UPDATED:  July 15, 2019

City Department  of Planning and Permitting

New Regulations on Short-Term Rentals

 

 

 

Bill 89 C02 was adopted by the City Council on June 17, and signed (Ordinance 19-18} by Mayor

Kirk Caldwell on June 25. Its main points:

 

 

•    Allows a limited number of new Bed and Breakfast Homes (B&B} in non-resort areas under a new registration process, with annual renewal required.

•    Continues to prohibit Transient Vacation Units, or "unhosted" rentals, in non-resort areas, unless the dwelling has a Nonconforming Use Certificate (NUC}.

•    Regulates hosting platforms, such as Expedia or Airbnb, requiring monthly reports  to be filed with the Department of Planning and Permitting, which will share the information with City Council.

•    Makes illegal any form of advertising short-term rentals which are not in compliance

 

             Copy provided by Dolly Ozols Locations 614 Kapahulu Ave. Honolulu, HI RS-78295.            

                   If now is a good time for you to buy or sell please call me 808 670 4956.

 

 

 

The following Questions and Answers are based on calls and emails we've received since Bill 89 passed:

 

ADVERTISING

 

 

I own an unhosted,"whole house," or Transient Vacation Unit.  I pay taxes. Can I continue to advertise online and in the localnewspaper?

After August 1, 2019, only if the dwelling has a NUC or is located in a resort area.

 

 

When will the department start enforcing the new advertising restrictions?

Beginning August 1, 2019.

 

 

What are the fines for illegal advertising?

Owners of the property involved in illegal advertising will be notified, and if the advertisement is taken down in 7 days, no fine will be imposed for a first offense.  If not taken down within this deadline, fines of between $1,000 and $10,000 can be imposed for each day the advertisement remains on display.

 

 

How do I distinguish my legal long-term rental advertisement from an illegal short-term rental?

Specify in the ad that the rental period is a minimum of 30 days or more.  Do not include any rental rates of less than a monthly  basis.

 

I only rent my property for 30 days or longer,but when I advertise on a certain platform,the monthly rate is automatically broken down into daily rates.These rates become part of my ad and I have no ability to change that. Will I be liable, even though I don't rent by the day?

Yes, you may be cited for illegally advertising. If the platform is unwilling to change its policy, you may have to decide whether to continue participating on that platform.

 

To comply with the law, people will be advertising only 30-day stays. But, in follow-up conversations, they  will offer daily and weekly stays.  How will you know who's doing this to skirt the law?

Advertising is a new violation, but actually staying in a home for less than 30 days is still a violation. The DPP will continue  to monitor for occupancy violations. Also, just as a caution to homeowners, Governor David lge recently signed House Bill No. 807 (Act

114}, which makes it a misdemeanor offense to knowingly make a false statement to a

county inspector. This is not something that we plan to use, but it is a tool in our enforcement toolkit.

If the management company for my property places an illegal ad, will the company get cited?

They may be cited, but Ord. 19-18 says, "The burden of proof is on the owner of the subject real property to establish that the property is not being used as a bed and breakfast home or transient vacation unit or that the advertisement was placed without the property  owner's  knowledge or consent."

                        Copy provided by Dolly Ozols Locations 614 Kapahulu Ave. Honolulu, HI RS-78295.  

 If now is a good time for you to buy or sell please call me 808 209 4444.

REGISTRATION OF NEW BED AND BREAKFAST HOMES

I have been operating a Bed and Breakfast Home for several years. Do I still have to obtain a registration number?

Yes, unless you already have a NUC.

I only rent out my house for more than 30 days at a time.  Do I need to register?

No.

1 only rent my house while my family spends 2 weeks each year visiting family on the mainland.  Do Ineed to register?

Yes.

When can I register?

Registration  will begin on October 1, 2020, although we are considering a pre­ registration process before then.

 

Are there other requirements?

Density limit. No more than 0.5% of the total number of dwelling units in each regional development plan area (DPA) can be used as B&Bs. Here are the limits b   area:

 

New B&Bs are not allowed in the North Shore area, based on directives of the North

Shore Sustainable Communities Plan: http://bit.ly/2Y4QpLg

Condominium limit. Up to SO% of units in a condominium building may be allowed a

B&B, subject to AOAO approval.

 

Separation Minimum. B&Bs must be at least 1,000 feet from each other.  This does not apply to units in resort areas and NUCs. Clearly, there is a conflict between the condo limit  and this separation limit. While we are still looking into it,this may practically result in only 1unit per building.

 

Nontransferable. Registration  numbers are not transferable to another  property, nor transferable to another homeowner.

Renewal Criteria.  Noise and other nuisance complaints can be grounds to deny renewal requests.

For the complete list of requirements, refer to Bill 89 C02:  https:Ubit.ly/21S637x

How long will it take to get registered?

It is not yet determined. An online registration process is anticipated, but certain requirements will have to be verified; e.g. compliance with parking requirements.

Copy provided by Dolly Ozols Locations 614 Kapahulu Ave. Honolulu, HI RS-78295.      

                                            If now is a good time for you to buy or sell please call me 808 209 4444.

If only a limited number of registration numbers will be given out, how can I guarantee to get one?

There is no provision for guarantees.

How will it be determined who gets a registration number?

Generally on first-come, first-served basis. If the number of requests exceeds the limit for a DPA, then a lottery will be held.

How will the lottery  system work?

This will be fleshed out in the Rules. There will be a public hearing on the draft Rules before they are finalized.

