DEPT. COM. 702

PLANNING COMMISSIONCITY AND COUNTY OF HONOLULU

650 SOUTH KING STREET, 7 FLOOR • HONOLULU, HAWAII 96813PHONE: (808) 768-8000 • FAX: (808) 168-6041

DEPT. WEB SITE: www.honoluludDp.org • CITY WEB SITE: www.hpnolulu.gov

RICK BLANGIARDI BRIAN LEE, ChairMAYOR KEN K. HAYASHIDA, Vice Chair

ARTHUR B. TOLENTINOSTEVEN S.C. LIM

AKI MARCEAURYAN J. K. KAM0

NATHANIEL KINNEYPANE MEATOGA III

October 6, 2021

The Honorable Tommy WatersChair and Presiding Officer

and CouncilmembersHonolulu City Council530 South King Street, Room 202Honolulu, Hawaii 96813

Dear Chair Waters and Councilmembers:

SUBJECT: A Request for Amendments to Chapter 21, (Land Use Ordinance[LUO]), Revised Ordinances of Honolulu (ROH) 1990, asamended, Relating to Transient Accommodations

The Planning Commission held public hearings on September 1, September 8,2021, and September 29, 2021 on the above subject matter. Written concerns,comments and public testimonies were received. At the September 8, 2021 publichearing, after closing the public testimony portion of the public hearing, the Commissionvoted to further continue the matter to September 29, 2021 for decision making.

On September 29, 2021, the Planning Commission voted 6:1 [Commissioner Limdissented] to approve the recommendation of the Director of the Department of Planningand Permitting (DPP) on the revised draft bill to advance stricter enforcement on theresidential zoned areas, but recommended the DPP and the City Council have furtherdiscussions on the resort zoned areas. The Planning Commission further recommendedthe following:

1) The City Council look at the minimum length of the Short-Term Rental for theability to enforce;

2) The City Council ensure that any amendments for apartment or apartment-mixed zone to resort is in alignment with the Primary Urban Center Plan or anyother Plans that are going through the Council process; and

3) The DPP perform community engagement with the Neighborhood Boards.

DEPT. COM. 702

The Honorable Tommy WatersChair and Presiding Officer

and CouncilmembersOctober 6, 2021

Attached is the August 13, 2021 report and August 30, 2021 comments andrevised draft bill from the Director of the Department of Planning and Permitting, and thewritten concerns, comments and testimonies of the Planning Commission. Alsoincluded are the written concerns, comments and testimonies received after the close ofpublic testimony of the public hearing.

Attachments

Sincerely,

Brian Lee, ChairPlanning Commission

Michael D. FormbyManaging Director

ACKNOWLEDGED:

‘1kRick BlangiardiMayor

ACKNOWLEDGED:

DeanDigitally signed by Uchida,

Date: 2021.1D.05 16:2B:27-1000

Dean Uchida, DirectorDepartment of Planning and Permitting

Authorization: Dean Uchida, DirectorAdvertisement: August. 20, 2021

0 OF PLANNING AND PERMITTINGPublicHearing: Septemberl,2021CITY AND COUNTY OF HONOLULU

650 SOUTH KING STREET, 7TH FLOOR • HONOLULU, HAWAII 96813PHoNE: (808) 768-8000 • FAX: (808) 768-6041

DEPT WEB SITE: www.honoluludoo.Drp • CITY WEB SITE: .honDIuIu.pov

DEAN UCHIDADIRECTOR

RICK BLANGIARDIMAYOR DAWN TAKEUCHI APUNA

DEPUTY DIRECTOR

EUGENE I{ TAKAHASHIDEPUTY DIRECTOR

MEMORANDUM

TO: Brian Lee, Chairand Members of the Planning Commission

FROM: Dean Uchida, DirectorDepartment of Planning and Permitting

SUBJECT: Proposed Amendments to Chapter 21 (Land Use Ordinance [LIJO]),Revised Ordinances of Honolulu (ROH) 1990, as Amended, Relating toTransient Accommodations

The Department of Planning and Permitting (DPP) is pleased to submit for yourreview and appropriate action the Department’s report and draft bill proposingamendments relating to Transient Accommodations,

The proposal would amend specific sections of the ROH (Chapters 8 and 21)relating to transient vacation units (TVU), bed and breakfast (B&B) homes, and hotelsas summarized below:

1. Chapter 8, Real Property Tax, ROH• B&B properties, including B&Bs

certificates, will be placed in the• TVU properties, including TVUs

certificates, will be placed in the2. Chapter 21, LUO, ROH

• Administrative enforcement procedures have been updated.• Up to $3,125,000.00 in real property taxes collected relating to

TVUs and B&Bs will be deposited into a special account to be usedby DPP for the enforcement of TVUs and B&Bs.

• Application, registration, renewal and revocation processes forB&Bs and TVUs have been updated.

August 13, 2021

:3

Digitallysigned byUchida, DeanDate: 2021 .08.1312:48:13 -1000’

with nonconforming useB&B Home tax category.with nonconforming useHotel and Resort tax category.

Memorandum to Brian Lee, Chairand Members

August 13, 2021Page 2

• Amendments to the Master Use Table would eliminate B&Bs andTVUs as a permitted use in every land use category except forcertain areas in the A-i and A-2 apartment districts located in ornear existing resorts.

• Amendments to the Master Use Table would allow hotels,condominium hotels and hotel units in the Apartment Precinct andApartment Mixed Use Precinct of Waikiki.

• Development standards and definition for hotels have beenupdated.

• Development standards for B&Bs and TVUs have been updated.• Definition of B&Bs and TVUs have been updated to a minimum

duration of less than 180 consecutive days.• Definition and requirements for advertisement have been updated.

Attached you will find our staff report and draft bill for your consideration. We willbe happy to answer any questions that you may have concerning this matter during thePublic Hearing.

Attachments

ADMINISTRATION INITIATED LAND USE ORDINANCE AMENDMENTSRELATING TO SHORT-TERM RENTALS AND TRANSIENT ACCOMMODATIONS,

POST COVID-19

Staff Report

August13, 2021

I. BACKGROUND

On June 25, 2019, Mayor Kirk CaIdwell signed into law Ordinance 19-18 (Bill No. 89,2018, CD2) Relating to Short-Term Rentals (STR), which would in part allow more bedand breakfast homes (B&Bs) throughout the Island, including residential neighborhoods.Prior to full implementation of Ordinance 19-18, the City along with the rest of the worldwas disrupted by the shut-down of normal day-to-day activities due to the worldwideCovid-1 9 pandemic.

Neighborhoods began to see what life was like before the proliferation of STRsthroughout their neighborhoods. Traffic, crowding, tourists invading residentialneighborhoods, and noise at all hours of the day that were typical issues created in partby STRs, disappeared during the pandemic lock down.

In addition, residents across the state realized what life was like before millions ofvisitors started coming to 1-lawaN. No or very little traffic, wide open beaches and trails,and less people in general were “benefits” of the shut-down. While the visitor industry isa main driver of Hawaii’s economy, discussions have begun on how we might limit thenumber of visitors to HawaN. Ten million (10,000,000) visitors annually has become toomuch.

The pandemic caused us to take a closer look at Ordinance 19-18, which would allow alimited number of new B&Bs and require compliance with registration requirements,development standards, and other regulations. However, some of the provisions inOrdinance 19-18 would be impractical to implement and have resulted in enforcementproblems. To address these issues, we believe it is necessary to improve uponOrdinance 19-18 by simplifying the City’s approach to regulating STRs and othertransient accommodations.

STRs are disruptive to the character and fabric of our residential neighborhoods. Theyare inconsistent with the land uses that are intended for our residential zoned areas,they decrease the supply of long-term housing for local residents throughout the City,and increase the prices and rents of housing, making living on Oahu less affordable forits resident population. Any economic benefits of opening-up our residential areas totourism are far outweighed by the negative impacts on our neighborhoods and localresidents.

The purpose of this Ordinance is to better protect the City’s residential neighborhoodsand housing stock from the negative impacts of STRs by providing a morecomprehensive and controlled approach to the regulation of STRs within the City andcreating additional sources of funding for the administration and enforcement of theCity’s B&B and transient vacation unit (TVU) laws.

II. ANALYSIS

The proposed amendments are essentially a “policy pivot” to redirect the STROrdinance in a different direction. The two overall goals of this policy pivot are to:

1. Reduce impacts on residential neighborhoods; and2. Regulate STRs that are permitted only in or adjacent to existing resort areas.

In order to accomplish these goals, the amendments to the ordinance will do thefollowing:

• Provide greater enforcement tools over illegal and non-compliant STRs.

• All existing non-conforming B&Bs and TVUs will continue, provided the units areregistered, pursuant to the Ordinance.

• No new B&Bs and TVUs will be allowed or permitted in Residential Zoned areas.

• New B&Bs and TVUs will only be allowed in areas adjacent to and associatedwith existing Resort zoned property, specifically in the A-2 medium-densityapartment zoning district located in the Gold Coast area of the Diamond HeadSpecial district and in the A-i low-density and A-2 medium density apartmentzoning districts located adjacent to the KoOlina and Kuilima resort areas.

• All STRs will be required to include their certificate of registration number or theirnonconforming use certificate number in all advertisements; any advertisement ofa property for use as a B&B or TVU without such registration number is aviolation.

• Hotels, condominium hotels and hotel units will be newly defined and added as apermitted use subject to development conditions in the Apartment Precinct andApartment Mixed Use Precinct of Waikiki.

• All registered existing non-conforming and newly permitted TVUs are to beassessed at the hotel and resort rate for real property tax purposes.

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• All registered existing non-conforming and newly permitted B&Bs are to beassessed at the B&Bt home rate for real property tax purposes; consistent withthe requirement that the owner of the B&B must live at the B&B, all B&Bs ownersmust obtain the home exemption for real property tax.

• All new B&Bs and TVUs must have and keep current general excise andtransient accommodations tax licenses, and must maintain a minimum of$1,000,000.00 in commercial general liability insurance at all times, for their unit.

• The current update of the Primary Urban Center will allow for Resort Zoning forindividual properties located along the ‘Gold Coast of Waikiki,”--the area makai ofKapiolani Park — so that owners in this area wifl be able to up-zone their propertyto the resort district.

• Provide annually to the Department up to $3,125,000.00 in real property taxesfrom registered B&Bs for the purposes of funding enforcement of STRs.

• The definitions of “bed and breakfast home” and “transient vacation unit” areamended to increase the rental period for TVUs or B&Bs from less than30 days to less than 180 days.

• The Department of Planning and Permitting’s (DPP) violation enforcementprocedures have been overhauled in order to better equip DPP’s inspectors toinvestigate and enforce violations of the Land Use Ordinance, including theprovisions related to STRs.

Ill. RECOMMENDATION

Amendments to the different Chapters of the Revised Ordinances of Honolulu (ROH),based on Ordinance 19-18, will be as follows by Chapter:

A. Amendments to ROH Chapter 8 Real Property Tax

Changes to the ROH Chapter 8 will place B&Bs and TVUs into the appropriate realproperty tax category. B&B properties, including B&Bs with nonconforming usecertificates, will be placed in the B&B home tax category. TVU properties, includingIVUs with nonconforming use certificates, will be placed in the Hotel and Resort realproperty tax category, as they are operating similar to hotels/resorts.

B. Amendments to ROH Chapter 21 administrative enforcement, depository offees, civil penalties and real property taxes collected relating to B&B homesor STRs.

Administrative enforcement tools are created and amended to better enforce land useregulations including: making owners, persons in possession or control of the premises,

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and persons who cause, contribute to, or benefit from a violation liable, and potentiallyjoint and severally liable, for such violation; clarifies service of process for violations,orders, and appeals; increase fines up to $25,000 per violation and $25,000 per day foreach day a violation remains uncorrected; requires the violator to send a writtennotification to the director reporting the correction of the violation when cured;authorizes the director to enter into consent orders and issue orders to show cause toensure compliance by violators; and creates additional daily fines in an amount up tothe highest daily rate at which a B&B or TVU has been advertised or offered for rent.

Directs up to $3,125,000.00 collected in real property taxes by the City for the B&B taxclassification to be deposited annually into a special account of the general fund to beused by the DPP to fund expenses relating to establishing a new STR EnforcementBranch within DPP.

Amendments to the Master Use Table would eliminate B&Bs and TVUs as a permitteduse in every land use category except for certain areas in the A-i and A-2 apartmentdistricts located in or near existing resorts. Areas where new B&B and TVU operationsare permitted are identified as follows:

1. A-1/A-2 apartment zoning district near Kuilima Resort, as shown onExhibit A to the draft ordinance;

2. A-1/A-2 apartment zoning district near KoOlina Resort, as shown onExhibit B to the draft ordinance; and

3. A-2 medium-density apartment zoning district located at the Gold Coast inthe Diamond Head special district (provided the individual parcels requestrezoning to Resort).

Amendments to the Master Use Table would allow hotels, condominium hotels andhotel units in the Apartment Precinct and Apartment Mixed Use Precinct of Waikiki.

Hotels and hotel unit development standards are defined, including that hotel units maynot be used as B&Bs or TVUs and must be booked by guests through a centralizedhotel booking system, and rental rates must be determined by the hotel operator ormanager of the hotel’s centralized booking service. Hotels and hotel units that haveexisting certificates of occupancy for hotels uses shall comply with the developmentstandards. Units in a condominium-hotel must be part of the hotel’s room inventory,available for rent to the general public, and the use of a condominium-hotel unit as aprimary residence or usual place of abode is not allowed.

Use and development standards are established for B&Bs and TVUs, includingoccupancy limits and sleeping arrangements, onsite parking requirements, noiserestrictions and quiet hours, current tax licensing, insurance coverage, restrictions ongatherings, and an informational binder to provide guests guidance on being respectfulof neighbors and information to help guests respond appropriately to emergencies.

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Amendments provide application, registration, renewal and revocation processes forB&Bs and TVUs.

Advertisements must contain the lawful registration number and tax map key number ofthe TVU or B&B unit. It is unlawful for any person to advertise or cause theadvertisement of a dwelling unit that is not a registered B&Bs and TVUs for a term ofless than 180 days.

The amendments include a process for the public to submit written complaints regardingany suspected violation of the ordinance along with how the DPP will respond andfollow up on the complaint.

IV. CONCLUSION

The Department of Planning and Permitting believes that this ordinance responds to thecommunity needs that have shifted significantly under the pandemic. It takes intoaccount the concerns of residential neighborhoods, as well as the visitor industry, andshould result in more long-term housing stock being made available for residents byeliminating and prohibiting short-term rentals (STR). Finally, it provides betterenforcement tools to address illegal STRs and an independent source of revenue tosupport the necessary enforcement actions to rein in illegal STRs on Qahu.

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A BILL FOR AN ORDINANCE

RELATING TO TRANSIENT ACCOMMODATIONS

BE IT ORDAINED by the People of the City and County of Honolulu:

SECTION 1. Findings and Purpose. Short-term rentals are disruptive to thecharacter and fabric of our residential neighborhoods; they are inconsistent with theland uses that are intended for our residential zoned areas and increase the price ofhousing for Oahu’s resident population by removing housing stock from the for-sale andlong-term rental markets. The City Council finds that any economic benefits of opening-up our residential areas to tourism are far outweighed by the negative impacts to ourneighborhoods and local residents.

In 2019, the City passed Ordinance 19-18, allowing a limited number of new bedand breakfast homes and requiring certain short4erm rentals to comply with registrationrequirements, development standards and other regulations. However, some of theprovisions in Ordinance 19-18 have proven themselves to be impractical and haveresulted in enforcement problems. To address these problems, it is necessary toimprove upon Ordinance 19-18 by simplifying the City’s approach to regulating short-term rentals and other transient accommodations.

The purpose of this Ordinance is to better protect the City’s residentialneighborhoods and housing stock from the negative impacts of short-term rentals byproviding a more comprehensive approach to the regulation of transientaccommodations within the City and creating additional sources of funding for theadministration and enforcement of the City’s short-term rental and transientaccommodations laws.

SECTION 2. Section 8-7.1, Revised Ordinances of Honolulu 1990, as amended,is amended to read as follows:

“Sec. 8-7.1 Valuation - Considerations in fixing.

(a) The director of budget and fiscal services shall cause the fair market value of alltaxable real property to be determined and annually assessed by the market dataand cost approaches to value using appropriate systematic methods suitable formass valuation of real property for ad valorem taxation purposes, so selectedand applied to obtain, as far as possible, uniform and equalized assessmentsthroughout the city.

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(b) So far as practicable, records shall be compiled and kept which shall show themethods established by or under the authority of the director, for thedetermination of values.

(c) (1) Real property shall be classified into the following general classes, uponconsideration of its highest and best use, and upon other criteria set forthin this section:

(A) Residential;

(B) Hotel and resort;

(C) Commercial;

(D) Industrial;

(E) Agricultural;

(F) Preservation;

(G) Public service;

(H) Vacant agricultural

(I) Residential A; and

(J) Bed and breakfast home.

(2) In assigning real property to one of the general classes, the director shallgive major consideration to the districting established by the city in itsgeneral plan and zoning ordinance, specific class definitions or criteria setforth in this section, and such other factors which influence highest andbest use.

Notwithstanding the city’s zoning district classification, the director shallassign to the agricultural class any real property classified as tree farmproperty under HRS Chapter 186.

(3) When real property is subdivided into condominium units, each unit and itsappertaining common interest:

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(A) Shall be deemed a parcel and assessed separately from otherunits; and

(B) Shall be classified as follows:

(i) If the unit has a single, legally permitted, exclusive actualuse, it shall be classified upon consideration of the unit’sactual use into one of the general classes in the samemanner as real property; or

(U) If the unit has multiple, legally permitted uses; it shall beclassified:

(aa) Upon consideration of the unit’s highest and best useinto one of the general classes in the same manneras real property; or

(bb) Residential, only upon approved dedication asprovided in Section 8-7.5 when the unit is legallypermitted multiple exclusive uses including residentialuse; or

(IN) If the unit is a condominium parking unit or a condominiumstorage unit, it shall be classified residential, only uponapproved dedication when the unit is used in conjunctionwith a unit in residential use within the project.

(4) Notwithstanding any provision contained in this subsection, acondominium unit that is used at any time during the assessment year asa time share unit, shall be classified for the following tax year as hotel andresort[ unless:

The property on Wk 1he-r’ ncludo a lobbywith a clerk’s desk or counter with 21 hour clerk service facilities forregistration and keeping of records relating to persons using the

(B).

(A) The unit is on property zoned as apartment, apartment mixed use1apartment precinct, or apartment mixed use precinct;

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(C) The unit is part pta condominium property rogime establishedpursuant to MRS Chapter 5HA, as it read prior to its repeal onJanuaw 1, 2019, orHRS Chapter 514B.

If the requirements of paragraphs (A), (B) and (C) are met, the time shareunit shall be classified as residential. For purposes of this subdivision,“assessment year” means the one year period beginning October 2nd ofthe previous calendar year and ending October let, inclusive, of thecalendar year preceding the tax year, and “time sharing” has the samemeaning as defined in Section 2110.1].

(5) “Vacant agricultural” means a parcel, or portion thereof, that wouldotherwise be classified agricultural by the director upon majorconsideration of the districting established by the city in its general planand zoning ordinance and of such other factors that influence highest andbest use, but which parcel, or portion thereof:

(A) Has no residential buildings: and

(B) Is not dedicated for agricultural purposes.

If a portion of a parcel is dedicated as vacant agricultural, the remainder ofthe parcel that is zoned agricultural must be dedicated for agricultural use.

(6) Notwithstanding any provision contained in this subsection, all realproperty actually used by a public service company in its public servicebusiness shall be classified public service. For purposes of thissubsection, “public service company” means a public utility, exceptairlines, motor carriers, common carriers by water, and contract carilers,where:

(A) “Public utility” includes every person who may own, control,operate, or manage as owner, lessee, trustee, receiver, orotherwise, whether under a franchise, charter, license, articles ofassociation, or otherwise, any plant or equipment, or any partthereof, directly or indirectly for public use, for the transportation ofpassengers or freight, or the conveyance or transmission oftelecommunications messages, or the furnishing of facilities for thetransmission of intelligence by electricity by land or water or airwithin the state, or between points within the state, or for theproduction, conveyance, transmission, delivery, or furnishing of

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light, power, heat, cold, water, gas, or oil, or for the storage orwarehousing of goods, or the disposal of sewage: provided that theterm:

(i) Includes any person insofar as that person owns or operatesa private sewer company or sewer facility:

(ii) Includes any telecommunications carrier ortelecommunications Common carrier:

(Hi) Does not include any person insofar as that person owns oroperates an aerial transportation enterprise;

(iv) Does not include persons owning or operating taxicabs, asdefined in this subsection:

(v) Does not include common carriers transporting only freighton the public highways, unless operating within localities oralong routes or between points that the Public UtilitiesCommission of the State of Hawaii finds to be inadequatelyserviced without regulation under this chapter;

(vi) Does not include persons engaged in the business ofwarehousing or storage unless the Public UtilitiesCommission of the State of Hawaii finds that regulationthereof is necessary in the public interest;

(vU) Does not include:

(aa) The business of any carrier by water to the extent thatthe carrier enters into private contracts for towage,salvage, hauling, or carriage between points withinthe state and the carriage is not pursuant to either anestablished schedule or an undertaking to performcarriage services on behalf of the public generally:and

(bb) The business of any carrier by water, substantiallyengaged in interstate or foreign commerce,transporting passengers on luxury cruises between

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points within the state or on luxury round-trip cruisesreturning to the point of departure;

(vUi) Does not include any person who:

(aa) Controls, operates, or manages plants or facilities forthe production, transmission, or furnishing of powerprimarily or entirely from non-fossil fuel sources; and

(bb) Provides, sells, or transmits all of that power, exceptsuch power as is used in its own internal operations,directly to a public utility for transmission to the public;

(ix) Does not include a telecommunications provider only to theextent determined by the Public Utilities Commission of theState of HawaU, pursuant to applicable state law;

(x) Shall not include any person who controls, operates, ormanages plants or facilities developed pursuant toapplicable state law for conveying, distributing, andtransmitting water for irrigation and such other purposes thatshall be held for public use and purpose; and

(xi) Shall not include any person who owns, controls, operates,or manages plants or facilities for the reclamation ofwastewater; provided that:

(aa) The services of the facility shall be provided pursuantto a service contract between the person and a stateor county agency and at least 10 percent of thewastewater processed is used directly by the state orcounty which has entered into the service contract;

(bb) The primary function of the facility shall be theprocessing of secondary treated wastewater that hasbeen produced by a municipal wastewater treatmentfacility that is owned by a state or county agency;

(cc) The facility shall not make sales of water to residentialcustomers;

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(dd) The facility may distribute and sell recycled orreclaimed water to entities not covered by a state orcounty service contract; provided that, in the absenceof regulatory oversight and direct competition, thedistribution and sale of recycled or reclaimed watershall be voluntary and its pricing fair and reasonable.For purposes of this subparagraph, “recycled water”and “reclaimed water” mean treated wastewater thatby design is intended or used for a beneficial purpose;and

(ee) The facility shall not be engaged, either directly orindirectly, in the processing of food wastes;

(B) “Motor carrier” means a common carrier or contract carriertransporting freight or other property on the public highways, otherthan a public utility or taxicab;

(C) “Contract carrier” means a person other than a public utility ortaxicab which, under contracts or agreements, engages in thetransportation of persons or property for compensation, by land,water, or air;

(D) “Carrier” means a person who engages in transportation, and doesnot include a person such as a freight forwarder or tour packagerwho provides transportation by contracting with others, except tothe extent that such person oneself engages in transportation;

(E) “Taxicab” means and includes:

(i) Any motor vehicle used in the movement of passengers onthe public highways under the following circumstances,namely, the passenger hires the vehicle on call or at a fixedstand, with or without baggage for transportation, andcontrols the vehicle to the passenger’s destination; and

(N) Any motor vehicle having seating accommodations for eightor less passengers used in the movement of passengers onthe public highways between a terminal, i.e., a fixed stand, inthe city of Honolulu, and a terminal in a geographical districtoutside the limits of the city of Honolulu, and vice versa,

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without picking up passengers other than at the terminals orfixed stands; provided that passengers may be unloaded atany point between terminals; and provided further that thisdefinition relating to motor vehicles operating betweenterminals shall pertain only to those motor vehicles whoseoperators or owners were duly licensed under any applicableprovision of law or ordinance and doing business betweensuch terminals on January 1, 1957;

(F) Telecommunications carrier” or “telecommunications commoncarrier” means any person that owns, operates, manages, orcontrols any facility used to furnish telecommunications services forprofit to the public, or to classes of users as to be effectivelyavailable to the public, engaged in the provision of services, suchas voice, data, image, graphics, and video services, that make useof all or part of their transmission facilities, switches, broadcastequipment, signaling, or control devices; and

(G) ‘Telecommunications service” or “telecommunications” means theoffering of transmission between or among points specified by auser, of information of the user’s choosing, including voice, data,image, graphics, and video without change in the form or content ofthe information, as sent and received, by means of electromagnetictransmission, or other similarly capable means of transmission, withor without benefit of any closed transmission medium, and does notinclude cable service as defined under applicable state law.

