Controversy Still Surrounds New Residential "A" Tax Classification

In 2013, the City and County of Honolulu created the Residential "A" Tax Classification, which significantly increased the property taxes for all Oahu residential properties valued at $1 million or more, where the owner does not have a homeowner's exemption.  Residential A owners now pay $6 per every $1,000 of assessed value while those with homeowner exemptions pay just $3.50 per $1,000 of assessed value. There are approximately 8,557 properties on Oahu that have been designated as Residential A.

Opponents of the tax law argue that it is not ethical, rational, fair or legal to create tax classes based upon assessed value, when they are all built for residential use.  Previously, property tax classes were based on use, for example residential, hotel/resort, agricultural, or business.  As property values increase, there will be more and more homeowners who may be pushed into Residential A class. There is now discussion about challenging this law in court.

Source: Honolulu Star Advertiser, 1-11-2015, www.staradvertiser.com
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City Council to Tackle Illegal Short-Term Vacation Rental Problem

Ikaika Anderson, the zoning chairman for the Honolulu City Council, is seeking suggestions from his colleagues and the general public as to how to improve city regulations to deal with illegal short-term vacation rentals on the island of Oahu.  Operators argue that the bring an infusion of visitors to local neighborhoods, helping small businesses and the economy. Some residents, on the other hand, argue that the illegal rentals are taking away housing from Oahu residents, disturbing the peace, overtaxing the infrastructure, and increasing crime rates.  Finally, there are some people who would not mind seeing the rentals become legal provided that they pay their General Excise taxes and Transient Accommodation taxes, something that most illegal operators are not currently doing.

Anderson stated, "At this point the only thing that's clear is there is no solid, definitive answer as to how to solve this problem. I'm not going to stand up here today and come to any predetermined conclusion or be closed-minded on any proposal that comes forward either from my colleagues, their communities or from the mayor."

Source: Honolulu Star Advertiser, 1-3-2015, www.staradvertiser.com
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What to Do About Illegal Vacation Rental

The city's Department of Planning and Permitting is responsible for preventing illegal vacation rentals on the island of Oahu, but in the last five years only 88 violation notice or warnings have been issued and only $48,853 in fines have been collected.  Critics argue that this is a tiny amount considering that it is currently estimated that there are over 22,000 illegal vacation rentals being operated on the island.

Mayor Kirk Caldwell defended the Department of Planning and Permitting and stated. "The vacation rental issue is highly controversial. We face a huge challenge here, as you know, regulating and enforcing vacation rental issues, and it always comes down to money and whether we have the money to actually do the enforcement." George Atta, the director for the DPP, added, "Quite honestly, operators are smart. They tell their tenants not to answer the door and not to speak to anyone from the city. Because my inspectors don't have a warrant, they can't insist on entering. In a certain sense, we don't have the tools that are necessary to gather evidence."

City Councilman Ikaika Anderson has drafted a proposal that would expand owner-operated bed-and-breakfasts to 1,275 units, with no more than 25 percent of them allowed in one district.  Anderson also would punish violators sternly and would not grandfather in current offenders. The fees created by these new bed-and-breakfasts would pay for about a dozen new city inspectors, who would focus on vacation rental enforcement.

The Honolulu City Council plans to meet in the new year to discuss further options.

Source: Honolulu Star Advertiser, 12-29-2014, www.staradvertiser.com
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Illegal Vacation Rentals Have Many Residents Frustrated

There has been a recent expansion of illegal vacation rentals throughout the island of Oahu and visitors hope to gain new experiences other than being in traditional hotels and tourist destinations. While small businesses have welcomed these visitors to their local economies, many residents argue that the volume of visitors have hurt the quality of life in their sleepy neighborhoods. According to research conducted by the Honolulu Star-Advertiser, the North Shore of Oahu and Kailua are the most popular areas for illegal vacation rentals and as many as 80 percent of these vacation rental owners are operating outside of city restrictions. Donna Wong, a member of the Kailua Neighborhood Board, commented, "It's creating a lot of conflict and hostility. Kailua used to be a quaint, small town where everyone knew everyone. Now, it's a resort. The North Shore has a similar situation. Visitor traffic used to be contained to surf season. Now, they've got it 24/7, 365 days a year."

