resort and hotel accommodations, is an emerging trend in the visitor industry that will continue to grow. Lack of a policy to oversee Transient Vacation Rental uses impacts the County in a number of ways:
• Housing Shortage: A report released in March 2015 by the State Department of Business, Economic Development and Tourism (DBEDT) determined Hawaii will need 65,000 more homes by 2025. A study prepared for the Research Division of the Hawaii Tourism Authority (HTA) estimated that there were about 45,052 property owners who rented to visitors in the State in 2016. In tight housing markets with low vacancy rates, any reduction in supply naturally increases rents, particularly because neither the market nor the public sector can quickly add to housing stock. A recent Hawaii Housing Finance and Development Corporation (HHFDC) report indicated an alarming drop in long term rental listings over the last three years for both multi-family and single-family units on all islands.
• Indirect Economic Impacts: While the traditional hotel industry creates and sustains jobs for local residents, few jobs are created through the short-term vacation rental industry. Rather than eating in restaurants, Hawaii Business reported that: “Tourists often stay at IVUs (individual vacation units) to save money, both on the rent and because they can often cook their own meals.” Vacation rental guests spend less money overall during their stays than those staying in hotels.
• Guest Safety: The County lacks a means of requiring sufficient maintenance, safety, and health standards for the guests utilizing unpermitted Transient Vacation Rentals.
• Tax Revenue: Unpermitted TVRs often fail to pay the general excise tax and Transient Accommodation Taxes, depriving the state and county of key sources of revenue. Since this sector of the visitor industry benefits from government services, including roads, police, lifeguards and much more, these businesses need to help pay for those services.
• Homes are not hotels: One of the biggest reasons to limit the proliferation of Transient Vacation Rentals, especially within Residential and Agricultural Districts may be a quality of life issue. All of us who are fortunate enough to live and raise our families in Hawaii understand the important contribution that the Visitor industry provides to the economy. And our public infrastructure, cultural and environmental resources are shared with all visitors that come to the Island. But literally, “at the end of the day”, Hawaii’s residents need to be able to live in a community where we (and our children) can build long-term relationships with our neighbors. The most obvious activity taking place at the home or apartment next door shouldn’t be the rapid succession of incoming and outgoing luggage, or weekend party events. As the proportion of units used for vacation rentals within a residential community increases, they bring with them a host of social and logistical difficulties for neighbors that are changing the character and quality of life in Hawaii’s residential neighborhoods.
The purpose of this Bill is to respond to the need to address the rapidly growing segment of the visitor industry referred here as Transient Vacation Rentals by: 1) Defining the appropriate location within which to permit this use, 2) Establish conditions serving to regulate the use, 3) Provide an opportunity for a preexisting use to continue to operate through the granting of a nonconforming use certificate.
SECTION 2. Section 25-1-5 of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding new definitions to read as follows:
“Transient” or “Transients” means any person who owns, rents, or uses a lodge, hotel, or dwelling unit or a portion thereof for one hundred eighty (180) days or less, and which dwelling unit is not the person’s primary residence under the Internal Revenue Code. This definition shall not apply to nonpaying guests of the family occupying the unit, patients or clients in health care facilities, full-time students, employees who receive room and/or board as part of their salary or compensation, military personnel, low-income renters receiving rental subsistence from State or Federal governments, or overnight accommodations provided by nonprofit corporations or associations for religious, charitable, or educational purposes where no rental income is transacted.
“Transient Vacation Rental” means a dwelling unit which is provided to transient occupants for compensation or fees, including club fees, with a duration of occupancy of one hundred eighty (180) days or less, excluding bed and breakfasts and transient use by owners.
SECTION 3. Chapter 25, Article 4, Division 1 of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding a new section to be appropriately designated and to read as follows:
Section 25-4- . Transient vacation rentals.
(a) Permitted zoning districts. Transient vacation rentals shall be permitted in the V, CG, and CDH districts. Transient vacation rentals shall also be permitted in the General Plan Resort and Resort Node, except that RS districts in the Resort and Resort Node shall require a Use Permit. TVR may be permitted in the CV districts, with the approval of a Use Permit. The permissibility of transient vacation rentals is subject to any restrictions in private covenants appurtenant to the unit.
(b) Registration of All Transient Vacation Rentals. All transient vacation rentals lawfully existing in a permitted zoning district identified in subsection (a) above on the effective date of this ordinance shall register with the Planning Department on a form prescribed by the Planning Department no later than one hundred eighty (180) days after the effective date of this ordinance. At a minimum, the form shall verify that State of Hawai'i general excise tax and transient accommodations tax licenses are in effect. Upon change in ownership, the registration automatically terminates subject to registration by the new owner. Any new transient vacation rental established in a permitted zoning district subsequent to the effective date of this ordinance shall register with the Planning Department prior to any such use of said rental. No transient vacation rental shall operate outside a permitted zoning district without a Nonconforming Use Certificate obtained under section (c) below. Any vacation rental that has not lawfully registered, whether in a permitted district or nonconforming, shall be considered illegal and subject to the penalties set forth in this chapter.
(c) Nonconforming Use Certificate. The owner or operator of any transient vacation rental which operated outside of a permitted zoning district prior to January 1, 2017 shall obtain a Nonconforming Use Certificate issued by the Planning Director.