(d) Whenever land has been divided into lots or parcels as provided by law, eachsuch lot or parcel shall be separately assessed.

(e) When a parcel of land that has been classified as agricultural is improved with asingle-family dwelling and has been granted a home exemption for the tax year,that portion of the parcel that is used for residential purposes shall be classifiedas residential. This classification shall:

(1) Apply only to that portion used for residential purposes;

(2) Not exceed 5000 square feet of land and the buildings and improvementson that land; and

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(3) Remain in effect only so long as the property qualifies for a homeexemption.

(f) When a parcel of land that has been classified as preservation is improved with asingle-family dwelling and has been granted a home exemption for the tax year,that portion of the parcel which is used for residential purposes shall be classifiedas residential. This classification shall:


(2) Not exceed 5,000 square feet of land and the buildings and improvementson that land; and


(g) (1) In determining the value of buildings, consideration shall be given to anyadditions, alterations, remodeling, modifications or other new construction,improvement, or repair work undertaken upon or made to existingbuildings as the same may result in a higher assessable valuation of saidbuildings; provided, however, that any increase in value resulting from anyadditions, alterations, modifications, or other new construction,improvement or repair work to buildings undertaken or made by the owneroccupant thereof pursuant to the requirements of any urbanredev&opment, rehabilitation, or conservation project under the provisionsof Part II of HRS Chapter 53, shall not increase the assessable valuationof any building for a period of seven years from the date of certification ashereinafter provided.

(2) It is further provided that the owner occupant shall file with the director, inthe manner and at the place which the director may designate, astatement of the details of the improvements certified in the followingmanner:

(A) In the case of additions, alterations, modifications or other newconstruction, improvement or repair work to a building that isundertaken pursuant to any urban redevelopment, rehabilitation orconservation project as hereinabove mentioned, the statement shallbe certified by the mayor or any governmental official designated bythe mayor and approved by the council, that the additions,alterations, modifications, or other new construction, improvements,

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or repair work to the buildings were made and satisfactorily complywith the particular urban development, rehabilitations, orconservation act provision; or

(B) In the case of maintenance or repairs to a residential buildingundertaken pursuant to any health, safety, sanitation or othergovernmental code provision, the statement shall be certified by themayor or any governmental official designated by the mayor andapproved by the council, that:

(i) The building was inspected by them and found to besubstandard when the owner or occupant made the claim;and

(U) The maintenance or repairs to the buildings were made andsatisfactorily comply with the particular code provision.

(h) (1) Notwithstanding the provisions of subsection (c)(2), properties operatingas transient vacation units [in accordance with Section 21 4.110 1, andwhich have a valid nonconforming use certificate, shall be classified basedon their underlying zoning] must be classified as hotel and resort.

(2) [Real Property operating as transient vacation units as otheisepermitted under Chapter 21 must be classified as hotel andcesect-}Notwithstanding the provisions of subsections (c)(2), propertiesoperating as bed and breakfast homes must be classified as bed andbreakfast home.

[(3) For purposes of this subsection, “transient vacation unit means the sameas defined in Section 2110.1.]

(i) “Residential A” shall mean a parcel, or portion thereof, which:

(1) Is improved with no more than two single family dwelling units; and

(A) Has an assessed value of $1,000,000 or more;

(B) Does not have a home exemption; and

(C) Is zoned R-3.5, R-5, R-7.5, R-10 or R-20 or is dedicated forresidential use;

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(2) Is vacant land zoned R-3.5, R-5, R-7.5, R-10 or R-20 and has anassessed value of $1,000,000 or more; or

(3) Is a condominium unit with an assessed valuation of $1,000,000 or moreand does not have a home exemption.

Residential A excludes any parcel, or portion thereof, improved with militaryhousing located on or outside of a military base.

U) For purposes of this [sub]section, “bed and breakfast home” has the samemeaning as defined in Section 21-10.1, and includes bed and breakfast homeswith current nonconforming use certificates.

fl For the purposes of this section, “transient vacation unit” shall have the samemeaning as defined in Section 21-10.1, and includes transient vacation units withcurrent nonconforming use certificates.”

SECTION 3. Article 2A of Chapter 21, Revised Ordinances of Honolulu 1990, asamended, is repealed.

SECTION 4. Section 21-1.40, Revised Ordinances of Honolulu 1990, asamended, is amended to read as follows:

Sec. 21-1.40 Appeals.

Appeals from the actions of the director in the administration of the provisions ofthe LUO shall be to the zoning board of appeals as provided by Section 6-1516 of thecharter. Appeals shall be filed within 30 days of the mailing or service of the director’sdecision. For the purposes of this section:

) The date of mailing or service shall be the date on which an action of thedirector is placed into the United States mail, for actions of the directorthat do not need to be served by registered or certified mail:

{.) For actions of the director that are served by registered or certified mail,the date of mailing or service shall be the date on which the registered orcertified mail is received, as indicated by the return receipt for the mailingor other records of the United States Postal Service;

(ç) For actions of the director that are served by physical delivery to a personor a person’s residence, place of employment, or usual place of business,

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the date of service shall be the date of delivery, as established by anacknowledgment of service signed by the person taking delivery of thedirector’s action or a sworn declaration made by the person responsiblefor effecting the service of the director’s action by the means identified inthis paragraph;

fçj) For actions of the director that are served by physical posting of a copy ofan action of the director upon the property where the violation hasoccurred, the date of the service shall be the date of posting, asestablished by a sworn declaration made by the person responsible foreffecting the service of the director’s action by the means identified in thisparagraph;

{ For actions of the director that are served by publication, the date ofservice shall be the date on which the last reguired publication is made;

ifi For actions of the director that are delivered by fax, email, or other meansof electronic transmission, the date of service shall be the date on whichthe director’s action is transmitted to the correct email address, faxnumber, or other electronic address for the person served, as establishedby a fax receipt; email receipt; email response that acknowledges receiptof the email; or other reasonable proof of the successful transmission ofelectronic delivery to the addressee.

L1 For persons who have made a written reguest notice of a director’s actionconcerning a particular proiect. property, or applicant before the director’saction is issued, the date of service shall be determined according toparagraphs (a) through (f) of this section; and

ffi) For persons who have requested notice of a director’s action concerning aparticular project, property, or applicant after the director’s action has beenissued to the applicant, the date of service shall be the earlier of date onwhich the director’s action was served upon the applicant in accordancewith subsections (a) through (f), or, the date on which the director’s actionwas served on the person requesting notice of the director’s action inaccordance with subsections (a) through (f).

SECTION 5. Section 21-2,150-2, Revised Ordinances of Honolulu 1990, asamended, is repealed.

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SECTION 6. Article 2 of Chapter 21, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-2.150-2 to read as follows:

‘Sec. 21-2.150-2 Administrative enforcement.

f,) Enforcement authority. In addition to seeking criminal prosecution under Section21-2.150-1, the director may enforce violations of this chapter, administrativerules that are adopted by the director to administer this chapter, and theconditions of any permits or approvals granted under the same by issuing anenforcement order authorized by this section.

jp Persons responsible for violations. The owners of real property, buildings, andpremises that are used in violation of the legal authorities identified in subsection(a) shall be liable for any violations on their property and are responsible forcomplying with any enforcement order issued by the director concerning thesame. In addition, persons that have possession or control of the real property,building, or premises on which a violation exists may be held liable for theviolation and held responsible for complying with the director’s order. Personswho cause, contribute to, or benefit from a violation, in whole or in part, may alsobe held liable for such violations and will be responsible for complying withenforcement orders issued by the director. For the purposes of this section,persons” means natural persons or legal persons including but not limited to

trusts, corporations, partnerships, and limited liability companies.

{cl Joint and several liability. If the director determines that more than one person isliable for a violation, the director may issue one enforcement order to allresponsible persons or separate orders to persons or groups of persons that areresponsible for the violation. Persons that are issued an order pursuant to thissection are iointly and severally liable for the violations described in the director’sorder, such that each person will be independently liable for the full extent of theviolation and responsible for complying with the order.

{çjj Service of enforcement orders issued by the director. The director may serve anenforcement order issued pursuant to this section by registered or certified mail,with return receipt reguested, addressed to the last known address of eachviolator identified in the order. The director may also serve an order issuedunder this section by delivering a copy of the order to the violator in person, or byleaving a copy of the order at the violator’s residence, place of employment, orusual place of business, or by physically posting a copy of the order in aprominent location on the property in a conspicuous manner which is likely to bediscovered, only if due diligence was used in attempting to serve the person

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personally or by registered or certified mail. If the director is not able to serve theorder by any of the methods described in this section, the director may thenserve the order on one or more violators by publishing a copy of the order onceeach week for two consecutive weeks in a daily or weekly publication that is incirculation within the City. Where one or more violators that are identified in anorder have the same mailing address, place of residence, place of employmentor usual place of business, the delivery of one copy of the order shall be effectiveupon all persons named in the order that can be served at the place where theorder has been delivered.

Types of enforcement orders. The director may issue the following types ofenforcement orders: (1) notice of violation and order to correct; (2) notice oforder and imposition of fines; (3) consent order; and (4) order to show cause.

{fl Notice of violation and order to correct. The director may issue a notice ofviolation and order to correct to the persons identified in subsection (b). Inaddition to any other information or requirements deemed appropriate by thedirector, a notice of violation and order to correct shall:

Lii Identify the persons to whom the order is addressed;

{j State the address or location of the violation;

f Identify the specific ordinance, rule, or condition that has been violated;

{4) Provide a concise description of the violation;

State the actions that are necessary to correct the violation;

{j Order the violator to correct the violation by a specific date;

ffl Identify the penalties that will be imposed for the violation if it is notcorrected by the deadline for correction established pursuant tosubsection (e)(6); and

{j Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured.

{gj Notice of order and imposition of fines. The director may issue a notice of orderand imposition of fines to the persons identified in subsection (b). In addition to

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any other information or requirements deemed appropriate by the director, anotice of order and imposition of fines shall:

LU Identify the persons to whom the order is addressed;

State the address or location of the violation;

Identify the specific ordinance, rule, or condition that has beenviolated;

141 Provide a concise description of the violation;

State the actions that are necessary to correct the violation;

Order the person to correct the violation by a specific date;

fl Require the persons to pay a civil fine of up to $25,000.00 per violationidentified in the order;

ffl Require the persons to pay a civil fine of up to $25,000.00 per day, foreach day the violation remains uncorrected after the deadline forcorrection established pursuant to subsection (0(6);

ffl Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured; and

urn Inform the violator that the order can be appealed to the Zoning Board ofAppeals in accordance with Section 21-1.40.

fljj Consent Orders. The director is authorized to enter into consent orders, basedon reasonable assurances of voluntary compliance from persons that have beenissued a notice of violation and order to correct. A consent order shall be signedby the director and the persons who have agreed to voluntarily correct aviolation, state the specific actions to be taken to correct the violation, and statethe dates by which each action will be completed. The director may enforce theterms of consent orders pursuant to this section, including judicial enforcementpursuant to subsection (n). The failure to comply with the requirements of aconsent order shall be punishable by a civil fine of up to $100,000.00 perviolation, with each day(s) of noncompliance treated as a separate violation.

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01 Order to show cause. Whenever the director has cause to believe that aviolation is taking place or threatening to take place, the director may issue anorder to show cause to the persons identified in subsection (b). An order to showcause shall:

LU Be accompanied by a proposed notice of violation and order to correct ornotice of order and imposition of fines;

fj Require the respondents to appear before the director at a specified placeand time and admit to the facts in the proposed order or show cause as towhy the proposed notice of violation and order to correct or notice of orderand imposition of fines should not be issued: and

( Inform the respondents that they have the right to hire an attorney and berepresented by an attorney in the show cause proceedings before thedirector.

Persons that are served with an order to show cause will be required to appearbefore the director in a show cause hearing and shall have the burden of provingthat the proposed notice of violation and order to correct or notice of order andimposition of fines should not be issued because it is based on an erroneousfindings of material fact, an incorrect interpretation of the law, arbitrary andcapricious decision-making, or an abuse of discretion. If the respondents to ashow cause order are not able to prove that the proposed notice of violation andorder to correct or notice of order and imposition of fines should not be issued,the director may issue the proposed notice of violation and order to correct ornotice of order and imposition of fines to the respondents or allow therespondents to enter into a consent order with the department. If a respondent toa show cause order does not appear before the director at the required place andtime, the facts in the proposed notice of violation and order to correct or notice oforder and imposition of fines will be deemed admitted by the respondent and thedirector may issue the proposed notice of violation and order to correct or noticeof order or order and imposition of fines to the respondent that has failed toappear at the show cause hearing.

Li.) Duration of violation. A violation that is identified in an enforcement order issuedunder this section will continue until it is deemed corrected by the director. Thedirector may impose separate or additional penalties for each day that a violationremains_uncorrected after the date the deadline for correction state in theenforcement order. However, separate enforcement orders will not be requiredto impose additional penalties for ongoing violations.

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{M Procedure for closing violations. Persons that are subject to an enforcementorder jssued by the director are responsible for notifying the director of thecorrection of any violations identified in the enforcement order. Notifications sentto the director shall be in writing, dated, and signed by the person reporting thecorrection to the director. When a violator informs the director that a violation iscorrected, the director shall promptly review the violation and respond to theviolator by acknowledging the violation is corrected or by identifying theadditional actions that are necessary to correct the violation. If a person subiectto an enforcement order corrects a violation and fails to promptly notify thedirector of the violation’s correction, the date of correction will be the date onwhich the director is provided written notice of the correction unless the violator isable to establish, to the satisfaction of the director, that the violation wascorrected on an earlier date.

ffl Additional penalties for illegal short-term rentals. In addition to the enforcementactions and penalties authorized by subsections (a) through (i), if the directordetermines that a person has violated any of the provisions in this chapterrelating to bed and breakfast homes or transient vacation units, any rule adoptedby the department pertaining to bed and breakfast homes or transient vacationunits, or the conditions of any nonconforming use cerUficate or certificate ofregistration issued by the department for a bed and breakfast home or transientvacation, the director may impose an additional civil fine on the responsiblepersons, in an amount up to the highest daily rate at which the bed and breakfasthome or transient vacation unit in issue has been advertised or offered for rent asa bed and breakfast home or transient vacation unit. When a bed and breakfasthome or transient vacation unit is advertised or offered for rent for less than 180consecutive days without displaying or specifying the daily rates for the rental,the additional penalty authorized by this section shall be determined by pro ratingthe rental price for the property based on any known advertisement or offer forthe rental of the dwelling unit for less than 180 days and the total rental price forthe same, excluding any taxes passed on to the renter. The additional civil fineauthorized by this section may be imposed as a daily fine, applicable to each daya dwelling unit is used, advertised, or offered as a bed and breakfast home ortransient vacation unit in violation of the provisions in this chapter relating to bedand breakfast homes or transient vacation units, the department’s rules relatingto bed and breakfast homes or transient vacation units, or the conditions of anonconforming use certificate or certificate of registration issued by thedepartment.

Opportunity for contested case hearing. Notwithstanding anything to thecontrary, no civil fine or penalty authorized by this chapter shall be due and

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owing to the city until the opportunity for a contested case hearing pursuant toSection 21-1.40 has expired or been exhausted.

ffl Judicial enforcement of enforcement orders. The director may institute a civilaction in any court of competent jurisdiction for the enforcement of anyenforcement order issued pursuant to this section. Where the civil action hasbeen instituted to enforce the civil fine imposed by said order, the director needonly show that the notice of violation and order were served, that a civil fine wasimposed, the amount of the civil fine imposed and that the fine imposed has notbeen paid.”

SECTION 7. Section 21-2.150-3, Revised Ordinances of Honolulu 1990, asamended, is amended to read as follows:

‘Sec. 21-2.150-3 [Depository of] Deposit and use of feesL [and] civil penalties, andtaxes relating to bed and breakfast homes or transient vacationunits.

{j Notwithstanding any other ordinance to the contrary, [payments ofj fees and civilpenalties relating to bed and breakfast homes [oc] and fees and civil penaltiesrelating to transient vacation units shall be deposited into a special account of thegeneral fund, to be appropriately named by the department of budget and fiscalservices, and used by the department of planning and permitting for expensesrelated to the administration and enforcement of the provisions of this chapterrelating to bed and breakfast homes and transient vacation units.

Notwithstanding any ordinance to the contrary, beginning in the 2022 tax yearand in all tax years thereafter, up to $3,125,000.00 in real property taxescollected annually by the city for the bed and breakfast tax classification and thehotel and resort tax classification shall be placed into the special fund identified insubsection (a) and used by the Department of Planning and Permitting for theadministration and enforcement of the provisions of this chapter relating to bedand breakfast homes and transient vacation units”

SECTION 8. Table 21-3, Revised Ordinances of Honolulu 1990, as amended, isamended by amending the “bed and breakfast homes” and “transient vacation units”entries to read as follows:

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“TABLE 21-3 MASTER USE TABLE

In the event of any conflict between the text of this Chapter and the following table, the text of the Chapter shall control.The following table is not intended to cover the Waikiki Special District; please refer to Table 21-9.6(A).

KEY: Ac = Special accessory use subject to standards in Article 5Cm = Conditional Use Permit-minor subject to standards in Article 5; no public

hearing required (see Article 2 for exceptions)C = Conditional Use Permit-major subject to standards in Article 5; public

hearing requiredP = Permitted useP/c = Permitted use subject to standards in Article 5PRU = Plan Review Use

ZONING DISTRICTS

USES(Now:pertain uses

are definedin Article o10.)

,N

—

r >CN (1 r. 7 —

& .< < U < < < < < < -L - - —

DWELLINGS AND LODGINGSBed andBreakfast [PIe] jP/e] [P/e3] [Pie31 P/c3 P/c3 [P/e’j jP/e1] [P/ej [Pie3] 1We31 [P/e3] [P/e3]Homes

transientVacation P/c3 P/c3 [P/e’JUnits

SECTION 9. Table 21-3, Revised Ordinances of Honolulu 1990, as amended, isamended by amending the footnotes to Table 21-3 to read as follows:

“Notes:

Where a proposed use is not specifically listed above, the director shall review theproposed use and, based on its characteristics and its similarity to the uses listedabove, shall determine the regulatory requirements for that use.

Commercial use subject to special density controls (see Table 21-3.3 and Section21-3.90-1 (c)(4)).

2 Commercial use subject to special density controls (see Table 2 1-3.5 andSection 21-3.140-1(c)).

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Bed and breakfast homes and transient vacation units allowed by Table 21-3 aresubject to the development standards and location restrictions established in Article 5.Notwithstanding any contrary provisions in this chapter, bed and breakfast homes andtransient vacation units that do not have [are prohibited and may not operato without] avalid nonconforming use certificate or certificate of registration are not allowed in areaswhere the applicable development plan or sustainable communities plan prohibits [ordoes not permit] the establishment of new bed and breakfast homes or transientvacation units: provided that this note shall not prohibit the renewal of a valid certificateof registration originally issued prior to a subsequent development plan amendment thatprohibits bed and breakfast homes or transient vacation units in a development planarea.


“Sec. 21-4.110-1. Nonconforming use certificates for transient vacation units.

(a) The purpose of this section is to permit certain transient vacation units that havebeen in operation since prior to October 22, 1986, to continue to operate asnonconforming uses subject to obtaining a nonconforming use certificate asprovided by this section. This section applies to any owner, operator, orproprietor of a transient vacation unit who holds a valid nonconforming usecertificate issued pursuant to this section on the effective date of this ordinance.

(b) The owner, operator, or proprietor of any transient vacation unit who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)Between September 1, 2000 and October 15, 2000: then (2) Between September1 and October 15 of every even-numbered year thereafter. Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use during each calendar year covered by the nonconforming usecertificate being renewed and that there were transient occupancies(occupancies of less than 30 days apiece) for a total of at least 35 days duringeach such year and that (U) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a transient occupancy. Failure to meet these conditions will result in thedenial of the application for renewal of the nonconforming use certificate. Therequirement for the 35 days of transient occupancies shall be effective onJanuary 1, 1995 and shall apply to renewal applications submitted on or afterJanuary 1, 1996.

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(c) The owner, operator, or proprietor of any transient vacation unit who hasobtained a nonconforming use certificate under this section shall display thecertificate issued for the current year in a conspicuous place on the premises. Inthe event that a single address is associated with numerous nonconforming usecertificates, a listing of all units at that address holding current certificates may bedisplayed in a conspicuous common area instead.

(d) The provisions of Section [21 5.730(c)] 21-5.730.4 shall apply to advertisementsfor transient vacation units operating under a nonconforming use certificatepursuant to this section.[!i]


“Sec. 21-4.110-2 Bed and breakfast homes--Nonconforming use certificates.

(a) The purpose of this section is to permit certain bed and breakfast homes, thathave been in operation since prior to December 28, 1989, to continue to operateas nonconforming uses subject to obtaining a nonconforming use certificate asprovided by this section. This section applies to any owner, operator, orproprietor of a bed and breakfast home who holds a valid nonconforming usecertificate issued pursuant to this section on August 1, 2019.

(b) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)between September 1, 2000 and October 15, 2000; then (2) between September1 and October 15 of every even-numbered year thereafter. Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use for each calendar year covered by the nonconforming usecertificate being renewed and that there were bed and breakfast occupancies(occupancies of less than 30 days apiece) for a total of at least 28 days duringeach such year and that (H) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a bed and breakfast occupancy. Failure to meet these conditions willresult in the denial of the application for renewal of the nonconforming usecertificate. The requirement for the 28 days of bed and breakfast occupanciesshall be effective on January 1, 1995 and shall apply to renewal applicationssubmitted on or after January 1, 1996.