In 1986, a law was passed that prohibited vacation rentals rented for less than 30 days in neighborhoods outside of designated resort areas.  In 1989, another law was passed prohibiting any new bed-and-breakfast homes in all zoning districts. However, the Hawaii Tourism Authority has noted that the city has failed to enforce these laws and rental property owners are blatantly violating regulations in recent years. It is estimated that between 78 percent to 87 percent of the North Shore and Kailua rentals are operating illegally.

Some tourism industry leaders believe that the city should relax restrictions and make these types of rentals legal, provided that homeowners pay the transient accommodation tax (TAT) and general excise tax (GET). Critics argue that illegal rentals should be stopped, as it increases traffic and crime in residential neighborhoods, drains community resources and reduces the supply of residential housing.

Source: Honolulu Star Advertiser, 12-28-2014, www.staradvertiser.com
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Sit-Lie Ordinance Enforced in Chinatown

The Honolulu Police department has started to enforce the city's new sit-lie ordinance in Chinatown.  Under the new law, sitting and lying on business district sidewalks is prohibited from 5:00 AM to 11:00 PM.  Police officers have spent the last two weeks handing out warnings in Chinatown and encouraging people to move into shelters. Over the next few months, enforcement will go into effect for downtown Honolulu and 14 other business districts throughout Oahu. Waikiki's ordinance is slightly different as it bans sitting and lying on sidewalks 24 hours per day.

Chinatown merchants and residents stated that they have already noticed a difference, but hope that the city would include banning lying and sitting at five malls in the Chinatown-downtown area as well. These include College Walk Mall, Sun Yat Sen Mall, Kekau­like Mall, Union Mall and Fort Street Mall.

Source: Honolulu Star Advertiser, 12-23-2014, www.staradvertiser.com
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Waikiki Commercial Properties Asked to Contribute to Beach Restoration Projects

Honolulu Councilmen Ernie Martin and Stanley Chang are proposing two new bills, Bill 81 and Bill 82, which would require that commercial property owners in Waikiki must contribute to the beach restoration projects for that neighborhood.  Under the Bills, commercial property owners from Ala Wai Harbor to Kaimana Beach and from Ala Wai Canal to the ocean would be taxed an estimated 7.63 cents per $1,000 of assessed value.  This would generate about $600,000 per year for the Waikiki neighborhood.

Rick Egged, the president of the Waikiki Improvement Association and a supporter of the bills, stated, "It spreads the cost over all stakeholders rather than the few who are willing to come up with the money. It also gives us a seat at the table to make sure that the projects are done properly and that they are in keeping with stakeholder objectives. I think all of our members generally believe that establishing this major public-private partnership is necessary,"  City Councilman Chang added, "As Waikiki's councilmember for the last four years, I believe strongly that the only way to preserve Wai­­kiki Beach for today's and tomorrow's residents and visitors alike is to develop and implement a coordinated comprehensive plan for all of the beach rather than continue to react to spot crises."

Jerry Gibson, the area vice president of Hilton Hawaii, stated that he will support the bills provided that the money stays focused on improving Waikiki beach.  Gibson commented, "I believe in the public and private aspect of putting it together. I wouldn't like to see the money go toward creating a bureaucracy. I want to see it go to maintenance and care of the beaches. We've seen with weather and hurricanes and those kinds of things that the beach can go away quickly. For the economic viability of Wai­kiki and the pleasure of the tourists and locals who live here, it's important to continue to maintain the beach area and continue to make it the best in the world. If everyone does a little bit, we can do a lot together."

