Hawaii’s Housing Experts Claim: “Airbnb is distorting the truth to promote its financial interests”.

No Airbnb2


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Editorial – Island Voices

By Reverend Bob Nakata of the Faith Action for Community Equity, Victor Geminiani of Hawai‘i Appleseed Center for Law and Economic Justice, and Rene Berthiaume of Hawaiihousing.org

February 12, 2017

Airbnb is a $30 billion behemoth whose business model has depended on ignoring local regulations in the name of growth and profit. It claims the number of vacation rentals in Hawaii is minuscule compared with the total number of housing units, but in fact, that total number is irrelevant. The appropriate comparison is how many units are needed to house our residents.

A recent report by the state Department of Economic Development and Tourism determined Hawaii will need 65,000 more homes by 2025.

That estimation is similar to the Hawaii Housing Finance and Development Corporation’s (HHFDC)’s projection that between 2015 and 2020, we have a housing shortage of 29,500 units. The Hawaii Tourism Authority estimates over 27,000 vacation rentals in the state are advertised online. The overwhelming number of these rentals are illegal. Every home used illegally as a visitor lodging business is one less home for our residents.

In tight housing markets with low vacancy rates, any reduction in supply naturally increases rents, particularly because neither the market nor the public sector can quickly add to housing stock. Airbnb indirectly reduces the affordable housing supply by reducing the overall housing supply of units available for long-term rentals.

A recent HHFDC report indicated an alarming drop in rental listings over the last three years for both multi-family and single-family units on all islands. In some areas, advertised rental housing listings have dropped by 80 percent, with the number of single-family listings in Kauai at less than 10 percent of the number available three years ago.

Another recent study by Honolulu’s Office of Community Services indicated that at 80 percent of occupancy, the average Airbnb unit in 2015 would bring in about 3.5 times more than for a long-term rental to local residents.

Now more than ever, we need state and county cooperation to ensure any housing, whatever the number of units, stays as residential. We need to encourage landlords to rent to residents trying to find affordable housing, rather than incentivize them to convert units to vacation rentals.

Airbnb lodgings are often concentrated in affluent neighborhoods that have long been gentrified, but are increasingly moving to areas often seen as local low-income housing. Last year, Airbnb solicited homeowners in Ewa Beach and Waianae to turn their houses into vacation rentals by direct-mailing postcards to residences. Increasingly, our beaches and public lands are being advertised on the site.

Airbnb claims that the majority of its rentals are only occasionally rented out and that low occupancy rates imply property owners are using the rentals as their residence. A close analysis shows a different picture. The majority of Airbnb’s lodging units are entire home rentals on Oahu that are being advertised as available year-round. While Airbnb portrays its owner-occupied units as a room or even a sofa that is occasionally rented, the vast majority are cottages, attached apartments and studios that could be rentals for residents.

Airbnb also claims that if allowed to collect the transient accommodations and general excise taxes from its short-term rentals, that would significantly increase tax revenue for the state. This is highly questionable. A 2015 San Francisco Office of Economic Analysis study found that for every 1,000 units lost to illegal short-term tourist rentals, the city’s economy loses more than $250 million each year, far exceeding benefits from taxes from visitor spending and vacation rentals. The loss of revenues comes via people dislocated due to unavailable housing.

The same factors would occur for Hawaii. In addition, taxes would still be collected by legitimate visitor lodging businesses and by owners collecting rents for long-term rentals to local residents.

Airbnb is distorting the truth to promote its financial interests. While some vacation rentals are not necessarily bad, the proliferation of TVUs brought about by online business models are taking away long-term units from our housing stock and harming our residents.

Reverend Bob Nakata of the Faith Action for Community Equity, Victor Geminiani of Hawai‘i Appleseed Center for Law and Economic Justice, and Rene Berthiaume of Hawaiihousing.org picked apart Airbnb’s report that claims illegal vacation rentals are “immaterial” to Hawaii’s residential housing market.

Housinghawaii Face Logo Appleseed logo

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Airbnb’s Dirty Tricks (nothing new)!

Laura-Thielen-wide-2My Vacation Rental Work-Group Bill Was Gutted and Replaced – Ouch!

