Maui Meadows Neighborhood Association | ORDINANCE NO. 4315 Draft 1 May 2016 – A BILL FOR AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE RELATING TO SHORT-TERM RENTAL HOMES (May 2016 )
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ORDINANCE NO. 4315 Draft 1 May 2016 – A BILL FOR AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE RELATING TO SHORT-TERM RENTAL HOMES (May 2016 )

ORDINANCE NO. 4315
BILL NO. 43 (2016)
Draft 1
A BILL FOR AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING
ORDINANCE RELATING TO SHORT-TERM RENTAL HOMES
BE IT ORDAINED BY THE PEOPLE OF THE COUNTY OF MAUI:
SECTION 1. The purpose of this ordinance is to amend the requirements
and procedures for permitting short-term rental homes pursuant to Section 16
of Ordinance 3941 (2012), which states: “Within two years from the effective
date of this ordinance, the department of planning shall review this chapter, and
shall transmit a report with comments, recommendations, and proposed
amendments, to the planning commissions for review and transmittal to the
Council.”
SECTION 2. Section 19.04.040, Maui County Code, is amended by
amending the definition of “short-term rental home” to read as follows:
“Short-term rental home” means a residential use in which
overnight accommodations are provided to guests for compensation,
for periods of less than one hundred eighty days, in no more than
two [detached] single-family dwelling units, or one single-family
dwelling unit and one accessory dwelling unit, excluding bed and
breakfast homes. Each short-term rental home shall include
bedrooms, one kitchen, and living areas. Each lot containing a
short-term rental home shall include no more than two Idetached] single-family dwelling units, or one single-family dwelling unit and
one accessory dwelling unit, used for short-term rental home use,
with no more than a total of six bedrooms for short-term rental home
use, as specified within the zoning district provisions of this title.”

SECTION 3. Section 19.12.020, Maui County Code, is amended to read
as follows:
“19.12.020 Permitted uses. Within the A-i and A-2
districts, the following uses [shall be] are permitted:
A. Any use permitted in the residential and duplex
districts.
B. Apartment houses.
C. Boarding houses, rooming houses, and lodging houses.
D. Bungalow courts.
E. Apartment courts.
F. Townhouses.
G. Transient vacation rentals in buildings and structures
having building permits, special management area use permits, or
planned development approval that were lawfully issued by and
valid on April 20, 1989. Buildings and structures with such permits
and approvals may be reconstructed, and transient vacation rental
use shall be permitted, provided that:
1. The reconstruction conforms to the original
building permit plans, special management area use permits,
or planned development approval: and
2. The reconstruction complies with the building
code and all other applicable laws in effect at the time of the
reconstruction.
H. Bed and breakfast homes, subject to the provisions of
chapter 19.64 of this title.
I. Short-term rental homes, subject to the provisions of
chapter 19.65 of this title.”

SECTION 4. Section i9.30A.050, Maui County Code, is amended to read
as follows:
“19.30A.050 Permitted uses. The following uses and
structures [shall be] are permitted in the agricultural district
provided they also comply with all other applicable laws:
A. Principal uses.
1. Agriculture.
2. Agricultural land conservation.
3. Agricultural parks, pursuant to chapter 171,
Hawaii Revised Statutes.
4. Animal and livestock raising, including animal
feed lots1 and sales yards.
5. Private agricultural parks as defined herein.
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6. Minor utility facilities as defined in section
19.04.040 of this title.
7. Retention, restoration, rehabilitation, or
improvement of buildings, sites, or cultural landscapes of
historical or archaeological significance.
8. Solar energy facilities, as defined in section
19.04.040 of this title, and subject to the restrictions of
chapter 205, Hawaii Revised Statutes, that are less than
fifteen acres, occupy no more than thirty-five percent of the
lot, and are compatible with existing agricultural uses; except
that land with soil classified by the land study bureau’s
detailed land classification as overall (master) productivity
rating class D or E need not be compatible with existing
agricultural uses.
B. Accessory uses. Uses that are incidental or subordinate
to, or customarily used in conjunction with, a permitted principal
use1 as follows:
1. Two farm dwellings per lot, one of which shall not
exceed one thousand square feet of developable area.