Source: Honolulu Star Advertiser, 12-5-2014, www.staradvertiser.com
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Downtown and Chinatown Neighborhoods Hope to Expand Sit-Lie Sidewalk Ban

The Honolulu City Council is scheduled to vote on Bill 62, which would expand the sit-lie sidewalk ban to six areas in downtown and Chinatown. The ban would extend the ordinance to College Walk Mall (along the Ewa side of Nuu­anu Stream between Bere­ta­nia and Kukui streets), the unnamed mall mauka of College Walk (from Kukui Street to Foster Botanical Garden), Sun Yat Sen Mall (parallel to College Walk, Diamond Head side of Nuu­anu Stream), Kekau­like Mall, Fort Street Mall and Union Mall.  Each ban would be effect from 5:00 AM to 7:00 PM daily.  City Councilwoman Carol Fuku­naga, who represents the Chinatown-downtown region, stated that the intent is not to criminalize the homeless, but rather get people "into something better for them, and to help business owners take back control of the areas outside their businesses."

In recent weeks, residents, business owners, and community leaders in the downtown and Chinatown communities have been complaining about a surge of homeless place, who may have been displaced from a recent ordinance preventing them from sitting and lying on sidewalks in Waikiki.  Mayor Kirk Caldwell said that he is inclined to sign Bill 62 provided that city attorneys say it passes constitutional muster.  Caldwell stated, "All of these are tools or measures to try to make a difference in areas that are adversely impacted by people who choose to sit and lie in areas that were designed, like this (Kekau­like) mall, to walk on."

Source: Honolulu Star Advertiser, 12-3-2014, www.staradvertiser.com
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Waikiki Homeless Move to Fort DeRussy Beach

With the recent ban on sitting and lying on Waikiki sidewalks enacted into law, some of Waikiki's homeless residents have decided to move themselves to Fort DeRussy Beach. which stretches from in front of the Hale Koa Hotel and the Outrigger Reef on the Beech. The Honolulu Police Department is unable to anything about the new homeless campers as Fort DeRussy Beach falls under the jurisdiction of the state Department of Land and Natural Resources.  The military police, who patrol the grounds of the Hale Koa Hotel, have stated that their jurisdiction ends at the sidewalk. Tom Brower, the state representative for Ala Moana, Waikiki and Kakaako, commented, "Now that the homeless won't be permitted on Wai­kiki sidewalks, it's no surprise that they'll want to be on the beaches,"  Waikiki resident Steve Caplan noted, "What has occurred in just the last few weeks is a massive influx of tents and individual sleepers from the 10 p.m.-to-6 a.m. range because they know they are in a safe zone exempt from HPD control. It's Little Switzerland."

Lisa Mann, the acting commander of the Waikiki police force stated, "It has recently been brought to our attention that the number of campers has grown. HPD has been advised recently that they can't move them because the area is under state jurisdiction and the district attorneys won't prosecute."  Mann added that they could enforce rules prohibiting camping at Fort DeRussy Beach, but the proper signs would have to be posted first. Deborah Ward, the spokeswoman for the Department of Land and Natural Resources, stated, "The department is currently reviewing jurisdiction issues and is not prepared to comment on these questions."

Barry Wallace, the executive vice president of hospitality services for Outrigger Enterprises, commented, "The current level of homelessness is just awful. It's very frightening to our guests and employees. It's unsanitary, unattractive and totally not what people want to see when they come to Hawaii. We supported the sit-lie bill with the idea that it would give police a tool to move people off the streets and connect them with shelters and help. We're even working with a nonprofit to provide more services. I would hate to think that there was one area in Wai­kiki where the rules didn't apply."

