Transcript Issues regarding vacation rentals in Ha*ena and Hanalei

Issues regarding
vacation rentals
in Ha’ena and
Hanalei
PLAN 495
Housing, Land, and Community
Summer, 2015
Issues Regarding
Transient Vacation
Rentals (TVRs) in
Ha’ena and Hanalei
In many areas around the United States the issue of vacation
rentals in residential neighborhoods has become a big problem.
Places such as Santa Monica, California have banned vacation
rentals in residential areas citing issues such as a loss of community.
On Kauai, certain areas such as Ha’ena and Hanalei are particularly
impacted by the high number of vacation rentals. Island wide, the
North Shore of Kauai has the largest percentage of transient
vacation rentals. (PONO, 2013)
This slide were obtained from a presentation put together by Protect Our Neighborhood Ohana (PONO) for a
panel presentation before the Hawaii Congress of Planning Conference. The numbers were obtained by the Kauai
County records showing permitted TVR’s outside the VDA.
Natural
Hazards
• Along with the high numbers of transient vacation
rentals on the North Shore of Kauai, particularly
Ha’ena and Hanalei, these areas are also highly
susceptible to natural hazards such as tsunamis.
• The 1972 North Shore Development Plan states,
“The Tsunami Center at the University of Hawaii has
designated the North Shore of Kauai as the area
with the most potential for high tsunamis as
compared to any other locations on any of the other
major Hawaiian Islands” (Eckbo et al, 25)
• Tsunami hazards are not the only natural hazard risks
which face the areas of Ha’ena and Hanalei. In
discussing the hazards present in Hanalei a 2014
University of Hawaii Sea Grant College Program
report notes, “The community is highly susceptible
to coastal hazards, particularly flooding and damage
from high waves, tsunami, and land-based flooding.”
Image courtesy of the Pacific Tsunami Museum. Retrieved from
http://pacificworlds.com/haena/memories/memory4.cfm
Development Plans for the North Shore of
Kauai
• The 1980 “North Shore Development Plan Update” discusses Princeville as
the area where visitor accommodation use should occur and states, “all
visitor accommodation resort units should be contained to the Princeville
resort area” (Wilson Okamoto & Associates Inc. 1980, 39). The plan
addresses the fact that coastal and river valley lands are located in tsunami
inundation zones and flood prone areas. In this respect they state, “Zoning
in hazardous areas should reflect the high risk conditions by minimizing the
allowable development density” (Wilson Okamoto & Associates Inc. 1980,
69).
Development Plans versus Reality
• Despite the clear intention of the historical development plans that Princeville should be the
area for visitor accommodations of the North Shore of Kauai and the fact that Princeville is
the Visitor Destination Area (VDA) for the North Shore, the proliferation of vacation
rentals has put visitors in places where the development plans and zoning never anticipated.
2008 Kauai County TVR Law
• Ordinance 864, passed by the Kauai County in 2008 recognized the issue of TVRs in residential
neighborhoods and the conflicts created. The ordinance states, “…the uncontrolled proliferation of vacation
rentals in residential and other areas outside the Visitor Destination Areas (VDAs) is causing significant
impacts to certain residential neighborhoods.” (2008, 1)
• The Kauai County Council notes the potential for vacation rental uses to escalate property values and prices
and “…adds another potential layer for speculation in the real estate market.” (2008, 1) The Ordinance also
acknowledges the displacement of residents that is occurring in residential neighborhoods and states,
“besides contributing to the lack of affordable housing in the community, this is changing the social
character of the neighborhoods where neighbors used to know each other” (2008, 1).
• Despite the 2008 law prohibiting new vacation rentals outside the Visitor Destination Areas (VDAs), certain
areas such as Ha’ena and Hanalei have huge numbers of transient vacation rentals (TVRs) which significantly
impact the community.
Examples of TVR Prohibitions/Restrictions in
Other Locations
• Cannon Beach, Oregon - The city adopted ordinance 04-09A in 2004 which
allows 92 transient rental permits in a residential area with a population of
1,705. Permits generally end at time of sale. (City of Cannon Beach)
• Santa Monica, California – Law prohibiting vacation rentals. (Short-Term
Rental Home-Share Ordinance, 2015)
Issues & Concerns
• The intent of the North Shore development plans, the susceptibility to a multitude
of natural hazards, and the impacts thrust upon the community are all concerns that
should be considered regarding the high numbers of TVRs in the Ha’ena and
Hanalei regions.
• Addressing the proliferation of TVRs in Ha’ena and Hanalei will likely be resisted
by owners of TVRs who make large profits off of resort type accommodation uses
in the area and benefit from the potential increase in value that a TVR permit adds
to the property, however the Kauai County should take a serious look at the impacts
to the community, the reasons why this area was not intended for visitor uses, and
the potential liabilities of allowing high volumes of visitor uses in areas with a high
susceptibility to natural hazards.
Possible Solutions?
Possible Solutions?
 Amortization
 Change in law so that TVR permit expires at the time
of sale
• Amortization
 Ask the Kauai County to consider if allowing
• Change intransient
law so that TVR permit expires at the time of sale
visitor accommodations in areas of high
• Assessment
of cumulative
impacts
of TVR’s insetting
Ha’ena and Hanalei
natural
hazard risks
is an appropriate
 Assessment of cumulative impacts of TVRs in
Ha’ena and Hanalei
References:
• Eckbo, Dean, Austin, & Williams Inc. and Muroda & Itagaki Inc. (1972) “North Shore Special Planning Area Development
Plan.” County of Kauai.
• “Kauai Climate Change and Coastal Hazards Assessment” (2014) University of Hawaii Sea Grant College Program.
http://seagrant.soest.hawaii.edu/sites/default/files/publications/web-8-18-14-kc3ha-final.pdf
• Kauai County (2008) “A Bill for an Ordinance to amend chapter 8 of the Kaua’i County Code, 1987, as amended, relating
to amending the comprehensive zoning ordinance” Ordinance No. 864.
• Protect Our Neighborhood Ohana (PONO) (2013) “PONO Presentation”
• “Short Term Rentals.” (n.d) City of Cannon Beach. Retrieved from <http://ci.cannonbeach.or.us/~Svcs/Planning/STR.html&gt;.
• “Short-Term Rental Home-Share Ordinance.” (2015) City of Santa Monica. Retrieved from
<http://www.smgov.net/Departments/PCD/Permits/Short-Term-Rental-Home-Share-Ordinance/#2._What&gt
• Wilson Okamoto & Associates Inc. “North Shore Development Plan Update” (1980) County of Kauai.