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The Honolulu Advertiser
Posted on: Thursday, October 23, 2008

B&B units should be allowed — and regulated

It's been almost 20 years since city officials decided the best way to control vacation rentals in residential areas was to bar the door on any new units being authorized.

The ban did not stop a proliferation of illegal accommodations from springing up, both the "transient vacation units," or TVUs, that have no resident manager and the bed-and-breakfast dwellings in which an owner or operator is in residence to oversee things.

And violations have proven difficult to document and punish. A more sensible approach to the issue is needed.

That's why the City Council is on the right general path in its latest effort to establish regulations for the permitting and legal operation of a B&B, generally seen as the kind of short-term rental that's least disruptive to a neighborhood.

Unlike TVUs, there is someone on premises to be accountable for behavior that disturbs the neighbors or otherwise breaks the rules.

Many details need to be worked out, so it's fortunate that the proposal, the council's Bill 6, is heading back to the Zoning Committee for further review and another public hearing, to be scheduled after the general election.

For one thing, a system for reviewing permit applications needs to be established. One idea that deserves exploration was raised by Councilmember Charles Djou, who believes a separate commission, partially financed by permit fees, should be created to handle the applications.

The public also will have a chance to weigh in on an enforcement plan, which needs to be added to this bill. The city Department of Planning and Permitting is working on such procedures now.

The current bill wisely restricts the number of B&Bs in any given neighborhood; a new one won't be allowed if there's another within 500 feet. But it has some flaws that need amending. Among them:

• Some of the requirements may be overly restrictive. For example, guests would not be allowed to arrive or depart, or to have any outdoor activities, between 9 p.m. and 7 a.m. Even events at the Waikiki Shell are allowed to go on until 10 p.m.

• The rule on advertisements including not only the permit number but also the street addresses for the unit needlessly threatens the privacy of proprietors, guests and neighbors. The residents who live in the immediate vicinity of the B&B would have been notified of its location under one of the proposed regulations. And as long as the permit number is posted as required, it could be verified against a permit database; the roster of legitimate permit numbers could be made public for verification purposes without releasing private addresses.

Bill 6 addresses only part of the problem. The city also needs to pass a form of Bill 8, which applies the same rule on advertisements to TVUs. That rule would provide a means of enforcing a continuing moratorium on additional permits for these unsupervised vacation rentals.

That ban should continue at least until the city demonstrates that it can manage the current number of legal TVUs as well as an expanded roster of bed-and-breakfast accommodations.

TVUs are the primary lure for outside investors, who buy up properties at high prices, knowing there's potential for a lucrative return through vacation rentals. The result is a diminishing inventory of dwellings available for long-term rentals, driving up rents for that market.

B&B units fill a niche in Hawai'i's visitor industry, accommodating guests who want a more home-like experience. Properly regulated, that experience can fit within neighborhoods while giving residents a means of calling out neighbors who push the limits too far.