Source: Honolulu Star Advertiser, 9-20-2014, www.staradvertiser.com
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New Bill Would Ban Sitting and Lying Down on Sidewalks in 11 Additional Commercial Regions on Oahu

The Honolulu City Council's Zoning and Planning Committee has given their approval on Bill 48, which would ban sitting and lying down on sidewalks in 11 different commercial regions on Oahu.  Under the bill, it would be a misdemeanor or sit or lie down on public sidewalks from 5 a.m. to 11 p.m. every day in "areas zone for commercial and business activities." The bill will go before the entire City Council next month for a final vote, but city attorneys have already commented that the bill will probably be challenged in court.

City Councilwoman Ann Kobayashi has noted that the new Waikiki sit-lie bill is already pushing sidewalk dwellers into other communities like McCully, Moiliili, Ala Moana and Kakaako.  Kobayashi, who supported Bill 48, stated, "I don't like these bills either, but I have to protect the people that live in the district, the businesses that are there. I feel it's my duty as their Council member to include those areas."

Source: Honolulu Star Advertiser, 9-19-2014, www.staradvertiser.com
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Honolulu Mayor Signs Sidewalk Bills

Honolulu Mayor Kirk Caldwell has signed into law several bills that would affect the sidewalks of Waikiki and other parts of the island of Oahu.  Bill 42 made it illegal for people to sit or lie on Waikiki sidewalks 24 hours per day.  Bill 43 prohibited people from urinating and defecating in public places in Waikiki.  Bill 46 made it illegal for people to urinate or defecate in public areas in the rest of Oahu.  Offenders who violate these new laws could be fined up to $1,000 and/or up to one month in jail for the petty misdemeanor.

Caldwell noted that he also intends to sign Bill 48 which would ban sitting and lying from 5:00 AM to 11:00 PM in Chinatown, downtown, McCully-Moiliili, Waipahu, Kalihi, and Kailua. Bill 48 still needs to be heard by the City Council's Zoning and Planning Committee and will need a final vote by the full City Council before coming to the Mayor's desk for his signature.

Opponents of the bills argue that they are unconstitutional and immoral.  They believe that the government is criminalizing being homeless and feel that the money spent enforcing these laws would be better served by building more housing and providing more services for those who need it.  Several organizations have stated that they would challenge the constitutionality of these bills in court.

Source: Honolulu Star Advertiser, 9-17-2014, www.staradvertiser.com
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Honolulu City Council Considers Raising Smoking Age to 21

The Honolulu City Council's Public Safety and Economic Development Committee is considering a bill that would raise the legal smoking age to 21 for the island of Oahu. Bill 51 would also bar anyone under 21 from buying e-cigarettes or any other electronic smoking devices. Reaction to this bill is mixed, with many arguing that after someone turns 18, they are responsible adults and are capable of making decisions on smoking for themselves. Supporters of the bill noted that Hawaii County, New York City and four states have adopted similar legislation and would help to discourage youths from the habit.  The Honolulu Police Department did not comment on the bill, but stated that they would enforce the law if it is passed.

Source: Honolulu Star Advertiser, 8-27-2014, www.staradvertiser.com
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Honolulu City Council Looks at Five Bills That Would Have Major Impact on the Homeless

The Honolulu City Council's Zoning and Planning Committee will be looking at five bills which, if made into laws, would have a huge impact on the homeless population of Oahu.  Three of the bills are focused on banning lying and sitting on public sidewalks in various areas around Oahu, with Bill 42 focusing on restrictions in Waikiki, Bill 45 imposing it island wide, and Bill 48 focusing on business districts in downtown Honolulu.  Meanwhile, Bill 43 would ban urinating and defecating in public areas of Waikiki, while Bill 46 would impose the same ban island wide.

Supporters of the bills state that the sidewalks should belong to pedestrians and that Oahu's sidewalks should be clear and clean for residents, businesses and visitors to use.  Opponents of the bills argue that they unfairly target the homeless population and the city should create shelters and services to help the homeless.  One online petition against the bills states, "The sidewalks are the only public place left for displaced persons to legally exist.  Those seeking this criminalization cannot succeed without the majority of local working-class people buying into their propaganda that displaced families threaten the livelihood of our state, which they clearly do not."

