Vacation rentals

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One for you land users. We’re not going to analyze the Hawaii Intermediate Court of Appeals’ published opinion in Robert D. Ferris Trust v. Planning Comm’n of the County of Kauai, No. CAAP-15-0000581 (Aug. 9, 2016) in too much detail, because our Damon Key colleagues Greg Kugle and Chris Leong represent the prevailing appellant. But here’s a short summary, after which you can read the opinion itself.

The narrow issue in the case involves the definition of the term “applicant” in two different sections in the County’s zoning ordinance. The underlying issue is one that’s hot right now across Hawaii and elsewhere: short-term or transient vacation rentals, defined in the Kauai zoning ordinance as rental for less than 6 months.  

Here, the homeowner had a parcel in an agricultural district, with a single-family residence on the lot. It began renting the home to vacationers in 2003, prior to…

Continue Reading HAWICA Rejects Planning Department’s Formalistic Definition Of “Applicant” In Vacation Rental Case

Two stories to read, in tandem:

  • In the ultimate dog-bites-man story, yesterday’s Honolulu Star-Advertiser headline reads “Home demand outweighs supply.” Well no kidding. As one fellow quoted in story said,”This is the most overstudied subject in the history of mankind … You don’t need a study to know what the numbers are. It’s time to stop studying housing and start doing housing.” The story is partially behind a paywall, but the lede sums it up: “Hawaii needs up to 66,000 homes if it expects to satisfy demand for housing over the next decade.” Increasing demand coupled with restrictive supply means, guess what – high prices and shortages. What’s responsible for the lack of housing? There’s land on which to build, but it’s infamously difficult to develop. As Professor David Callies wrote recently, Hawaii has an “increasingly well-known penchant for lengthy, often decade-long land use permitting processes” and a

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Continue Reading Guess What: Hawaii Housing Is Expensive!

Thankfully, the only “Tiki Island” we have in Hawaii is a miniature golf course. Because the name “tiki” should be reserved for such things, or for kitschy bars, or Trader Vic-knockoffs.

And please, honest-to-goodness real municipalities should never be named Tiki Island. No matter how nice they appear to be. Just no.

(Martin Denny, by the way, gets a pass – rock on, Mr. Denny.)

But there it is, the Village of Tiki Island, Texas, population 968, “a waterfront community in Galveston County consisting of about 960 homes, with approximately 40% full-time occupants, and 60% part-time occupants.” 

Something tells us that TI, TX’s smallish population and the resident-to-part-timers ratio had something to do with the fact that in 2014, the Village adopted an ordinance prohibiting the short-term rental of residences, an activity that apparently had been ongoing for some time…

Continue Reading Tiki Island’s Prohibition Of Vacation Rentals A Penn-Central Taking (For Now)

Word comes our way that a bill has been introduced in the Hawaii legislature that would eliminate the primary jurisdiction doctrine and the requirement to exhaust administrative remedies for a narrow class of cases to allow a neighbor to “enforce zoning violations related to transient vacation rental on neighboring property.” 

In Pavsek v. Sandvold, 127 Haw. 390, 279 P.3d 55 (Haw. App. 2012), the Intermediate Court of Appeals concluded that a state statute (Haw. Rev. Stat. § 46-4(a)) allowes a person directly affected by an alleged violation of a county’s land use or zoning ordinance to bring a private enforcement action. The court also held, however, that this private right of action is subject to the usual rules of primary jurisdiction. In other words, you can sue to enforce the zoning code, but you’ve got to do it by first going through the county’s administrative review process…

Continue Reading Bad Idea, Part II: There’s Already A “Private Right Of Action” To Enforce Zoning Ordinances

Here are the written materials from today’s HSBA Appellate Section presentation on administrative law and appeals in Hawaii courts. 

