A measure that would change the restriction of a short-term rental to 180 days, from less than 30 days, attracted over 350 virtual attendees with mixed opinions during a five-hour meeting Wednesday in a public hearing held by the Honolulu Planning Commission.

The measure, submitted by the Department of Planning and Permitting as a way to cut down on illegal short-term rentals, would allow the current 808 legal bed-and-breakfast and transient vacation units to continue operating, but would not allow any new short-term rental properties in residential areas.

Homeowners, without a special permit, are allowed to rent a unit for a minimum of 30 days under the current system. Some owners have used that rule to continue renting to visitors. The measure would increase that to 180 days.

The only new permits would be given in resort areas such as Kuilima, Ko Olina and Waikiki. The DPP also added resort areas in Makaha to the list. It also would require the properties to display their certification registration number on all of their advertisements for the property.

Cecilia Gomez was one of the many who testified against the measure. She rents her house to people for income, which she needed to do after her husband died.

“I have not been able to find people can stay longer,” she said.

“I may not be able to rent for less than six months. I don’t know how I’m going to be able to survive.”

However Mufi Hanne­mann, president and CEO of the Hawai‘i Lodging & Tourism Association, said the current 30-day minimum is often just used as a loophole.

“We support the 180-day limitation,” he said. “We think this is a better way to ensure that local people have an opportunity to rent in places that they can afford.”

The 180-day limitation would not apply to month-to-month leases resulting from the expiration of a long-term lease. However, DPP Director Dean Uchida said during the meeting that the department is looking into making exceptions to the 180-day rule in the proposed measure for circumstances regarding travel nurses, military service members or students.

The proposed measure also explains more detailed instructions for enforcement of properties in violation of the law. Under the new measure, fines of up to $25,000 per violation per day could be levied against a property owner. If the property is being used for an illegal short-term rental, an additional fine of up to the highest daily rate at which the property is charging also could be applied by DPP.

The DPP director also would be required to respond within 30 days of receiving a complaint about a property either notifying the sender why the complaint is not valid, not within the city’s jurisdiction or if an investigation has been launched.

The measure also plans to charge B&Bs and TVUs in residential areas at the B&B property tax rate, which is higher than the residential rate. The new nonconforming units would be taxed at the resort rate, which is even higher. Up to $3.12 million in real property taxers from the B&B, hotel and resort tax classifications increase in tax revenue would then be used to staff the DPP’s special short-term rental enforcement unit.

Several years ago the City Council granted the DPP seven positions specifically for enforcement. However, the positions were not funded and so were unable to be filled.

DPP estimated that short-term-rentals occupy about 35% of vacant housing, and 5% of the state’s housing stock. It also estimated that there are currently about 20,000 illegal short-term rental units operating statewide.

At a press conference last week, Mayor Rick Blangiardi announced his support for the measure.

“The short-term vacation rentals have really impacted that housing crisis and taken a lot of units off the market that could be available to local people,” he said.

Due to time constraints the Planning Commission will continue the public hearing on the measure Wednesday at noon.