Hawaii lawmakers are hoping that phasing out short-term rentals could help ease its worsening housing crisis, where locals face the highest housing costs in the nation and one of the worst rates of homelessness.
Two bills that would allow for new regulation of “transient accommodations” have moved readily through the state legislature this spring, and if passed, could provide new avenues to limit the short-term home rental industry, which has exploded in recent years across the state’s four populated islands.
What Would These Bills Do?
The two companion bills, HB1838 and SB2919, would give counties new authority to change residential zoning, including the power to phase out short-term renting.“The bill does not enact anything specific to the regulation of those properties,” said state Sen. Jarrett Keohokalole, one of the co-authors on the Senate bill. “It simply ... makes it clear that the counties do have the authority to regulate vacation rentals if they choose.”
State Rep. Luke Evslin, the chair of the House Committee on Housing, said even if these bills pass, they probably won’t eliminate short-term rentals on the islands. Instead, Evslin said, the legislation would give local governments opportunities to define the neighborhoods where tourists could rent short-term units and, ideally, free up more homes for locals seeking long-term rentals. He said it won’t solve the state’s growing housing crisis, but he thinks it’s a first step to “stem the bleeding.”
But a Long Battle Looms
The bills’ supporters include many local housing nonprofits, hotel companies and local leaders, including Maui Councilmember Keani Rawlins-Fernandez.“People are moving by the droves because there is no housing,” Rawlins-Ferandez said. She said it’s taken too long for officials to regulate the short-term rental industry, which has created this challenging fight with increasingly powerful interests.
There’s also a broad swath of opponents, including local homeowners who also rent units or rooms, Realtor groups, rental alliances and rental platforms. All of these groups have a financial interest in preserving property owners’ ability to do short-term rentals.
“We remain committed to working with you on fair and reasonable solutions that protect the rights of hosts and preserve the significant benefits that short-term rentals provide to Hawaii communities,” April’s statement said.
“Both Hawaii and federal litigation (have) recognized the principle that all preexisting uses of land are protected,” Louie wrote. A judge would not accept such changes to short-term rental zoning, he argued, because of how units have operated for years, leading to “substantial and unnecessary litigation.”
Why is This Important Now?
Months after the Maui wildfires, hundreds of displaced families are still living in hotels. Officials hope they will be relocated to long-term housing by this summer—a deadline that has continued to be extended.Keohokalole, the state senator, said he wants to see the end of a system that has been “pushing local people out of their residential communities in favor of economic activity.”
“We’re seeing the wholesale conversion of residential communities in Hawaii to speculative, short-term rental development,” he said.
Green, in a statement to the Los Angeles Times, said he supports the two bills going through the legislature that would allow for phasing-out such rentals.
When Could Phase-Outs Begin?
Both bills have been voted out of their respective chambers and are moving into conference committee, where another round of changes can be made before a final vote—which must occur before May 3, the end of the state’s legislative session.“Similar bills have been introduced every year for the last decade or so and never gone all that far,” Evslin said. “I don’t want to jinx it here, but I’m optimistic for their success. ... I think that this is different in that there is really broad support across the legislature for action.”
If the measures pass, it would be up to county leaders to look into phasing out short-term rentals and in what capacity—but legally any phase-out would have to be occur over a reasonable amount of time, likely years, Evslin said.