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(c) Section 21-5.350 relating to home occupations shall not apply to bed andbreakfast homes.

(d) Those bed and breakfast homes for which a nonconforming use certificate hasbeen issued and renewed, as required, pursuant to this section shall operatepursuant to the following restrictions and standards:

(1) Detached dwellings used as bed and breakfast homes shall be occupied bya family and shall not be used as a group living facility. Rooming shall notbe permitted in bed and breakfast homes.

(2) No more than two guest rooms shall be rented to guests, and the maximumnumber of guests permitted within the bed and breakfast home at any onetime shall be four.

(3) There shall be no exterior signage that advertises or announces that thedwelling is used as a bed and breakfast home.

(4) One off-street parking space shall be provided for each guest room, inaddition to the required spaces for the dwelling unit.

(5) The provisions of Section [21 5.730(c)]21-5.730.4 shall apply toadvertisements for the bed and breakfast home.

(e) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall display thecertificate issued for the current year in a conspicuous place on the premises.”

SECTION 12. Section 21-5.360, Revised Ordinances of Honolulu 1990, asamended, is repealed.

SECTION 13. Chapter 21, Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.360 to read as follows:

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“Sec. 21-5.360 Hotels and Hotels Units.

{ Hotel units must be used or offered to provide dwelling or lodgingaccommodations to transient guests. Hotel units may not be used as transientvacation units or bed and breakfast homes.

Hotel units must be booked by Quests through a centralized hotel booking systemthat is managed by the hotel operator or through the hotel front desk, providedthat this section will not prohibit the booking of hotel units through third partyservices or technologies that make bookings though the central hotel operatedbooking system or hotel front desk.

(c) Rental rates for all hotel units must be determined by the hotel operator or themanager of the hotel’s centralized booking service. Hotels and third partybooking services may not provide discounted rental rates to the owners ofcondominium hotel units or hotel quests arranged for by the owners ofcondominium hotel units unless the same discounted rates are available tomembers of the general public that are not condominium hotel unit owners orguests of condominium hotel unit owners. This section does not apply tobookings for hotel units that are part of a legally established time-share program.

{çfl Hotels and hotel units that have existing certificates of occupancy for hotel usesshall comply with subsections (b) and (c) within two years of the effective date ofthis ordinance. Hotels and hotel units that obtain certificates of occupancy forhotel uses after the effective date of this ordinance must comply with thesubsections (b) and (c) immediately.”

SECTION 14. Chapter 21, Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.360.1 to read as follows:

“Sec. 21-5.360.1 Condominium hotels.

Units in a condominium-hotel must be part of the hotel’s room inventory,available for rent to the general public. The use of a condominium-hotel unit as aprimary residence or usual place of abode is not allowed.”


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‘Sec. 21-5.360.2 Specialty Hotels.

{j Transit related Hotels. Hotels shall be permitted in the 1-2 intensive industrialdistrict and IMX-1 industrial-commercial mixed use district provided:

Lii They are within one-half mile by the usual and customary route ofvehicular travel from the principal entrance of an airport utilized bycommercial airlines, having regularly scheduled flights. For HonoluluInternational Airport, the principal entrance shall be the intersection ofPaiea Street and Nimitz Highway.

They have frontage on a major or secondary street or highway.

They have a minimum lot area of 15.000 square feet and minimum lotwidth of 70 feet.

L41 The maximum floor area ratio shall be 2.0.

jj Parking requirements of at least one space per two lodging or dwellingunits shall be provided.

Front yards shall have a minimum depth of 10 feet1 and except fornecessary driveways and walkways, shall be maintained in landscaping.

0 Signs shall conform to the sign reguirements applicable within B-2community business district regulations.

Business travel hotels. Hotels shall be permitted in the BMX-3 communitybusiness district provided:

Lii They are located within the Primary Urban Center Development Plan, theEwa Development Plan, or the Central Oahu Sustainable CommunitiesPlan areas as established by Chapter 24.

Hotel with more than 180 dwelling and/or lodgjng units shall require aconditional use permit (Major).

When eating or drinking establishments, meeting facilities, retailestablishments or other commercial establishments are on the samezoning lot, these uses shall be treated as separate permitted uses forpurposes of this chapter.

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L41 Multifamily dwellings and hotel use shall not be permitted on the samefloor level.

{j No hotel unit shall be used as a time share.



“Sec. 21-5.730.1 Bed and breakfast homes and transient vacation units.

( Bed and breakfast homes and transient vacation units are permitted in theportions of the A-2 medium-density apartment zoning district located in the GoldCoast area of the Waikiki Special District shown in Exhibit A and in the portionsof the A-i low-density apartment zoning district and A-2 medium-densityapartment zoning district located in the Kuilima and Koolina Resort areas shownin Exhibits C and -B, respectively, subject to the restrictions and requirements inArticle 5 of this chapter.

{j The provisions of this chapter shall not eliminate or supersede private restrictivecovenants or other restrictions that prohibit the use of real property as a bed andbreakfast home or transient vacation unit.”


“Sec. 21-5.730.2 Registration, eligibility, application, renewal and revocation.

{j Registration required. Bed and breakfast homes and transient vacation unitsmust be registered with the department. Each natural person, as distinguishedfrom legal persons and legal entities, may own no more than one dwelling orlodging unit that is registered as a bed and breakfast home or transient vacationunit. Bed and breakfast homes and transient vacation units that have a validnonconforming use certificate issued under Sections 21-4.110-1 or 21-4.110-2will be counted as registered dwelling units for the purposes of this section.Legal entities other than natural persons are not eligible to register a bed andbreakfast home or transient vacation unit with the department.

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Duration of registration and registration fees. Registration shall be effective for aperiod of one year beginning on the date a certificate of registration is issued bythe department and must be renewed annually before expiration. The applicationcost for an initial registration is $5,000.00 and the application cost for renewing aregistration is $2,500.00

Lc) Application requirements. Applications shall be made in a form prescribed by thedepartment and demonstrate the applicant’s ability to operate the proposed bedand breakfast home or transient vacation unit in compliance with Sections 21-5730.1 and 21-5.730.3, The director shall adopt rules pursuant to Chapter 91,HRS, detailing information required to be submitted with an initial applicationunder this Section, which shall include, but not be limited to:

LII The property owner’s general excise tax and transient accommodationstax license numbers for the proposed rental;

{) A title report for the property that will be used to operate the bed andbreakfast home or transient vacation unit. The title report must be issuedor updated within thirty (30) days of its submission to the department andidentify all persons that own an interest in the property;

A certificate of insurance showing that the property has the insurancecoverage required by Section 21-5.730.3;

41 For a proposed bed and breakfast home only, evidence that the propertyowner has obtained or been approved for a homeowner exemptionpursuant to Section 8-10.4; and

The informational binder required pursuant to Section 21-5.730.3, whichdoes not need to include a certificate of registration for the proposed bedand breakfast home or transient vacation unit at the time of submission tothe director for the purposes of this paragraph.

J Issuance of certificate of registration. Upon determining that the requirements ofSections 21-5.730.1 through 21-5.730.3 have been met, the director may causea certificate of registration to be issued to the owner of the property on which thebed and breakfast home or transient vacation unit will be located. Certificates ofregistration will be personal to the owner, will not run with the land, and may notbe transferred to any other person.

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{j Applications for renewing certificates of registration. The holder of a currentcertificate of registration may apply to renew their certificate of registration up tothree months prior to the expiration of the same, but in no case after theircertificate of registration has expired. Renewal applications shall be made in aform prescribed by the department and update any information that waspreviously provided to the department that is no longer accurate or correct. Thedirector shall adopt rules pursuant to Chapter 91, HRS. detailing information andrequirements for renewal applications. In addition to any reguirementsestablished by the department’s rules, applications for the renewal of certificatesof registration shall include:

LU A tax clearance certificate issued by State of HawaiL Department ofTaxation which certifies the payment of general excise and transientaccommodations taxes for rentals during the previous tax year:

(21 A tax clearance certificate issued by the City Department of Budget andFiscal Services that certifies that real property taxes were assessed at therates reguired by Section 8-7.1 and paid in full during the preceding taxyear;

(fl If there has been any change in the ownership of the property used for thebed and breakfast home or transient vacation unit, an updated title reportissued within thirty (30) days of its submission to the department; and

(4 A certificate of insurance documenting that the owner has maintained theinsurance coverage reguired by Section 21-5.730.3 throughout the entireterm of the preceding registration period.

(fi Registration renewal. The director may approve an application for the renewal ofa certificate of registration and issue a new certificate of registration to the ownerof the property used as a bed and breakfast home or transient vacation unit if thedirector determines that the applicant and property continue to meet therequirements of Sections 21-5.730.1 and 21-5.730.3.

(1 Revocation and nonrenewal. If the owner of the property for a bed and breakfasthome or transient vacation unit receives more than two enforcement orders forviolations of Section 21-5.730.1 or 21-5.730.3 within a one-year period orotherwise demonstrates that they are not able to operate a bed and breakfasthome or transient vacation unit without causing significant negative impacts topeople_and_areas in the vicinity of their rental, the director may revoke theircertificate of registration by issuing a revocation order to the property owner, The

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director may also refuse to renew a certificate of registration if an applicant hasbeen issued one or more enforcement orders for violating Sections 21-5.730.1 or21-5.730.3 within one year of applying for a certificate renewal and has notadeguately addressed the violation to the satisfaction of the director. Theauthority to revoke a certificate of registration or refuse to renew a certificate ofregistration granted to the director by this section shall be in addition to and not inlieu of other authority granted to the director by this Chapter.’


Sec. 21-5.730.3 Use and development standards for bed and breakfast homes andtransient vacation units. All bed and breakfast homes and transient vacation unitsexcept those that are allowed to operate in accordance with a nonconforming usecertificate issued under Sections 21-4.110-1 or 21-4.1 10-2 must comply with thefollowing standards and requirements.

(a) Occupancy limits and sleeping arrangements. All overnight guests at the bedand breakfast home or transient vacation unit must be registered with the owneror operator of the bed and breakfast home or transient vacation unit. Sleepingaccommodations for all quests must be provided in bedrooms, and no more thantwo adults may use any bedroom in the bed and breakfast home or transientvacation unit for sleeping purposes. The total number of adult overnight guestsat a bed and breakfast home or transient vacation unit shall not exceed twice thenumber of bedrooms provided to guests for sleeping accommodations.

Onsite parking required. All parking for bed and breakfast homes and transientvacation units must be provided on all-weather surfaces on the same zoning lotas the bed and breakfast home or transient vacation unit unless the rental islocated in a multifamily dwelling with off-site parking approved by the department.Persons associated with bed and breakfast homes and transient vacation units(e.g.’ overnight guests, owners, operators, service providers and visitors) maynot park their vehicles on or along public streets abutting the zoning lot on whichthe bed and breakfast home or transient vacation unit is located.

{ç Smoke and carbon monoxide detectors reguired. All bedrooms provided toguests and hallways connected to guest bedrooms must be eguipped withfunctioning smoke and carbon monoxide detectors.

j Noise restrictions and guiet hours. Between the hours of 10:00 p.m. and 7:00a.m., no noise from a bed and breakfast home or transient vacation unit may be

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audible from common areas in a multifamily dwelling or from areas outside of thezoning lot on which the bed and breakfast home or transient vacation unit islocated. For the purposes of this subsection, audible means perceivable by aperson without the use of sound detecting technologies or audio aides.

{g Current tax licensing required. The owner of the property on which a bed andbreakfast home or transient vacation unit is located must have, and keep currentat all times, general excise and transient accommodations tax licenses for theirbed and breakfast home or transient vacation unit.

ifi Insurance coverage required. The owner of a bed and breakfast home ortransient vacation unit must maintain a minimum of $1,000,000.00 in commercialgeneral liability insurance at all times. In addition to any supplemental insurancecoverage selected by the owner. such insurance coverage must includecoverage for:

{-fl Bodily injury and property damage arising out of the condition of thepremises or the negligent acts of the business and persons providingservices to the business. For the purposes of this subsection, bodily iniuryshall include mental iniuries and emotional distress whether or not suchharm is accompanied by other physical or bodily harm;

j Personal and advertising iniury arising out of liability for libel, maliciousprosecution, wrongful eviction, wrongful entry, public disclosure of privatefacts, and invasion of privacy; and

) Necessary and reasonable medical, surgical, ambulance, hospital,professional nursing and funeral expenses for a person injured or killed inan accident taking place on the insured’s premises.

Igi Gatherings restricted. The property on which a bed and breakfast home ortransient vacation unit is located may not be used for gatherings of ten or morepeople who are not registered as overnight guests at the bed and breakfasthome or transient vacation unit unless the director designates the bed andbreakfast home or transient vacation unit as eligible for gatherings.

1_fl Gatherings eligible property. The director may only designate a propertywith a bed and breakfast home or transient vacation unit as eligible forgatherings if the type of gatherings proposed by the applicant arepermitted as a principal or accessory use of the zoning lot on which thebed and breakfast home or transient vacation unit is located.

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{) If the director finds that the circumstances of the property and theapplicant’s proposed measures to mitigate the impacts of gatherings onnearby people and properties reasonably ensure that the proposedgatherings will not result in significant negative impacts to nearby peopleor properties, the director may designate the bed and breakfast home ortransient vacation unit as eligible for gatherings.

{j Conditions of approval. The director may impose any conditions deemednecessary to mitigate the impacts of gatherings on nearby persons andproperties at the time the director designates a property as eligible forgatherings, or upon a reconsideration of the director’s decision todesignate the property as eligible for gatherings. Standard conditions forproperties designated as eligible for gatherings may include restrictions onthe number of people allowed at the property, restrictions on the types ofgatherings allowed at the property, restrictions or prohibitions on the useof sound amplifying devices, parking reguirements, and reguirements foradditional insurance coverages.

flj Informational binder reguired. The owner of a bed and breakfast home ortransient vacation unit shall create a binder labeled “For the Safety andConvenience of You and Your Neighbors” and cause the same to be placed andmaintained in a conspicuous location within the bed and breakfast home ortransient vacation unit at all times. The binder should provide guests withguidance on being respectful of neighbors and information that will help guests torespond appropriately to emergencies. The binder must be provided for reviewand inspection to the director upon reguest. The informational binder required bythis subsection must include the following documents and information:

Li) A floor plan of the dwelling unit used as a bed and breakfast home ortransient vacation which identifies the location of all bedrooms provided toguests, the maximum occupancy of each bedroom, and the location of allfire exits.

{j For bed and breakfast homes and transient vacation units that are notlocated in a multifamily dwelling, a parking plan that shows the locationand number of parking stalls that are available to persons associated withthe bed and breakfast home or transient vacation unit (e.g., owners,guests, visitors and service providers), or for bed and breakfast homes ortransient vacation units located within a multifamily dwelling, a parkingplan_that_identifies the location and number of parking stalls within themultifamily dwelling building that may be used by persons associated with

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the bed and breakfast home or transient vacation unit. Parking plans formultifamily dwellings may be provided in narrative form withoutillustrations or graphics: parking plans for all other bed and breakfasthomes and transient vacation units must contain illustrations, drawn toscale, which show the size of designated parking spaces and their locationon the zoning lot for the bed and breakfast home or transient vacation unit.

Instructions for trash collection and disposal, which include the dates andtimes of scheduled trash collections.

(4) A copy of the house rules for the bed and breakfast home or transientvacation unit. House rules for all bed and breakfast homes or transientvacation units must impose guiet hours between 10:00 p.m. and 7:00 a-rn.and prohibit the parking of vehicles associated with the bed and breakfasthome or transient vacation unit in all areas other than the parking spacesidentified in the parking plan required by paragraph (h)j’2).

() A list of emergency contacts, which must include a 24-hour phone numberfor the owner of the bed and breakfast home or transient vacation unit, theHonolulu Police Department, the Honolulu Fire Department, the HawaiiPoison Control Center, and the website address for the Hawaii EmergencyManagement Agency.

( A copy of the certificate of insurance for the bed and breakfast home ortransient vacation unit:

ffl Copies of the general excise and transient accommodations tax licensesfor the bed and breakfast home or transient vacation unit: and

(j A copy of the certificate of registration for the bed and breakfast home ortransient vacation unit issued by the department.”


“Sec. 21-5.730A Advertisements, regulation, and prohibitions.

(j Definitions. As used in this Section:

“Advertisement” means the display or transmission of any communication thatmay cause a reasonable person to understand that a dwelling unit or property is

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available for rent. Advertisements include, by way of example and without limitation,written and spoken words, e-mails, text messages, electronic and hard copypublications, flyers, handbills, signs, websites, and expressive images.

“Person” means a natural person or legal person, and includes all types ofbusiness and legal entities, including, by way of example and without limitation,associations, corporations, estates, individuals, limited liability companies. non-profitorganizations, partnerships, and trusts.

LPI Regulation of advertisements for bed and breakfast homes and transientvacation units. Advertisements for all bed and breakfast homes and transientvacation units are subiect to this subsection.

Li) It is unlawful for any person to advertise or cause the advertisement of abed and breakfast home or transient vacation unit without including in theadvertisement the tax map key number and the nonconforming usecertificate number or the registration number assigned to the bed andbreakfast home or transient vacation unit.

It is unlawful for any person to advertise or cause the advertisement of adwelling unit that is not a registered bed and breakfast home or transientvacation unit pursuant to Section 21-5.730.2 or operating pursuant to anonconforming use certificate for a term of less than 180 consecutivedays. Any written communication advertising the rental of a dwelling unitthat is not registered with the department pursuant to Section 21-5.730.2or operating pursuant to a nonconforming use certificate must include thefollowing statement: “This property may not be rented for less than 180consecutive days. Rental prices will not be reduced or adiusted based onthe number of days the rental is used or occupied.”

{ç) Advertisements as evidence of rental activities. An advertisement that does notcomply with subsection (b)(2) is prima facie evidence that the property beingadvertised is used as a bed and breakfast home or a transient vacation unit. Ifan enforcement order is issued to a property owner for using their property as anillegal bed and breakfast home or transient vacation unit based on anadvertisement, the property owner will have the burden of establishing that theirproperty has not been used as a bed and breakfast home or transient vacationunit.

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(d) Exemptions. The following are exempt from the provisions of this Section:

LU Legally established hotels,

{ Legally established time-sharing units, as provided in Section 2 1-5.640;and

Publishing companies and internet service providers will not be heldresponsible for the content of advertisements that are created by thirdparties.”


‘Sec. 21-5.730.5 Violations, complaint, response, and enforcement.

Complaint relating to short-term rentals. Any person may submit a writtencomplaint to the director reporting a suspected violation of the provisions ofSections 21-5.730.1 through 21-5.730.4. A complaint submitted to thedepartment pursuant to this section must:

Li) Identify the address of the suspected bed and breakfast home or transientvacation unit, including the apartment or unit number of the dwelling unit ifit is located in a multifamily dwelling;

{g State all of the facts that cause the complainant to believe that a violationhas occurred;

{ Identify the provisions of Sections 21-5.730.1 through 21-5.730.4 thathave been violated; and

4) Provide the complainant’s name and mailing address.

{j Response to complaints. Within 30 days of receiving a complaint that complieswith subsection (a), the director must provide a written response to thecomplainant either:

Li) Declining iurisdiction over the complaint, in which case the complainantmay pursue iudicial relief pursuant to Section 46-4(b), HRS;

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Explaining why the complaint does not describe an apparent violation ofSections 21-5.730.1 through 21-5.730.4. A response issued under thissubsection may be appealed to the Zoning Board of Appeals pursuant toSection 21-1.40; or

Advising the complainant that the director has initiated an investigation ofthe complaint.”

SECTION 22. Table 21-9.6(A), Revised Ordinances of Honolulu 1990, asamended, is amended by amending the entries for “bed and breakfast home,” “hotel,”and ‘transient vacation unit” as follows:

“Table 21-9.6(A)Waikiki Special District PrecinctPermitted Uses and Structures

PrecinctUse or Structure I Resort Mixed

Apartment PublicUse

Bed and breakfast homes [Pc] [Pie]

Hotel P/c [P]P/c

Transient Vacation Units [Pie]”

SECTION 23. Chapter 21,amended, is amended by deletingplatform.”

Article 10, Revised Ordinances of Honolulu 1990, asthe definitions of ‘booking service” and “hosting

[“Booking service” means any reservation or payment service provided by aperson that facilitates a transaction between an owner, operator, or proprietor of a bedand breakfast home or transient vacation unit, and a prospective user of that bed andbreakfast home or transient vacation unit, and for which the person collects or receives,directly or indirectly through an agent or intermediary, a foe from any person inconnection with the reservation or payment services provided for by the transaction.

“Hosting platform” means a person that collects or receives a fee from anyperson for booking services through which an owner, operator, or proprietor of a bodand breakfast home or transient vacation unit may offer use of the bed and breakfastknrna nr trnn&nn+ f,n’+inn ‘nit Wne+inn nI’,+fnrrnc. t,,nr’.,II. kit nn+ nna—cor”,riI, nrr,,i,4p

i,.ii’’-’—.-.’--.iiy,r-i’_.i’fl_

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booking services through an online platform that allows the owner, operator, orproprietor to advertise the bed and breakfast home or transient vacation unit through awebsite provided by the hosting platform, and the hosting platform conducts atransaction by which potential users arrange the use of and payment for the bed andbreakfast home or transient vacation unit, whether the payment is made directly to theowner, operator, or proprietor, or to the hosting platform.”]

SECTION 24. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by amending the definitions of “bed and breakfast home”, “hotel”,and “transient vacation unit” to read as follows:

“Bed and breakfast home” means a use in which overnight accommodations areadvertised, solicited, offered, or provided[, or a combination of any of the foregoing,] to[guests] transient occupants, for compensation, for periods of less than [SQ] 180consecutive days[7] in the same [dctached] dwelling unit [as-that] occupied by [an] theowner[, lessee, operator, or proprietor] of the [detached] dwelling unit. For purposes ofthis definition:

£11 [Gicompensation includes, but is not limited to, monetary payment,services, or labor of guests;

Accommodations are advertised, solicited, offered or provided to guestsfor the number of days that are used to determine the price for the rental;and

{) Month to month holdover tenancies resulting from the expiration of long-term leases of more than 180 days are excluded.

“Hotel” means a building or group of buildings containing lodging and/or dwellingunits [offering] that are used to offer transient accommodations to guests.[7]. A hotelbuilding or group of buildings must contain [and] a lobby, clerk’s desk or counter with 24hour clerk service, and facilities for registration and keeping of records relating to hotelguests. A hotel may also include accessory uses and services intended primarily for theconvenience and benefit of the hotel’s guests, such as restaurants, shops, meetingrooms, and/or recreational and entertainment facilities.

“Transient vacation unit” means a dwelling unit or lodging unit that is advertised,solicited, offered, or provided[, or a combination of any of the foregoing, forcompensation] to transient occupants, for compensation, for periods of less than [30]180 consecutive days, other than a bed and breakfast home. For purposes of thisdefinition,

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jfl [G]compensation includes, but is not limited to, monetary payment,services, or labor of guests;

Accommodations are advertised, solicited, offered or provided to guestsfor the number of days that are used to determine the price for the rental;and

{ Month to month holdover tenancies resulting from the expiration of long-term leases of more than 180 days are excluded.

