The city’s regulation of short-term rentals has finally gone into effect. It’s a long-awaited milestone, requiring updated permits and minimum-stay requirements in specified zones, despite delays due to a lawsuit and court injunction, and likely lack of awareness that the new law is in place.
The poorly regulated network of nontraditional tourist accommodations, from whole-home transient vacation units to bed-and-breakfasts, for decades has altered the residential character of neighborhoods and skewed the real estate market.
Oahu’s new regulatory scheme is still in the throes of debate, with the pending lawsuit challenging a key aspect and some worried about its impact on the economy.
But it is still a mark of progress that Mayor Rick Blangiardi has put most of the new ordinance, which passed as Bill 41, in motion. Oahu needs to reassert control over its zoning system, an essential duty of any local government.
Blangiardi on Oct. 20 announced the decision to start implementing the ordinance, days after a federal judge issued an injunction barring enforcement of the 90-day minimum term for short-term rentals. The mayor argued, rightly, that the new law provided other tools, including stringent fines for violations, to help drive compliance. The ordinance authorizes fines of up to $10,000 per day.
Since then, according to the city Department of Planning and Permitting’s Short-Term Rental Enforcement Branch, 13 notices of violation were issued in the law’s first week, Oct. 24-31.
Dawn Takeuchi Apuna, DPP acting director, this week said that none have been referred yet for fines; it is fairly conventional for government agencies to allow some time for warnings to sink in.
However, the city should not make allowances for too long. Rental “hosts” may wonder whether to go the legal route or hide beneath the radar. They need to see that city officials are serious about collecting fines.
DPP does seem to be gearing up to mete out those consequences. In response to an emailed inquiry from the Honolulu Star-Advertiser, Apuna said DPP set up an enforcement branch and registration system with in-house staff, as opposed to hiring a consultant, at a savings she estimated at $800,000.
Less encouraging was the initially slow response to the system’s launch, with only 10 applications for short-term rental operations submitted on Day 1, and a lot of confusion over guidance.
The legal challenge may be the biggest wrinkle holding applicants back. The nonprofit Hawaii Legal Short-Term Rental Alliance’s lawsuit secured a U.S. District Court order to block enforcement of the new law’s minimum allowable stay of 90 days; the alliance maintained the minimum should be 30 days.
But there’s reason for optimism that a workable regulatory system can take shape. Better ways now exist to rein in abuse, with illicit rentals that book guests for less than 30 days much easier to identify.
There are rules about advertising that can trigger a violation, and there’s a new way to find scofflaws through tips via the city’s new hotline (808-768-7887).
And the pace of applications has picked up, with 111 applications submitted as of Wednesday, Apuna said.
“We’re receiving from 15 to 20 calls a day,” she added. “The most common question: ‘Do I need to register?’”
More outreach is needed to explain the new rules to those with individual concerns. But for the island at large, the answer is quite clear.
Yes, Oahu needs this registry to be up and running. It will take time and further adjustments to right-size Oahu’s vacation rentals sector, but at least the process has begun.