2. One farm labor dwelling per five acres of lot area.
On the island of Maui, the owner or lessee of the lot shall meet
two of the following three criteria:
a. Provide proof of at least $35,000 of gross
sales of agricultural product(s) per year, for the
preceding two consecutive years, for each farm labor
dwelling on the lot, as shown by State general excise tax
forms and federal form 1040 Schedule F filings.
b. Provide certification by the department of
water supply that agricultural water rates are being
paid if the subject lot is served by the County water
system.
c. Provide a farm plan that demonstrates the
feasibility of commercial agricultural production.
On the islands of Molokai and Lanai, the owner
or lessee of the lot shall meet both of the criteria
provided by subsections 19.30A.050(B)(2)(a) and
19 .30A.050(B)(2)(b).
3. A maximum of two commercial agricultural
structures per lot, subject to parking requirements of section
19.36A.010.
4. Storage, wholesale and distribution, including
barns; greenhouses; storage facilities for agricultural
supplies, products and irrigation water; farmer’s cooperatives;
and similar structures that are customarily associated with
one or more of the permitted principal uses or, for the purpose
of this section, are associated with agriculture in the County.
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5. Processing of agricultural products, the majority
of which are grown in the County; this includes the burning
of bagasse as part of an agricultural operation.
6. Energy systems, small-scale.
7. Small-scale animal-keeping.
8. Animal hospitals and animal board facilities; if
conducted on the island of Molokai, such uses shall have been
approved by the Molokai planning commission as conforming
to the intent of this chapter.
9. Riding academies; if conducted on the island of
Molokai, such uses shall have been approved by the Molokai
planning commission as conforming to the intent of this
chapter.
10. Open land recreation as follows: hiking;
noncommercial camping; fishing; hunting; equestrian
activities; rodeo arenas; arboretums; greenways; botanical
gardens; guided tours that are accessory to principal uses,
such as farm or plantation tours, petting zoos, and garden
tours; hang gliding; paragliding; mountain biking; and
accessory restroom facilities. If hiking, fishing, hunting,
equestrian activities, rodeo arenas, hang gliding, paragliding
or mountain biking are conducted for commercial purposes
on the island of Molokai, such uses shall have been approved
by the Molokai planning commission as conforming to the
intent of this chapter. Open land recreation uses or
structures not specifically permitted by this subsection or by
subsection [19.30A.060(H)] 19.30A.060(A)(7) shall be
prohibited; certain open land recreation uses or structures
may also be required to obtain a special permit pursuant to
chapter 205, Hawaii Revised Statutes.
11. Except on Molokai, bed and breakfast homes
permitted under chapter 19.64 of this title that are:
a. Operated in conjunction with a bona fide
agricultural operation that produced $35,000 of gross
sales of agricultural products for each of the preceding
two years, as shown by State general excise tax forms
and federal form 1040 Schedule F filings; or
b. In compliance with all of the following
criteria, provided that the bed and breakfast home is
not subject to a condominium property regime
pursuant to chapter 5 14A or chapter 5 14B, Hawaii
Revised Statutes:
i. The lot was created prior to
November 1, 2008.
ii. The lot is comprised of five acres or
less.
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iii. An approved farm plan has been fully
implemented and is consistent with chapter 205,
Hawaii Revised Statutes; or
c. Located in sites listed on the State of
Hawaii Historic Register or the National Register of
Historic Places.
12. Short-term rental homes permitted under
chapter 19.65 of this code, provided that an approved farm
plan has been fully implemented and is consistent with
chapter 205, Hawaii Revised Statutes.
I12.]i~ Parks for public use, not including golf
courses, and not including commercial uses~ except when
under the supervision of a government agency in charge of
parks and playgrounds.
[13.]1~ Family child care homes as defined in
section 46-15.35(b)~ Hawaii Revised Statutes, that are
registered pursuant to chapter 346, Hawaii Revised Statutes,
and located in a legally permitted farm dwelling.
[14.]15. Other uses that primarily support a
permitted principal use; however, such uses shall be approved
by the appropriate planning commission as conforming to the
intent of this chapter.”
