06-13-2018, 11:55 AM
https://mailchi.mp/hawaiicounty/vacation...62a5fc2d6d
riends,
I will be hearing a proposed bill that regulates Vacation Rentals where the owner doesn’t live on the same property, (we are the only county that doesn't regulate vacation rentals in Hawaii). Bill 108 was introduced by 2 Kona council members and the Mayor’s office. It will be heard at the council meeting next week Tuesday. I am hosting a community meeting on it to present to you the details, answer your questions, and get your feedback and ideas. Snacks will be provided. If this interests you, please join me:
When: Friday June 15, 2018
Time: 5:30-6:30 p.m.
Where: The Neighborhood Place of Puna, 16-105 Opukahaia St., Kea’au.
I've done my best to simplify the very complex bill as it reads now into layman's terms for your convenience, as well as a breakdown of the proposed amendments. It is meant to help be a place for you to begin your own research on the bill's implications.You can also view Bill 108 here and the proposed amendments here. As always if you have any thoughts or questions please feel free to call my office at 808-961-8536.
Sincerely,
Jen
Bill 108 Draft 3 in Layman's Terms
I. Who this applies to:
“Short-term vacation rental” (STVR) means a residential dwelling where:
The owner/operator does not on reside on the building site;
Has no more than 5 bedrooms on the building site for transient use;
Is rented to transients for a period of 30 consecutive days or less;
This does not apply to short term use of an owner’s primary residence as defined under the IRS.
[In other words, this bill would only apply to vacation rentals where the owner/operator lives on a different property.]
II. Zoning regulations of Vacation Rentals
Short-term vacation rentals shall be permitted in the:
V = Hotel and Resort (0 in Puna)
CG = General Commercial (0 in Puna)
CDH = Commercial Downtown Hilo (0 in Puna)
CV = Village Commercial (about 8 lots in Volcano, 0 in Mt. View, 1 in Kurtistown, about 33 in Keaau Village, about 63 small lots along Pahoa Village Rd.)
General Plan Resort Area
Resort Node
III. Registration requirement
Any current STVR’s in the above permitted zones, V, CG, CDH, resort areas and resort nodes that are not in a residential area must register with the planning department within 180 days after Bill 108 takes effect. The registration will require:
State of Hawaii general excise tax license.
Transient accommodation tax license.
Certification that parking in section 25-4-51 is available.
Any new STVR’s in the permitted areas will have to register with the planning director prior to use. The form will be provided by the planning department and will require:
Verification that Haaii general excise tax and transient accomodation tax licenses are in effect.
Certification that parking is available according to 25-4-51 of the county code.
Site plan showing location of rooms for rent and parking.
Any STVR’s in a residential area that is within the general plan resort area or resort node will have to apply for a use permit with the planning department.
Upon a change in ownership, the registration will automatically continue, and is subject to termination by the new owner, however, the new owner will need to notify the planning director and give contact information for a reachable person.
Any STVR not registered will be subject to penalties until compliance.
Any STVR outside of the permitted zones, (pretty much all of Puna) must register with a “nonconforming use certificate:”
The owner/operator of any STVR outside of the above zoning districts prior to January 20th, 2018 will need to submit an application for nonconforming use certificate within 180 days of Bill 108 taking affect.
Prior use: The applicant has the burden of proof in establishing the property was in use as a STVR prior to July 20th, 2018. This proof can be tax documents for the time period including general excise tax and transient accommodation tax filings, and State of Hawaii income tax returns. Other reliable information may be provided. The Planning Department Director shall determine whether to issue the permit.
Display: Current STVR’s nonconforming use certificates shall be displayed in a conspicuous place on the premises that is readily visible to an inspector. If one address is associated with multiple certificates, a list of all the the units holding certificates should be displayed in a visible common area.
Good neighbor policy: The owner or reachable person* (defined below) is responsible to make sure the the activities within the STVR conforms to the existing neighborhood. At minimum, the following should be displayed in the dwelling unit and recited in the rental agreement signed by the renters:
Quiet hours are from 9pm to 8am - Noise from the STVR should not unreasonably disturb adjacent neighbors.