SECTION 25. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by adding new definitions for “condominium hotel” and “hotelunit” to read as follows:

“Condominium hotel” means a hotel in which hotel units are designated forseparate ownership and the remainder of which is designated for common ownershipsolely by the owners of the hotel units subject to a condominium property regime.”

“Hotel unit” means a dwelling unit or a lodging unit located in a hotel building.”

SECTION 26. Ordinance material to be repealed is bracketed and stricken. Newordinance material is underscored. When revising, compiling or printing this ordinancefor inclusion in the Revised Ordinances of Honolulu, the Revisor of Ordinances need notinclude the brackets the material that has been bracketed and stricken, or theunderscoring.

SECTION 27. Severability. If any provision or application of this ordinance isheld invalid, the remainder of this ordinance and its application to other persons orcircumstances shall not be affected.

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SECTION 28. This ordinance shall take effect on

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2021.

INTRODUCED BY:

DATE OF INTRODUCTION:

________________

Honolulu, Hawaii Councilmembers

APPROVED AS TO FORM AND LEGALITY:

Deputy Corporation Counsel

APPROVED this of_______ 2021

Rick Blangiardi, MayorCity and County of Honolulu

37

PacificOcean

Legend

Bed and BreakfastI I Transient Vacation

Homes andUnits Permitted

OF>

0 150 300

Scale in Feet

VICINITY MAP

LOCATION MAP

SHORT-TERM RENTALPERMITTED AREASExhibit A- Gold CoastFOLDER NO.: DivFunction\GIS\STR

‘repared by: Department of Planning and PermittingCity and County of Honolulu

Date Prepared: August 2021 Copyright City & County 01 HonoluluAll Rights Reserved 2021

PadOce

Legend

Bed and Breakfast Homes andransient Vacation Units Permitted

Ko OlinaBeach Park

Barbers PointHarbor

LOCATION MAP

SHORT-TERM RENTALPERMITTED AREAS

2,600 0Prepared by: Department of Planning and Permitting

City and County of Honolulu

Exhibit B - Ko Olina ResortFOLDER NO.: DivFunction\GIS\STR

Date Prepared: August 2021

0 650 1,300

VICINITY MAP

Scale in Feet

Copyright City & County or honoluiAll Rights Reserved 2q21

PacificOcean

Legend

Bed and Breakfast Homes andTransient Vacation Units Permitted

Scale in Feet

Prepared by: Department of Planning and PermittingCity and County of Honolulu

LOCATION MAP

0 1,200 2,400

SHORT-TERM RENTAL

4,800

PERMITTED AREASVICINITY MAP

0Exhibit C - Kuilima ResortFOLDER NO.: DiVFunction\GIS\STR

Date Prepared: August 2021 Copyright City & County of HonoluluAll Rights Reserved 2021

DEPARTMENT OF PLANNING AND PERMITTING

CITY AND COUNTY OF HONOLULU650 SOUTH KING STREET. 7TH FLOOR • HONOLULU, HAWAII 96813

PHONE: (808) 768-8000 • FAX (808) 768-6041DEPT. WEB SITE: %WAW.honoIUIudpp.oro • CITYWEB SITE: whonoIuIygov

DEAN UCHIDADIRECTOR

RICK BLANGIARDI DAWN TAKEUCH] APUNADEPUTY DIRECTOR

EUGENE H. TAKAHASHIDEPUTY DIRECTOR

--2

August 30, 2021

)

MEMORANDUM

)TO: Brian Lee, Chairand Members of the Planning Commission

-- Digitally signed byFROM: Dean Uchida, Director TIll 1) Th Uchida, Dean

Department of Planning and Permitting 1JLU-&t-?” Date: 2021.08.3015:11:09 -1000’

SUBJECT: Comments on Proposed Amendments to Chapter 21 (Land UseOrdinance [LUOJ), Revised Ordinances of Honolulu 1990, as Amended(ROH), Relating to Transient Accommodations

The Department of Planning and Permitting (DPP) is pleased to submit thesecomments on our proposed amendments to Chapter 21 (LUO), ROH, Relating toTransient Accommodations.

The Covid-19 Pandemic allowed us to experience our Island with no tourists, notraffic, pristine, empty beaches, and peace and quiet. As restrictions are lifted andtourism returns, the community wants to retain that peaceful and less disruptive lifestyleand has cafled for better management and control of tourism from overrunning ourneighborhoods.

While some state that they need to supplement their income by renting out theirproperties to tourists in order to survive, we are in a housing crisis in which residentsare unable to buy a primary residence or rent a residence because of the rising cost ofreal estate and a shortage of long-term rentals. It has been estimated that short-termrentals (STR) occupied 35 percent of vacant housing and 5 percent of housing stockthroughout the State. The proliferation of STRs --which includes bed and breakfasthomes (B&Bs) and transient vacation units (TVU5) -- contributes to a reduction in long-term rental inventory, and increases property values and rents. Additionally, illegalSTRs accommodate guests who would normally stay at existing hotel/resort propertieson Oahu, thereby depleting business and staffing levels at hotel/resort properties.



The frustration continues with illegally operating STRs throughout our Island. It isestimated that there are roughly 20,000 illegal STRs operating throughout the State.There is a need for more and better enforcement to shut down these properties thatconstantly disrupt our neighborhoods and impact our visitor industry.

The DPP has proposed a bill to amend the STR ordinance to address theseissues. To better manage tourism, reduce the impacts of tourism on ourneighborhoods, and to help address our housing crisis, the bill disallows any new STRsin residentially zoned areas! while allowing STIRs in and around resort areas where theyare better suited. To better enforce against illegally operating STRs, fines areincreased, and fine proceeds and a portion of resort and B&B real property taxescollected from STRs will go directly to enhancement and expansion of DPPenforcement efforts.

The following is a summary of the major components of the revised bill:

The approximately 800 STRs (B&B and TVU) that have a valid nonconforminguse certificates (NUC) will be allowed to continue. Nonconforming uses, such asthe STR NUCs, are generally intended to phase out overtime. The following isan estimated breakdown of the number of units in each of the various zoningdistricts:

Zoning Number of Existing NUCUnits

Residential 115A-i (Low Density) Apartment Zoned 33A-2 (Medium Density) Apartment Zoned 24Waikiki

Apartment Precinct 484Apartment Mixed Use Precinct 137

fl Total 793

• No new STIRs will be permitted in residential areas.

• New STIRs will be allowed only in areas adjacent to and associated with existingresort zoned property and adjacent Apartment zoned properties (Kuulima, KoOlina, Makaha and Waikiki) as follows:

o Kuulima: STIRs will be allowed in the Resort Zoned District and the A-i(Low Density) Apartment Zoned District adjacent to the Resort.

o Ko Olina: STIRs will be allowed on portions of the A-i (Low Density) andA-2 (Medium Density) Apartment Zoned Districts adjacent to the Resort.



o Makaha: STRs will be allowed in the Resort Zoned Districts in MakahaValley.

o Waikiki:

• STR’s will be allowed in the Resort Mixed Use Precinct in WaikikiSpecial District.

• STR’s and Hotels will be allowed in the Gold Coast Area of theDiamond Head Special District—individual properties will need toapply for up zoning from A-2 (Medium Density) Apartment ZonedDistrict to Resort.

• STR’s and Hotels will be allowed in the Apartment Precinct andApartment Mixed Use Precinct in Waikiki Special District; however,individual properties will have three years to up zone their propertyto Hotel/Resort. The intent is to keep this area in long-termapartment leases for workers and resident in Waikiki.

• All new STRs will have to register with the City and the certificate of registrationnumber or their NUC number will be required in advertisements. NUCs will berequired to include their registration number in advertisements.

• Unregistered STRs will be prohibited from advertising units rented for less than180 consecutive days. The 180 day duration is consistent with State definition of“Transient Accommodations” pursuant to Chapter 237D, Hawaii RevisedStatutes, which states:

“Transient accommodations” means the furnishing of a room, apartment,suite, single family dwelling, or the like to a transient for less than onehundred eighty consecutive days for each letting in a hotel, apartmenthotel, motel, condominium or unit as defined in chapter 514B, cooperativeapartment, dwelling unit, or rooming house that provides living quarters,sleeping, or housekeeping accommodations, or other place in whichlodgings are regularly furnished to transients.”

• All newly registered STRs and existing NUC TVUs will be assessed at the hoteland resort rate for real property purposes.

• All existing NUC B&Bs will be taxed at the B&B rate.

• A New Short-Term Rental Enforcement Branch will be created in DPP (sevenpositions). New enforcement procedures are being overhauled to better equipinspectors to investigate and enforce violations of the LUO, including provision



related to STRs. Fines are increased up to $25,000 for initial violations and foreach day a violation remains uncorrected under the LUD, and additional finesspecific to STR violations in an amount up to the highest daily rate at which theSTR unit has been advertised or offered or rent.

• The DPP will receive proceeds from the STR fines and the difference in the realproperty tax collection from the current rate to the new rate to be usedspecifically for STR enforcement. The intent is to keep the funding sourcerevenue neutral to the City.

Attached you wifl find a revised draft bifl for your consideration that includes thefollowing edits (highlighted in yellow in the draft bill):

• Section 7, page 19: Added B&Bs and TVUs as permitted uses in the resortzoning district, subject to standards in Article 5 of the LUC.

• Section 14, page 23: Under the development standards for condominium hotels,disallows hotels and third party booking services from providing discounted rentalrates to the owners of condominium hotel units or hotel guests arranged for bythe owners of the condominium hotel units, unless the same discounted rates areavailable to members of the general public that are not condominium hotel unitowners of guests of condominium hotel unit owners. Allows use of acondominium hotel unit as a primary residence or usual place of abode.

• Section 17, page 26: Permits B&Bs and TVUs in the Resort zoned propertiesMakaha Valley, and the Resort Mixed Use Precinct in the Waikiki Special district.

• Section 22, page 35: Permits B&Bs, TVUs, and hotels in the Resort Mixed UsePrecinct of the Waikiki Special District Precinct.

• Section 25, page 36: Clarifies the definition of ‘condominium hotel” to mean ahotel in which one or more hotel units are separate real property interest createdby a declaration of condominium property regime.

We will be happy to answer any questions that you may have concerning thismailer at this time.

Attachments


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In 2019, the City passed Ordinance 19-18, allowing a limited number of new bedand breakfast homes and requiring certain short-term rentals to comply with registrationrequirements, development standards and other regulations. However, some of theprovisions in Ordinance 19-18 have proven themselves to be impractical and haveresulted in enforcement problems. To address these problems, it is necessary toimprove upon Ordinance 19-18 by simplifying the City’s approach to regulating short-term rentals and other transient accommodations.


SECTION 2. Section 8-7.1, Revised Ordinances of Honolulu 1990, as amended,is amended to read as follows:



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(A) Residential;


(C) Commercial;

(D) Industrial;

(E) Agricultural;

(F) Preservation;

(G) Public service;



(J) Bed and breakfast home,

(2) In assigning real property to one of the general classes, the director shallgive major consideration to the districting established by the city in itsgeneral plan and zoning ordinance, specific class definitions or criteria setforth in this section, and such other factors which influence highest andbest use.



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(I) If the unit has a single, legally permitted, exclusive actualuse, it shall be classified upon consideration of the unitsactual use into one of the general classes in the samemanner as real property; or

(U) If the unit has multiple, legally permitted uses; it shall beclassified:



(Ni) If the unit is a condominium parking unit or a condominiumstorage unit, it shall be classified residential, only uponapproved dedication when the unit is used in conjunctionwith a unit in residential use within the project.

(4) Notwithstanding any provision contained in this subsection, acondominium unit that is used at any time during the assessment year asa time share unit, shall be classified for the following tax year as hotel andresortf unless:

(B) The property ...k...k 4k it is located does not include a lobbywith a clerk’s desk or counter with 21 hour clerk service facilities-farregistration and keeping of records relating to persons using theproperty; and

(A) The unit is on prope zoned as apartment, apartment mixed use,apartment precinct, or apartment mixed use precinct;

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(C) The unit is part of a condominium property regime establishedpursuant to HRS Chaptor 514A, as it road prior to its repeal onJanuary 1, 2019, or HRS Chapter 514B.

If the reguiremonts of paragraphs (A), (B) and (C) pro met, the time shareunit shall be classified as residential. For purposes of this subdivision,‘assessment year” means the one year period beginning October 2nd ofthe previous calendar year and ending October let, inclusive, of thecalendar year preceding the tax year, and “time sharing” has the samemoaning as defined in Section 2110.1].


(A) Has no residential buildings; and



(6) Notwithstanding any provision contained in this subsection, all realproperty actually used by a public service company in its public servicebusiness shall be classified public service. For purposes of thissubsection, “public service company” means a public utility, exceptairlines, motor carriers, common carriers by water, and contract carriers,where:

(A) “Public utility” includes every person who may own, control,operate, or manage as owner, lessee, trustee, receiver, orotherwise, whether under a franchise, charter, license, articles ofassociation, or otherwise, any plant or equipment, or any partthereof, directly or indirectly for public use, for the transportation ofpassengers or freight, or the conveyance or transmission oftelecommunications messages, or the furnishing of facilities for thetransmission of intelligence by electricity by land or water or airwithin the state, or between points within the state, or for theproduction, conveyance, transmission, delivery, or furnishing of

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light, power, heat, cold, water, gas, or oil, or for the storage orwarehousing of goods, or the disposal of sewage; provided that theterm:

(i) Includes any person insofar as that person owns or operatesa private sewer company or sewer facility;

(ü) Includes any telecommunications carrier ortelecommunications common carrier;

(Ni) Does not include any person insofar as that person owns oroperates an aerial transportation enterprise;

(iv) Does not include persons owning or operating taxicabs, asdefined in this subsection;



(vu) Does not include:

(aa) The business of any carrier by water to the extent thatthe carrier enters into private contracts for towage,salvage, hauling, or carriage between points withinthe state and the carriage is not pursuant to either anestablished schedule or an undertaking to performcarriage services on behalf of the public generally;and


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(vhi) Does not include any person who:



(ix) Does not include a telecommunications provider only to theextent determined by the Public Utilities Commission of theState of Hawaii, pursuant to applicable state law;






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(dd) The facility may distribute and sell recycled orreclaimed water to entities not covered by a state orcounty service contract; provided that, in the absenceof regulatory oversight and direct competition, thedistribution and sale of recycled or reclaimed watershall be voluntary and its pricing fair and reasonable.For purposes of this subparagraph, “recycled water’and “reclaimed water’ mean treated wastewater thatby design is intended or used for a beneficial purpose;and



(C) “Contract carrier” means a person other than a public utility ortaxicab which, under contracts or agreements, engages in thetransportation of persons or property for compensation, by land,water, or air;


(E) “Taxicab” means and includes:


(U) Any motor vehicle having seating accommodations for eightor less passengers used in the movement of passengers onthe public highways between a terminal, i.e., a fixed stand, inthe city of Honolulu, and a terminal in a geographical districtoutside the limits of the city of Honolulu, and vice versa,

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(F) “Telecommunications carrier” or “telecommunications commoncarrier” means any person that owns, operates, manages, orcontrols any facility used to furnish telecommunications services forprofit to the public, or to classes of users as to be effectivelyavailable to the public, engaged in the provision of services, suchas voice, data, image, graphics, and video services, that make useof all or part of their transmission facilities, switches, broadcastequipment, signaling, or control devices; and

(G) “Telecommunications service” or ‘telecommunications” means theoffering of transmission between or among points specified by auser, of information of the user’s choosing, including voice, data,image, graphics, and video without change in the form or content ofthe information, as sent and received, by means of electromagnetictransmission, or other similarly capable means of transmission, withor without benefit of any closed transmission medium, and does notinclude cable service as defined under applicable state law.




(2i Not exceed 5,000 square feet of land and the buildings and improvementson that land; and

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(f) When a parcel of land that has been classified as preservation is improved with asingle-family dwelling and has been granted a home exemption for the tax year,that portion of the parcel which is used for residential purposes shall be classifiedas residential. This classification shall:




(g) (1) In determining the value of buildings, consideration shall be given to anyadditions, alterations, remodeling, modifications or other new construction,improvement, or repair work undertaken upon or made to existingbuildings as the same may result in a higher assessable valuation of saidbuildings; provided, however, that any increase in value resulting from anyadditions, alterations, modifications, or other new construction,improvement or repair work to buildings undertaken or made by the owneroccupant thereof pursuant to the requirements of any urbanredevelopment, rehabilitation, or conservation project under the provisionsof Part II of HRS Chapter 53, shall not increase the assessable valuationof any building for a period of seven years from the date of certification ashereinafter provided.


(A) In the case of additions, afterations, modifications or other newconstruction, improvement or repair work to a building that isundertaken pursuant to any urban redevelopment, rehabilitation orconservation project as hereinabove mentioned, the statement shallbe certified by the mayor or any governmental official designated bythe mayor and approved by the council, that the additions,alterations, modifications, or other new construction, improvements,

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or repair work to the bufldings were made and satisfactorily complywith the particular urban development, rehabilitations, orconservation act provision; or



(N) The maintenance or repairs to the buildings were made andsatisfactorily comply with the particular code provision.

(h) (1) Notwithstanding the provisions of subsection (c)(2), properties operatingas transient vacation units [in accordance with Section 21 1.110 1, andwhich have a valid nonconforming use certificate, shall be classified basedon their underlying zoningl must be classified as hotel and resort.

(2) [Real Property operating as transient vacation units as otherwisepermitted under Chapter 21 must be classified as hotel andresort.]Notwithstanding the provisions of subsections (cfl2), propertiesoperating as bed and breakfast homes must be classified as bed andbreakfast home.

[(3) For purposes of this subsection, “transient vacation unit moans the sameas defined in Section 2110.1.1



(A) Has an assessed value of $1,000,000 or more;


(C) Is zoned R-3.5, R-5, R-7.5, R-1 0 or R-20 or is dedicated forresidential use;

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(2) Is vacant land zoned R-35, R-5, R-75, R-10 or R-20 and has anassessed value of $1,000,000 or more; or



U) For purposes of this Isubisection, “bed and breakfast home” has the samemeaning as defined in Section 21-10.1, and includes bed and breakfast homeswith current nonconforming use certificates.

jg For the purposes of this section, “transient vacation unit’ shall have the samemeaning as defined in Section 21-10.1, and includes transient vacation units withcurrent nonconforming use certificates.”

SECTION 3. Article 2AofChapter2l, Revised Ordinances of Honolulu 1990, asamended, is repealed.




f) The date of mailing or service shall be the date on which an action of thedirector is placed into the United States mail, for actions of the directorthat do not need to be served by registered or certified mail;

ffi For actions of the director that are served by registered or certified mail,the date of mailing or service shall be the date on which the registered orcertified mail is received, as indicated by the return receipt for the mailingor other records of the United States Postal Service;

) For actions of the director that are served by physical delivery to a personor a person’s residence, place of employment, or usual place of business,

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j For actions of the director that are served by physical posting of a copy ofan action of the director upon the Droperty where the violation hasoccurred, the date of the service shall be the date of posting, asestablished by a sworn declaration made by the person responsible foreffecting the service of the director’s action by the means identified in thisparagraph;

For actions of the director that are served by publication, the date ofservice shall be the date on which the last required publication is made;

For actions of the director that are delivered by fax, email, or other meansof electronic transmission, the date of service shall be the date on whichthe director’s action is transmitted to the correct email address, faxnumber, or other electronic address for the person served, as establishedby a fax receipt; email receipt; email response that acknowledges receiptof the email: or other reasonable proof of the successful transmission ofelectronic delivery to the addressee.

For persons who have made a written request notice of a director’s actionconcerning a particular project, property, or applicant before the director’saction is issued, the date of service shall be determined according toparagraphs (a) through (f) of this section; and

ffl For persons who have reguested notice of a director’s action concerning aparticular proiect, property, or applicant after the director’s action has beenissued to the applicant, the date of service shall be the earlier of date onwhich the director’s action was served upon the applicant in accordancewith subsections (a) through (f), or, the date on which the director’s actionwas served on the person requesting notice of the director’s action inaccordance with subsections (a) through (f).

SECTION 5. Section 21-2.150-2, Revised Ordinances of Honolulu 1990, asamended, is repealed.

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SECTION 6. Article 2 of Chapter 21, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21 -2.150-2 to read as follows:

“Sec. 21-2.150-2 Administrative enforcement.

{ Enforcement authority. In addition to seeking criminal prosecution under Section21-2.150-1, the director may enforce violations of this chapter, administrativerules that are adopted by the director to administer this chapter, and theconditions of any permits or approvals granted under the same by issuing anenforcement order authorized by this section.

f Persons responsible for violations. The owners of real property, buildings, andpremises that are used in violation of the legal authorities identified in subsection(a) shall be liable for any violations on their property and are responsible forcomplying with any enforcement order issued by the director concerning thesame. In addition, persons that have possession or control of the real property,building, or premises on which a violation exists may be held liable for theviolation and held responsible for complying with the director’s order. Personswho cause, contribute to, or benefit from a violation, in whole or in part, may alsobe held liable for such violations and will be responsible for complying withenforcement orders issued by the director. For the purposes of this section,“persons” means natural persons or legal persons including but not limited totrusts, corporations, partnerships, and limited liability companies.

Joint and several liability. If the director determines that more than one person isliable for a violation, the director may issue one enforcement order to allresponsible persons or separate orders to persons or groups of persons that areresponsible for the violation. Persons that are issued an order pursuant to thissection are jointly and severally liable for the violations described in the director’sorder, such that each person will be independently liable for the full extent of theviolation and responsible for complying with the order.

f Service of enforcement orders issued by the director. The director may serve anenforcement order issued pursuant to this section by registered or certified mail,with return receipt requested, addressed to the last known address of eachviolator identified in the order. The director may also serve an order issuedunder this section by delivering a copy of the order to the violator in person, or byleaving a copy of the order at the violator’s residence, place of employment, orusual place of business, or by physically posting a copy of the order in aprominent location on the property in a conspicuous manner which is likely to bediscovered, only if due diligence was used in attempting to serve the person

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personally or by registered or certified mail. If the director is not able to serve theorder by any of the methods described in this section, the director may thenserve the order on one or more violators by publishing a copy of the order onceeach week for two consecutive weeks in a daily or weekly publication that is incirculation within the City. Where one or more violators that are identified in anorder have the same mailing address, place of residence, place of employmentor usual place of business, the delivery of one copy of the order shall be effectiveupon all persons named in the order that can be served at the place where theorder has been delivered.

fj Types of enforcement orders. The director may issue the following types ofenforcement orders: (1) notice of violation and order to correct: (2) notice oforder and imposition of fines; (3) consent order; and (4) order to show cause.

ifi Notice of violation and order to correct. The director may issue a notice ofviolation and order to correct to the persons identified in subsection (b). Inaddition to any other information or reguirements deemed appropriate by thedirector, a notice of violation and order to correct shall:

£11 Identify the persons to whom the order is addressed:

LZL State the address or location of the violation;

f Identify the specific ordinance, rule, or condition that has been violated;

£41 Provide a concise description of the violation;

State the actions that are necessary to correct the yiolation:

f Order the violator to correct the violation by a specific date:

{fl Identify the penalties that will be imposed for the violation if it is notcorrected by the deadline for correction established pursuant tosubsection (e)(6): and

j Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured.

jg Notice of order and imposition of fines. The director may issue a notice of orderand imposition of fines to the persons identified in subsection (b). In addition to

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) Identify the persons to whom the order is addressed;

f State the address or location of the violation;

f Identify the specific ordinance, rule, or condition that has beenviolated;

Provide a concise description of the violation;

L1 State the actions that are necessary to correct the violation;

ffl Order the person to correct the violation by a specific date;

7) Require the persons to pay a civil fine of up to $25,000.00 per violationidentified in the order;

j Require the persons to pay a civil fine of up to $25,000.00 per day, foreach day the violation remains uncorrected after the deadline forcorrection established pursuant to subsection (0(6);

f Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured; and

UQI Inform the violator that the order can be appealed to the Zoning Board ofAppeals in accordance with Section 21-1.40.

