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SONHawai'i - 10 Myths About Transient Vacation Rentals (TVRs)

Also known as short-term vacation rentals, TVRs fall into two categories:

--Bed-and-breakfast homes (B&Bs) where the operator lives on the premises.


--Furnished homes, known as Transient Vacation Units (TVUs), are rented for 29 days or less by an off-site agent.

Since 1990, B&Bs have been banned by law islandside unless they have a "non-conforming use certificate" (NUC).

But now the City Council is proposing two new TVR laws.  They must pass through the Department of Planning and Permitting (DPP) and the Planning Commission before returning to the City Council for another round of public hearing and a council vote.

Resolution 05-186 will require TVUs to list their NUC number and address in all advertising.  This should help to curtail illegal operators.  Resolution 05-187 will repeal the prohibition on B&Bs altogether, effectively granting amnesty to illegal B&Bs of the last 15 years and opening the door to more of these businesses setting up shop in homes all over O`ahu.

By allowing haphazard pocket zoning, 05-187 will create a bureaucratic and socio-economic minefield, pit neighbor against neighbor, require sellers to disclose B&B neighbors to buyers, and unfairly apply the same lawws and property tax rates to two types of homes.








10 Myths About Transient Vacation Rentals (TVRs)


Myth #1 “Illegal vacation rentals
aren’t really ‘illegal’; they just don’t have
a permit.”

Any B&B without an NUC is operating outside of the
law. So is any TVU without an NUC (or Resort or Resort-
Mixed-Use zoning). That makes them illegal. Just like an
unlicensed doctor or unlicensed driver.

Myth #2 “The new legislation will regulate
illegal B&Bs.”

The best regulation against B&Bs is the zoning law that
already keeps them out of residential areas; however, it
was difficult for Department of Planning and Permitting
(DPP) inspectors to catch illegal operators “in the act.”
The DPP is now using “preponderance of evidence” to
cite offenders.  Furthermore, operators who won’t qualify
under 05-187 will probably continue to operate illegally
anyway. So
legalization is not the answer. Enforcement is.

Myth #3 “Neighbors could vote on B&B
applicants: That’s a fair compromise.”

The voting process proposed in 05-187 is flawed and
full of loopholes. It will not require a public hearing or
verification that all of the required neighbors are polled.
It won’t restrict other TVRs – legal or not – from voting.
It will give the same vote to a neighbor 500 feet away as it
does to a next-door neighbor, and unfairly allows multiple
owners of one property one vote each.

The only real way to stop an application will be to

mount an organized campaign to get more than 50% of
neighbors to file protests in opposition – a daunting, if
not impossible, task.

Also, what are the conditions for granting a license?
What is the fee? What happens if an owner sells? Or if there
are new neighbors? Nobody knows. And how many B&Bs
will be allowed on a block? In a square mile? There are
no proposed density limits.

Myth #4 “Without more short-term vacation
rentals, visitors won’t have alternatives
to Waikiki and local folks won’t
have places to put up visiting family and
friends.”

In addition to the many TVUs in resort areas, there are
about 1,000 licensed TVUs and about 60 B&Bs in residential
areas of O‘ahu. That’s plenty of legal alternatives to
Waikiki hotels. There are other options as well, such as
hotels in downtown Honolulu, Kahala, Ko‘Olina, the airport
area, and Turtle Bay.

Waikiki was once a residential beach-side town until
it developed to meet the demands of the tourist industry.
Then most of it was rezoned as a resort area. Since TVRs
are the forerunners of hotel development, that could happen
anywhere else as well. Do we want our neighborhoods
to be resort towns? No. Are we obliged to house every
visitor? No.

Myth #5 “Vacation rentals are good for
the economy and increase property values.”

Only in the short-run. Because they inflate the price of
real estate, they have disastrous long-term consequences.
As property values escalate, workers are pushed out of
their own towns, and homes soon become out of reach of
our keiki. No pre-1990 business in a residential district
can say it opened to cater to business from TVRs since they
have been prohibited for the last 15 years. Bottom line:
Tourists will still visit our communities on a day-trip basis
and spend their money.







SONHawai`i
Save Oahu's Neighborhoods
P.O. Box 88131 - Honolulu, HI 96830

E-mail: sonhawaii@hawaii.rr.com
www.sonhawaii.org


Myth #6 “Folks need to rent out a room

or two if that helps make ends meet.”

First, people who say they depend on their illegal TVR
business for livelihood or mortgage payments should have
considered that - and legal alternatives - before they bought
the house. Speculative purchases of homes - with the intention of illegally cashing in on neighborhood tranquility - should not be rewarded with legalization. Second, O‘ahu has a housing shortage. Those with extra rooms should extend aloha to local residents as tenants. And third, some B&B and TVU operators are business hui or out-of-state investors whose profits leave the neighborhood and/or the state.

Myth #7 “People should be able to do
whatever they want with their property.”

Zoning laws exist to ensure that we all have the same
right to “the quiet peace and enjoyment” of our homes.
That is why businesses in residential areas aren’t allowed
unless they are a “home occupation.” Customers can stop
by, but no current definition of home occupation allows
them to actually inhabit the domicile. If TVRs are permitted,
then why not shave-ice stands, kayak rentals, auto-repair
shops, or dog kennels? The proposed Resolution 05-187
sets a dangerous precedent.

Myth #8 “Long-term rentals cause as
many problems as the vacation ones.”

One usually knows a neighbor and can work on resolving
a problem over time. In a vacation rental, clients have no
commitment to the community. By the time a neighbor can
complain to a landlord or rental agent about the number of
people, noise, cars or parking problems, the “guests” may
already have checked out and new ones checked in.

Myth #9 “Only a few people oppose
more B&Bs.”

A 2002 state study found that more than half of the
residents polled did not believe that short-term vacation
rentals would be good for the island. In addition, most of
O’ahu’s 500+ condominium associations already forbid
short-term rentals because they know that the mix of residents and transients doesn’t work. And testimony – both
written and verbal – against Resolution 05-187 was about
2 to 1. People opposed to B&Bs and TVUs come from all
walks of life: kupuna on Social Security, who have seen
their property tax double because of speculation; a mother
worried about her children playing in the front yard when
they don’t know their neighbors; a real estate agent who
sees local clients priced out of the market.

Myth #10 “I’m not in a beach area like
Makaha, Waimanalo, or the North Shore,
so TVRs don’t affect me.”

They already impact you by taking housing off the market
and driving up rental prices island-wide. And once vacation
rentals reach critical mass in coastal areas, those neighborhoods will lose their residential character - the very quality which attracted the tourists. They, in turn, will seek out the next “new and undiscovered” towns. Kapahulu, Kahala and Aina Haina are possibilities. So are Nuuanu, Manoa and your neighborhood.



Mahalo for your kokua in helping preserve the residential island wayof life on O‘ahu.  You can help Save O‘ahu’s Neighborhoods. Contact the Mayor, your City Council representative, the DPP, and the Planning Commission.  Tell them to oppose allowing any more short-term rentals in residential neighborhoods and to get busy enforcing the illegals. And add your name, voice and support to ours as we work together to preserve the residential way - the island way - of life.

For a printable PDF form and list of officials you can contact, please click on this link:   Save Oahu's Neighborhoods


“E Malama i ka Nohona Kaiaulu o O‘ahu.”




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