The Honolulu Department of Planning and Permitting (DPP) took a revote Sept 7, 2011 on a controversial bill that would enforce a 2009 law banning vacation rentals in residential neighborhoods on Oahu. The votes were three in favor and three opposed, so the bill failed to achieve recommendation. The members who voted in favor were Kaiulani Sodaro, Gayle Pingree and Karin Holma, while Beadie Dawson and Andrew Jamila didn't vote since they were absent. Commission Chairman Rodney Kim, James Pacopac and Arthur Tolentino all voted against the bill.
Vacation House Rentals on Oahu
Honolulu Mayor Peter Carlisle and the DPP had drafted a draconian enforcement bill to rout out small businesses operating vacation rentals and Bed and Breakfast establishments. The Bill to Amend #21, of the Revised Ordinances of Honolulu 1990, as Amended Relating to the Regulation of Certain Visitor Accommodations, established harsh penalties against citizens who open their homes to paying visitors, including jail time. It would have added advertising as prima facie evidence of offenses, fixed fines up to $1,000 per day, and clarified definitions in the current law.
Proponents for the Amendment argued that listing addresses and permit certificate numbers in advertising is similar to what is required of construction contractors, who must list their license numbers on advertising. However, contractors don't list their home addresses or the fact that their properties may be vacant, inviting criminal activity. This identification would expose the properties to theft and vandalism, especially with internet advertising.
According to SON, an anti-tourist grass roots organization in Kailua, the enforcement bill was something they had worked on for six years. However, the public hearing begun on August 10, 2011 to discuss the legislation had over 300 people express their opinions, with more than two-thirds opposing the bill. Many citizens felt the enforcement was unfair, especially since no permitting process would be established concurrently, to enable citizens a legal way to conduct business.
No new permits have been issued in the past twenty years despite the upswing in visitors. Many small business operators are at risk, though they provide a legitimate service and contribute to Hawaii's economy. Since 1989, when 2,376 certificates were issued for Transient Vacation Units and Bed & Breakfasts, Oahu has lost on average twenty per year, according to the Department of Planning and Permitting. Only 875 remain of the legal vacation rentals, and only 200 of them are located outside of Waikiki.
It is unfortunate that neighbors are warring with one another, but with livelihoods at stake during a sour economy, the conflict will most likely continue until legal permits are allowed.
Citizens living in residentially zoned areas in Hawaii who desire to rent their places to vacationers have been legally prohibited from doing so by a powerful minority on the islands. Accountants, lawyers, beauticians and other small business owners are legally permitted to conduct business as usual from their homes, with customers coming and going, yet their neighbors are not allowed to use their houses for home-based businesses if they are to be vacation rentals.
Keep It Kailua (KIK) and Save Our Neighborhoods (SON), two rabidly anti-tourist groups, have resorted to vigilante tactics to ferret out vacation rentals on Oahu. The Hawaii Vacation Rentals Owners Association (HVROA) said it received several reports that a slim, elderly man was knocking on the doors of suspected short-term rentals in Lanikai. He claimed he was looking for a rental for his friend or family member, and he wanted to know who to contact. Later an Asian woman approached other homes with the same story. On one particular property, a handyman told the lady the place was not a vacation rental, whereupon she adamantly stated she knew it was because she noticed different cars in the driveway.
Richard Hagstrom of 367 Lama Place, Lanikai, also apparently decided to take matters into his own hands. In a letter to the Real Estate Commission dated March 13, 2011, he asked for a ban on renting or even advertising of TVU's without a non–conforming use permit (no new permits of this sort have been granted since 1989 so almost none of the operators have them). Hagstrom also submitted formal complaints against a list of travel agents who handle bookings for vacation rentals that he found on the internet.
Oahu Beachfront Rentals
In response, the Real Estate Commission on March 22, 2011 sent Hagstrom's list to the State of Hawaii Regulated Industries Complaint Office (RICO). Since July, this department has been sending letters of warning to the travel agents, stating they may be in violation of the law and to refrain from advertising. Sadly, these folks simply trying to earn a living are caught in the middle of the fray. Then on Oahu's North Shore, two Transient Vacation Units (TVU) were sent cease and desist letters, though their community has had regular vistors for years with no complaints.