Qfl Consent Orders. The director is authorized to enter into consent orders, basedon reasonable assurances of voluntary compliance from persons that have beenissued a notice of violation and order to correct. A consent order shall be signedby the director and the persons who have agreed to voluntarily correct aviolation, state the specific actions to be taken to correct the violation, and statethe dates by which each action will be completed. The director may enforce theterms of consent orders pursuant to this section, including judicial enforcementpursuant to subsection (n). The failure to comply with the requirements of aconsent order shall be punishable by a civil fine of up to $100,000.00 perviolation, with each day(s) of noncompliance treated as a separate violation.

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ifi Order to show cause. Whenever the director has cause to believe that aviolation is taking place or threatening to take place, the director may issue anorder to show cause to the persons identified in subsection (b). An order to showcause shall:

ffl Be accompanied by a proposed notice of violation and order to correct ornotice of order and imposition of fines;

f21 Require the respondents to appear before the director at a specified placeand time and admit to the facts in the proposed order or show cause as towhy the proposed notice of violation and order to correct or notice of orderand imposition of fines should not be issued; and

f Inform the respondents that they have the right to hire an attorney and berepresented by an attorney in the show cause proceedings before thedirector.

Persons that are served with an order to show cause will be required to appearbefore the director in a show cause hearing and shall have the burden of provingthat the proposed notice of violation and order to correct or notice of order andimposition of fines should not be issued because it is based on an erroneousfindings of material fact, an incorrect interpretation of the law, arbitrary andcapricious decision-making1 or an abuse of discretion. If the respondents to ashow cause order are not able to prove that the proposed notice of violation andorder to correct or notice of order and imposition of fines should not be issued,the director may issue the proposed notice of violation and order to correct ornotice of order and imposition of fines to the respondents or allow therespondents to enter into a consent order with the department. If a respondent toa show cause order does not appear before the director at the required place andtime, the facts in the proposed notice of violation and order to correct or notice oforder and imposition of fines will be deemed admitted by the respondent and thedirector may issue the proposed notice of violation and order to correct or noticeof order or order and imposition of fines to the respondent that has failed toappear at the show cause hearing.

ifi Duration of violation. A violation that is identified in an enforcement order issuedunder this section will continue until it is deemed corrected by the director. Thedirector may impose separate or additional penalties for each day that a violationremains_uncorrected after the date the deadline for correction state in theenforcement order. However, separate enforcement orders will not be requiredto impose additional penalties for ongoing violations.

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Procedure for closing violations. Persons that are subject to an enforcementorder issued by the director are responsible for notifying the director of thecorrection of any violations identified in the enforcement order. Notifications sentto the director shall be in writing, dated, and signed by the person reporting thecorrection to the director. When a violator informs the director that a violation iscorrected, the director shall promptly review the violation and respond to theviolator by acknowledging the violation is corrected or by identifying theadditional actions that are necessary to correct the violation. If a person subjectto an enforcement order corrects a violation and fails to promptly notify thedirector of the violation’s correction, the date of correction will be the date onwhich the director is provided written notice of the correction unless the violator isable to establish, to the satisfaction of the director, that the violation wascorrected on an earlier date.

ifi Additional penalties for illegal short-term rentals. In addition to the enforcementactions and penalties authorized by subsections (a) through (i), if the directordetermines that a person has violated any of the provisions in this chapterrelating to bed and breakfast homes or transient vacation units, any rule adoptedby the department pertaining to bed and breakfast homes or transient vacationunits, or the conditions of any nonconforming use certificate or certificate ofregistration issued by the department for a bed and breakfast home or transientvacation, the director may impose an additional civil fine on the responsiblepersons, in an amount up to the highest daily rate at which the bed and breakfasthome or transient vacation unit in issue has been advertised or offered for rent asa bed and breakfast home or transient vacation unit. When a bed and breakfasthome or transient vacation unit is advertised or offered for rent for less than 180consecutive days without displaying or specifying the daily rates for the rental,the additional penalty authorized by this section shall be determined by pro ratingthe rental price for the property based on any known advertisement or offer forthe rental of the dwelling unit for less than 180 days and the total rental price forthe same, excluding any taxes passed on to the renter. The additional civil fineauthorized by this section may be imposed as a daily fine, applicable to each daya dwelling unit is used, advertised, or offered as a bed and breakfast home ortransient vacation unit in violation of the provisions in this chapter relating to bedand breakfast homes or transient vacation units, the department’s rules relatingto bed and breakfast homes or transient vacation units, or the conditions of anonconforming use certificate or certificate of registration issued by thedepartment.

jffl Opportunity for contested case hearing. Notwithstanding anything to thecontrary, no civil fine or penalty authorized by this chapter shall be due and

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Liii Judicial enforcement of enforcement orders. The director may institute a civilaction in any court of competent jurisdiction for the enforcement of anyenforcement order issued pursuant to this section. Where the civil action hasbeen instituted to enforce the civil fine imposed by said order, the director needonly show that the notice of violation and order were served, that a civil fine wasimposed, the amount of the civil fine imposed and that the fine imposed has notbeen paid.”


Sec. 21-2.150-3 [Depocitory of] Deposit and use of fees [and] civil penalties, andtaxes relating to bed and breakfast homes or transient vacationunits.

fj Notwithstanding any other ordinance to the contrary, [paymentc of] fees and civilpenalties relating to bed and breakfast homes [or] and fees and civil penaltiesrelating to transient vacation units shall be deposited into a special account of thegeneral fund, to be appropriately named by the department of budget and fiscalservices, and used by the department of planning and permitting for expensesrelated to the administration and enforcement of the provisions of this chapterrelating to bed and breakfast homes and transient vacation units.

flj Notwithstanding any ordinance to the contrary, beginning in the 2022 tax yearand in all tax years thereafter, up to $3,125,000.00 in real property taxescollected annually by the city for the bed and breakfast tax classification and thehotel and resort tax classification shall be placed into the special fund identified insubsection (a) and used by the Department of Planning and Permitting for theadministration and enforcement of the provisions of this chapter relating to bedand breakfast homes and transient vacation units,’

SECTION 8. Table 21-3, Revised Ordinances of Honolulu 1990, as amended, isamended by amending the ‘bed and breakfast homes” and “transient vacation units’entries to read as follows:

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“TABLE 21-3 MASTER USE TABLEIn the event of any conflict between the text of this Chapter and the following table, the text of the Chapter shall control.The following table is not intended to cover the Waikiki Special District; please refer to Table 21 -96(A).

KEY: Ac = Special accessory use subject to standards in Article 5Cm = Conditional Use Permit-minor subject to standards in

hearing required (see Article 2 for exceptions)C = Conditional Use Permit-major subject to standards in

hearing requiredP = Permitted useP/c = Permitted use subject to standards in Article 5PRU = Plan Review Use


‘Notes:


1 Commercial use subject to special density controls (see Table 21-3.3 and Section21-3.90-1 (c)(4)).

2 Commercial use subject to special density controls (see Table 21-3.5 andSection 21-3.140-1(c)).

BILL


Article 5; no public

Article 5; public

DWELLINGS AND LODGINGSBed andBreakfast [Pie] [P/a] [P/e’] [P/e P/c3 P/c3 [P/e’J [P/t] [Pit] [P/e’3 P/c3 [P/e’j [Ps’]homestransientvacation

P/c3 P/c’ P/c3Unit

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Bed and breakfast homes and transient vacation units allowed by Table 21-3 aresubiect to the development standards and location restrictions established in Article 5.Notwithstanding any contrary provisions in this chapter, bed and breakfast homes andtransient vacation units that do not have laro prohibited and may not operate without] avalid nonconforming use certificate or certificate of registration are not allowed in areaswhere the applicable development plan or sustainable communities plan prohibits [ecdoec not permit] the establishment of new bed and breakfast homes or transientvacation units; provided that this note shall not prohibit the renewal of a valid certificateof registration originally issued prior to a subsequent development plan amendment thatprohibits bed and breakfast homes or transient vacation units in a development planarea.

SECTION 10. Section 21-4.110-1 Revised Ordinances of Honolulu 1990, asamended, is amended to read as follows:



(b) The owner, operator, or proprietor of any transient vacation unit who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)Between September 1,2000 and October 15, 2000; then (2) Between SeptemberI and October 15 of every even-numbered year thereafter, Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use during each calendar year covered by the nonconforming usecertificate being renewed and that there were transient occupancies(occupancies of less than 30 days apiece) for a total of at least 35 days duringeach such year and that (N) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a transient occupancy. Failure to meet these conditions will result in thedenial of the application for renewal of the nonconforming use certificate. Therequirement for the 35 days of transient occupancies shall be effective onJanuary 1, 1995 and shall apply to renewal applications submitted on or afterJanuary 1, 1996.

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(d) The provisions of Section f21 5.730(c)] 21 -5.730.4 shall apply to advertisementsfor transient vacation units operating under a nonconforming use certificatepursuant to this section.[9


“Sec. 21-4.110-2 Bed and breakfast homes--Nonconforming use certificates.

(a) The purpose of this section is to permit certain bed and breakfast homes, thathave been in operation since prior to December 28, 1989, to continue to operateas nonconforming uses subject to obtaining a nonconforming use certificate asprovided by this section. This section applies to any owner, operator, orproprietor of a bed and breakfast home who holds a valid nonconforming usecertificate issued pursuant to this section on August 1,2019.

(b) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)between September 1,2000 and October 15, 2000; then (2) between September1 and October 15 of every even-numbered year thereafter. Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use for each calendar year covered by the nonconforming usecertificate being renewed and that there were bed and breakfast occupancies(occupancies of less than 30 days apiece) for a total of at least 28 days duringeach such year and that (ii) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a bed and breakfast occupancy. Failure to meet these conditions willresult in the denial of the application for renewal of the nonconforming usecertificate. The requirement for the 28 days of bed and breakfast occupanciesshall be effective on January 1, 1995 and shall apply to renewal applicationssubmitted on or after January 1, 1996.

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(5) The provisions of Section f21 5.730(c)] 21-5.730.4 shall apply toadvertisements for the bed and breakfast home.

(e) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall display thecertificate issued for the current year in a conspicuous place on the premises.”


SECTION 13. Chapter 21, Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.360 to read as follows;

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f Hotel units must be used or offered to provide dwefling or lodgingaccommodations to transient guests. Hotel units may not be used as transientvacation units or bed and breakfast homes.

LP2 Hotel units must be booked by guests through a centralized hotel booking systemthat is managed by the hotel operator or through the hotel front desk, providedthat this section will not prohibit the booking of hotel units through third partyservices or technologies that make bookings though the central hotel operatedbooking system or hotel front desk.

(c) Rental rates for all hotel units must be determined by the hotel operator or themanager of the hotel’s centralized booking service. Hotels and third partybooking services may not provide discounted rental rates to the owners ofcondominium hotel units or hotel guests arranged for by the owners ofcondominium hotel units unless the same discounted rates are available tomembers of the general public that are not condominium hotel unit owners orguests of condominium hotel unit owners. This section does not apply tobookings for hotel units that are part of a leoallv established time-share program.

fçfl Hotels and hotel units that have existing certificates of occupancy for hotel usesshall comply with subsections (b) and Ic) within two years of the effective date ofthis ordinance. Hotels and hotel units that obtain certificates of occupancy forhotel uses after the effective date of this ordinance must comply with thesubsections (b) and (c) immediately.”

SECTION 14. Chapter 21, ArticleS, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.360.1 to read as follows:


Units in a condominium-hotel must be part of the hotel’s room inventory,available for rent to the general public. Hotels and third party booking services may notprovide discounted rental rates to the owners of condominium hotel units or hotel guestsarranged for by the owners of condominium hotel units unless the same discountedrates are available to members of the general public that are not condominium hotel unitowners or guests of condominium hotel unit owners. The use of a condominium-hotelunit as a primary residence or usual place of abode is ne1 allowed.”

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Sec. 21 -5.360.2 Specialty Hotels.

fpj Transit related Hotels. Hotels shall be permitted in the 1-2 intensive industrialdistrict and IMX-1 industrial-commercial mixed use district provided:

{Jj They are within one-half mile by the usual and customary route ofvehicular travel from the principal entrance of an airport utilized bycommercial airlines, having regularly scheduled flights. For HonoluluInternational Airport, the principal entrance shall be the intersection ofPaiea Street and Nimitz Highway.

They have frontage on a maior or secondary street or highway.

j They have a minimum lot area of 15,000 square feet and minimum lotwidth of 70 feet.

141 The maximum floor area ratio shall be 2.0.

f Parking requirements of at least one space per two lodging or dwellingunits shall be provided.

f Front yards shall have a minimum depth of 10 feet, and except fornecessary driveways and walkways, shall be maintained in landscaping.

fl Signs shall conform to the sign requirements applicable within 8-2community business district regulations.

Business travel hotels, Hotels shall be permitted in the BMX-3 communitybusiness district provided:

Li) They are located within the Primary Urban Center Development Plan, theEwa Development Plan, or the Central Qahu Sustainable CommunitiesPlan areas as established by Chapter 24.

f Hotel with more than 180 dwelling andlor lodging units shall require aconditional use permit (Maior).

f When eating or drinking establishments, meeting facilities, retailestablishments or other commercial establishments are on the samezoning lot, these uses shall be treated as separate permitted uses forpurposes of this chapter.

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L4 Multifamily dwellings and hotel Use shall not be permitted on the samefloor level.

No hotel unit shaH be used as a time share.


SECTION 17. Chapter 21,Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.730.1 to read as follows:

‘Sec. 21-5.730.1 Bed and breakfast homes and transient vacation units.

fj Bed and breakfast homes and transient vacation units are permitted in theportions of the A-2 medium-density apartment zoning district located in the GoldCoast area of the Waikiki Special District shown in Exhibit A and in the portionsof the A-i low-density apartment zoning district, and A-2 medium-densityapartment zoning district located in the Kuilima and Ko’olina Resort areas shownin Exhibits C and -B, respectively, Resort zoned property in Makaha Valley. andthe Resort Mixed Use Precinct in the Waikiki Special District, subiect to therestrictions and requirements in ArticleS of this chapter.

The provisions of this chapter shall not eliminate or supersede private restrictivecovenants or other restrictions that prohibit the use of real property as a bed andbreakfast home or transient vacation unit.”



ffiu Registration reguired. Bed and breakfast homes and transient vacation unitsmust be registered with the department. Each natural person, as distinguishedfrom legal persons and legal entities, may own no more than one dwelling orlodging unit that is registered as a bed and breakfast home or transient vacationunit. Bed and breakfast homes and transient vacation units that have a validnonconforming use certificate issued under Sections 21-4.110-1 or 21-4.110-2will be counted as registered dwelling units for the purposes of this section.Legal entities other than natural persons are not eligible to register a bed andbreakfast home or transient vacation unit with the department.

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flj Duration of registration and registration fees. Registration shall be effective for aperiod of one year beginning on the date a certificate of registration is issued bythe department and must be renewed annually before expiration. The applicationcost for an initial registration is $5000.00 and the application cost for renewing aregistration is $2500.00

j Application requirements. Applications shall be made in a form prescribed by thedepartment and demonstrate the applicant’s ability to operate the proposed bedand breakfast home or transient vacation unit in compliance with Sections 21-5730.1 and 21-5.730.3. The director shall adopt rules Dursuant to Chapter 91,I-IRS, detailing information required to be submitted with an initial applicationunder this Section, which shalt include, but not be limited to:

111 The property owner’s general excise tax and transient accommodationstax license numbers for the proposed rental;

f A title report for the property that will be used to operate the bed andbreakfast home or transient vacation unit. The title report must be issuedor updated within thirty (30) days of its submission to the department andidentify all persons that own an interest in the property;

f A certificate of insurance showing that the property has the insurancecoverage required by Section 21-5.730.3;

141 For a proposed bed and breakfast home only, evidence that the propertyowner has obtained or been approved for a homeowner exemptionpursuant to Section 8-10.4; and

f The informational binder required pursuant to Section 21 -5.730.3, whichdoes not need to include a certificate of registration for the proposed bedand breakfast home or transient vacation unit at the time of submission tothe director for the purposes of this paragraph.

fçfl Issuance of certificate of registration. Upon determining that the reguirements ofSections 21-5.730.1 through 21-5.730.3 have been met, the director may causea certificate of registration to be issued to the owner of the property on which thebed and breakfast home or transient vacation unit will be located. Certificates ofregistration will be personal to the owner, will not run with the land, and may notbe transferred to any other person.

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f Applications for renewing certificates of registration. The holder of a currentcertificate of registration may apply to renew their certificate of registration up tothree months prior to the expiration of the same, but in no case after theircertificate of registration has expired. Renewal applications shall be made in aform prescribed by the department and update any information that waspreviously provided to the department that is no longer accurate or correct. Thedirector shall adopt rules pursuant to Chapter 91, MRS, detailing information andrequirements for renewal applications. In addition to any requirementsestablished by the department’s rules, applications for the renewal of certificatesof registration shall include:

fJJ A tax clearance certificate issued by State of Hawaii, Department ofTaxation which certifies the payment of general excise and transientaccommodations taxes for rentals during the previous tax year:

f A tax clearance certificate issued by the City Department of Budget andFiscal Services that certifies that real property taxes were assessed at therates required by Section 8-7.1 and paid in full during the preceding taxyear;

fj If there has been any change in the ownership of the property used for thebed and breakfast home or transient vacation unit, an updated title reportissued within thirty (30) days of its submission to the department; and

L41 A certificate of insurance documenting that the owner has maintained theinsurance coverage required by Section 21-5.730.3 throughout the entireterm of the preceding registration period.

ifi Registration renewal. The director may approve an application for the renewal ofa certificate of registration and issue a new certificate of registration to the ownerof the property used as a bed and breakfast home or transient vacation unit if thedirector determines that the applicant and property continue to meet therequirements of Sections 21-5.730.1 and 21 -5.730.3.

fg) Revocation and nonrenewal. If the owner of the property for a bed and breakfasthome or transient vacation unit receives more than two enforcement orders forviolations of Section 21 -5.730.1 or 21-5.730.3 within a one-year period orotherwise demonstrates that they are not able to operate a bed and breakfasthome or transient vacation unit without causing significant negative impacts topeople_and_areas_in the vicinity of their rental, the director may revoke theircertificate of registration by issuing a revocation order to the property owner. The

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director may also refuse to renew a certificate of registration if an applicant hasbeen issued one or more enforcement orders for violating Sections 21-5.730.1 or21-5.730.3 within one year of applying for a certificate renewal and has notadequately addressed the violation to the satisfaction of the director. Theauthority to revoke a certificate of registration or refuse to renew a certificate ofregistration granted to the director by this section shall be in addition to and not inlieu of other authority granted to the director by this Chapter.

SECTION 19. Chapter 21, ArticleS, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.730.3 to read as follows:

Sec. 21-5.730.3 Use and development standards for bed and breakfast homes andtransient vacation units. All bed and breakfast homes and transient vacation unitsexcept those that are allowed to operate in accordance with a nonconforming usecertificate issued under Sections 21-4.110-1 or 21-4.110-2 must comply with thefollowing standards and reguirements.

(a) Occupancy limits and sleeping arrangements. All overnight guests at the bedand breakfast home or transient vacation unit must be registered with the owneror operator of the bed and breakfast home or transient vacation unit. Sleepingaccommodations for all Quests must be provided in bedrooms, and no more thantwo adults may use any bedroom in the bed and breakfast home or transientvacation unit for sleeping purposes. The total number of adult overnight guestsat a bed and breakfast home or transient vacation unit shall not exceed twice thenumber of bedrooms provided to auests for sleeping accommodations.

f Onsite parking reguired. All parking for bed and breakfast homes and transientvacation units must be provided on all-weather surfaces on the same zoning lotas the bed and breakfast home or transient vacation unit unless the rental islocated in a multifamily dwelling with off-site parking approved by the department.Persons associated with bed and breakfast homes and transient vacation units(e.g., overnight guests, owners, operators, service providers and visitors) maynot park their vehicles on or along public streets abutting the zoning lot on whichthe bed and breakfast home or transient vacation unit is located.

fç Smoke and carbon monoxide detectors required. All bedrooms provided toguests and hallways connected to guest bedrooms must be equipped withfunctioning smoke and carbon monoxide detectors.

Noise restrictions and Quiet hours. Between the hours of 10:00 p.m. and 7:00am., no noise from a bed and breakfast home or transient vacation unit may be

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audible from common areas in a multifamily dwelling or from areas outside of thezoning lot on which the bed and breakfast home or transient vacation unit islocated. For the purposes of this subsection, audible means perceivable by aperson without the use of sound detecting technologies or audio aides.

jj Current tax licensing required. The owner of the property on which a bed andbreakfast home or transient vacation unit is located must have, and keep Currentat all times, general excise and transient accommodations tax licenses for theirbed and breakfast home or transient vacation unit.

ifi Insurance coverage required. The owner of a bed and breakfast home ortransient vacation unit must maintain a minimum of $1,000,000.00 in commercialgeneral liability insurance at all times. In addition to any supplemental insurancecoverage selected by the owner, such insurance coverage must includecoverage for:

ffl Bodily injury and property damage arising out of the condition of thepremises or the negligent acts of the business and persons providingservices to the business. For the purposes of this subsection, bodily iniuryshall include mental iniuries and emotional distress whether or not suchharm is accompanied by other physical or bodily harm

f Personal and advertising iniury arising out of liability for libel, maliciousprosecution, wrongful eviction, wrongful entry, pubhc disclosure of privatefacts, and invasion of privacy: and

Necessary and reasonable medical, surgical, ambulance, hospital,professional nursing and funeral expenses for a person injured or killed inan accident taking place on the insured’s premises.

