The County of Hawaii adopted Bill 108 on November 18, 2019, and is now recognized as Ordinance 2018-114. The Planning Department is now charged with administering the Ordinance and establishing new practices and procedures “necessary to implement the provisions set forth in Bill 108” as stated in their public notice requesting further public input regarding their Rule 23. Rule 23 further defines the methodology of applying for a Short Term Vacation Rental Permit as well as a Non Conforming Use Permit where the existing zoning would preclude a short term vacation rental use.

Historically, STVR (short term vacation rentals) were only allowed in Resort nodes like the Mauna Lani Resort and these zoning classifications; Resort (V), General Commercial (CG), and Village Commercial (CV) zoned properties. Vacation rental was not allowed in Residential zoning including condominiums which have zonings like RM classifications. These RM zoned condominiums are now included in the allowed zoning for STVR unless their particular documents exclude STVR. A Nonconforming Use Certificate (NCUP) will now be needed for all other properties located in Residential or Agricultural zoned properties with the exception of AG lots established before June 4, 1976.

I’ve already received 4-5 calls from agents with clients that are specifically seeking Resort (V) zoned properties where in the past the buyers may have considered a single family Residential property in either in a AG or R zoning that now require a NCUP. The buyers would have to make their purchase contingent on obtaining the permit or close and go through the speculative process after their purchase. The new Ordinance may have the effect of driving demand and prices higher in the Resort nodes, V and RM zoned condominiums. After the “Great Recession of 2008-2012” it’s become clear to me that buyers at all price levels are seeking to offset carrying costs by vacation rental income which is different from the buyers before the recession.

Here are a few other highlights of Planning Department Rule 23 that I find interesting:

• All current and future STVR owners within allowed areas and those seeking a Non Conforming Use Certificate must submit a completed STVR Application and ($500.00) fee to the Planning Department before September 28, 2019.
• Max guest count in any dwelling is 16.
• The Hawaii Island designated contact must be reachable 24/7 by the County or the guest.
• Reachable person is responsible for the guest behavior to, “ conform (s) to the character of the existing neighborhood”…
• Guest parking to be managed and located “off street” which means on the property itself.
• When applying for a Non Conforming Use Certificate to STVR outside an approved area the application process includes notifying all lease or holders or property owners of their intent to apply for the NCUC.

Link to Bill 108 which is now Ordinance 2018-114 2016-2018

Link to West Hawaii Today Articles

Written by Rick Oliver on March 4, 2019
Posted in: Real Estate | Tags: ordinance, STVR