March 23, 2017 By Senator Laura Thielen

The Airbnb and vacation rental bill is becoming one of the “down to the wire” bills that will be decided in the mysterious Conference Committee process.

But yesterday, things got a bit more interesting and, for me, a little personal.

In the first half of Session the House took Airbnb’s proposed bill, amended it a bit, and moved it to the Senate. Meanwhile, the Senate moved the Airbnb bill to Ways and Means, where it died. So Airbnb didn’t have a Senate bill move to the House.

But my vacation rental bill did go to the House. SB 704 established a working group of community, industry, vacation rental operators, state and county to identify:

How vacation rentals are affecting our housing market today, and if they keep up this growth rate, in the future.
How to protect state and county funded affordable rentals from becoming vacation rentals (it’s happening already folks – your tax dollars at work!).
How to manage vacation rentals in this Internet world.
How to protect safety of residents and visitors (disaster preparedness), and the Hawaii visitor brand.
Last week our Senate Committees posted the House Airbnb bill for a hearing. But the Senate Committee Chairs also posted a proposed Senate Draft 1. By doing this, everyone had notice before the hearing that the Senate was considering dramatically changing the bill. Everyone sees the changes. The public has the chance to testify at the hearing on BOTH the original bill and the proposed draft.

We held the Senate hearing yesterday, and voted to pass the Senate proposed draft, with some changes based on the public testimony.

Meanwhile, in the House… They posted notice to hear my vacation rental bill. Then at the hearing:

Your Committee has amended this measure by deleting its contents and inserting the substantive provisions of House Bill 1471.

Ouch.

Gut and replace, with no advance notice. My bill is now the Airbnb bill, as modified by the House.

If both bills pass their final committees, they will end up in conference committee. We’ll see what comes out. IMHO, this is an issue people will have to watch very closely up to the very end.

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Honolulu Department of Planning & Permitting issues $300,000+ fine

City seeks crackdown on illegal vacation rentals

http://www.hawaiinewsnow.com/story/32190357/exclusive-illegal-vacation-rental-fined-300k

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DPP – No Loopholes for Illegal Short-Term Rentals!

Logo-City

Atta-Photo-e1385064905826-230x300George Atta, Director of the Department of Planning and Permitting (DPP) issued a Declaratory Ruling that officially debunks the myth that illegal vacation rentals and B&B hotels can operate legally due to loopholes.

Many illegal vacation rental owners, property managers and some unscrupulous realtors have repeatedly claimed that “less than 30 day” rentals are legal in residential neighborhoods as long as no other new or unrelated renters utilize the property during a 30 day window encompassing the less than 30 day rental period.

Director Atta stated in the ruling; “The fact a dwelling or lodging unit is not rented for 30 days after being used as a transient vacation unit (i.e., after it is rented for less than 30 days) does not change the nature of the completed, less than 30-day rental which amounts to using the property as a (illegal) transient vacation unit.”

Director Atta also declared a 30 day contract or lease agreement does not necessarily make a short-term rental legal. As of late, many illegal vacation rental and B&B hotel operators have created bogus 30 day contracts in order to hide a less than 30 day stay from inquiring City inspectors.

Director Atta stated; “Agreements to rent property for 30 days or more do not describe or evidence transient vacation units or bed and breakfast land uses because they do not provide for rents of less than 30 days. However, transient vacation unit and bed and breakfast home land uses occur on real property that is in fact rented for less than 30 days, regardless of the terms of a contract. The LUO regulates uses of real property and not contracts. Therefore, although rental agreements and contracts may evidence the agreement between a property owner and renter, they do not always document land uses which actually occur on real property.”

Keep it Kailua applauds the Director and the City for clarifying the law. Illegal vacation rentals and B&B hotels are harming residential neighborhoods and communities by reducing housing stock for local residents and undermining the residential character of our neighborhoods by displacing local neighbors.

To read the entire Honolulu Department of Planning and Permitting Declaratory Ruling, go to Honolulu DPP Declaratory Ruling.

For examples and further explanations of the law, go to Loophole Myth.