A recent New York Times travel article on Kailua elicited a letter to the editor from Merrily Prentiss, a local from Kailua apparently dismayed at the possibility of more tourists visiting her town. She writes, "Lawrence Downes paints a nice picture of my Kailua. The trouble is that Mr. Downes forgot to mention that real Kailuans don’t want tourists at all. There is, in fact, a plan in place to start a 'tourists go home' campaign. Gentrification and creeping tourists have already destroyed what remained of Kailua’s quaintness, and many local folks are being displaced by high rents because of the proliferation of illegal rentals, higher grocery costs and higher taxes."
The writer's husband is Chuck Prentiss, Chair of the Kailua Neighborhood Board. Rumor has it that Mr. and Mrs. Prentiss are each considering running for political office next year. If successful, they will have the political authority to curb tourism, despite the will of many of their fellow citizens.
Hawaii Beach Cottage Rentals Under Fire
However, the battle isn't limited to Oahu. The former Mayor of Maui, Charmaine Tavares, led a massive shutdown of vacation rentals in 2009, causing a great deal of hardship for many citizens. Her mishandling of the issue played a large part in her later defeat for re-election. "So much hardship caused by complete lack of forethought was both lamentable and preventable," said Sharyn Stone, board member of Maui Vacation Rental Association. "An independent economic study put the figure that was taken out of Maui's economy at a most crucial time to be $318,000,000!" Maui's legendary windsurfing championship, the Aloha Classic, had to move to Germany because there weren't any accommodations for the competitors on Maui's North Shore.
Maui's present administration aims to achieve a more balanced approach. They have a Bed & Breakfast bill and are in process of drafting another to allow Short Term Rentals, the complementary side of the industry. They hope to give operators an avenue to become legal with a window of opportunity for them to apply for and receive permits, and only then to work on enforcement. Once a fair law is established, they can enforce it to put any illegal units out of business. Unfortunately, the previous Mayor Tavares had to learn the hard way. First, a fair and rational process needed to be determined, then enforcement, not the other way around.
Tiffany Hill recently wrote a one-sided article for Honolulu Magazine about TVU's, favoring their opponents. She said her omission in presenting arguments supporting TVU's was due to her phone calls to their owners not being returned, yet Angie Larson, President of HVROA, did not receive any calls from Hill. While the controversy rages in Kailua, spilling over the island and beyond, Larson's perspective is needed to balance the views of the shortsighted.
Downes, Lawrence. "My Kailua/The New York Times. http://travel.nytimes.com/2011/09/04/travel/return-to-kailua-hawaii.html?pagewanted=1&ref=travel September 2, 2011.
Hill, Tiffany. The Bed and Breakfast Battle in Hawaii/The Honolulu Magazine. http://www.honolulumagazine.com/Honolulu-Magazine/September-2011/The-Bed-and-Breakfast-Battle-in-Hawaii/ September 2011.
Honolulu Mayor Peter Carlisle’s proposed legislation against the vacation rental industry fell short by one vote, after heated debate during two public hearings in August 2011. His Bill to Amend #21 required five votes to pass, but results were four yea's and three no's, so the Planning Commission is allowed to take another vote. No further testimony will be heard on the issue, but votes will be recast 1:30 pm on September 7, 2011, at Mission Memorial Hearings Room, 550 South King Street, Honolulu. If the Amendment fails to pass, the Commission will send it to the Honolulu City Council without a recommendation.
Planning Commission’s Second Vote on Vacation Rental Enforcement Bill
The controversial amendment drew over 300 people on August 10, 2011, with the majority opposing the harsh enforcement. Fines of $1,000 or more and jail time are potentially in store for people in residential areas who open their homes to paying visitors. Since 2009 the vacation rentals have been denied a permitting process and stigmatized as "illegal," so many have gone underground. Enforcement of the vacation rental ban has been difficult, so the proposed Amendment was calling for the rentals to identify themselves in all advertising with their addresses and legal permit numbers.
Proponents for the Amendment argue that listing the information is similar to the requirement for contractors to list their license numbers on advertising, however, contractors don't list their home addresses or the fact that their properties may be vacant, inviting criminal activity. This identification would expose the properties to theft and vandalism, especially with internet advertising.
The Hawaii Vacation Rental Owner Association (HVROA) urges everyone who hopes for the amendment's defeat to attend the meeting on September 7. They note that the Mayor, Councilmembers and news media pay attention to large numbers. HVROA wants their industry to receive legal permits or certificates to operate, especially since they are of the majority opinion.