1) The applicant seeking a TVR nonconforming use certificate shall have the burden of proof in establishing that the property was in use prior to January 1, 2107 . Evidence of prior use that shall be provided to the Planning Director may include: records of occupancy and tax documents, including all relevant State of Hawai‘i general excise tax filings, all relevant transient accommodations tax filings, Federal and/or State of Hawai‘i income tax returns for the relevant time period, reservation lists, and receipts showing payment. Other reliable information may also be provided. Based on the evidence submitted, the Planning Director shall determine whether to issue a TVR nonconforming use certificate for the transient vacation rental.
2) If located in the State land use agricultural or rural district, the applicant shall in addition provide evidence that the dwelling unit existed prior to June 4, 1976 or has obtained a special permit within six months of the effective date of this ordinance. If the special permit application has been denied or not timely obtained, the Nonconforming Use Certificate shall not be issued and the transient vacation rental operation must cease.
3) The owner, operator, or proprietor of any transient vacation unit who has obtained a nonconforming use certificate under this section shall display the certificate issued for the current period in a conspicuous place on the premises. In the event that a single address is associated with numerous nonconforming use certificates, a listing of all units at that address holding current certificates may be displayed in a conspicuous common area instead.
4) The owner, operator, or proprietor of any transient vacation unit who has obtained a nonconforming use certificate under this section shall apply to renew the nonconforming use certificate in accordance with the following schedule:
• no later than one hundred and eighty (180) days after the effective date of this ordinance; then
• between September 1 and October 15 of every even-numbered year thereafter.
5) Each application to renew shall include proof that:
• there were in effect a State of Hawaii general excise tax license and transient accommodations tax license for the nonconforming use during each calendar year covered by the nonconforming use certificate being renewed.
• there has been no period of 12 consecutive months during the period covered by the nonconforming use certificate being renewed without a transient occupancy.
• Failure to meet these conditions will result in the denial of the application for renewal of the nonconforming use certificate.
6) Renewal Fee. The applicant shall pay a renewal fee of seven hundred fifty dollars ($750.00) to the Director of Finance. All renewal fees shall be deposited to the Transient Accommodation Enforcement Account.
7) No Transfer. The nonconforming use certificate automatically terminates upon transfer of ownership.
(d) Operating Standards. A transient vacation rental shall be subject to the following standards:
1) The owner or operator of a transient vacation rental shall designate a contact person who shall be available on a twenty-four (24) hour, seven (7) days-per-week basis. The owner or operator shall provide the name and contact information to neighbors adjacent to and directly across the subject vacation rental, the Planning Department, the Police Department, the Civil Defense Agency, and the Visitors Bureau upon issuance of the registration or nonconforming use certificate. The owner or operator is responsible for keeping information updated with all agencies and neighbors.
2) The owner or operator shall provide guests with a list of use requirements and information entitled “For the Safety and Comfort of You and Your Neighbors.” This document shall provide essential information to include any relevant homeowner, condominium association, or other private conditions, covenants, or restricitons to the visitor and shall seek to reduce negative impacts on the surrounding neighborhood. A copy of this document shall be provided to the Planning Department at the time of registration or application for nonconforming use certificate and shall be posted in a conspicuous place in the rental unit along with a copy of the registration or nonconforming use certificate. The list shall include, but not be limited to, suggested curfews, guidance with respect to the character of the neighborhood and gatherings and noise, and what to do in cases of emergency and natural disaster.
3) All print and internet advertising transient vacation rentals, including listings with a rental service or real estate firm, shall include the registration or nonconforming use certificate number.
4) A copy of the registration or nonconforming use certificate shall be displayed in the back of the front door of the sleeping quarters.
5) A site and floor plan shall be filed with the registration or nonconforming use certificate application.
6) If the dwelling is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions is required. The correspondence shall be used to assist the Planning Department in determining whether or not the proposed vacation rental use is allowed.
7) Applicant for a registration or nonconforming use certificate must provide a copy of the transient accommodation tax license and a general excise tax license.
8) The Planning Department may physically inspect a transient vacation rental prior to a registration or nonconforming use certificate being issued.
9) One paved (with materials such as bricks, concrete, asphalt concrete surface or chip-seal, pavers, stones) off-street parking stall shall be provided for each guest bedroom.
(e) Prima Facie Evidence. Advertising of any sort which offers a property as a transient vacation rental shall constitute prima facie evidence of the operation of a transient vacation rental on said property and the burden of proof shall be on the owner, operator, or lessee to establish that the subject property is not being used as a transient vacation rental or that it is being used for such purpose legally. If any unit is found to be operating unlawfully, enforcement shall be pursuant to article 2, division 3.
(f) Transient Vacation Rental Enforcement Account. There is hereby established and created an account to be known as the “Transient Vacation Rental Enforcement Account”. The fees collected pursuant to Section 25-4-_(c)(6) are hereby deemed appropriated upon receipt and may be expended to retain independent contractors to assist in the enforcement of illegally operating transient vacation rentals. The fees may also be expended for materials, supplies, equipment, and training that facilitate inspection and enforcement of such violations. The Planning Department shall annually report to the Council, as part of the Mayor’s budget submittal, the expenditures and outcomes of said account.
SECTION 4. Chapter 19, section 19-53(e) of Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by adding a new real property tax class for transient vacation rental.
SECTION 5. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included.
SECTION 6. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.
SECTION 7. This ordinance shall take effect ______.
INTRODUCED BY:
________________________________________
COUNCIL MEMBER, COUNTY OF HAWAI‘I
_______________, Hawai‘i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
I thank you for your time, patience, expertise, and direction as we all wish Hawaii would allow Airbnb to collect the taxes upon booking and paid directly to the state instead of the convoluted booking mess we are forced to deal with on a monthly basis in my case.
As always,
With much aloha,
Rhonda