 

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Poll Results: 73% say No Vacation Rentals in Residential Zoning

Star Advertiser Poll 6-21-15

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Neighbors Prevail!

Stick FamilyThe City Council Zoning and Planning Committee wisely rejected the two resolutions (15-72 & 15-86) that would have made visitor lodging businesses “conforming” in residential zoning. It’s clear these lodging businesses are harming our residential neighborhoods by reducing our local housing stock and raising housing costs.

The written testimony was overwhelmingly in opposition to the resolutions. In addition to the negative impact to the our residential housing market, many residents cited how displacing neighbors from our neighborhoods significantly changes the residential character of the neighborhoods.

Short-term vacationers have little interest in public agencies or in the welfare of the citizenry. They do not participate in security watch programs, coach paddling, or join the hospital guild. They do not lead a scout troop, volunteer at the library, or keep an eye on an elderly neighbor. Literally they are here today and gone tomorrow–without engaging in the sort of activities that weld and strengthen a neighborhood and the community. It’s time for the City to step-up enforcement and for those who are “breaking the law” to stop.


Thank you everyone for being involved and caring about our community!

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Anderson Waters-Down B&B Definition!

Weekly rentalIkaika Anderson wants the definition of B&B’s modified so more illegal vacation rentals (TVU’s) will qualify for his proposed B&B permitting scheme. Anderson and the illegal vacation rental operators understand the label “Bed and Breakfast” has a warm and fuzzy connotation. Many people have the image of a “turn of the century” homes owned by an elderly widow, who rents out a few bedrooms and serves a warm breakfast in her dining room. This image is far from reality of what is happening on Oahu!

 

Anderson’s proposed Resolution 15-72 will allow property owners to rent-out separate ohana units, cottages and apartments as tourist rentals. These types of units are desperately needed in our community as long-term rentals for local residents.

 

Anderson resolution 15-72 CD1 will eliminate the requirement that the property owners be on-site when the unit is rented. In fact, the owners don’t even have to sleep overnight at the property. The resolution only requires the owners claim they reside on the property and “supposedly” be somewhere on-island when the property is being rented. This will allow property owners to rent out their entire house as a vacation rental and simply stay someplace else.

 

And to add insult to injury…B&B hotels are not even required to serve a breakfast to their guests. It’s misleading that these lodging businesses are being called Bed and Breakfast homes by the City. The City Council should be honest with the public and call these businesses what they truly are… visitor-lodging businesses!

PLEASE OPPOSE RESOLUTIONS 15-72 & 15-86

by submitting testimony http://www.honolulu.gov/ccl-testimony-form.html

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Please Stop Anderson’s Zoning Committee B&B Hotel and Vacation Rental Expansion!

Zoning Committee Hearing on Thursday June 18th 9AM

Honolulu Hale: Committee Meeting Room

Please Oppose Resolutions 15-72 and 15-861325 BB in Kailua jpg

Ikaika Anderson is proposing approximately 1375 B&B Hotel Rooms in Kailua and an unspecified number of stand-alone vacation rentals in “residential zoning”. Tourism sprawl is destroying Kailua’s residential character; adding traffic and congestion to our roads, parks and beaches. Our community needs residential homes and long-term rentals for residents, not hotel rooms for tourists. A recent State of Hawaii study showed Oahu is facing a 26,000 home shortage between 2015 and 2025 and the conversion of residential homes into vacation rentals has contributed to the problem according to Department of Business, Economic Development & Tourism. Please attend the meeting. Written testimony may be faxed to 768-3827 or transmitted via the internet at http://www.honolulu.gov/ccl-testimony-form.html for distribution at the meeting 24 hours in advance. Be sure to state in Headline “OPPOSE Resolutions 15-72 and 15-86”.

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We Love the “I Love Kailua” Town Party!

Town Party 2015

Lots of “love” at the Keep it Kailua booth today! We were ecstatic to see the overwhelming number of Kailua residents who support our efforts and are “outraged” over the City Council proposals to permit additional B&B hotels and vacation rentals in residential zoning. Thank you Kailua!

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Why Ikaika?

1325 BB in Kailua jpg

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