Posted on: Saturday, February 5, 2005

House won't pass B&B sanctions

By Lynda Arakawa
Advertiser Staff Writer

House lawmakers yesterday backed away from a bill that would have required counties to sanction bed-and-breakfasts and vacation rentals, and instead opted to draft a resolution seeking more information on how to resolve the divisive issue.

"We're going to ask (the counties) to look into different ways of creating their own revenue ... so people can do inspections and respond to complaints," said House Tourism and Culture Committee chairman Jerry Chang, D-2nd (Hilo). Chang said he is hoping to leave the issue to the counties, citing home-rule issues.

Rep. Cynthia Thielen, R-50th (Kailua, Mokapu), said the resolution also will call for gathering more information about any legal or financing changes needed to help counties resolve what has been a sensitive issue, particularly in Windward O'ahu. Any statutory changes would be pursued next year, she said.

Officials are looking for a balance "that doesn't ruin residential neighborhoods," she said.

Bed-and-breakfasts and vacation rentals have generated some conflict between owners who see it as critical supplemental income, and the neighbors who want to control the number of tourists in their community.

It's acknowledged that many bed-and-breakfasts are operating illegally, and some government officials also see that as an untapped source of tax revenue. In the 1980s, the Honolulu city government allowed bed-and-breakfasts and vacation rentals to register and become legal, but that window closed in 1990 to prevent the proliferation of the units.

Henry Eng, acting director of the city Planning and Permitting Department, said that the city is looking into the matter and that there is City Council interest in the issue as well.

"It's a very complex situation," Eng said. "In many communities there are people supporting the establishment of these uses as there are people opposed to it, and we have to look at it and determine what a good balance would be."

Yesterday's hearing on the bill sparked a debate about the value of such establishments and the impact they have on area residents.

Bed-and-breakfasts and vacation rental owners said the operations provide them with necessary supplemental income, give visitors an alternative place to stay, and generate spending at area businesses. Others said such establishments disrupt residential areas and put a strain on the community's resources.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 535-2470.