Sound beyond the property boundaries during non-quet hours shall not be more excessive than what would be normal for a residential area.
Amplified sound that is audible beyond property boundaries is prohibited.
Guest vehicles need to be parked in the designated onsite parking area.
Annual Renewal: Nonconforming use certificates must be renewed every year on or before the expiration date for a fee of $500 to the director of Finance. At the time of renewal, the certificate will be denied if the director verifies any of the following:
The STVR was abandoned according to section 25-4-62;
The applicant violated this chapter, (bill) or pertinent laws
The owner is delinquent in County taxes, fees, fines, or penalties assessed in relation to the STVR
The owner or reachable person has not been reachable;
Police reports or verified neighbor complaints of noise and other disturbances relating to STVR operations.
Denial will require written notice to the property owner.
Appeal: Within 30 days of receipt of notice the owner may appeal to the Board of Appeals as provided by section 6-9.2 of the County Charter and section 25-2-20 through 25-2-24 of the County code.
IV. New Regulatory Standards for Vacation Rentals
“Reachable” means being able to answer the telephone at all times, being able to physically present at the STVR within 1 hour following a request by a guest, neighbor, or county agency.
STVRs will be required to meet the following standards:
The owner or a reachable person must reside on island and be reachable by guests, neighbors, and County agencies on a 24/7 basis. The owner shall notify the planning dept. of any changes to contact info.
All advertising including listings with rental or real estate firms, shall include the registration or nonconforming use certificate number.
A copy of the registration or nonconforming use certificate and the reachable person’s name and phone number shall be displayed in the back of the front door of the sleeping quarters.
Off street parking standards must meet standards set in section 25-4-51 (a)(8) of the County Code.
Parking requirements 25-4-51(a)(8): “... one space for each rented bedroom in addition to one space for the dwelling unit if rooms in the dwelling unit are rented individually, or two spaces if the dwelling unit is rented as a whole.”
Any commercial signage advertising the STVR shall comply with section 22-2.6 and chapter 3 of the code.
Prima facie evidence: Advertising of any sort that offers STVR shall constitute prima facie evidence that a STVR is in operation on that property. The burden of proof is on the owner/operator to prove it isn’t a STVR or is legal.
STVR Enforcement Account: A special fund called “short-term vacation rental enforcement fund” will support enforcement of this law, will be funded by fees collected by nonconforming use certificate renewal fees.
If any STVR is found to operating illegally enforcement will be pursuant to section 25-2-35 of the County Code.
Proposed Amendment to Bill 108 Draft 3
Here is my layman's breakdown of the amendments proposed by Council member O’Hara:
Registration Requirements were amended:
All STVR’s must pay a one-time fee of $100 upon registration and an annual fee of $100 every year to the director of finance. (Draft 3 doesn’t make STVR’s within the allowed zones to pay a fee and only requires those living outside of the allowed zones to pay with registration).
STVR owners will have to provide verification that notification letters have been sent to all property owners within 500 feet of the property line. The letter has to provide the number of units being rented, maximum number of guests permitted, the number and location of required parking spaces, and instructions on how to provide comments to the planning department.
The “upon change in ownership the registration shall automatically continue subject to termination by the new owner” clause was removed.
For nonconforming use certificates the annual renewal fee will be based on the amount of Transient Accommodations Taxes that were paid in the previous year as follows:
Transient Accommodations Taxes Paid
Renewal Fee
Less than $500
$50
$500 to $2,000
$100
$2,001 to $5,000
$350
$5,001 to $10,000
$700
More than $10,000
$1,000
The annual registration and nonconforming use certificate fees will be used to fund the enforcement account.
Adds clarifying language that private neighborhood covenants prohibiting STVRs will not be invalidated by this law.
New Regulatory Standards were amended:
Changes the requirement of having a “reachable person” to a “designated contact person” that “shall be reachable.”
Adds the definition: “‘Designated contact person’ means a professional property manager licensed in the State of Hawaii.”
