Senate Bill 2919, which explicitly grants counties the ability to control short-term rentals (STRs), is making its way through the Legislature, and it has drawn some avid opposition, largely from operators and organizations representing the STR industry.

Whether that derives from a misunderstanding of the bill, which does not by itself change the status of any currently operating STR, or from its interpretation as an invitation to restrict STRs, this pushback shouldn’t lead legislators to ignore its utility.

The fact is that counties are already on the front lines of STR decision-making, via their zoning and permitting processes. Creating clarity on the full breadth of options available to county governments — from creating new tourism zones that welcome this form of investment and operation to banning STRs in others — is necessary to enable these administrations to do their job, which includes planning for and regulating housing, tourism and business operations within county boundaries.

SB 2919, now awaiting a hearing at the House Finance Committee, must be offered up to the full Legislature for a vote and be passed into law.

It’s surely no coincidence that this bill was authored by Sen. Jarrett Keohokalole, who represents Kailua and Kaneohe. These Windward communities have seen the emergence of a vocal and politically savvy cohort of homeowners who have made a convincing case that STRs are eroding the residential character of their neighborhoods and raising the cost of rentals and property, forcing younger locals and would-be residents to go elsewhere.

This case against STRs in residential areas is strengthened by research, including from the University of Hawaii’s Economic Research Organization, which finds that proliferation of STRs causes property values to rise.

Combine that with the increased occupation of residential units by transient renters and it becomes a formula for displacing locals.

SB 2919 does explicitly state that counties “may” act to phase out transient accommodations. The key word here is “may.” It would be up to the counties, then, to pursue any actions.

As Rep. Luke Evslin of Kauai, chair of the House Housing Committee, stated, “We are not phasing out vacation rental units with this bill. We are simply removing the barrier within state law so that the counties, if they choose, can do this as they see fit … within a constitutional framework.”

The bill should also appeal to those who favor community- based decision-making, in that it places responsibility on county governments, which must be expected to account for community wants and needs. If and when a restriction arises, it would be a county matter.

In light of the desperate housing crisis caused by the Lahaina fire disaster, which displaced thousands of people from their homes, it’s absolutely necessary that Maui County have clarity on its options. This legislation will meet that need and serve all counties in defining these options.

IN ADDITION to SB 2919, two other major short-term vacation rental bills remain viable:

>> House Bill 2416 provides a welcome tool for the state at this time, when long-term housing availability is at crisis levels on Maui and near-crisis levels throughout the state. It creates a tax exemption for residential properties valued at less than $2 million that were operated as short-term rentals between Jan. 1, 2023, and June 30, and are sold to an unrelated individual who intends to immediately occupy the property as a primary residence.

The legislation, supported by Gov. Josh Green, sweetens the pot for owners of short-term rentals to sell so that the units can be used for long-term occupancy. Incorporating a sunset date so that its effectiveness in opening more units to long-term residency can be gauged — and so property owners mulling a sale have incentive to act now — is proper, and it should be passed.

>> House Bill 1838, introduced by 47 of the 51 state House members, is a direct response to the city government’s courtroom loss as Honolulu sought to prohibit 30-day or by-the-month rental operations with a law banning rentals of less than 90 days. The U.S. District Court judge found that Hawaii law prohibits a change that makes legal operations in a residential or agricultural zone illegal, and that therefore proprietors who were already operating could continue.

HB 1838 changes state law, enabling counties to enact zoning ordinances that amortize or phase out nonconforming single-family transient vacation rentals over a “reasonable period of time.” It won’t end skirmishes over phasing out STRs, but puts counties in a better position to do so if desired, and should be passed.