More about new Maui vacation rental laws
On Monday November 14th., at 1 o’clock in the County Council’s Chambers in Wailuku there will be another testimony meeting concerning new laws to govern vacation rentals on Maui.
David Dantes of the Maui Vacation Rentals Association wrote a very good article on the subject in the latest "Points of View" in the Haleakala Times, and I was going to provide you with a link, but I wasn’t able to find the article in the online version. I found everything else….
I wrote to the editor asking him to direct me to it…. will post it when I hear back from him.
So residents, visitors, any interested parties, this meeting is open to the public, and promises to be very interesting. Come on down, and make your voice heard if you so desire.
November 15th, 2005 at 3:37 pm
The editor wrote back that he didn’t put that article on the web-site beacause:
“I’m still figuring out how to drive the website, so I thought I had to
choose between what I put up and another point of view. I decided openess in
government was more important. I now think I could have put up both, so next
time I will.”
Here is the article that he FWD’d to me:
Vacation rental owners do care about affordable housing, have provided
safeguards in proposed rules
By David Dantes
The Maui Vacation Rental Association (MVRA) is genuinely concerned
about
the shortage of affordable housing for residents. Most of our members
are
residents, ourselves, and we feel a strong connection to our community.
While we do not wish (or deserve) to be blamed for the high cost of
housing,
we want to help assure that our operations will not fuel more price
inflation in the housing market. Despite studies which have shown
vacation
rentals to have little effect on the cost of housing, MVRA’s proposed
legislation looks “beyond the numbers” with provisions to help protect
affordable housing for residents.
County-sponsored research suggests that vacation rentals have a minimal
impact on affordable housing. A Vacation Rental Study commissioned by
the
Maui County Planning Department in 2002, and conducted by SMS Research
of
Honolulu, attempted to quantify the impact on cost and availability of
housing due to short-term rental of homes which accommodate visitors in
single-family dwellings (not Condos or Time Shares). The Study
concluded
that “…too few (vacation rentals) could conceivably be converted to
affordable long-term use to affect Maui County housing prices and the
availability of affordable housing over the long term.”
Despite reassurances from studies, MVRA does not believe that these
numbers
“tell the whole story.” We have heard verbal reports of at least one
family who was evicted from a long-term rental so that an owner could
convert the property to a vacation rental. We have heard reports of
realtors
showing prospective buyers a home and justifying a high asking price
by “the
income stream expected from vacation rental.” We have heard public
testimony
that “vacation rental income is priced into the market” for home
resales.
Based on the above “anecdotal evidence,” MVRA has included the
following six
provisions in its proposed ordinance, which are designed to offset
potential
housing price inflation resulting from our operations:
1. When a vacation rental home is purchased, the new owner will have to
apply for a new permit, then wait for the review of their application,
with
no guarantee of the outcome. That makes it risky for a prospective
buyer to
“factor in” vacation rental income. Expenses and delays associated
with the
permit process introduce more uncertainty, which should help to offset
price
inflation resulting from anticipation of vacation rental income.
2. No application will be accepted for short-term rental of a property
which
has an existing long-term tenant. This would prohibit an owner from
applying for a vacation rental permit, and then evicting a long-term
tenant
when the permit is granted.
3. No new housing shall be constructed expressly for vacation rental
use.
This provision is designed to make new housing inventory available to
residents rather than visitors, and also to prevent “mass production”
of new
vacation rental homes.
4. Vacation rental dwellings will be subject to increased real property
taxation at improved residential, commercial, or hotel rates,
depending on
the type of operation. We recommend that the County dedicate this
additional
tax revenue to financing infrastructure on lands designated for
development
of affordable housing.
5. Non-resident vacation property owners can qualify for a simplified
permit
processes if they provide both housing and employment for a resident
(onsite) manager.
6. Month-to-month rentals for residents would become legal. (Under
current
definitions, a lease of six months or longer is required for a
long-term
rental to be legal).
It should also be recognized that our operations create some 600
full-time
equivalent jobs for Maui residents, helping them to afford housing for
their
families. In addition, many of our members would not be able to
afford our
own homes without the income from short-term rental, and without it, we
would be competing with other residents for more-affordable housing.
David Dantes is president of the Maui Vacation Rental Association.