Source: Honolulu Star Advertiser, 8-26-2014, www.staradvertiser.com
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Bill Proposed to Make It Illegal to Sit or Lie on All Sidewalks on Oahu

Honolulu City Councilman Ikaika Anderson has proposed a bill which would make it illegal to sit or lie on any sidewalk on Oahu as well as a separate bill that will make it illegal to urinate or defecate on public sidewalks. Last week, Mayor Kirk Caldwell had proposed a bill which would make these actions illegal in Waikiki and City Councilwoman Carol Fukunaga followed up with a bill that would make it illegal to sit or lie down on sidewalks in the Downtown-Chinatown areas.  Anderson stated, "I hear loud and clear the concerns of others throughout the City and County of Honolulu, that people will simply pick up and move to other areas. It may be possible to address all of this with simple, islandwide bills."

Homeless advocates argue that laws disrupting the homeless on public sidewalks serve to criminalize the homeless populations.  Several public hearings are planned for people to voice their opinions for and against the proposed bills.

Source: Honolulu Star Advertiser, 6-25-2014, www.staradvertiser.com
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New Bills Proposed to Remove Waikiki Homeless

Honolulu Mayor Kirk Caldwell is proposing two new bills that will help to remove the homeless camping on the sidewalks of Waikiki.  The first bill would prevent people from sitting or lying on public sidewalks in the Waikiki Special District.  The second bill would prohibit urinating and defecating in public areas and privately owned areas open for public use within the Waikiki Special District.  If passed, both bills would be in effect 24 hours a day and breaking these laws would be considered to be petty misdemeanors carrying fines of up to $500 and 30 days in jail. Caldwell commented, "A 24-hour prohibition would ensure sidewalk access to the hotels and commercial businesses as well as ensure pedestrian safety for the visitors and abutting neighbors."

Source: Honolulu Star Advertiser, 6-16-2014, www.staradvertiser.com
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Bill Proposed To Divert Road Paving Money to Housing for Homeless

City Council Chairman Ernie Martin is proposing a new bill which would take away $32 million from money currently set aside for repaving roads around Honolulu, and put it towards building permanent and temporary housing for the city's homeless population.  This $32 million would be in addition to the $18.9 million that has already been allocated from the city's Affordable Housing Fund for the homeless and others who are in need of shelter.  Martin noted that this additional $32 million would have a special provision to help "families with children" first.

Ember Shin, the City Managing Director, stated that the Mayor's office supports the concept spending more money to fund homelessness programs, but does not like the idea of diverting money from road repairs. Martin argues that $100 million is more than sufficient to continue the city's street rehabilitation program.

Source: Honolulu Star Advertiser, 5-30-2014, www.staradvertiser.com
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Live Work Play Aiea Redevelopment Moves Forward

Honolulu Mayor Kirk Caldwell has signed Bill 68 into law, which will pave the way for the proposed Live Work Play Aiea project.  Live Work Play Aiea, which is being developed by Robertson Property Group, hopes to create as many as 1,500 residential units in a five-tower development at the site of the Kamehameha Drive in near Pearlridge Center. The $766 million project will be located next to one of the major hubs of the $5.26 billion Honolulu Rail Project.

Under the agreement with the city, the developer must place a minimum of 30 percent of its residential units in the affordable-housing category.  Furthermore, at least half of the affordable units must be on the project site. The rest can be spread out within a half-mile radius of the Pearlridge station or within and of the other transit hubs planned along the 20-mile route of the Honolulu Rail Project.  Bill 68 allows for three of the five towers to be as tall as 350 feet, 300 feet and 250 feet respectively. The last two towers are restricted to 150 feet.  This is a significant increase from the current zoning which limits the entire area to just 60 feet.

