Acting under the idea that reducing the number of tourists will resolve traffic, overcrowded beaches and affordable housing problems, the city Department of Planning and Permitting (DPP) is introducing a revised vacation rental bill that will close many small businesses who serve our communities. While the bill is well-intentioned, it would have tremendous long-term negative impacts.

The Caldwell administration spent over two years working with the short-term rental industry to find a compromise between tourism and the residents’ concerns. In 2019, the result was Bill 89 and the resulting City Ordinance 19-18. It is not perfect, but it is a balanced approach to limit legal short-term rentals with 30-day rentals and create an enforcement framework to shut down illegal operators.

As a part of Ordinance 19-18, the DPP was required to create a set of enforcement rules through a public process. The resulting rules would become the legal administrative process that DPP would have to follow to shut down illegal operators. After one public hearing, the new administration gave up trying to create administrative rules and has instead decided to take a much more drastic approach.

On Wednesday, the Planning Commission heard a new proposed bill from the DPP. The bill is severe and draconian in its methodology. Some of the highlights include requirements such as:

>> If you own a legal TVU (transient vacation unit) in a condominium hotel, you cannot manage it yourself or have a professional property manager, you must rent it through a hotel operator.

>> You cannot receive a discount for using your own rental property, not for yourself, your family or your friends.

>> Month-to-month rentals anywhere outside of Waikiki, Ko Olina and Kuilima would be illegal, requiring that all rentals be 180 days (six months) or greater. This would not work for neighbor island residents who require accommodations for family members needing medical treatment; traveling nurses and government contractors on assignments; or military families and those needing month-to-month leases while looking to purchase a home.

The results of this bill would kill small businesses who are essential to the tourism and alternative accommodation eco-cycle. It would also financially injure all the homeowners who have been operating in good faith under Ordinance 19-18.

If this bill passes, it will not make any progress in DPP’s enforcement efforts as DPP would still need to go through the administrative rule process.

As an organization that supports legal short-term rentals, the Hawaii Legal Short-Term Rental Alliance (HILSTRA) fully supports DPP’s efforts to shut down illegal operators. They give everyone in the industry a bad name. Our members are willing to participate in the creation of the administrative rules that are necessary to enforce Ordinance 19-18. We have offered our assistance as an industry to help create the process to validate legal uses and to help catch illegal operators.

We are not asking for free rein, and we certainly do not want to throw out years of hard work that resulted in a balanced compromise. We are supporting small businesses and are offering to help our community by working together to find sustainable solutions for our employees, contractors, and guests.

Hawaii’s future should not be based on more unenforceable government rules but should have a solid foundation based on a balanced approach of businesses, government and the community working together.

Milo Spindt is executive director of the Hawaii Legal Short-Term Rental Alliance (HILSTRA).