HR193

WHEREAS, in 1989, the City and County of Honolulu (Honolulu C&C) established a moratorium on new permits for transient vacation rentals (TVR), such as bed and breakfasts; and

WHEREAS, although the moratorium went into effect, it did not eliminate the demand for TVRs, which generally allow for a more neighborhood-based, intimate, and personal visitor experience; and

WHEREAS, in addition to the demand for TVRs, the Honolulu C&C has not aggressively enforced the moratorium; and

WHEREAS, the lack of enforcement coupled with the persistent visitor demand for TVRs has resulted in a situation where over 1,000 TVRs are estimated to be in operation outside of Waikiki, including both permitted and non-permitted TVRs; and

WHEREAS, due to strong concerns voiced by many residents regarding the negative impacts of non-permitted TVRs, Honolulu C&C has been pressured to strengthen its enforcement of the moratorium; and

WHEREAS, Honolulu C&C has chosen an enforcement method that depends on residents to report on their neighbors concerning suspicious TVR activity to be effective; and

WHEREAS, this enforcement policy has resulted in divided neighborhoods and rising tension and animosity between neighbors who support tough enforcement of TVR ordinances and regulations, and those who do not; and

WHEREAS, in addition to the rising animosity between the two sides of the debate, there also exists a concern that the State and Honolulu C&C may be operating under conflicting priorities; and

WHEREAS, the State may prioritize the increase in revenue and economic activity that alternative tourism venues provide, while Honolulu C&C may be primarily focused on shutting down TVRs opened since the moratorium; and

WHEREAS, the result of this potential conflict may mean that the critical issue of how to best address non-permitted TVRs will not be resolved; and

WHEREAS, the issues raised by non-permitted TVRs are already complex and evoke passionate responses from the stakeholders involved; and

WHEREAS, it is imperative that a rational, measured, thoughtful, and reasoned analysis and discussion regarding non-permitted TVRs take place; and

WHEREAS, this issue, though focused on Honolulu C&C, is not limited in scope to one county, and affects communities in every county of the State; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, that the counties are requested to assess their current license and permit application process for TVRs; and

BE IT FURTHER RESOLVED that Honolulu C&C is requested to also reassess its 1989 moratorium on TVR permits; and

BE IT FURTHER RESOLVED that the counties, in their respective assessments, explore ways to provide opportunities for individuals and businesses to obtain the necessary permits and licenses to operate TVRs legally; and

BE IT FURTHER RESOLVED that the counties encourage stakeholders on both sides of the issue to work together with county-related entities such as the Hawaii State Association of Counties to develop ways to address this issue that are acceptable to all parties involved; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Mayors of Honolulu C&C and the Counties of Kauai, Maui, and Hawaii.

	OFFERED BY:	_____________________________

Report Title:

Transient Vacation Rentals; County Assessment of Permit Process

HOUSE OF REPRESENTATIVES	H.R. NO.	193
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII