02/28/2024
Aloha,
I am writing to express my urgent opposition to House Bill 1838, which directly threatens the livelihood of my family and other local individuals and families who depend on short-term vacation rentals to make ends meet in Hawaii. As a former Marine Corps Officer and now a homeschooling mom, my husband and I own a condo in Waikoloa Beach Resort on the Big Island. This property is not just a vacation rental, but also represents our hope of retiring in Hawaii and continuing to contribute to the local community. We personally worked so hard throughout our lives to arrive at this moment. This is no different than Governor Green as an example of a non-native Hawaiian. The only difference between the governor and us is that he has the benefit and luxury of finding employment on the island that is tied to his career choice to settle for retirement before the rest of us. My husband once lived on the islands for a few years working in private industry as a scientist before joining the Marine Corps following the 9/11 attack. He didn't want to leave Hawaii as what he considered his forever home, but he had a sense of duty to follow before rounding us as a family back to his and now my favorite place on earth.
If HB1838 is passed, it unfairly targets single-family residential properties and allows counties to phase out short-term use. This will not only impact our ability to continue renting out our property, but it will also set a precedent for taking away property rights from homeowners and revoking non-conforming uses. Additionally, it creates uncertainty for investors and builders at a time when our community needs new construction and could potentially decimate an industry that pays millions of dollars in taxes and generates billions in visitor spending each year.
The impact of this legislation extends beyond financial implications. It affects individuals like me and my family, as well as hardworking community members. I have seen the testimony of Marbella Alford, who relies on her job in the vacation rental industry to support foster children and contribute to their well-being. Kris Adair, Karen Anderson, Quentin Parker, and Philip Andriano have also shared their stories, emphasizing the detrimental effects of such legislation on their livelihoods. I hope you all are actively listening to those voices as much as I am. I am more worried about their ability to survive than I am our ability to thrive.
Moreover, it is important to recognize that our vacation rental business supports the local economy, contributing to the livelihood of mom-and-pop vendors and small businesses in our community. Our turnover team consists of a family based out of Hilo. They cannot make the same amount of money working for the hotels as they can working with us as independent operators establishing their earning power as we can't operate effectively without them. Our turnover team and vendors are our life force. Additionally, our guests regularly support local businesses, including ChoiceMart, Kealia Ranch store, South Kona Fruit Stand, Kona Boys, Oshima Surf, various farm tours and many more. The symbiotic relationship between vacation rentals and local businesses is crucial for the overall economic health of our community. Furthermore, vacation rentals play a key role in ensuring fair and competitive pricing for visitors, including local Hawaiians visiting their families. By providing an alternative to hotels, vacation rentals allow visitors to access accommodation options that suit their needs and budget, ultimately promoting equitable access to our beautiful islands for all. This bill has the unintended consequences of creating an even further divide between the HAVES (ex. hotel lobby, the rich elite like Oprah and Mark Zuckerburg who can afford to let their homes sit empty) and HAVE NOTS (ex. low-income workers) in the state. It is very apparent the legislature has not adequately addressed the 3rd and 4th order impacts of such a bold and ill-informed bill.
It's also vital to note that the revenue generated by our TAT (Transient Accommodations Tax) contributions should be used to address the critical need for affordable housing. Our condo, situated in a resort area, is far from something a local family could afford to purchase, given the pricing of properties in resort areas which is why we have to rent it out as vacation rental because we want to enjoy our beautiful condo and the long-term rental income would only cover half of the expenses owed on the property. A mortgage in our condo community in today prices and interest rates is over 7K and our HOA expenses are over 2K! What average family can afford that? Of note, our condo was sitting on the market from 2018 to 2020 for half the price it is today, and no one could justify purchasing it at those lower prices back then without vacation rental income to offset costs. Given all that math, redirecting the Transient Accommodation Tat to support affordable housing initiatives would be a more effective approach to addressing the housing needs of local residents than eliminating ALL vacation rentals. This is truly tied to government restriction on building and allowing NIMBYism to flourish. We encounter much of the same policy breakdown and activism efforts in California. The government is much the same there as it is in Hawaii where they refuse to admit they are part of the problem. It is much easier to place blame on short term rentals than push local governments to incentivize building affordable housing and push back on rich, elite landowners with deep pockets and political connections who fight against dense housing projects in their backyard. Deep pockets and political connections are something my husband and I don't have. We welcome affordable housing for all.
My husband and I are not a wealthy or entitled family. We come from very humble beginnings and have worked very hard to achieve our current circumstances. This vacation rental is not only a means of supporting our livelihood, but it is also the only way we can afford to realize our dream of owning property in Hawaii. Like many others, we've worked hard to overcome financial obstacles and build a better future for our family. We also try hard to use our position to help others trying to better their circumstances.
This bill seems designed to serve the special interests of the hotel lobby, potentially forcing hardworking families like ours to become reliant on the hotel industry instead of building our own independent businesses. It is imperative that our elected officials consider the voices of ordinary families like ours, the small businesses we work with and the impact this bill will have on the ability for all of us to thrive in Hawaii. It seems apparent this bill hasn't accounted for the 3rd and 4th order impacts. There needs to be more balance in understanding this issue and not just the state versus vacation rentals. The state should treat us as a valued partner in finding a solution to critical problems like housing affordability. I do not like how the state demonizes what it does not fully understand nor seem interested in understanding.
I respectfully ask you to reconsider and vote against HB1838. Let's work together to find solutions that balance the needs of the community while preserving opportunities for citizens to participate in Hawaii's tourism industry, ensuring economic stability for families like mine.
Mahalo for your consideration.
Governor Josh Green
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