Source: Honolulu Star Advertiser, 5-2-2014, www.staradvertiser.com
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Honolulu Bill Would Make Simulated Gambling Machines Illegal on Oahu

Gambling, in any form, is illegal in the state of Hawaii.  However, in recent years the Products Direct Sweepstakes machines have become extremely popular around Oahu.  While they may appear to be slot machines from the exterior, developers and operators of these devices insist that they are not gambling machines, but rather sweepstakes machines where people can win prizes without any purchase. Of course, if a patron would like additional opportunities to win a sweepstakes prize, they can purchase credits to play on. So far, there have been several raids conducted by local law enforcement agents, but the city's prosecutor's office has not yet prosecuted anyone in those arrests.  City officials stated that they are waiting for a clarification in the law.

A bill is currently before the Honolulu City Council would make it illegal to own, operate or use any simulated gambling machine on Oahu, including the Product Direct Sweepstakes machine. Under the bill, it would be illegal to "manage, supervise, maintain, provide, produce, possess or use" the machines. The violation would be considered a misdemeanor and punishable by a fine of up to $1,000, up to 30 days in jail or both.

Source: Honolulu Star Advertiser, 4-14-2014, www.staradvertiser.com
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Bill Proposed to Allow Retaining Walls to Be Built On Shoreline Properties

Honolulu City Council Bill 17, which would allow for shoreline property owners to put up retaining walls and other structures, has been approved by the Council Zoning and Planning Committee.  However, committee members stated that they would like additional information to insure that no unintended negative environmental consequences occur because of the walls and structures.  Ernie Martin, the Council Chairman who proposed the bill, stated that he wanted to help shoreline properties on coastal zones that were struggling to control the erosion of their properties.  Martin stated that landowners are currently required to go through a lengthy and expensive environmental review process to obtain a variance from the Department of Planning and Permitting.  Bill 17 would cut through some of that red tape, provided that the retaining walls or other minor shoreline structures are deemed to have no environmental impact.

Source: Honolulu Star Advertiser, 3-21-2014, www.staradvertiser.com
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Possible Property Tax Increases for Transient Vacation Units and Bed-and-Breakfast Homes in Honolulu

The Honolulu City Council is considering a bill which would increase the property tax rate for all transient vacation units(TVU) and bed-and-breakfast (B&B) homes on Oahu. Currently, both endeavors are taxed at a residential property tax rate which is $3.50 per $1,000 of assessed value.  In comparison, hotel/resort owners pay $12.40 for every $1,000 of assessed value. Under Bill 23, argues that transient vacation units and bed-and-breakfast homes are business activities, and would be fall somewhere in between residential properties and hotel/resort properties.

Bill 23 will also include legislation to help crack down illegal vacation rental homes as well as a new process for people interested in legally turning their property into a transient vacation rental or bed-and-breakfast to be able to do so.  According to the city Department of Planning and Permitting, there are currently only 48 legal B&Bs and 810 TVUs in Honolulu.  However, it is estimated that there are probably triple that amount of illegal operators.  For information on Honolulu's current rules go to: http://www.honoluludpp.org/ReportsNotices/tabid/85/aid/5/Default.aspx

Source: Honolulu Star Advertiser, 3-12-2014, www.staradvertiser.com
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Honolulu Mayor Proposes $10 a Month Trash Pickup Fee

Honolulu Mayor Kirk Caldwell has proposed a new bill that would charge every single family home owner on Oahu $10 a month for trash pickup.  For condominiums, townhouses, businesses and nonprofits that have dumpster pickups, they would be charged an additional $314 per month per 3-cubic-yard dumpster.  Bill 9 has passed its first reading by Honolulu City Council members and will now be sent to the city Budget Committee for further review. Caldwell stated that the bill's minimal fee would raise as much as $21 million per year for the city. Caldwell also noted that the trash pickup service costs Honolulu approximately $100 million per year.  City Councilwoman Kymberly Pine, who supported the bill with reservations, noted that the new fee will be especially hard for disadvantaged families who are already burdened by a high sewer fee.

Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
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