The status quo with bed and breakfasts (B&Bs) and transient vacation units (TVUs) in our residentially zoned neighborhoods is not working. Neither the vacation operators nor residents are satisfied with how the City has handled this matter. I understand the communities’ legitimate concerns and frustration with the proliferation of B&Bs and TVUs in our residential neighborhoods, which is why I introduced Resolution 08-256 as an effort to address this issue.
Over the past several years, our community has seen a growth in the number of illegal vacation units in residential areas. It is my belief that something has to be done to address this issue. The City’s Department of Planning and Permitting (“DPP”) has been over-worked, under-staffed and ineffective. It is my position that the status quo is not working. If the City Council votes down everything and does nothing, this problem will only continue to grow with inaction.
On the other hand, some have suggested that the City Council should just dramatically increase the number of building inspectors to address this issue. Given the City’s current financial state, this would require some form of a tax increase. I find this response unsatisfactory as a major tax increase and bigger government, especially in today’s economic climate, is not the answer.
Even if the City Council appropriated additional funds, there is no assurance that those funds would be used on the B&B and TVU matter. In 2004, the City Council appropriated additional funding to DPP to hire additional staff to handle the processing of building permits. Unfortunately, the DPP opted to use these additional funds to cover more pressing operating costs rather than hire new staff. Based on history, there is no assurance that DPP will use additional funding for enforcement of vacation unit laws.
Others have suggested DPP just re-prioritize its work and let the enormous lag time it now takes to get a building permits fester even longer. This is inappropriate, given the huge problems DPP already has in issuing building permits in a timely manner and it would slow an already slumping economy.
Finally, others have suggested to me that the City Council just instruct the police to take on enforcing vacation units. This, too, is unsatisfactory as it would redirect limited police resources from fighting more serious criminal activity.
Faced with my position that the status quo is not working and few good alternatives, I have examined what other industries and professions have done. I introduced Reso. 08-256 with the specific intention of creating a new regulatory board, modeled on the regulatory boards of numerous other professions such as the plumbers, dentists, architects and electricians. Whether or not Bill 6 becomes law, this new board would enforce whichever rules are in place on vacation rentals. Even if all illegal B&B and TVUs are shut down, there are about 500 “legal” licenses the City will still need to contend with.
The proposed board will be funded entirely out of vacation unit licensing fees and fines. These fees (and any penalties garnered through enforcement) will go to pay for inspectors who can enforce vacation unit regulations and rules. Further, such a board can place a cap and limit the number of B&Bs in our community. Those B&B operators who refuse to follow the rules or properly obtain a license can be shut down by this new board. Further, like the plumbers, dentists, architects, electricians and other professional boards, those who obtain a license begin to effectively license themselves. Licensed operators are the first to find and shut down unlicensed operators. Licensees are also the first to note other licensees who operate outside of the rules. Such a program does not require a tax increase, as the board will be self-funded by licensing fees and fines. This new board will also not require DPP to divert resources away from issuing building permits or take resources away from HPD to fight serious crimes.
I welcome tangible suggestions to effectively address B&Bs and TVUs in our community. Inaction is the only bad action. Let’s work together, to find a positive solution.
Charles K. Djou is a Councilmember, District IV and Chair of the Intergovernmental Affairs Committee. Reach him at mailto:cdjou@honolulu.gov
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