Bill 89 CD2 was adopted by the City Council on June 17, and signed (Ordinance 19-18) by Mayor Kirk Caldwell on June 25. Its main points:
- Allows a limited number of new Bed and Breakfast Homes (B&B) in non-resort areas under a new registration process, with annual renewal required.
- Continues to prohibit Transient Vacation Units, or “unhosted” rentals, in non-resort areas, unless the dwelling has a Nonconforming Use Certificate (NUC).
- Regulates hosting platforms, such as Expedia or Airbnb, requiring monthly reports to be filed with the Department of Planning and Permitting, which will share the information with City Council.
- Makes illegal any form of advertising short-term rentals which are not in compliance with zoning regulations as provided in Ordinance 19-18.
Ordinance 19-18: https://bit.ly/2IS637x
REGISTRATION OF NEWBED AND BREAKFAST HOMES
I have been operating a Bed and Breakfast Home for several years. Do I still have to obtain a registration number?
Yes, unless you already have a NUC.
I only rent out my house for 30 days or more at a time. Do I need to register?
I only rent my house while my family spends 2 weeks each year visiting family on the mainland. Do I need to register?
When can I register?
Registration will begin on October 1, 2020, although we are considering a preregistration process before then.
Why do we have to wait more than year to register?
The time is required for the Department to develop more specific procedures for implementing Ordinance 19-18, including the adoption of rules, and creating the software to help with enforcement and the registration process. If necessary, it provides time to acquire more staff and to train them. For applicants, it may take time for them to fulfill some of the filing requirements, such as obtaining their AOAO approval, if applicable.
What are the registration requirements?
There are more than a dozen requirements. Most notable:
- Applicants must be “natural persons,” and not an organization or company
- Applicants must have a home exemption granted under real property tax law
- There must be insurance coverage for bed and breakfast use
- The initial registration fee is $1,000. For annual renewals, the fee is $2,000
- No more than 2 bedrooms can be used for visitor accommodations
- Quiet hours must be observed between 10 p.m. and 8 a.m.
- If part of a homeowners or apartment owners association, approval by that association must be obtained
- Neighbors within 250 feet must be given a phone number to contact to make complaints, 24 hours a day
- For the complete list of requirements, refer to Ordinance 19-18: https://bit.ly/2IS637x
Are there other requirements?
Density Limit. No more than 0.5% of the total number of dwelling units in each regional development plan area (DPA) can be used as B&Bs. Here are the limits by area: New B&Bs are not allowed in the North Shore area, based on directives of the North Shore Sustainable Communities Plan: http://bit.ly/2Y4QpLg
Condominium Limit. Up to 50% of units in a condominium building may be allowed a B&B, subject to AOAO approval. Separation Minimum. B&Bs must be at least 1,000 feet from each other. This does not apply to units in resort areas and NUCs. Clearly, there is a conflict between the condo limit and this separation limit. While we are still looking into it, this may practically result in only 1 unit per building.
Nontransferable. Registration numbers are not transferable to another property, nor transferable to another homeowner.
Renewal Criteria. Noise and other nuisance complaints can be grounds to deny renewal requests.
For the complete list of requirements, refer to Bill 89 CD2: https://bit.ly/2IS637x
Who can I call to express my concerns or ask for changes to the law?
You can call your City Council member:
Council District 1: Kymberly Marcos Pine, 768-5001
Council District 2: Heidi Tsuneyoshi, 768-5002
Council District 3: Ikaika Anderson, 768-5003
Council District 4: Tommy Waters, 768-5004
Council District 5: Ann Kobayashi, 768-5005
Council District 6: Carol Fukunaga, 768-5006
Council District 7: Joey Manahan, 768-5007
Council District 8: Brandon Elefante, 768-5008
Council District 9: Ron Menor, 768-5009
This is just a sample of what Bill 89 is all about. Details about the bill change frequently. If you’d like more detailed information you can click one of the links above, write a post below, or contact me. If you have any specific questions related to your rental investment regarding Bill 89 I’d be happy to get you the answers you need.