Conflict simmers in Oahu ahead of the Planning Commission's Public Hearing 10 am. - 2 pm. on Wednesday, August 24th., continuing discussion on a controversial bill designed to root out vacation rentals in residential neighborhoods. The Department of Planning & Permitting asked the Planning Commission to approve ordinances that will improve the laws regarding the enforcement of "illegal" visitor accommodations in residential neighborhoods, which has inflamed the community. Many mom and pop businesses offer accommodations to Hawaiian visitors, but they have no legal process to do so and have been crying out for one. Permits have generally been denied since 1989.
"Oahu residents have the right to live in residential neighborhoods without the proliferation of illegal visitor accommodations operating next to their homes," says KIK (Keep It Kailua). "It’s time the City enforced the law!" However, their rhetoric flies in the face of travel industry demand, tourist preferences, and the rights of fellow citizens in Hawaii to earn a living.
Oahu Cottage Rentals, Condos and B&B's
Makaha Valley, Oahu
KIK further states, "Oahu’s residential communities have been plagued by illegal vacation rentals operating in residentially zoned areas. These illegal businesses, including transient vacation units (TVU’s) and bed & breakfast lodges (B&B’s), reduce the inventory of long-term housing for local residents and adversely alter the character and social fabric of residential neighborhoods. They take revenue away from properly licensed hotels in properly zoned areas such as Waikiki, Ko Olina and Turtle Bay and compromise neighborhood security watch programs. These illegal vacation rentals also compromise Hawaii’s sexual predator laws and negatively impact neighboring property values."
The City Administration and the Department of Planning and Permitting (DPP) proposed the Bill to Amend #21 and put it on the fast track for passage. Despite their haste, the word still spread among the citizens of Hawaii, galvanizing many to oppose it. A law that would have such widespread effects would need to be fully explored among the people, and not quickly instituted.
Oahu
The law would identify illegal commercial visitor accommodations located in residential-zoned neighborhoods by requiring all B&B lodges and vacation rentals (TVU) to include a city-issued certificate number and their address in all of their advertisements. Operations that fail to do so will be issued warnings and ultimately expensive fines. Vacation rentals and B&B lodges in residential and resort zoning that already have grandfathered legal permits would not be negatively impacted, but these are few and far between. Almost no new permits have been issued since 1989 though the number of travelers to Oahu has exploded. There are not enough vacation rentals to accommodate the demand.
Hawaii Beach Cottage Rentals Under Fire
Stu Simmons, leader of KIK, presses to have the last word at the upcoming meeting. To prepare for the critical meeting, his organization has circulated their Talking Points:
The issue of allowing vacation rentals and B&B lodges in residential-only zoning was resolved in 1989 and again in 2010. The verdict is vacation rentals and B&B lodges belong only in resort zoning and are non-conforming is residential-only zoning. NOW the City needs to enforce the law and the illegal operators need to be cited.
The majority of those who oppose the bill do so because they are currently breaking the law and they know the bill will be effective in enforcing the law.
We should not allow a special interest group of illegal vacation rental owners dictate our zoning laws so that they can exploit our neighborhoods.
Our zoning laws should be upheld and the proposed bill will simply and efficiently help the DPP in enforcing the law.
Having the DPP inspectors examine the internet for locating and citing illegal transient rentals in place of on-site inspections will save the City money.
Allowing illegal visitor accommodations to prosper and profit with minimal enforcement effort is a violation of our trust in our Government to uphold the law for all citizens.
The simple requirement of including a city-issued certificate number and their address in all vacation rental advertisements is fair and reasonable. Other license practitioners such as contractors already follow a similar requirement. Including the address in advertisements for a most businesses is a normal business practice. Both White and Yellow Pages are a good example. On the internet, over 95% of the residential properties listed for sale will include their address in their advertised listings.
The Planning Commission, Fourteen of the most impacted Oahu Neighborhood Boards & Community Associations and the City Council all concluded the proliferation of transient accommodations are not appropriate for residential neighborhoods and their future growth should occur in resort zoning.
Oahu
Every one of the talking points has been countered by the Hawaii Vacation Rentals Owners Association (HVROA), especially the assertion that the issue was resolved in 1989 and 2010. The issues continue to boil because they were and still are unresolved to the majority of citizens.
According to Hawaii Sunshine-open meeting laws, new voices can testify at the meeting, which will be held in the Mission Memorial Hearings Room, 550 South King Street, Honolulu. Anyone may submit written testimony by fax (808)768-6743 or by e-mailing info@honoluludpp.org.