Adds the requirement of having a copy of the “annual” registration and nonconforming use certificate displayed on the back door, (as opposed to just a copy of any year’s registration or certificate).
riends,
I will be hearing a proposed bill that regulates Vacation Rentals where the owner doesn’t live on the same property, (we are the only county that doesn't regulate vacation rentals in Hawaii). Bill 108 was introduced by 2 Kona council members and the Mayor’s office. It will be heard at the council meeting next week Tuesday. I am hosting a community meeting on it to present to you the details, answer your questions, and get your feedback and ideas. Snacks will be provided. If this interests you, please join me:
When: Friday June 15, 2018
Time: 5:30-6:30 p.m.
Where: The Neighborhood Place of Puna, 16-105 Opukahaia St., Kea’au.
I've done my best to simplify the very complex bill as it reads now into layman's terms for your convenience, as well as a breakdown of the proposed amendments. It is meant to help be a place for you to begin your own research on the bill's implications.You can also view Bill 108 here and the proposed amendments here. As always if you have any thoughts or questions please feel free to call my office at 808-961-8536.
Sincerely,
Jen
Bill 108 Draft 3 in Layman's Terms
I. Who this applies to:
“Short-term vacation rental” (STVR) means a residential dwelling where:
The owner/operator does not on reside on the building site;
Has no more than 5 bedrooms on the building site for transient use;
Is rented to transients for a period of 30 consecutive days or less;
This does not apply to short term use of an owner’s primary residence as defined under the IRS.
[In other words, this bill would only apply to vacation rentals where the owner/operator lives on a different property.]
II. Zoning regulations of Vacation Rentals
Short-term vacation rentals shall be permitted in the:
V = Hotel and Resort (0 in Puna)
CG = General Commercial (0 in Puna)
CDH = Commercial Downtown Hilo (0 in Puna)
CV = Village Commercial (about 8 lots in Volcano, 0 in Mt. View, 1 in Kurtistown, about 33 in Keaau Village, about 63 small lots along Pahoa Village Rd.)
General Plan Resort Area
Resort Node
III. Registration requirement
Any current STVR’s in the above permitted zones, V, CG, CDH, resort areas and resort nodes that are not in a residential area must register with the planning department within 180 days after Bill 108 takes effect. The registration will require:
State of Hawaii general excise tax license.
Transient accommodation tax license.
Certification that parking in section 25-4-51 is available.
Any new STVR’s in the permitted areas will have to register with the planning director prior to use. The form will be provided by the planning department and will require:
Verification that Haaii general excise tax and transient accomodation tax licenses are in effect.
Certification that parking is available according to 25-4-51 of the county code.
Site plan showing location of rooms for rent and parking.
Any STVR’s in a residential area that is within the general plan resort area or resort node will have to apply for a use permit with the planning department.
Upon a change in ownership, the registration will automatically continue, and is subject to termination by the new owner, however, the new owner will need to notify the planning director and give contact information for a reachable person.
Any STVR not registered will be subject to penalties until compliance.
Any STVR outside of the permitted zones, (pretty much all of Puna) must register with a “nonconforming use certificate:”
The owner/operator of any STVR outside of the above zoning districts prior to January 20th, 2018 will need to submit an application for nonconforming use certificate within 180 days of Bill 108 taking affect.
Prior use: The applicant has the burden of proof in establishing the property was in use as a STVR prior to July 20th, 2018. This proof can be tax documents for the time period including general excise tax and transient accommodation tax filings, and State of Hawaii income tax returns. Other reliable information may be provided. The Planning Department Director shall determine whether to issue the permit.
Display: Current STVR’s nonconforming use certificates shall be displayed in a conspicuous place on the premises that is readily visible to an inspector. If one address is associated with multiple certificates, a list of all the the units holding certificates should be displayed in a visible common area.
Good neighbor policy: The owner or reachable person* (defined below) is responsible to make sure the the activities within the STVR conforms to the existing neighborhood. At minimum, the following should be displayed in the dwelling unit and recited in the rental agreement signed by the renters:
Quiet hours are from 9pm to 8am - Noise from the STVR should not unreasonably disturb adjacent neighbors.