I1 Gatherings restricted. The property on which a bed and breakfast home ortransient vacation unit is located may not be used for gatherings often or morepeople who are not registered as overnight guests at the bed and breakfasthome or transient vacation unit unless the director designates the bed andbreakfast home or transient vacation unit as eligible for gatherings.

ffl Gatherings eligible property. The director may only designate a propertywith a bed and breakfast home or transient vacation unit as eligible forgatherings_if the type of gatherings proposed by the applicant arepermitted as a principal or accessory use of the zoning lot on which thebed and breakfast home or transient vacation unit is located,

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{ If the director finds that the circumstances of the property and theapplicants proposed measures to mitigate the impacts of gatherings onnearby people and properties reasonably ensure that the proposedgatherings will not result in significant negative impacts to nearby peopleor properties, the director may designate the bed and breakfast home ortransient vacation unit as eligible for gatherings.

j Conditions of approval. The director may impose any conditions deemednecessary to mitigate the impacts of gatherings on nearby persons andproperties at the time the director designates a property as eligible forgatherings, or upon a reconsideration of the director’s decision todesignate the property as eligible for gatherings. Standard conditions forproperties designated as eligible for gatherings may include restrictions onthe number of people allowed at the property, restrictions on the types ofgatherings allowed at the property, restrictions or prohibitions on the useof sound amplifying devices, parking reguirements. and reguirements foradditional insurance coverages.

ffi Informational binder required. The owner of a bed and breakfast home ortransient vacation unit shall create a binder labeled “For the Safety andConvenience of You and Your Neighbors” and cause the same to be placed andmaintained in a conspicuous location within the bed and breakfast home ortransient vacation unit at all times. The binder should provide guests withguidance on being respectful of neighbors and information that will help guests torespond appropriately to emergencies. The binder must be provided for reviewand inspection to the director upon request. The informational binder required bythis subsection must include the following documents and information:

ifi A floor plan of the dwelling unit used as a bed and breakfast home ortransient vacation which identifies the location of all bedrooms provided toguests, the maximum occupancy of each bedroom, and the location of allfire exits.

f For bed and breakfast homes and transient vacation units that are notlocated in a multifamily dwelling, a parking plan that shows the locationand number of parking stalls that are available to persons associated withthe bed and breakfast home or transient vacation unit (e.g., owners,guests, visitors and service providers), or for bed and breakfast homes ortransient vacation units located within a multifamily dwelling, a parkingplan that identifies the location and number of parking stalls within themultifamily dwelling building that may be used by persons associated with

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the bed and breakfast home or transient vacation unit. Parking plans formultifamily dwellings may be provided in narrative form withoutillustrations or graphics: parking plans for all other bed and breakfasthomes and transient vacation units must contain illustrations, drawn toscale, which show the size of designated parking spaces and their locationon the zoning lot for the bed and breakfast home or transient vacation unit.

f Instructions for trash collection and disposal, which include the dates andtimes of scheduled trash collections.

141 A copy of the house rules for the bed and breakfast home or transientvacation unit. House rules for all bed and breakfast homes or transientvacation units must impose quiet hours between 10:00 p.m. and 7:00 a.m.and prohibit the parking of vehicles associated with the bed and breakfasthome or transient vacation unit in all areas other than the parking spacesidentified in the parking plan required by paragraph (hW2).

f A list of emergency contacts, which must include a 24-hour phone numberfor the owner of the bed and breakfast home or transient vacation unit, theHonolulu Police Department, the Honolulu Fire Department, the HawaiiPoison Control Center, and the website address for the Hawaii EmergencyManagement Agency.

{ A copy of the certificate of insurance for the bed and breakfast home ortransient vacation unit:

ffl Copies of the general excise and transient accommodations tax licensesfor the bed and breakfast home or transient vacation unit; and

f A copy of the certificate of registration for the bed and breakfast home ortransient vacation unit issued by the department.”


Sec. 21-5.730.4 Advertisements, regulation, and prohibitions.

fj Definitions. As used in this Section:

“Advertisement” means the display or transmission of any communication thatmay cause a reasonable person to understand that a dwelling unit or property is

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available for rent. Advertisements include, by way of example and without limitation,written and spoken words, e-mails, text messages, electronic and hard copypublications, flyers, handbills, signs, websites, and expressive images.

“Person” means a natural person or legal person, and includes all types ofbusiness and legal entities, including, by way of example and without limitation,associations, corporations, estates, individuals, limited liability companies, non-profitorganizations, partnerships, and trusts.

LPI Regulation of advertisements for bed and breakfast homes and transientvacation units. Advertisements for all bed and breakfast homes and transientvacation units are subject to this subsection.

{fl It is unlawful for any person to advertise or cause the advertisement of abed and breakfast home or transient vacation unit without including in theadvertisement the tax map key number and the nonconforming usecertificate number or the registration number assigned to the bed andbreakfast home or transient vacation unit.

It is unlawful for any person to advertise or cause the advertisement of adwelling unit that is not a registered bed and breakfast home or transientvacation unit pursuant to Section 21-5.730.2 or operating pursuant to anonconforming use certificate for a term of less than 180 consecutivedays. Any written communication advertising the rental of a dwelling unitthat is not registered with the department pursuant to Section 21-5.730.2or operating pursuant to a nonconforming use certificate must include thefollowing statement: “This property may not be rented for less than 180consecutive days. Rental prices will not be reduced or adjusted based onthe number of days the rental is used or occupied.”

fçl Advertisements as evidence of rental activities. An advertisement that does notcomply with subsection (bfl2) is prima facie evidence that the property beingadvertised is used as a bed and breakfast home or a transient vacation unit. Ifan enforcement order is issued to a property owner for using their property as anillegal bed and breakfast home or transient vacation unit based on anadvertisement, the property owner will have the burden of establishing that theirproperty has not been used as a bed and breakfast home or transient vacationunit.

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ffl Legally established hotels,

f Legally established time-sharing units, as provided in Section 21-5.640:and

f3) Publishing companies and internet service providers will not be heldresponsible for the content of advertisements that are created by thirdparties.”


‘Sec. 21-5.730.5 Violations, complaint, response, and enforcement.

f Complaint relating to short-term rentals. Any person may submit a writtencomplaint to the director reporting a suspected violation of the provisions ofSections 21-5.730.1 through 21-5.730.4. A complaint submitted to thedepartment pursuant to this section must:

ffl Identify the address of the suspected bed and breakfast home or transientvacation unit, including the apartment or unit number of the dwelling unit ifit is located in a multifamily dwelling;

State all of the facts that cause the complainant to believe that a violationhas occurred;

( Identify the provisions of Sections 21-5.730.1 through 21-5.730.4 thathave been violated: and

141 Provide the complainant’s name and mailing address.

fj Response to complaints. Within 30 days of receiving a complaint that complieswith subsection (a), the director must provide a written response to thecomplainant either:

ffl Declining iurisdiction over the complaint, in which case the complainantmay pursue iudicial relief pursuant to Section 46-4(b), HRS;

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f Explaining why the complaint does not describe an apparent violation ofSections 21-5.730.1 through 21-5.730.4. A response issued under thissubsection may be appealed to the Zoning Board of Appeals pursuant toSection 21-1.40; or

f Advising the complainant that the director has initiated an investigation ofthe complaint.”

SECTION 22. Table 21-9.6(A), Revised Ordinances of Honolulu 1990, asamended, is amended by amending the entries for “bed and breakfast home,” “hotel,”and “transient vacation unit” as follows:

‘Table 21-9.6(A)Waikiki Special District PrecinctPermitted Uses and Structures

PrecinctUse or Structure Resort MixedApartment PublicUse

Bed and breakfast homes [Pel P/c

Hotel* P/c P PIe

Transient Vacation Units P/cAbility to up zone to Hotel use in the Apartment Precincts shalt sunset three (3) years from the adoption of this

ordinance

SECTION 23. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by deleting the definitions of “booking service” and “hostingplatform.”

f”Booking service” moans any reservation or payment service provided by aperson that facilitates a transaction between an owner, operator, or proprietor of a bedand breakfast home or transient vacation unit, and a prospective user of that bed andbreakfast home or transient vacation unit, and for which the porson colloctc or receives,directly or indirectly through an agent or intermediary, a fee from any person in

rnepn,-,Iir. w’ nr nnvm’”t services nrovidod fnr hv fkn trpnc.nn*nn

“Hosting platform” means a person that collects or receives a fee from anyfnr hnnl,inn epn,irnp +krnLjph ,p,knk in n,.,nnr r.ntrp+nr nr rnnrje4g nf n beef•flJfl4bWI ‘Ir

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and breakfast home or transient vacation unit may offer use of the bed and breakfasthome or transient vacation unit. Hooting platforms typically, but not necessarily, providebooking cervices through an online platform that allows the owner, operator, orproprietor to advertise the bed and breakfast home or transient vacation unit through awobsite provided by the hosting platform, and the hosting platform conducts atrancaction by which potential ucors arrange the use of and payment for the bed andbreakfast home or transient vacation unit, whether the payment is made directly to theowner, operator, or proprietor, or to the hosting platform.”]

SECTION 24. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by amending the definitions of “bed and breakfast home”, ‘hotel”,and “transient vacation unit” to read as follows:

““Bed and breakfast home” means a use in which overnight accommodations areadvertised, solicited, offered, or provided[, org combination of any of the foregoing,] to[gucots] transient occupants, for compensation, for periods of less than [SO] 180consecutive days[1] in the same [detached] dwelling unit [as that] occupied by [ael theowner[, lessee, operator, or proprietor] of the [dotached] dwelling unit. For purposes ofthis definition

ffl [GJQompensation includes, but is not limited to, monetary payment,services, or labor of guests;

f Accommodations are advertised, solicited, offered or provided to guestsfor the number of days that are used to determine the price for the rental:and

f Month to month holdover tenancies resulting from the expiration of long-term leases of more than 180 days are excluded.

“Hotel” means a building or group of buildings containing lodging and/or dwellingunits [offering) that are used to offer transient accommodations to guestsJ1. A hotelbuilding or group of buildings must contain [and] a lobby, clerk’s desk or counter with 24hour clerk service, and facilities for registration and keeping of records relating to hotelguests. A hotel may also include accessory uses and services intended primarily for theconvenience and benefit of the hotel’s guests, such as restaurants, shops, meetingrooms, and/or recreational and entertainment facilities.

“Transient vacation unit” means a dwelling unit or lodging unit that is advertised,solicited, offered, or provided[, org combination of any of tho foregoing, forcompensation) to transient occupants, for compensation, for periods of less than [30]

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180 consecutive days, other than a bed and breakfast home. For purposes of thisdefinition,

ffl [G]compensation includes, but is not limited to, monetary payment,services, or labor of guests;

fj Accommodations are advertised, solicited, offered or provided to questsfor the number of days that are used to determine the price for the rental;and


SECTION 25. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by adding new definitions for “condominium hotel” and motelunit” to read as follows:

“Condominium hotel” means a hotel in which one or more hotel units aredesignated for separate real property interests created by a declaration of condominiumproperty regime. separate ownership and the remainder of which it designated forcommon ownership cololy by the owners of the hotol units cubioct top condominiumproperty regime.’


SECTION 26. Ordinance material to be repealed is bracketed and stricken. Newordinance material is underscored. When revising, compiling or printing this ordinancefor inclusion in the Revised Ordinances of Honolulu, the Revisor of Ordinances need notinclude the brackets, the material that has been bracketed and stricken, or theunderscoring.


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SECTION 28. This ordinance shall take effect on 2021.


?NTRODUCED BY:

Honolulu, Hawaii


Council members


APPROVED this of , 2021


BILL


38

Legend

Bed and Breakfast‘Transient Vacation

OF

Homes andUnits Permitted

LOCATION MAP

0 600 1,200

SHORT-TERM RENTAL

VICINITY MAP

2,400

Scale in Feet

PERMITTED AREAS

0pared by: Department of Planning

Pcy ef Hn!!

Exhibit D - Makaha Valley

and Permitting

FOLDER NO.: DivFunction\GIS\STR

Date Prepared: August 2021 Copyright City c county or HonoluluN!

DEPARTMENT OF PLANNING AND PERMITTING

CITYAND COUNTY OF HONOLULU850 SOUTH KING STREET, 7TH FLOOR • HONOLULU, HAWAII 96813

PHONE: (808) 768-8000 • FAX: (808) 768-6041DEPT. WEB SITE: www.honoluludpo,orp • CITY WEB SITE: vnw’w.hOnoIuIU,gov

DEAN UCHIDADIRECTOR

RICK BLANGIARDIDAWN TAKEUCHI APLJNAMAYOR

DEPUTY DIRECTOR

EUGENE H. TAKAHASHIDEPUTY DIRECTOR

C’)

NJ

C—)ri

.

3- .Zr

- Digitally signed byFROM: Dean Uchida, Director y,jg n m UChida, Dean

Department of Planning and Permitting f’YAMXL-?” Date:2021.0a07

SUBJECT: Responses to Commissioners’ Questions and Revisions to Proposed BillAmending Chapter 21 (Land Use Ordinance [LUO]), Revised Ordinancesof Honolulu, Relating to Transient Accommodations

As a result of the Planning Commission hearing held on September 1,2021, theDepartment of Planning and Permitting (DPP) provides responses to questions posedby the Commissioners, as well as proposed amendments based on testimony receivedand heard on the proposed bill,

Responses to Commissioners’ Questions.

1. Is there a City special fund similar to the one provided under this bill?

Yes, there are special funds for Affordable Housing, Clean Water and NaturalLands, and Zoo funds that are provided through real property taxes.

2. Has there been any community engagement on this bill or plannedcommunity engagement?

DPP held a public hearing on the proposed administrative rules effectingOrdinance 19-18, during which we received many comments and concernswith the implementation of Ordinance 19-18, which prompted us to reconsiderand amend Ordinance 19-18. Also, these Planning Commission hearings aswell as any forthcoming City Council hearings will allow the public to providefurther input into this bill. We can also provide more information on the bill tothe Neighborhood Boards.

MEMORANDUM

TO:

September 7, 2021

Brian Lee, Chairand Members of the Planning Commission


September 7, 2021Page 2

3. How has this short-term rental (STR) bill process been different from the off-street parking amendment process?

The process for the Parking and Loading bill involved the following: Fivefocus groups and multiple interviews were held with members of the businesscommunity, advocacy groups and community organizations, real estateagents and planning consultants, public transportation professionals, andCity/State staff. A workshop, open to the public, was held at the BlaisdellCenter in January 2019. This cooperative relationship with the GovernorsInstitute concluded in June 2019. Three technical memos and a summary ofstakeholder engagement, a draft model ordinance, and a draft staff reportwere produced. DPP also engaged the local development community,including additional research from the Department of Transportation Services,and Ulupono Initiative and their consultants (students from the University ofHawaii and Columbia University, and a consultant named Two-Twelve).

The off-street parking amendment process was atypical. It involved focusgroups consultations, community member interviews, discussions withadvocacy groups and community organizations, and workshops. This level ofstakeholder consultation should not be expected for all amendments to theZoning Code. DPP does not view additional public consultation as necessaryfor this bill given the extent of the ongoing public input during and afterOrdinance 19-18, as well as currently with the Planning Commission, andforthcoming with the City Council. We also note that before draftingOrdinance 19-18, DPP engaged with community members and focus groups.The community had very different perspectives on STRs and this contributedto a lack of focus in the Bill that became Ordinance 19-18.

The proposed amendments to Ordinance 19-18 were a result of commentsmade during the administrative rules process, internal review of Ordinance19-18 to address potential problems in the original bill, as well as a responseto changes in the community as a result of the pandemic.

4. Would existing STRs be required to up zone in the Apartment Precinct?

STRs with current nonconforming use certificates (NUC) in the ApartmentPrecinct may continue to operate under their NUCs. Unlawful STRs (thosewithout current NUC5) in the Apartment Precinct are not currently eligible tobe used as bed and breakfast (B&Bs) homes or transient vacation units(TVU5) and are not allowed to operate as legal STRs.

The draft bill specifically makes hotel uses permitted in the ApartmentPrecinct, subject to compliance with development criteria. A building may be



converted from apartment to hotel, if approved by the majority of unit ownersin the manner provided for in a building’s governing documents. The ownerswould need to convert the entire building to hotel/resort within three years ofthe effective date of the ordinance, and rezone the property to resort.

5. Are condo-hotels required to enter into the hotel pool?

Yes, all existing hotel units are required to be part of a hotel rental pool within3 years of the ordinance’s effective date. Condo-hotels will have to operate inthe same manner as regular hotels. The LUC does not currently recognizeany difference between condo-hotels and regular hotels and we do not wantto treat them differently from regular hotels.

6. Does the City feel it takes away ownership rights?

No. Lawful STRs with current NUCs will be able to continue operating asnonconforming uses. There is no right to operate an illegal STR and,therefore, any further restrictions or enforcement on illegal STRs is legal anddoes not take away any property rights. The bill will increase property rightsby allowing the majority of unit owners in an apartment building in theApartment Precinct to convert from apartment building use to hotel use, ifthey wish to do so.

7. What is the process for up zoning? Majority vote or 100 percent of theAOAO?

The required percentage of votes for an AQAC to up zone is based on theACAD and their by-laws

8. Why does the bill require natural persons owning units, not corporations?

We want to limit the number of STRs as a secondary market. Thisrequirement limits SIR ownership to one per person to discourage massbuying of houses/units for STRs, which drive up the price of housing.

Notably, those currently operating multiple STRs erroneously believe thatthey are required to sell their additional STRs under this bill, when they aremerely restricted to operating only one STR. It would benefit the community ifthey rented their remaining units on a long-term basis.



9. How will timeshares be treated?

Timeshares are not affected by this bill. They will continue to be allowed onlyin the A-2, Resort, and Resort Mixed Use Precinct Districts.

10. Is there an estimate of the number of STRs, legal or not legal, as wholehomes or roQms, etc.?

Currently there are approximately 759 active NUC’s and 34 of these areB&B’s. We have no data on the number of illegal STRs currently operatingon Oahu.

11. What is problematic with the current ordinance?

DPP continues to have problems enforcing against illegal STRs, the lotterymay be considered unfair in application, the 1 000-foot radius among STRswould be difficult to implement, and the siting of new STRs in the residentialdistrict goes against proper land use designations. The current ordinanceprovides violators seven days to take down an advertisement, rather thanallowing DPP to immediately cite the illegal advertisement when advertised.Fines are too low and are simply a cost of business for STR owner/operators.The date of service for process and who is considered a violator is unclear.There is no dedicated enforcement staff for administering, monitoring, andenforcing the STR program.

II. Proøosed Amendments Based on Testimony.

DPP has reviewed the written and verbal testimony on the proposed bill, andappreciates the input and views shared by so many individuals. Based on thetestimony, we submit the following proposed changes to the bill for your consideration.Attached you will find a revised draft bill for your consideration that includes thefollowing edits (highlighted in yellow):

> Added definition for “Transient Occupants” renters for less than 180 days,but excludes: temporary employees of health care facilities, full-timestudents, full-time remote workers, military personnel and family in transition,homeowners in transition, etc. Except for family members, all other rentalagreements for less than 180 days must have prior approval from thedepartment. Owners of the units will be required to provide supportingdocumentation, when requested by the department, to verify tenants qualifyfor the less than 180 day exemptions listed above.



> To allow for greater opportunities for STRs in the resort areas, werecommend that STRs be permitted in all resort zoned areas specified in theordinance

> To retain a portion of workforce and long-term housing in the A-i and A-2Apartment Districts identified in the ordinance, we recommend the totalnumber of B&B homes and TVUs not exceed 50 percent of the total dwellingunits in a multifamily dwelling.

> To avoid any issues with regulating rental rates, we recommend deleting theprovision requiring hotels and third party booking services restrictingdiscounted rental rates to condo hotel units or guests by owners.

> To allow the continued existing long-term use of a hotel unit, we recommendpermitting persons occupying a hotel unit, as a principal place of residence,to continue as a nonconforming use until the person no longer occupies thehotel unit.

> To clarify the definition and use of condominium hotels, we recommend thatthe definition of ‘condominium hotel’ mean a hotel in which one or morehotel units are separate real property interest created by a Declaration ofCondominium Property Regime, and that condominium hotels and hotel unitsin condominium hotels be regulated in the same manner as hotels, and thatconverting a hotel unit into a condominium hotel unit does not change thepermissible uses of the unit.

To retain a portion of workforce and long-term housing in the WaikikiApartment and Apartment Mixed Use Precincts, we recommend no newSTRs be allowed in these Precincts. Here are the options for existingprojects in these areas:

o An existing apartment building with several units being used as legal(NUC) and illegal STRs:

i. Allow for existing NUC STRs and all others as apartment rentals; orH. Convert to a Hotel.

o An existing non-conforming Condo-Hotel/Hotel being used as a Hotel,STRs, and Long-term rentals and/or residents:

i. Allow existing NUC STRs and all others continued use as a nonconforming Hotel;

H. Convert to a 100 percent Hotel;Hi. Convert to a Hotel except for existing NUC STRs and allow existing

long-term rentals to continue as non-conforming.



> Based on a request of Councilmember Andrea Tupola, we recommendpermitting STRs in the Makaha Valley resort zones.

Thank you for this opportunity to provide responses to Commissioners’ questionsand explanation for further proposed amendments.

Attachment

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In 2019, the City passed Ordinance 19-18, allowing a limited number of new bedand breakfast homes and requiring certain short-term rentals to comply with registrationrequirements, development standards and other regulations. However, some of theprovisions in Ordinance 19-18 have proven themselves to be impractical and haveresulted in enforcement problems. To address these problems, it is necessary toimprove upon Ordinance 19-18 by simplifying the City’s approach to regulating short-term rentals and other transient accommodations.


SECTION 2 Section 8-71, Revised Ordinances of Honolulu 1990, as amended,is amended to read as follows:



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(A) Residential;


(C) Commercial;

(D) Industrial;

(E) Agricultural;

(F) Preservation;

(G) Public service;



(J) Bed and breakfast home.

(2) In assigning real propertygive major considerationgeneral plan and zoningforth in this section, andbest use.

to one of the general classes, the director shallto the districting established by the city in itsordinance, specific class definitions or criteria setsuch other factors which influence highest and



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(i) If the unit has a single, legally permitted, exclusive actualuse, it shall be classified upon consideration of the unit’sactual use into one of the general classes in the samemanner as real property; or

(H) If the unit has multiple, legally permitted uses; it shall beclassified:



(Hi) If the unit is a condominium parking unit or a condominiumstorage unit, it shall be classified residential, only uponapproved dedication when the unit is used in conjunctionwith a unit in residential use within the project.

(4) Notwithstanding any provision contained in this subsection, acondominium unit that is used at any time during the assessment year asa time share unit, shall be classified for the following tax year as hotel andresort[ unlecc:

(A) The unit is on property zoned as apartment, apartment mixed uso,apartment precinct, or apartment mixed use precinct;

(B) The property on which the unit is located does not include a lobbywith a clerk’s desk or counter with 24 hour clerk service faoilitioc forregistration and keeping of records relating to persons using theproperty; and

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(C) The unit i€ part of a condominium property regime establishedpursuant to HRS Chapter 514A, as it read prior to its repeal onJanuary 1, 2019, or HRS Chapter 514B.

If the roguiromonte of paragraphs (A), (B) and (C) are met, the time shoreunit shall be classified as residential. For purposes of this subdivision,“ascescmont year” moans the ono year period beginning October 2nd ofthe previous calendar year and ending October lot, inclusive, of thecalcndor year preceding the tax year, and “time sharing” hoc the somemeaning as defined in Section 21 10.1].


