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The Honolulu Advertiser
Posted on: Sunday, June 5, 2005

1989 ban has been mostly ineffective

By Lynda Arakawa
Advertiser Staff Writer

The city banned new vacation home and bed-and-breakfast permits in 1989 in residential areas to prevent the proliferation of the units, but that hasn't stopped many home owners from operating them illegally.

What distinguishes a bed-and-breakfast or vacation rental from other rental property is the length of time a guest stays. The city classifies lodging as vacation rental or B&B when guests stay for less than 30 days.

A property owner without a city permit is violating the law if he or she has paying guests that stay overnight for less than 30 days.

Most of the controversy surrounds vacation rentals rather than bed-and-breakfasts.

In bed-and-breakfasts, the owner or operator lives in the same dwelling. Vacation rentals are whole houses or condominiums rented without being occupied by owner or operator.

Unlicensed vacation rental operators can face an initial fine of $50 and up to $1,000 for repeat violations. If violations are not corrected, the planning department can assess an additional daily fine of $50 to $1,000.

But many say the law is virtually unenforceable. City Department of Planning and Permitting Director Henry Eng said investigations are usually triggered by complaints and involve a site visit by an inspector to confirm that a visitor is staying there. But that's difficult, because it's hard to catch the vacation renter at the site, he said.

Since June 2003, the department received 33 complaints that prompted inspections, Eng said. Seven resulted in citations and another two are under investigation. In one case, fines have accrued to $27,750, he said.

Councilwoman Barbara Marshall, 3rd District (Kane'ohe, Kailua, Waimanalo), and Council Chairman Donovan Dela Cruz, 2nd District (Wahiawa, North Shore), have introduced two measures that they say will crack down on illegal operations and legalize bed-and-breakfasts in communities that support them.

• Resolution 05-186: Would require owners or operators of vacation rentals to include their address and city permit number in any advertising. Violators would be fined $1,000 to $5,000 per violation.

• Resolution 06-187: Would allow home owners to get permits for operating bed-and-breakfasts with up to two bedrooms per residence. The permit would be denied if 75 percent of neighbors within 500 feet oppose the operation. Existing legal bed-and-breakfast units would be grandfathered in.