Legislation that would give Hawaii’s counties the authority to fully regulate and to phase out short-term vacation rentals cleared its final floor vote Wednesday in the state Senate.
Senate Bill 2919 passed its final reading by a 22-3 vote. All three no-votes came from Big Island senators: Lorraine Inouye of Hilo, Tim Richards of Waimea and Joy San Buenaventura of Puna, all Democrats. The lone Big Island senator to vote in favor of the bill was Dru Kanuha, a Kona Democrat and the Senate majority leader.
The bill, which was introduced by Sen. Jarett Keohokalole, a Windward Oahu Democrat, now goes to Gov. Josh Green, who has said that he would sign the measure into law.
“We know the majority of STRs in Hawaii are illegal, owned by nonresidents, and contribute to skyrocketing housing costs,” Green wrote on X, formerly Twitter. “We support Senate Bill 2919 to empower counties to regulate STRs and potentially phase them out.”
The legislation would give individual counties the authority to define zoning ordinances, and to “amortize or phase out transient accommodations uses in residential or agricultural zoned areas.”
“In my district, there isn’t a lot of industry, and people use (STVRs) as a second source of income,” San Buenaventura told the Tribune-Herald. “They comply with Hawaii County rules, getting the permits, paying the (transient accommodations tax).”
San Buenaventura added that there’s no need on Hawaii Island “for restricting the kind of use on property that may be necessary on parts of Oahu,” specifically mentioning Waimanalo and Oahu’s North Shore.
Inouye said the conference committee draft of the bill passed during Wednesday’s floor vote “broadens the bill, I believe, in a way that could hurt housing.”
“The county could ban month-to-month rentals all the way up to six-month rentals,” Inouye said. “And local residents commonly rent month-to-month, especially after their long-term lease expires. The state, I believe, should keep the exclusive power to regulate these rentals through the landlord-tenant code.”
Noting the state’s reliance on traveling nurses because of a shortage of health-care professionals, Inouye said she thinks changes made in the bill would affect those nurses’ “ability to find housing during their travel rotation.”
Richards said he is in favor of the home rule aspect of the law for counties, but thinks there are aspects of the bill, if it becomes law that will have “unintended consequences for some people who are doing a good job following the law, paying their taxes and all that.”
“I have constituents (including) a farm in Hamakua that is making ends meet and actually building the farm by renting a vacation rental,” he said. “It’s a very good reason and I’m very supportive of allowing them to do that, because ultimately, they are building for agriculture going forward.”
Richards said he rents on a 180-day basis in Honolulu during the legislative session, “and I have no idea how that will be affected.”
He also echoed the concerns voiced by Inouye about the effect the measure could have on traveling nurses.
Richards, who owns a vacation rental, disclosed that fact during Wednesday’s floor vote and was given permission to cast his vote.
University of Hawaii research shortly before last year’s fires on Maui and the Big Island found that 14% of slightly more than 71,000 available units on Maui were short-term rentals. Statewide, the average was 5.5% of all available units.
Estimates by lawmakers are that between 7,000 to 30,000 homes on Maui were mostly unoccupied, short-term rentals, with many not complying with zoning restrictions.
Jordan Ruidas, spokeswoman for Lahaina Strong, a Maui group supporting the rebuilding of Lahaina following the devastating fires that killed at least 100 last August, hailed the bill’s passage, calling the measure “a testament that amazing things can come from devastation.”
“This victory, which gives counties the power to tackle our short-term rental crisis, is not only a huge win for Lahaina, but for all of Hawaii,” Ruidas said in a statement. “This was won through the struggle of our grassroots movement, which put the opportunity and need to tackle our Maui vacation rental crisis into the dialogue through relentless advocacy, public education, community organizing — and even a 173-days-and-counting sustained occupation of Ka‘anapali Beach.
“… We look forward to Governor Green promptly signing this legislation and for immediate action from Mayor (Richard) Bissen and Maui County Council to provide dignified housing for fire survivors and return our communities to local people.
“No excuses left.”
Email John Burnett at jburnett@hawaiitribune-herald.com.