(A) Has no residential buildings; and



(6) Notwithstanding any provision contained in this subsection, all realproperty actually used by a public service company in its public servicebusiness shall be classified public service. For purposes of thissubsection, “public service company” means a public utHity, exceptairlines, motor carriers, common carriers by water, and contract carriers,where:

(A) “Public utility’ includes every person who may own, control,operate, or manage as owner, lessee, trustee, receiver, orotherwise, whether under a franchise, charter, license, articles ofassociation, or otherwise, any plant or equipment, or any partthereof, directly or indirectly for public use, for the transportation ofpassengers or freight, or the conveyance or transmission oftelecommunications messages, or the furnishing of facilities for thetransmission of intelligence by electricity by land or water or airwithin the state, or between points within the state, or for theproduction, conveyance, transmission, delivery, or furnishing of

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light, power, heat, cold, water, gas, or oil, or for the storage orwarehousing of goods, or the disposal of sewage; provided that theterm:

(i) Includes any person insofar as that person owns or operatesa private sewer company or sewer facility;

(N) Includes any telecommunications carrier ortelecommunications common carrier;

(Ni) Does not include any person insofar as that person owns oroperates an aerial transportation enterprise;

(iv) Does not include persons owning or operating taxicabs, asdefined in this subsection;



(vii) Does not include:

(aa) The business of any carrier by water to the extent thatthe carrier enters into private contracts for towage,salvage, hauling, or carriage between points withinthe state and the carriage is not pursuant to either anestablished schedule or an undertaking to performcarriage services on behalf of the public generally;and


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(vhi) Does not include any person who:



(ix) Does not include a telecommunications provider only to theextent determined by the Public Utilities Commission of theState of HawaU, pursuant to applicable state law;






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(dd) The facility may distribute and sell recycled orreclaimed water to entities not covered by a state orcounty service contract; provided that, in the absenceof regulatory oversight and direct competition, thedistribution and sale of recycled or reclaimed watershall be voluntary and its pricing fair and reasonable.For purposes of this subparagraph, “recycled water”and “reclaimed water” mean treated wastewater thatby design is intended or used for a beneficial purpose;and



(C) ‘Contract carrier” means a person other than a public utility ortaxicab which, under contracts or agreements, engages in thetransportation of persons or property for compensation, by land,water, or air;


(E) Taxicab” means and includes:


(ii) Any motor vehicle having seating accommodations for eightor less passengers used in the movement of passengers onthe public highways between a terminal, i.e., a fixed stand, inthe city of Honolulu, and a terminal in a geographical districtoutside the limits of the city of Honolulu, and vice versa,

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(F) ‘Telecommunications carrier” or ‘telecommunications commoncarrier’ means any person that owns, operates, manages, orcontrols any facility used to furnish telecommunications services forprofit to the public, or to classes of users as to be effectivelyavailable to the public, engaged in the provision of services, suchas voice, data, image, graphics, and video services, that make useof all or part of their transmission facilities, switches, broadcastequipment, signaling, or control devices; and

(G) “Telecommunications service” or “telecommunications” means theoffering of transmission between or among points specified by auser, of information of the user’s choosing, including voice, data,image, graphics, and video without change in the form or content ofthe information, as sent and received, by means of electromagnetictransmission, or other similarly capable means of transmission, withor without benefit of any closed transmission medium, and does notinclude cable service as defined under applicable state law.





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(fl When a parcel of land that has been classified as preservation is improved with asingle-family dwelling and has been granted a home exemption for the tax year,that portion of the parcel which is used for residential purposes shall be classifiedas residential. This classification shall:




(g) (1) In determining the value of buildings, consideration shall be given to anyadditions, alterations, remodeling, modifications or other new construction,improvement, or repair work undertaken upon or made to existingbuildings as the same may result in a higher assessable valuation of saidbuildings; provided, however, that any increase in value resulting from anyadditions, alterations, modifications, or other new construction,improvement or repair work to buildings undertaken or made by the owneroccupant thereof pursuant to the requirements of any urbanredevelopment, rehabilitation, or conservation project under the provisionsof Part II of HRS Chapter 53, shall not increase the assessable valuationof any building for a period of seven years from the date of certification ashereinafter provided.


(A) In the case of additions, alterations, modifications or other newconstruction, improvement or repair work to a building that isundertaken pursuant to any urban redevelopment, rehabilitation orconservation project as hereinabove mentioned, the statement shallbe certified by the mayor or any governmental official designated bythe mayor and approved by the council, that the additions,alterations, modifications, or other new construction, improvements,

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or repair work to the buildings were made and satisfactorily complywith the particular urban development, rehabilitations, orconservation act provision; or



(H) The maintenance or repairs to the buildings were made andsatisfactorily comply with the particular code provision.

(h) (1) Notwithstanding the provisions of subsection (c)(2), properties operatingas transient vacation units [in accordance with Section 21 1.110 1, andwhich have a valid nonconforming use certificate, shall be classified baccdon their underlying zoning] must be classified as hotel and resort.

(2) [Real Propcrty operating as transient vacation units as otheicepermitted undor Chapter 21 must be classified as hotel andrecort.]Notwithstanding the provisions of subsections (cX2), propertiesoperating as bed and breakfast homes must be classified as bed andbreakfast home.

[(3) For purposes of this subsection, “transient vacation unit means the sameas defincd in Section 2110.1.]



(A) Has an assessed value of $1,000,000 or more:


(C) Is zoned R-3.5, R-5, R-7.5, R-10 or R-20 or is dedicated forresidential use;

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(2) Is vacant land zoned R-3.5, R-5, R-7.5, R-10 or R-20 and has anassessed value of $1,000,000 or more; or



(j) For purposes of this [sub]section, “bed and breakfast home” has the samemeaning as defined in Section 21-10.1. and includes bed and breakfast homeswith current nonconforming use certificates.

IM For the purposes of this section, “transient vacation unit” shall have the samemeaning as defined in Section 21-10.1, and includes transient vacation units withcurrent nonconforming use certificates.”

SECTION 3. Article 2A of Chapter 21, Revised Ordinances of Honolulu 1990, asamended, is repealed.




) The date of mailing or service shall be the date on which an action of thedirector is placed into the United States mail, for actions of the directorthat do not need to be served by registered or certified mail:

LPI For actions of the director that are served by registered or certified mail,the date of mailing or service shall be the date on which the registered orcertified mail is received, as indicated by the return receipt for the mailingor other records of the United States Postal Service:

fç) For actions of the director that are served by physical delivery to a personor a person’s residence, place of employment, or usual place of business,

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çjj For actions of the director that are served by physical posting of a copy ofan action of the director upon the property where the violation hasoccurred, the date of the service shall be the date of posting, asestablished by a sworn declaration made by the person responsible foreffecting the service of the director’s action by the means identified in thisparagraph;

For actions of the director that are served by publication, the date ofservice shall be the date on which the last required publication is made;

£11 For actions of the director that are delivered by fax, email, or other meansof electronic transmission, the date of service shall be the date on whichthe director’s action is transmitted to the correct email address, faxnumber, or other electronic address for the person served, as establishedby a fax receipt; email receipt; email response that acknowledges receiptof the email; or other reasonable proof of the successful transmission ofelectronic delivery to the addressee.

gj For persons who have made a written request notice of a director’s actionconcerning a particular proiect, property, or applicant before the director’saction is issued, the date of service shall be determined according toparagraphs (a) through (f) of this section; and

Liii For persons who have requested notice of a director’s action concerning aparticular project, property, or applicant after the director’s action has beenissued to the applicant, the date of service shall be the earlier of date onwhich the director’s action was served upon the applicant in accordancewith subsections (a) through (f), or, the date on which the director’s actionwas served on the person requesting notice of the director’s action inaccordance with subsections (a) through (ft

SECTION 5. Section 21-2.150-2, Revised Ordinances of Honolulu 1990, asamended, is repealed.

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SECTION 6. Article 2 of Chapter 21, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-2.150-2 to read as follows:

Sec. 21-2.150-2 Administrative enforcement.

ff1 Enforcement authority. In addition to seeking criminal prosecution under Section21-2.150-1. the director may enforce violations of this chapter, administrativerules that are adopted by the director to administer this chapter, and theconditions of any permits or approvals granted under the same by issuing anenforcement order authorized by this section.

ff1 Persons responsible for violations. The owners of real property, buildings, andpremises that are used in violation of the legal authorities identified in subsection(a) shall be liable for any violations on their property and are responsible forcomplying with any enforcement order issued by the director concerning thesame. In addition, persons that have possession or control of the real property,building, or premises on which a violation exists may be held liable for theviolation and held responsible for complying with the director’s order. Personswho cause, contribute to, or benefit from a violation, in whole or in part, may alsobe held liable for such violations and will be responsible for complying withenforcement orders issued by the director. For the purposes of this section,‘persons” means natural persons or legal persons including but not limited totrusts, corporations, partnerships, and limited liability companies.

Id Joint and several liability. If the director determines that more than one person isliable for a violation, the director may issue one enforcement order to allresponsible persons or separate orders to persons or groups of persons that areresponsible for the violation. Persons that are issued an order pursuant to thissection are iointly and severally liable for the violations described in the director’sorder, such that each person will be independently liable for the full extent of theviolation and responsible for complying with the order

41 Service of enforcement orders issued by the director. The director may serve anenforcement order issued pursuant to this section by registered or certified mail,with return receipt requested, addressed to the last known address of eachviolator identified in the order. The director may also serve an order issuedunder this section by delivering a copy of the order to the violator in person, or byleaving a copy of the order at the violator’s residence, place of employment, orusual place of business, or by physically posting a copy of the order in aprominent location on the property in a conspicuous manner which is likely to bediscovered, only if due diligence was used in attempting to serve the person

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personally or by registered or certified mail. If the director is not able to serve theorder by any of the methods described in this section. the director may thenserve the order on one or more violators by publishing a copy of the order onceeach week for two consecutive weeks in a daily or weekly publication that is incirculation within the City. Where one or more violators that are identified in anorder have the same mailing address, place of residence, place of employmentor usual place of business, the delivery of one copy of the order shall be effectiveupon all persons named in the order that can be served at the place where theorder has been delivered.

f Types of enforcement orders. The director may issue the following types ofenforcement orders: (1) notice of violation and order to correct: (2) notice oforder and imposition of fines: (3) consent order: and (4) order to show cause.

ifi Notice of violation and order to correct. The director may issue a notice ofviolation and order to correct to the persons identified in subsection (b). Inaddition to any other information or reguirements deemed appropriate by thedirector, a notice of violation and order to correct shall:

£11 Identify the persons to whom the order is addressed:

L?L State the address or location of the violation;

Identify the specific ordinance, rule, or condition that has been violated;

141 Provide a concise description of the violation:

f State the actions that are necessary to correct the violation;

f Order the violator to correct the violation by a specific date;

0 Identify the penalties that will be imposed for the violation if it is notcorrected by the deadline for correction established pursuant tosubsection (e)(6): and

Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured.

fg Notice of order and imposition of fines. The director may issue a notice of orderand imposition of fines to the persons identified in subsection (b). In addition to

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jfl Identify the persons to whom the order is addressed:

{j State the address or location of the violation:

Identify the specific ordinance, rule, or condition that has beenviolated;

142 Provide a concise description of the violation;

jj State the actions that are necessary to correct the violation;

j Order the person to correct the violation by a specific date;

ffl Require the persons to pay a civil fine of up to $25,000.00 per violationidentified in the order:

fj Require the persons to pay a civil fine of up to $26,000.00 per day, foreach day the violation remains uncorrected after the deadline forcorrection established pursuant to subsection (0(6):

22 Order the violator to send a written notification to the director reporting thecorrection of the violation when the violator believes that the violation iscured: and

jJ Inform the violator that the order can be appealed to the Zoning Board ofAppeals in accordance with Section 21-1.40.

Lh.1 Consent Orders. The director is authorized to enter into consent orders, basedon reasonable assurances of voluntary compliance from persons that have beenissued a notice of violation and order to correct. A consent order shall be signedby the director and the persons who have agreed to voluntarily correct aviolation, state the specific actions to be taken to correct the violation, and statethe dates by which each action will be completed. The director may enforce theterms of consent orders pursuant to this section, including iudicial enforcementpursuant to subsection (n). The failure to comply with the requirements of aconsent order shall be punishable by a civil fine of up to $100,000.00 perviolation, with each day(s) of noncompliance treated as a separate violation,

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ifi Order to show cause. Whenever the director has cause to believe that aviolation is taking place or threatening to take place, the director may issue anorder to show cause to the persons identified in subsection (b). An order to showcause shall:

Lii Be accompanied by a proposed notice of violation and order to correct ornotice of order and imposition of fines;

Require the respondents to appear before the director at a specified placeand time and admit to the facts in the proposed order or show cause as towhy the proposed notice of violation and order to correct or notice of orderand imposition of fines should not be issued; and

Inform the respondents that they have the right to hire an attorney and berepresented by an attorney in the show cause proceedings before thedirector.

Persons that are served with an order to show cause will be required to appearbefore the director in a show cause hearing and shall have the burden of provingthat the proposed notice of violation and order to correct or notice of order andimposition of fines should not be issued because it is based on an erroneousfindings of material fact, an incorrect interpretation of the law, arbitrary andcapricious decision-making, or an abuse of discretion. If the respondents to ashow cause order are not able to prove that the proposed notice of violation andorder to correct or notice of order and imposition of fines should not be issued.the director may issue the proposed notice of violation and order to correct ornotice of order and imposition of fines to the respondents or allow therespondents to enter into a consent order with the department. If a respondent toa show cause order does not appear before the director at the reguired place andtime, the facts in the proposed notice of violation and order to correct or notice oforder and imposition of fines will be deemed admitted by the respondent and thedirector may issue the proposed notice of violation and order to correct or noticeof order or order and imposition of fines to the respondent that has failed toappear at the show cause hearing.

ifi Duration of violation. A violation that is identified in an enforcement order issuedunder this section will continue until it is deemed corrected by the director. Thedirector may impose separate or additional penalties for each day that a violationremains_uncorrected after the date the deadline for correction state in theenforcement order. However, separate enforcement orders will not be requiredto impose additional penalties for ongoing violations.

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f Procedure for closing violations. Persons that are subject to an enforcementorder issued by the director are responsible for notifying the director of thecorrection of any violations identified in the enforcement order. Notifications sentto the director shall be in writing, dated, and signed by the person reporting thecorrection to the director. When a violator informs the director that a violation iscorrected, the director shall promptly review the violation and respond to theviolator by acknowledging the violation is corrected or by identifying theadditional actions that are necessary to correct the violation. If a person subjectto an enforcement order corrects a violation and fails to promptly notify thedirector of the violation’s correction, the date of correction will be the date onwhich the director is provided written notice of the correction unless the violator isable to establish, to the satisfaction of the director, that the violation wascorrected on an earlier date.

ifi Additional penalties for illegal short-term rentals. In addition to the enforcementactions and penalties authorized by subsections (a) through (i), if the directordetermines that a person has violated any of the provisions in this chapterrelating to bed and breakfast homes or transient vacation units, any rule adoptedby the department pertaining to bed and breakfast homes or transient vacationunits, or the conditions of any nonconforming use certificate or certificate ofregistration issued by the department for a bed and breakfast home or transientvacation, the director may impose an additional civil fine on the responsiblepersons, in an amount up to the highest daily rate at which the bed and breakfasthome or transient vacation unit in issue has been advertised or offered for rent asa bed and breakfast home or transient vacation unit. When a bed and breakfasthome or transient vacation unit is advertised or offered for rent for less than 180consecutive days without displaying or specifying the daily rates for the rental,the additional penalty authorized by this section shall be determined by pro ratingthe rental price for the property based on any known advertisement or offer forthe rental of the dwelling unit for less than 180 days and the total rental price forthe same, excluding any taxes passed on to the renter. The additional civil fineauthorized by this section may be imposed as a daily fine, applicable to each daya dwelling unit is used, advertised, or offered as a bed and breakfast home ortransient vacation unit in violation of the provisions in this chapter relating to bedand breakfast homes or transient vacation units, the departments rules relatingto bed and breakfast homes or transient vacation units, or the conditions of anonconforming use certificate or certificate of registration issued by thedepartment.

ffijj Opportunity for contested case hearing. Notwithstanding anything to thecontrary, no civil fine or penalty authorized by this chapter shall be due and

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fifi Judicial enforcement of enforcement orders. The director may institute a civilaction in any court of competent iurisdiction for the enforcement of anyenforcement order issued pursuant to this section. Where the civil action hasbeen instituted to enforce the civil fine imposed by said order, the director needonly show that the notice of violation and order were served, that a civil fine wasimposed, the amount of the civil fine imposed and that the fine imposed has notbeen paid.”


“Sec. 21-2.150-3 [Dopocitory of] Deposit and use of feesjand] civil penalties, andtaxes relating to bed and breakfast homes or transient vacationunits.

Notwithstanding any other ordinance to the contrary, [payments of] fees and civilpenalties relating to bed and breakfast homes [cc] and fees and civil penaltiesrelating to transient vacation units shall be deposited into a special account of thegeneral fund, to be appropriately named by the department of budget and fiscalservices, and used by the department of planning and permitting for expensesrelated to the administration and enforcement of the provisions of this chapterrelating to bed and breakfast homes and transient vacation units.

j Notwithstanding any ordinance to the contrary, beginning in the 2022 tax yearand in all tax years thereafter, up to $3,125,000.00 in real property taxescollected annually by the city for the bed and breakfast tax classification and thehotel and resort tax classification shall be placed into the special fund identified insubsection (a) and used by the Department of Planning and Permitting for theadministration and enforcement of the provisions of this chapter relating to bedand breakfast homes and transient vacation units.”

SECTION 8. Table 21-3, Revised Ordinances of Honolulu 1990, as amended, isamended by amending the “bed and breakfast homes” and “transient vacation units”entries to read as follows:

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“TABLE 21-3 MASTER USE TABLE

In the event of any conflict between the text of this Chapter and the following table, the text of the Chapter shall control.The following table is not intended to cover the Waikiki Special District; please refer to Table 21-9.6(A).

KEY: Ac = Special accessory use subject to standards in Article 5Cm = Conditional Use Permit-minor subject to standards in Article 5; no public

hearing required (see Article 2 for exceptions)C = Conditional Use Permit-major subject to standards in Article 6; public

hearing requiredP = Permitted useP/c = Permitted use subject to standards in ArticleSPRU = Plan Review Use

ZONING DISTRICTS

JSESNote:pertain usesare defined &nArtice 0

10.) & 1 —

— EN >< >< x XN ch g r:4 rr 7 Ci (

— (N -,

& < < C) < < < < - - - —

DWELLINGS AND LODGINGSBed andBreakfast [Pie] IWo] [P/e’] 1/e’ P/c’ P/c’ [Pie’] [Pi’e’] [Pie’] [Pie’] P/c3 [P/e’] [P/e’

Homes

[ransientVacation P/c’ P/c’ P/c’Jnpts


“Notes:


1 Commercial use subject to special density controls (see Table 21-3.3 and Section21-3.90-1 (c)(4)).

2 Commercial use subject to special density controls (see Table 21-3.5 andSection 21-3.140-1(c)).

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Bed and breakfast homes and transient vacation units allowed by Table 21-3 aresubject to the development standards and location restrictions established in Article 5.and limited to the Resort Zoned District identified in Sec. 21-5.730.1 (a).Notwithstanding any contrary provisions in this chapter, bed and breakfast homes andtransient vacation units that do not have [are prohibited and may not oporate without] avalid nonconforming use certificate or certificate of registration are not allowed in areaswhere the applicable development plan or sustainable communities plan prohibits [ordooc not pormit] the establishment of new bed and breakfast homes or transientvacation units; provided that this note shall not prohibit the renewal of a valid certificateof registration originally issued prior to a subsequent development elan amendment thatprohibits bed and breakfast homes or transient vacation units in a development planarea.




(b) The owner, operator, or proprietor of any transient vacation unit who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)Between September 1,2000 and October 15, 2000; then (2) Between September1 and October 15 of every even-numbered year thereafter. Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use during each calendar year covered by the nonconforming usecertificate being renewed and that there were transient occupancies(occupancies of less than 30 days apiece) for a total of at least 35 days duringeach such year and that (N) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a transient occupancy. Failure to meet these conditions will result in thedenial of the application for renewal of the nonconforming use certificate. Therequirement for the 35 days of transient occupancies shall be effective on

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January 1, 1995 and shall apply to renewal applications submitted on or afterJanuary 1, 1996.


(d) The provisions of Section [21 5.730(c)] 21-5.730.4 shall apply to advertisementsfor transient vacation units operating under a nonconforming use certificatepursuant to this section.[1


‘Sec 21-4.110-2 Bed and breakfast homes--Nonconforming use certificates.

(a) The purpose of this section is to permit certain bed and breakfast homes, thathave been in operation since prior to December 28, 1989, to continue to operateas nonconforming uses subject to obtaining a nonconforming use certificate asprovided by this section. This section applies to any owner, operator, orproprietor of a bed and breakfast home who holds a valid nonconforming usecertificate issued pursuant to this section on August 1, 2019.

(b) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall apply to renewthe nonconforming use certificate in accordance with the following schedule: (1)between September 1, 2000 and October 15, 2000; then (2) between September1 and October 15 of every even-numbered year thereafter. Each application torenew shall include proof that (i) there were in effect a State of Hawaii generalexcise tax license and transient accommodations tax license for thenonconforming use for each calendar year covered by the nonconforming usecertificate being renewed and that there were bed and breakfast occupancies(occupancies of less than 30 days apiece) for a total of at least 28 days duringeach such year and that (U) there has been no period of 12 consecutive monthsduring the period covered by the nonconforming use certificate being renewedwithout a bed and breakfast occupancy. Failure to meet these conditions willresult in the denial of the application for renewal of the nonconforming usecertificate. The requirement for the 28 days of bed and breakfast occupancies

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shall be effective on January 1, 1995 and shall apply to renewal applicationssubmitted on or after January 1, 1996.







(5) The provisions of Section 121 5.730(c)] 21-5.730.4 shall apply toadvertisements for the bed and breakfast home.

(e) The owner, operator, or proprietor of any bed and breakfast home who hasobtained a nonconforming use certificate under this section shall display thecertificate issued for the current year in a conspicuous place on the premises.’


SECTION 13. Chapter 21, Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.360 to read as follows:

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Hotel units must be used or offered to provide dwelling or lodging transientaccommodations to transient quests. Hotel units may not be used as transientvacation units or bed and breakfast homes.

Hotel units must be booked by guests through a centralized hotel booking systemthat is managed by the hotel operator or through the hotel front desk, providedthat this section will not prohibit the booking of hotel units through third partyservices or technologies that make bookings though the central hotel operatedbooking system or hotel front desk.

(c) Rental rates for all hotel units must be determined by the hotel operator or themanagor of tho hotol’s centralized booking service. Hotels and third partybooking services may not provido discounted rental rates to the owners ofcondominium hotel units or hotel guests arranged for by the owners ofcondominium hotel units unless the same discounted ratoc are availablo tomembers of the general public that are not condominium hotel unit owners orguests of condominium hotel unit owners. This section does not apply tobookings for hotel units that are part of a logally established timo sharo program.

41 Hotels and hotel units that have existing certificates of occupancy for hotel usesshall comply with subsections (b) and (c) within two years of the effective date ofthis ordinance. Hotels and hotel units that obtain certificates of occupancy forhotel uses after the effective date of this ordinance must comply with thesubsections (b) and (c) immediately.”

ffiu Persons occupying a hotel unit as a principal place of residence on the effectivedate of this ordinance shall be allowed to continue the use of the hotel unit as aprincipal place of residence as a nonconforming use. For the purposes of thissubsection,_the nonconforming use of the hotel unit as a principal place ofresidence shall extend throughout the entire hotel unit and terminate when thepersons occupying the hotel unit on the effective date of this ordinance no longeroccupy the hotel unit as their principal place of residence.



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Condominium hotels and hotel units in condominium hotels are regulated in the samemanner as hotels and hotel units. Converting a hotel unit into a condominium hotel unitdoes not change the permissible uses of the unit. Units in a condominium-hotel mustbe part of the hotel’s room inventory, available for rent to the general public. Hotels andthird party booking cervices may not provido discounted rental rates to the owners ofcondominium hotel units or hotel guosts arranged for by the owners of condominiumhotol units unless the came discounted rates are available to members of the generalpublic that are not condominium hotel unit owners or guests of condominium hotel unitowners. The use of a condominium-hotel unit as a primary residence or usual place ofabode is not allowed except as provided in Sec. 21-5.360(e). prior to the adoption of thisordinance shall be allowed as a non conforming use is not allowed.