A video of the presentation is posted above — it may be a bit dark, but no matter: all you really need is the sound, anyway. Listen to the audio-only session here:

GWK-RHT-HSBA-appellate-admin-appeals-1-13-2014

Administrative Appeals in Hawaii Courts: How Do You Get There, and How Do You Get Out? (Hawaii State Bar As…

Continue Reading Materials From State Bar Association Appellate Section Presentation: Admin Law Appeals

Late last year, we posted the Complaint in a federal court lawsuit originating on Kauai. In that case, the owner of a property that has been designated for resort development for 35 years asserted that the adoption of a Charter amendment by the County’s voters and a follow-on ordinance adopted by the County Council that together created a new land use classification (“transient accommodation unit”), and severely limit the number of TAU’s was an attempt to restrict the number of visitors and part-time residents.

The Complaint contains three major allegations: (1) the measures are arbitrary and capricious and violate substantive due process as an attempt to limit visitors, (2) they violate the Hawaii Zoning Enabling Act (Haw. Rev. Stat. § 46-4, the state statute delegating zoning authority to the counties in certain areas for all you land use nerds), which prohibits adopting of zoning ordinances by initiative, and…

Continue Reading Hawaii Federal Court: Kauai Charter Amendment Limiting Vacation Rentals Is A Prohibited “Zoning Initiative”

An interesting new complaint filed in U.S. District Court in Hawaii, asserting claims for substantive due process, violation of the zoning enabling act, and the Kauai County Charter.

A owner of property that has been designated for resort development for 35 years is asserting that the adoption by the County’s voters of a charter amendment severely limiting the number of visitor accommodation units (no more than one new unit, and other restrictions), was an attempt to restrict the number of visitors and part-time residents. The complaint asserts that the County has no legitimate interest in restricting tourists or part time residents, and that the charter amendment is a zoning regulation that cannot be adopted by the voters (recall that in Hawaii, zoning ordinances may not be adopted by initiative – thanks to a case we argued many years ago – see here and here).

We’ll keep track of this…

Continue Reading New Complaint Challenging Kauai’s Limit On Visitor Units

The Hawaii Intermediate Court of Appeals issued an opinion yesterday in Pavsek v. Sandvold, No. 29179 (June 13, 2012), holding that a person complaining about a vacation rental cannot circumvent the City’s enforcement procedures and the administrative appeal process by instituting an original jurisdiction lawsuit claiming that a homeowner is renting her property in violation of the City’s prohibition on rentals of less than thirty days:

We hold that: (1) HRS § 46-4(a) does create a private right of action in favor of a real estate owner directly affected by an alleged LUO [Land Use Ordinance] zoning violation, but that the owner’s action is subject to the doctrine of primary jurisdiction; (2) under the doctrine of primary jurisdiction, the Pavseks are required to seek an administrative determination of their claim that their neighbors have been violating the LUO before proceeding with their suit to obtain judicial enforcement of the…

Continue Reading HAWICA: Must Pursue Administrative Process To Object To Vacation Rentals

Check this out: the Hawaii Legislature is considering two bills (HB1707 and SB2089) that will require “nonresident” property owners who rent their property for thirty days or less (transient vacation rentals) to use a licensed real estate broker to rent the property, and to employ a property manager to operate it. “Nonresident owner” is defined as an out-of-state owner or someone who lives “on a different island” from their rental property.

Not surprisingly, much of the testimony in favor of these measures has been submitted by the counties (these bills purportedly would make it easier to collect TVR taxes), and by property managers and real estate agents. 

Putting aside any questions of whether this is good policy or not, think there might be any problems with this? Continue Reading “Nonresident” Property Owners Must Employ Property Managers For TVRs?

Harmon

In Landlord’s Uphill Fight to Ease Rent Restrictions, The New York Times reports on the Harmon cert petition (we posted the petition and the amici briefs in that case here), a challenge to New York City’s rent control ordinance.

We won’t rehash our thoughts on the case, but wanted to point out what we thought was the most revealing passage from the Times article:

Mr. Harmon said he had appealed to his assemblywoman, Linda B. Rosenthal, a strong supporter of rent regulations. Ms. Rosenthal said Mr. Harmon had asked for an exception to rent regulations for his building, which she found untenable because it would, she said, extend to thousands of other people in “the vanishing middle class.”

“I understand he thinks he could make more money, that he is being deprived,” she said. “But I have so many constituents who would willingly trade his problems for theirs.”…

Continue Reading It’s Others’ Property, You Just “Own” It*