HILO — The Windward Planning Commission wants to see a stricter short-term vacation rental law than currently proposed by the County Council.
In an almost all-day session Thursday, the advisory board recommended greater changes even than the county Planning Department, which had 16 of its own proposed revisions to Bill 108. The bill, already more than a year in the making, goes to its next stop Sept. 20, when the Leeward Planning Commission takes it up.
Commissioners questioned why the bill applies only to unhosted short-term rentals, which are rentals of 30 days or less where the dwelling owner does not live on the property. What about also regulating people who rent out rooms in their homes or in buildings on their property, they asked.
Commissioners pointed to the estimates of 2,600 to 5,000 short-term rentals already advertising on the island.
“There’s apparently so much money to be made that half the island could be short-term rentals before you know it,” said Commission Chairman Joseph Clarkson.
Clarkson said that most complaints centered around noise, but there are more problems than that. Parking and traffic in neighborhoods is one issue, he said, but even more important is the displacement of homes for long-term residents as more single-family dwellings are converted to short-term rentals.
Commissioners asked if there could be a quota, but were told it can’t be applied retroactively. The short-term rentals aren’t illegal because there’s no county code currently governing them.
“You can make laws going forward, but you can’t take away the property rights from people who are using it legally under today’s code,” said Amy Self, a deputy corporation counsel who represents the Planning Department.
Commissioners also wanted to know why there is such a long grace period for vacation rental owners to register with the county — 180 days after the bill’s effective date — rather than 60 days or 90 days.
“If they can’t get it together and fill out an application in two months, why give them six months?” Clarkson asked.
Deputy Planning Director Daryn Arai said the department also needs the time to collect the applications and answer questions.
“It’s pretty draconian because it hits hard,” said Arai. “You miss your deadline by a single day, you’re out.”
Commissioners’ questions came after about 20 people testified, some favoring the bill, some wanting to see it made more strict and some who thought the bill went too far.
The commission increased initial registration fees from $250 to $500, with $250 annual renewals for those requiring nonconforming use certificates. The commission made it clear that fees and fines are intended to support the program, including extra staff for inspectors.
Commissioners also voted to increase the documentation showing a property was already being used as a vacation rental when the law went into effect, to now include property tax records, state and federal income tax returns, general excise tax filings and filings for transient accommodations taxes.