Serving in the United States Army for 21 years, I conformed to many federal government regulations and policies, a set of rules and principles that many of our servicemen and women live by to this very day. During two overseas combat deployments to both Iraq (2005) and Afghanistan (2010) as a medic, I proudly upheld, supported and defended the very fabric of our Constitution.
Upon my retirement in 2018, my pursuit of happiness and greener pastures led me to Oahu, where I had the opportunity to attend grad school, allowing me considerable time to reflect on my period of uniformed service. I did not expect to have to fight for my property rights, which I knew were protected under the very Constitution I poured my blood, sweat and tears into. Yet now, that’s arguably the position I find myself in.
City Council Bill 41 vehemently jeopardizes this pursuit of happiness. Predicated on this arbitrary narrative that vacation rentals are hurting Oahu’s neighborhoods, Honolulu County is preparing to eliminate short-term rentals (STRs) and arguably stamp over property owners’ constitutional rights. I thought these rights were supposed to be guaranteed.
If passed, Bill 41 would devastate Oahu’s economy. STRs have been an integral part of Hawaii’s economy for nearly half a century, generating an estimated $1billion to $2 billion in transient accommodations taxes. By and large this is the largest-producing tax revenue on the city’s books. In fact, as of this January, Honolulu County just increased its transient accommodations tax by 3%, so that the TAT on Oahu now totals 13.25%, which is needed for many projects including rail, city maintenance and infrastructure.
Bill 41 does not simply hurt vacation rentals; it will indirectly affect everyone.
Consequently, every business entity tied to vacation rentals would therefore be quashed: from the mom-and-pop shops that have thrived in Kailua and the North Shore, to landscapers, cleaning people and small business contractors that paint and caulk the interiors of these vacation rentals.
Those supporting Bill 41 argue that vacation rentals are destroying neighborhoods, and scapegoat them as creating a housing crisis. This is simply a convenient excuse to a much broader problem within the state.
As a board member of the Oahu Short-Term Rental Alliance (OSTRA) — a grassroots organization of more than 1,600 STR owners, local businesses and stakeholders who depend on STRs — I ask the City Council to critically think about whom Bill 41 directly and indirectly affects.
There are better solutions to address the problem, such as city Ordinance 19-18 (previously Bill 89), that give all the necessary tools for Honolulu’s Department of Planning and Permitting to stamp out illegal vacation rentals and cooperatively work with rental platforms like Vrbo and Airbnb.
To this accord, Kauai Mayor Derek Kawakami recently lauded the significance of Bill 89 in helping against illegal vacation rentals on Kauai, and with Maui County recently following in those footsteps.
It’s time Oahu stopped trying to move backward and instead take smart, sensible and fair steps forward for the future of our entire community.
Matthew Trevino is a member of Oahu Short Term Rental Alliance (OSTRA).