Hawaiian tourists who prefer to rent condos, cottages and rooms in Bed and Breakfasts may be unaware of a serious effort on Oahu to outlaw these accommodations, limiting visitors' options to the resort areas in Waikiki, Ko'olina and Turtle Bay. The Department of Planning and Permitting (DPP) and Honolulu Mayor Carlisle are pushing a Bill to provide the tools the DPP needs for effective enforcement, shutting down most vacation homes. It is shocking the mayor and Planning Department would draft such harsh legislation considering Hawaii's main industry is tourism, not to mention Constitutional issues like property rights and individual liberty.
Surfing on Oahu Beaches
Oahu Beach Rentals in Kailua
On August 10, 2011 a Public Hearing was held at Mission Memorial Hearings Room, 550 South King Street, Honolulu to discuss a Bill to Amend #21, of the Revised Ordinances of Honolulu 1990, as Amended Relating to the Regulation of Certain Visitor Accommodations. The proposed amendment is only about enforcement, without any permitting for vacation rentals, though many owners would like to have legal permits. Currently many Bed and Breakfasts, condos and beachfront cottages operate under the radar, pressing government officials to regulate their industry so they won't have to bear the "illegal" stigma.
About 300 people attended the meeting, with over 200 opposed to the bill. Not all got a chance to speak, so the hearing was scheduled for continuation on August 24 at 10:00 am. in the same room. Any interested parties can share their opinion even if they did not attend the previous meeting or sign up to testify.
Kailua, a city on the windward side of the island, has spawned a couple of antagonistic groups, Save Oahu's Neighborhoods (SON) and Keep It Kailua (KIK), to band together a few disgruntled residents in a war against their neighbors who operate the vacation rentals. The small business owners who open their homes to travelers are law-abiding, taxpaying citizens who have found a successful way to earn a living in Hawaii. A member of the Hawaii Vacation Rental Owners Association called the SON and KIK members "spoiled trust babies" who don't have to work to put bread on their tables.
KIK and SON were dismayed by the sheer numbers of people showing up to fight their bill. They said their opposition "gave compelling testimony about the money, money, money ....... they made and the taxes, taxes, taxes they pay and the people, people, people they employ." Although the Bill was only about enforcement, two Planning Commissioners openly said that it should include a permitting process, which would allow the transient accommodations to operate. KIK and SON were surprised the Planning Commission would give a nod to any discussion of permits for the vacation homes.
Therefore, they are regrouping to show up en masse at the August 24, 2011 meeting, and may be successful if history proves to repeat itself. Vacation rental permits were heavily debated in 2007 - 2008. The first part of the Planning Commission hearing (November 2007) went to the pro-visitor crowd who won by their attendance and clear presentations. KIK and SON then mustered their troops, refined their testimony and covered all their relevant points to turn the tide at the January 2008 continuation. KIK's position, particularly against any new permits, carried unanimously as a result. They now feel they must repeat that performance because losing at the Planning Commission level will devastate their chances with the City Council.
Makaha Valley, Oahu
Hawaiian Vacation House Rentals at Risk
The anti-tourist crowd hopes to speak less about their personal griefs and more about the impacts of the industry. Their discussion points include the facts that eleven neighborhood boards and the previous Planning Commission voted for improved enforceement against Bed and Breakfast accommodations and NO permitting process, and that a similar bill, introduced by the late Barbara Marshall, was unanimously adopted by the Planning Commission in 2008. It never received a committee hearing at the council, though.
Other concerns involve housing prices, lack of long-term rentals for Oahu residents, homelessness, and the integrity of the planning and zoning process. They believe vacation homes attract burglars into their community and alter the neighborhood's character. For the August 24 meeting, they will wear blue in a show of solidarity, while those in favor of the vacation homes usually wear leis as an indication of their aloha spirit of welcome.
"With the economy in turmoil and Hawaii teachers being forced to take a pay cut, I do not understand how the city could even consider hurting the economy more than it is already suffering by cracking down on vacation rentals," says Rachel Murdock of Kapolei, Oahu. "Some owners are forced to rent out their homes to visitors just to keep from losing their homes. Others do it to help supplement their income during a time of inflation and economic turmoil. I understand that some regulation may be necessary in the industry, but attacking rentals is foolish for Hawaii and would destroy many livelihoods. It completely disregards what Hawaii is known for all around the world: the spirit of aloha."
Infrastructure that supports the tourist industry will also be hurt by the Bill. Cleaners, handymen, restaurants and retail businesses depend on visitors for their incomes. As long as the vacation rentals don't disturb their communities with parking problems or loud noise, most agree they should be left alone.