I am currently  operating a B&B, and do not have a NUC, so will need to register. Will I get priority in the registration process?

No.

Can I advertise and operate a short-term rental once I file my registration?

No. To avoid a citation, operation cannot occur until the registration process has been completed and registration number issued.

 

I pay my taxes for the rental I have, doesn't that make me legal?

No, not necessarily.  If you are renting the unit for 30 days or more, you are legal.  If you have a NUC, or are in the resort area, you are legal. Otherwise, you are likely operating an illegal vacation rental.

 

I have bookings through the rest of the year.  What should I do?

If you are legally operating, you can go about your business as usual. If you are renting for less than 30 days, don't have a NUC, aren't in a resort area, the decision is yours as to whether  to continue the illegal use. But beginning August 1, we will vigorously enforce Ord. 19-18.

 

I live in an area where I belong to a homeowner's association and the zoning allows short­ term rentals. The association's rules, however, state that we are not allowed to rent out short-term rentals. Can the city override their rules and grant me a permit?

No, the city does not override private homeowner association rules.

What if the zoning doesn't permit short-term rentals, but my homeowners' association allows it. Who has the authority?

In this case, the homeowners' association cannot override or substitute for county ordinances.

Why do we have to wait more than year to register?

The time is required for the Department to develop more specific procedures for implementing Ord. 19-18, including the adoption of rules, and creating the software to help with enforcement and the registration process. If necessary, it provides time to acquire more staff and to train them.  For applicants, it may take time for them to fulfill some of the filing requirements, such as obtaining their AOAO approval, if applicable.

 

What are the registration requirements?

There are more than a dozen requirements. Most notable:

•    Applicants must be "natural persons," and not an organization  or company

•    Applicants must have a home exemption granted under real property tax law

•    There must be insurance coverage for bed and breakfast use

•    The initial registration fee is $1,000.  For annual renewals, the fee is $2,000

•    No more than 2 bedrooms can be used for visitor accommodations

•    Quiet hours must be observed between 10 p.m. and 8 a.m.

•    If part of a homeowners or apartment owners association, approval by that association must be obtained

•         Neighbors  within 250 feet must be given a phone number to contact to make complaints, 24 hours a day

 

For the complete  list of requirements, refer to Ord. 19-18:  https://bit.ly/21S637x

I heard that the NUC program will be discontinued and we will no longer be able to renew a

NUC. Is that  true?

No, the NUC program will continue as usual, meaning they have to be renewed every even-numbered year. Ord. 19-18 only requires those with NUCs to include the NUC number in advertisements beginning August 1, 2019.

 

                                            Where can I find a list of NUCs?

               For a complete  list, please click on this link: https://bit.ly/30wM6Jm

 

Copy provided by Dolly Ozols Locations 614 Kapahulu Ave. Honolulu, HI RS-78295.        

If now is a good time for you to buy or sell please call me 808 670 4956.

I am a member of homeexchange.com,where owners  "swap" the use of their homes with other owners  around the world.  No money is exchanged and terms of the use can range from a few days to several weeks.  Does this activity fall under the new short-term rental law?

Home exchanges are subject to the new regulations.  While home exchanges may not involve cash transactions, owners are compensated for such exchanges with things like "guest points"  or a home/lodging. The definition of transient  vacation unit contains a broad definition of compensation, i.e., "... compensation  includes, but is not limited to, monetary payment, services or labor of transient occupants."  The definition was intended to prevent people staying for less than 30 days in a dwelling or lodging unit, regardless of how the owner is compensated.

 

SECTION 14 OF THE ORDINANCE READS IN PART:

"Transient vacation unit" means a dwelling unit or lodging unit that is advertised, solicited, offered, or provided, or a combination of any of the foregoing, for compensation  to transient  occupants for less than 30 days, other than a bed and breakfast home. For purposes of this definition, compensation includes, but is not limited to, monetary payment, services or labor of transient  occupants."

 

This new law is going to kill the vacation rental industry and cause financial hardship for many who rely on the extra income to survive in Hawaii. Who can I call to express my concerns or ask for changes to the law?

You can call your City Council member:

Council District 1:  Kymberly Marcos Pine, 768-5001

Council District 2: Heidi Tsuneyoshi, 768-5002

Council District 3: lkaika Anderson, 768-5003

Council District 4: Tommy Waters, 768-5004

Council District 5: Ann Kobayashi, 768-5005

Council District 6: Carol Fukunaga, 768-5006

Council District 7: Joey Manahan, 768-5007

Council District 8: Brandon Elefante,768-5008

Council District 9: Ron Menor, 768-5009

NOTE: Phone numbers published in an earlier version were incorrect.

Copy provided by Dolly Ozols locations 614 Kapahulu Ave. Honolulu, HI RS-78295.    

                                            If now is a good time for you to buy or sell please call me 808 209 4444.

 

MORE INFORMATION

 

 

•   Refer to the Department's website:              honoluludpp.org

•   Follow the Department's Twitter account:   @hnl_dpp

•   Email the Department:                                    info@honoluludpp.org

•   Call the Department:

 

General Zoning Information: Advertising Restrictions: Registration Process:

Make a complaint:    Public Information Officer:

768-8252     768-8127     768-8127     768-8127     768-8284

Coming soon: Filing complaints online

Locations

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REALTOR-ASSOCIATE

Dolly.Ozols@LocationsHawaii.com

RS-78295              I Honolulu

D (808) 732-5079     614 Kapahulu Avenue, #200

C  (808) 209 4444     Honolulu. HI 96815

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