“Sec. 21 -5.360.2 Specialty Hotels.

j Transit related Hotels. Hotels shall be permitted in the 1-2 intensive industrialdistrict and IMX-1 industrial-commercial mixed use district provided:

jfl They are within one-half mile by the usual and customary route ofvehicular travel from the principal entrance of an airport utilized bycommercial airlines, having regularly scheduled flights. For HonoluluInternational Airport, the principal entrance shall be the intersection ofPaiea Street and Nimitz Highway.

They have frontage on a major or secondary street or highway.

They have a minimum lot area of 15,000 square feet and minimum lotwidth of 70 feet.

41 The maximum floor area ratio shall be 2.0.

Parking reguirements of at least one space per two lodging or dwellingunits shall be provided.

Front yards shall have a minimum depth of 10 feet, and except fornecessary driveways and walkways, shall be maintained in landscaping.

Signs shall conform to the sign requirements applicable within B-2community business district regulations.

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) Business travel hotels. Hotels shall be permitted in the BMX-3 communitybusiness district provided:

LU They are located within the Primary Urban Center Development Plan, theEwa Development Plan, or the Central Qahu Sustainable CommunitiesPlan areas as established by Chapter 24.

fj Hotel with more than 180 dwelling and/or lodging units shall reguire aconditional use permit (Maior).

When eating or drinking establishments, meeting facilities, retailestablishments or other commercial establishments are on the samezoning tot, these uses shall be treated as separate permitted uses forpurposes of this chapter.

14) Multifamily dwellings and hotel use shall not be permitted on the samefloor level.

No hotel unit shall be used as a time share.


SECTION 17. Chapter2l, Article 5, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 21-5.730.1 to read as follows:

“Bed and breakfast homes and transient vacation units.

jj Bed and breakfast homes and transient vacation units are permitted in theportions of the A-2 medium-density apartment zoning district located in the GoldCoast area of the Waikiki Special District shown in Exhibit A and in the portionsof the A-i low-density apartment zoning district, an4 A-2 medium-densityapartment zoning district located in the Kuilima and Ko’olina Resort areas shownin Exhibits C and -B, respectively, Resort zoned property in Makaha Valley, andthe Resort Mixed Use Precinct in the Waikiki Special District, subiect to therestrictions and reguirements in Article 5 of this chapter.

f The provisions of this chapter shall not eliminate or supersede private restrictivecovenants or other restrictions that prohibit the use of real property as a bed andbreakfast home or transient vacation unit.

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Lcl Notwithstanding any law to the contrary, for the A-i and A-2 apartment zoneddistricts identified in subsection (a), unless otherwise specified in apartmentbylaws, covenants, or correspondence from a homeowners association,apartment owners association, or condominium property regime, the totalnumber of bed and breakfast homes and transient vacation units must notexceed 50 percent of the total dwelling units in a multifamily dwelling.”



fj Registration reguired. Bed and breakfast homes and transient vacation unitsmust be registered with the department. Each natural person, as distinguishedfrom legal persons and legal entities. may own no more than one dwelling orlodging unit that is registered as a bed and breakfast home or transient vacationunit. Bed and breakfast homes and transient vacation units that have a validnonconforming use certificate issued under Sections 21-4.110-1 or 21 -4.110-2will be counted as registered dwelling units for the purposes of this section.Legal entities other than natural persons are not eligible to register a bed andbreakfast home or transient vacation unit with the department.

Duration of registration and registration fees. Registration shall be effective for aperiod of one year beginning on the date a certificate of registration is issued bythe department and must be renewed annually before expiration. The applicationcost for an initial registration is $5,000.00 and the application cost for renewing aregistration is $2,500.00

f Application reguirements. Applications shall be made in a form prescribed by thedepartment and demonstrate the applicant’s ability to operate the proposed bedand breakfast home or transient vacation unit in compliance with Sections 21-5.730.1 and 21-5.730.3. The director shall adopt rules pursuant to Chapter 91,HRS, detailing information reguired to be submitted with an initial applicationunder this Section, which shall include, but not be limited to:

fl The property owner’s general excise tax and transient accommodationstax license numbers for the proposed rental;

A title report for the property that will be used to operate the bed andbreakfast home or transient vacation unit. The title report must be issued

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or updated within thirty (30) days of its submission to the department andidentify all persons that own an interest in the property;

A certificate of insurance showing that the property has the insurancecoverage required by Section 21 -5.730.3:

j4j For a proposed bed and breakfast home only, evidence that the propertyowner has obtained or been approved for a homeowner exemptionpursuant to Section 8-10.4; and

j The informational binder required pursuant to Section 21-5.730.3, whichdoes not need to include a certificate of registration for the proposed bedand breakfast home or transient vacation unit at the time of submission tothe director for the purposes of this paragraph.

Issuance of certificate of registration. Upon determining that the reguirements ofSections 21-5.730.1 through 21-5.730.3 have been met, the director may causea certificate of registration to be issued to the owner of the property on which thebed and breakfast home or transient vacation unit will be located. Certificates ofregistration will be personal to the owner, will not run with the land, and may notbe transferred to any other person.

f Applications for renewing certificates of registration. The holder of a currentcertificate of registration may apply to renew their certificate of registration up tothree months prior to the expiration of the same, but in no case after theircertificate of registration has expired. Renewal applications shall be made in aform prescribed by the department and update any information that waspreviously provided to the department that is no longer accurate or correct. Thedirector shall adopt rules pursuant to Chapter 91, HRS. detailing information andrequirements for renewal applications. In addition to any requirementsestablished by the department’s rules, applications for the renewal of certificatesof registration shall include:

Li) A tax clearance certificate issued by State of Hawaii, Department ofTaxation which certifies the payment of general excise and transientaccommodations taxes for rentals during the previous tax year;

A tax clearance certificate issued by the City Department of Budget andFiscal Services that certifies that real property taxes were assessed at therates required by Section 8-7.1 and paid in full during the preceding taxyear;

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Q) If there has been any change in the ownership of the property used for thebed and breakfast home or transient vacation unit, an updated title reportissued within thirty (30) days of its submission to the department: and

£4) A certificate of insurance documenting that the owner has maintained theinsurance coverage required by Section 21-5.730.3 throughout the entireterm of the preceding registration period.

ifi Registration renewal. The director may approve an application for the renewal ofa certificate of registration and issue a new certificate of registration to the ownerof the property used as a bed and breakfast home or transient vacation unit if thedirector determines that the applicant and property continue to meet therequirements of Sections 21-5.730.1 and 21-5.730.3.

g) Revocation and nonrenewal. If the owner of the property for a bed and breakfasthome or transient vacation unit receives more than two enforcement orders forviolations of Section 21-5.730.1 or 21-5.730.3 within a one-year period orotherwise demonstrates that they are not able to operate a bed and breakfasthome or transient vacation unit without causing significant negative impacts topeople and areas in the vicinity of their rental, the director may revoke theircertificate of registration by issuing a revocation order to the property owner. Thedirector may also refuse to renew a certificate of registration if an applicant hasbeen issued one or more enforcement orders for violating Sections 21-5.730.1 or21-5.730.3 within one year of applying for a certificate renewal and has notadequately addressed the violation to the satisfaction of the director. Theauthority to revoke a certificate of registration or refuse to renew a certificate ofregistration granted to the director by this section shall be in addition to and not inlieu of other authority granted to the director by this Chapter.”

SECTION 19. Chapter2l, ArticleS, Revised Ordinances of Honolulu 1990, asamended, is amended by adding a new Section 2 1-5.730.3 to read as follows:

“Sec, 21-5.730.3 Use and development standards for bed and breakfast homes andtransient vacation units. All bed and breakfast homes and transient vacation unitsexcept those that are allowed to operate in accordance with a nonconforming usecertificate issued under Sections 21-4.1 10-1 or 21-4.110-2 must comply with thefollowing standards and requirements.

(a) Occupancy limits and sleeping arrangements. All overnight guests at the bedand breakfast home or transient vacation unit must be registered with the owneror operator of the bed and breakfast home or transient vacation unit. Sleeping

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accommodations for all guests must be provided in bedrooms, and no more thantwo adults may use any bedroom in the bed and breakfast home or transientvacation unit for sleeping purposes. The total number of adult overnight guestsat a bed and breakfast home or transient vacation unit shall not exceed twice thenumber of bedrooms provided to guests for sleeping accommodations.

Onsite parking required. All parking for bed and breakfast homes and transientvacation units must be provided on all-weather surfaces on the same zoning lotas the bed and breakfast home or transient vacation unit unless the rental islocated in a multifamily dwelling with off-site parking approved by the department.Persons associated with bed and breakfast homes and transient vacation units(e.g., overnight guests, owners, operators, service providers and visitors) maynot park their vehicles on or along public streets abutting the zoning lot on whichthe bed and breakfast home or transient vacation unit is located.

Lcl Smoke and carbon monoxide detectors reguired. All bedrooms provided toquests and hallways connected to guest bedrooms must be equipped withfunctioning smoke and carbon monoxide detectors.

j Noise restrictions and guiet hours. Between the hours of 10:00 p.m. and 7:00am., no noise from a bed and breakfast home or transient vacation unit may beaudible from common areas in a multifamily dwelling or from areas outside of thezoning lot on which the bed and breakfast home or transient vacation unit islocated. For the purposes of this subsection, audible means perceivable by aperson without the use of sound detecting technologies or audio aides.

ffij Current tax licensing required. The owner of the property on which a bed andbreakfast home or transient vacation unit is located must have, and keep currentat all times, general excise and transient accommodations tax licenses for theirbed and breakfast home or transient vacation unit.

ifi Insurance coverage reguired. The owner of a bed and breakfast home ortransient vacation unit must maintain a minimum of $1,000,000.00 in commercialgeneral liabihty insurance at all times. In addition to any supplemental insurancecoverage selected by the owner, such insurance coverage must includecoverage for:

fl Bodily iniury and property damage arising out of the condition of thepremises or the negligent acts of the business and persons providingservices to the business. For the nurposes of this subsection, bodily iniury

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shall include mental injuries and emotional distress whether or not suchharm is accompanied by other physical or bodily harm:

f Personal and advertising injury arising out of liability for libel, maliciousprosecution, wrongful eviction, wrongful entry, public disclosure of privatefacts, and invasion of privacy; and

Necessary and reasonable medical, surgical, ambulance, hospital,professional nursing and funeral expenses for a person iniured or killed inan accident taking place on the insured’s premises.

L1 Gatherings restricted. The property on which a bed and breakfast home ortransient vacation unit is located may not be used for gatherings of ten or morepeople who are not registered as overnight guests at the bed and breakfasthome or transient vacation unit unless the director designates the bed andbreakfast home or transient vacation unit as eligible for gatherings.

UI Gatherings eligible property. The director may only designate a propertywith a bed and breakfast home or transient vacation unit as eligible forgatherings if the type of gatherings proposed by the applicant arepermitted as a principal or accessory use of the zoning lot on which thebed and breakfast home or transient vacation unit is located.If the director finds that the circumstances of the property and theapplicant’s proposed measures to mitigate the impacts of gatherings onnearby people and properties reasonably ensure that the proposedgatherings will not result in significant negative impacts to nearby peopleor properties, the director may designate the bed and breakfast home ortransient vacation unit as eligible for gatherings.

Conditions of approval. The director may impose any conditions deemednecessary to mitigate the impacts of gatherings on nearby persons andproperties at the time the director designates a property as eligible forgatherings, or upon a reconsideration of the director’s decision todesignate the property as eligible for gatherings. Standard conditions forproperties designated as eligible for gatherings may include restrictions onthe number of people allowed at the property, restrictions on the types ofgatherings allowed at the property, restrictions or prohibitions on the useof sound amplifying devices, parking reguirements, and reguirements foradditional insurance coverages.

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IJfi Informational binder required. The owner of a bed and breakfast home ortransient vacation unit shall create a binder labeled “For the Safety andConvenience of You and Your Neighbors” and cause the same to be placed andmaintained in a consDicuous location within the bed and breakfast home ortransient vacation unit at all times. The binder should provide guests withguidance on being respectful of neighbors and information that will help guests torespond appropriately to emergencies. The binder must be provided for reviewand inspection to the director upon reguest. The informational binder required bythis subsection must include the following documents and information:

jj.) A floor plan of the dwelling unit used as a bed and breakfast home ortransient vacation which identifies the location of all bedrooms provided toguests, the maximum occupancy of each bedroom, and the location of allfire exits.

For bed and breakfast homes and transient vacation units that are notlocated in a multifamily dwelling, a parking plan that shows the locationand number of parking stalls that are available to persons associated withthe bed and breakfast home or transient vacation unit (e.g., owners,guests, visitors and service providers), or for bed and breakfast homes ortransient vacation units located within a multifamily dwelling, a parkingplan that identifies the location and number of parking stalls within themultifamily dwelling building that may be used by persons associated withthe bed and breakfast home or transient vacation unit. Parking plans formultifamily dwellings may be provided in narrative form withoutillustrations or graphics: parking plans for all other bed and breakfasthomes and transient vacation units must contain illustrations, drawn toscale, which show the sEze of designated parking spaces and their locationon the zoning lot for the bed and breakfast home or transient vacation unit.

Instructions for trash collection and disposal, which include the dates andtimes of scheduled trash collections.

141 A copy of the house rules for the bed and breakfast home or transientvacation unit. House rules for all bed and breakfast homes or transientvacation units must impose quiet hours between 10:00 p.m. and 7:00 a.m.and prohibit the parking of vehicles associated with the bed and breakfasthome or transient vacation unit in all areas other than the parking spacesidentified in the parking plan required by paragraph (hW2).

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fj A list of emergency contacts, which must include a 24-hour phone numberfor the owner of the bed and breakfast home or transient vacation unit, theHonolulu Police Department, the Honolulu Fire Department, the HawaiiPoison Control Center, and the website address for the Hawaii EmergencyManagement Agency.

A copy of the certificate of insurance for the bed and breakfast home ortransient vacation unit;

fl Copies of the general excise and transient accommodations tax licensesfor the bed and breakfast home or transient vacation unit: and

fj A copy of the certificate of registration for the bed and breakfast home ortransient vacation unit issued by the department.”


‘Sec. 21-5.730.4 Advertisements, regulation, and prohibitions.

j Definitions. As used in this Section:

“Advertisement” means the display or transmission of any communication thatmay cause a reasonable person to understand that a dwelling unit or property isavailable for rent. Advertisements include, by way of example and without limitation,written and spoken words, e-mails, text messages, electronic and hard copypublications, flyers, handbills, signs, websites, and expressive images.

‘Person” means a natural person or legal person, and includes all types ofbusiness and legal entities, including, by way of example and without limitation,associations, corporations, estates, individuals, limited liability companies, non-profitorganizations, partnerships, and trusts.

ffl Regulation of advertisements for bed and breakfast homes and transientvacation units. Advertisements for all bed and breakfast homes and transientvacation units are subiect to this subsection.

ffl It is unlawful for any person to advertise or cause the advertisement of abed and breakfast home or transient vacation unit without including in theadvertisement the tax map key number and the nonconforming use

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certificate number or the registration number assigned to the bed andbreakfast home or transient vacation unit.

fj It is unlawful for any person to advertise or cause the advertisement of adwelling unit that is not a registered bed and breakfast home or transientvacation unit pursuant to Section 21-5.730.2 or operating pursuant to anonconforming use certificate for a term of less than 180 consecutivedays. Any written communication advertising the rental of a dwelling unitthat is not registered with the department pursuant to Section 21-5.730.2or operating pursuant to a nonconforming use certificate must include thefollowing statement: “This property may not be rented for less than 180consecutive days. Rental prices will not be reduced or adiusted based onthe number of days the rental is used or occupied.”

Advertisements as evidence of rental activities. An advertisement that does notcomply with subsection (b’)(2) is prima fade evidence that the property beingadvertised is used as a bed and breakfast home or a transient vacation unit. Ifan enforcement order is issued to a property owner for using their property as anillegal bed and breakfast home or transient vacation unit based on anadvertisement, the property owner will have the burden of establishing that theirproperty has not been used as a bed and breakfast home or transient vacationunit.


in Legally established hotels,

f) Legally established time-sharing units, as provided in Section 21-5.640;and

{3 Publishing companies and internet service providers will not be heldresponsible for the content of advertisements that are created by thirdparties.”


‘Sec. 21-5.730.5 Violations1 complaint, response, and enforcement.

Complaint relating to short-term rentals. Any person may submit a writtencomplaint to the director reporting a suspected violation of the provisions of

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Sections 21-5.730.1 through 21-5.730.4. A complaint submitted to thedepartment pursuant to this section must:

Lfl Identify the address of the suspected bed and breakfast home or transientvacation unit, including the apartment or unit number of the dwelling unit ifit is located in a multifamily dwelling;

State all of the facts that cause the complainant to believe that a violationhas occurred;

f Identify the provisions of Sections 21-5.730.1 through 21-5.730.4 thathave been violated; and

142 Provide the complainant’s name and mailing address.

f Response to complaints. Within 30 days of receiving a complaint that complieswith subsection (a), the director must provide a written response to thecomplainant either:

jfl Declining iurisdiction over the complaint, in which case the complainantmay pursue iudicial relief pursuant to Section 46-4(b), HRS;

fj Explaining why the complaint does not describe an apparent violation ofSections 21-5.730.1 through 21-5.730.4. A response issued under thissubsection may be appealed to the Zoning Board of Appeals pursuant toSection 21-1.40; or

Advising the complainant that the director has initiated an investigation ofthe complaint.”

SECTION 22. Table 21-9.6(A), Revised Ordinances of Honolulu 1990, asamended, is amended by amending the entries for “bed and breakfast home,” “hotel,”and “transient vacation unit” as follows:

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“Table 21-9.6(A)Waikiki Special District PrecinctPermitted Uses and Structures

_______________ PrecinctUse or Structure Resort Mixed

ApartmentUse

Public

Bed and breakfast homes jfle] P/c

Hotel* P/c P/eWe

Transient Vacation Units P/c*AjIiy to Lfl) zone to Hotol uso in the Apartment Precincts shall sunset three (3) yoars from the adoption of this

ordinance.

SECTION 23. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by deleting the definitions of “booking service” and “hostingplatform.”

[“Booking service” means any reservation or payment service provided by aperson that facilitates a transaction between an owner, operator, or proprietor of a bedand brookfact homo or transient vacation unit, and a prospective user of that bed andbreakfast home or tranciont vacation unit, and for which the person collects or receives,directly or indirectly through an agent or intormodiary, a fee from any person inconnoction with the reservation or payment corvicos provided for by the transaction.

“Hosting platform” means a person that collects or receives a fee from anyperson for booking corvicos through which an owner, operator, or proprietor of a bedand broakfast home or transient vacation unit may offer use of the bed and breakfasthome or transient vacation unit. Hosting platforms typically, but not necessarily, providebooking corviocs through an online platform that allows the owner, operator, orpropriotor to advertise the bed and breakfast home or transient vacation unit through awebsite provided by the hosting platform, and the hosting platform conducts atransaction by which potential users arrange the use of and payment for the bed andbreakfast home or transient vacation unit, whether the payment is made directly to theowner, operator, or proprietor, or to the hosting platform.”]

SECTION 24. Chapter 21, Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by amending the definitions of “bed and breakfast home”, “hotel”,and “transient vacation unit’ to read as follows:

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‘Bed and breakfast home” means a use in which overnight accommodations areadvertised, solicited, offered, or provided[, or a combination of any of the forogoingT] to

[gucete] transient occupants, for compensation, for periods of less than [30] 180consecutive days[7] in the same [detached] dwelling unit [ac that] occupied by [an] theowner[, lecsoe, operator, or proprietor] of the [detached] dwelling unit. For purposes ofthis definition:

ffl [G]compensation includes, but is not limited to, monetary payment,services, or labor of guests;

fgj Accommodations are advertised, solicited, offered or provided to guestsfor the number of days that are used to determine the price for the rental;and


“Hotel” means a building or group of buildings containing lodging and/or dwellingunits [offering] that are used to offer transient accommodations to guests.[71. A hotelbuilding or group of buildings must contain [aR4] a lobby, clerk’s desk or counter with 24hour clerk service, and facilities for registration and keeping of records relating to hotelguests. A hotel may also include accessory uses and services intended primarily for theconvenience and benefit of the hotel’s guests, such as restaurants, shops, meetingrooms, and/or recreational and entertainment facilities.

“Transient vacation unit” means a dwelling unit or lodging unit that is advertised,solicited, offered, or provided[, or a combination of any of the foregoing, forcompencationi to transient occupants, for compensation, for periods of less than [30]180 consecutive days, other than a bed and breakfast home. For purposes of thisdefinition,

Lfl [G]compensation includes, but is not limited to, monetary payment,services, or labor of guests;

f Accommodations are advertised, solicited, offered or provided to guestsfor the number of days that are used to determine the price for the rental;and

Month to month holdover tenancies resulting from the expiration of longterm leases of more than 180 days are excluded.

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SECTION 25. Chapter 21 Article 10, Revised Ordinances of Honolulu 1990, asamended, is amended by adding new definitions for “condominium hotel”, “hotel unit”and “transient occupant” to read as follows:

“Condominium hotel” means a hotel in which one or more hotel units aredesignated for separate real property interests created by a declaration of condominiumproperty regime. separate ownership and the remainder of which is designated forcommon ownership solely by the owners of the hotel units subject to a condominiumproperty regime.”


“Transient Occupants” means any visitor or person who owns, rents or uses alodging or dwelling unit, or portion thereof, for less than one hundred eighty days andwhose permanent address for legal purposes is not the lodging or dwelling unitoccupied by the visitor. This definition shall not apply to non-paying guests of the familyoccupying the unit, to patients and clients in health care facilities, temporary employeesof health care facilities, full-time students, full-time remote workers, employees whoreceive room and/or board as part of their salary or compensation, military personnel,homeowners in transition between selling and buying a home, low-income rentersreceiving rental subsistence from state or federal governments whose rental periods arefor durations shorter than sixty days, lodging provided by nonprofit corporations orassociations for religious, charitable or education purposes; provided that no rentalincome is produced, month to month rental agreements with the same tenant, and forany other rental arrangement shorter than one hundred eighty (180) days with priorapproval of the department; provided further that except for family members, all otherrental agreements for less than one hundred eighty (180) days must have prior approvalfrom the department. Owners of the units will be reguired to provide supportingdocumentation, when requested by the department, to verify tenants gualify for the lessthan 180 day exemptions listed above.

“Transient accommodations” means living accommodations that are offered ormade available guests for stays of less than 180 consecutive days.

SECTION 26. Ordinance material to be repealed is bracketed and stricken. Newordinance material is underscored. When revising, compiling or printing this ordinancefor inclusion in the Revised Ordinances of Honolulu, the Revisor of Ordinances need notinclude the brackets, the material that has been bracketed and stricken, or theunderscoring.

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SECTION 28. This ordinance shall take effect on

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2021.

INTRODUCED BY:


________________

Honolulu, Hawaii Councilmembers



APPROVED this of_______ 2021


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Documents

Transcript of DEPT. COM. 702