Hawaii SB2919: Empowering Counties to Regulate Short-Term Rentals

Hawaii Senate Bill 2919, introduced by Sen. Jarrett Keohokalole and other Democratic lawmakers, aims to grant counties the clear authority to regulate short-term vacation rentals, including the power to phase them out entirely. The bill comes as a response to the state's worsening housing crisis, exacerbated by the recent Maui wildfires that displaced thousands of residents.

SB2919 seeks to amend existing laws and clarify a 1957 statute that was used to challenge Honolulu's efforts to clamp down on vacation rentals by prohibiting rentals between 30 and 189 days. The bill would expand the zoning powers of counties, allowing them to dictate "the time, place, manner, and duration in which uses of land and structures may take place."

Proponents argue that SB2919 could help address Hawaii's housing affordability crisis by enabling counties to convert short-term rentals into longer-term housing for residents. Governor Josh Green, who has promised to sign the bill if it reaches his desk, sees this as the fastest way to fill the state's shortfall of 50,000 affordable homes.

The bill has garnered support from local housing nonprofits, hotel companies, and community leaders who are concerned about the increasing number of residents leaving the islands due to the lack of affordable housing. However, some critics fear that the broad zoning powers granted by SB2919 could negatively affect property rights and stifle housing growth.

Hawaii SB2919 Timeline and Will It Pass?

On April 26, 2024, a joint House-Senate conference committee unanimously approved the latest version of SB2919. The bill now heads to the full House and Senate for final votes. If passed, it would not enact any specific regulations on short-term rentals but would provide counties with the legal authority to do so.

The implementation of a phase-out, if enacted by counties, would likely take effect over several years. While SB2919 alone may not solve Hawaii's growing housing crisis, supporters view it as a crucial first step in addressing the issue. However, legal challenges are expected to follow any county actions to further regulate vacation rentals if the bill becomes law.

As Hawaii grapples with balancing the needs of its residents, the tourism industry, and property rights, the fate of SB2919 and its potential impact on the state's housing landscape remains to be seen.