Sound beyond the property boundaries during non-quet hours shall not be more excessive than what would be normal for a residential area.
Amplified sound that is audible beyond property boundaries is prohibited.
Guest vehicles need to be parked in the designated onsite parking area.
Annual Renewal: Nonconforming use certificates must be renewed every year on or before the expiration date for a fee of $500 to the director of Finance. At the time of renewal, the certificate will be denied if the director verifies any of the following:
The STVR was abandoned according to section 25-4-62;
The applicant violated this chapter, (bill) or pertinent laws
The owner is delinquent in County taxes, fees, fines, or penalties assessed in relation to the STVR
The owner or reachable person has not been reachable;
Police reports or verified neighbor complaints of noise and other disturbances relating to STVR operations.
Denial will require written notice to the property owner.
Appeal: Within 30 days of receipt of notice the owner may appeal to the Board of Appeals as provided by section 6-9.2 of the County Charter and section 25-2-20 through 25-2-24 of the County code.
IV. New Regulatory Standards for Vacation Rentals
“Reachable” means being able to answer the telephone at all times, being able to physically present at the STVR within 1 hour following a request by a guest, neighbor, or county agency.
STVRs will be required to meet the following standards:
The owner or a reachable person must reside on island and be reachable by guests, neighbors, and County agencies on a 24/7 basis. The owner shall notify the planning dept. of any changes to contact info.
All advertising including listings with rental or real estate firms, shall include the registration or nonconforming use certificate number.
A copy of the registration or nonconforming use certificate and the reachable person’s name and phone number shall be displayed in the back of the front door of the sleeping quarters.
Off street parking standards must meet standards set in section 25-4-51 (a)(8) of the County Code.
Parking requirements 25-4-51(a)(8): “... one space for each rented bedroom in addition to one space for the dwelling unit if rooms in the dwelling unit are rented individually, or two spaces if the dwelling unit is rented as a whole.”
Any commercial signage advertising the STVR shall comply with section 22-2.6 and chapter 3 of the code.
Prima facie evidence: Advertising of any sort that offers STVR shall constitute prima facie evidence that a STVR is in operation on that property. The burden of proof is on the owner/operator to prove it isn’t a STVR or is legal.
STVR Enforcement Account: A special fund called “short-term vacation rental enforcement fund” will support enforcement of this law, will be funded by fees collected by nonconforming use certificate renewal fees.
If any STVR is found to operating illegally enforcement will be pursuant to section 25-2-35 of the County Code.
Proposed Amendment to Bill 108 Draft 3
Here is my layman's breakdown of the amendments proposed by Council member O’Hara:
Registration Requirements were amended:
All STVR’s must pay a one-time fee of $100 upon registration and an annual fee of $100 every year to the director of finance. (Draft 3 doesn’t make STVR’s within the allowed zones to pay a fee and only requires those living outside of the allowed zones to pay with registration).
STVR owners will have to provide verification that notification letters have been sent to all property owners within 500 feet of the property line. The letter has to provide the number of units being rented, maximum number of guests permitted, the number and location of required parking spaces, and instructions on how to provide comments to the planning department.
The “upon change in ownership the registration shall automatically continue subject to termination by the new owner” clause was removed.
For nonconforming use certificates the annual renewal fee will be based on the amount of Transient Accommodations Taxes that were paid in the previous year as follows:
Transient Accommodations Taxes Paid
Renewal Fee
Less than $500
$50
$500 to $2,000
$100
$2,001 to $5,000
$350
$5,001 to $10,000
$700
More than $10,000
$1,000
The annual registration and nonconforming use certificate fees will be used to fund the enforcement account.
Adds clarifying language that private neighborhood covenants prohibiting STVRs will not be invalidated by this law.
New Regulatory Standards were amended:
Changes the requirement of having a “reachable person” to a “designated contact person” that “shall be reachable.”
Adds the definition: “‘Designated contact person’ means a professional property manager licensed in the State of Hawaii.”
Adds the requirement of having a copy of the “annual” registration and nonconforming use certificate displayed on the back door, (as opposed to just a copy of any year’s registration or certificate).