SECTION 5. Section 19.30A.060, Maui County Code, is amended to read
as follows:
“19.30A.060 Special uses. A. The following uses and
structures [shall be] are permitted in the agricultural district if a
special use permit, [pursuant to] as provided in section 19.510.070
of this title~ [has been] is obtained; except that if a use described in
this section also requires a special permit [pursuant to] as provided
in chapter 205, Hawaii Revised Statutes, and if the land area of the
subject parcel is fifteen acres or less, the Istate] State special permit
shall fulfill the requirements of this section:
1. Additional farm dwellings beyond those permitted
by subsection 19.30A.050(B)(1).
2. Farm labor dwellings that do not meet the criteria
of subsection 19.30A.050(B)(2).
3. Commercial agricultural structures that do not
meet the standards and restrictions of this chapter.
4. Public and quasi-public institutions that are
necessary for agricultural practices.
5. Major utility facilities as defined in section
19.04.040 of this title.
6. Telecommunications and broadcasting antenna.
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7. Open land recreation uses, structures~ or
facilities [which] that do not meet the criteria of subsection
[19.30A.050(B)(1 1),] 19.30A.050(B)(10), including commercial
camping, gun or firing ranges, archery ranges, skeet shooting,
paint ball, bungee jumping, skateboarding, rollerbiading,
playing fields, and accessory buildings and structures.
Certain open land recreation uses or structures may also be
required to obtain a special permit [pursuant to chapter 205,] as provided in section 205-6, Hawaii Revised Statutes. The
following uses or structures [shall be] are prohibited: airports,
heliports, drive-in theaters, country clubs, drag strips, motor
sports facilities, golf courses, and golf driving ranges.
8. Cemeteries, crematories, and mausoleums.
9. Churches and religious institutions.
10. Mining and resource extraction.
11. Landfills.
12. Solar energy facilities that are greater than fifteen
acres.
[13. Short-term rental homes, subject to the provisions
of chapter 19.65 of this title; provided that, the applicant need
not obtain a County special use permit pursuant to section
19.5 10.070 of this title; and provided further that, if the
property containing the short-term rental home is located in
the State agricultural district, the applicant shall obtain a
State special use permit, pursuant to section 205-6, Hawaii
Revised Statutes, in addition to the short-term rental home
permit required by chapter 19.65 of this title.] B. Home businesses are permitted when a State special
permit, as provided in section 205-6, Hawaii Revised Statutes, is
obtained: provided that, the home business shall comply with the
provisions of chapter 19.67 of this title, and shall obtain a County
special use permit when required by chapter 19.67 of this title.”

SECTION 6. Chapter 19.65, Maui County Code, is amended to read as
follows:
“Chapter 19.65
SHORT-TERM RENTAL HOMES
Sections:
19.65.010 Purpose and intent.
19.65.020 Districts in which permitted.
19.65.030 Restrictions and standards.
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19.65.040 Advertising.
19.65.050 Procedures for application and public notice.
19.65.060 Permit processing.
19.65.070 [Compliance and revocation.] Duration, renewal,
and nonrenewal of permits and compliance with
permit conditions.
19.65.080 [Enforcement.] Revocation and enforcement.
19.65.090 Administrative rules.
19.65.010 Purpose and intent. The purpose of this chapter
is to establish a permitting process for short-term rental homes,
subject to appropriate restrictions and standards. It is the intent of
the council to implement land use policies consistent with the
County’s general plan and the State’s land use laws; to retain the
character of residential neighborhoods; to provide varied
accommodations and experiences for visitors; and to allow small
businesses to benefit from tourism.
19.65.020 Districts in which permitted. Short-term rental
homes [shall be] are permitted pursuant to the provisions
established in each zoning district and as provided in this chapter.
19.65.030 Restrictions and standards. Short-term rental
homes [shall be] are subject to the following restrictions and
standards:
A. The short-term rental home use [shall be] is permitted
in no more than two single-family dwelling units, or one singlefamily
dwelling unit and one accessory dwelling unit, per lot. No
more than one short-term rental home permit shall be approved for
any lot[.], except when lots are subject to a condominium property
regime pursuant to chapter 514A or 514B, Hawaii Revised Statutes,
the following shall apply:
1. If the applicant owns all condominium units on
the lot, only one permit may be granted for that lot.
2. If the applicant does not own all condominium
units on the lot, each condominium unit will be considered a
lot for purposes of this chapter and each unit owner will be
eligible to apply for a short-term rental home permit, except
that no owner may hold more than one short-term rental
home permit.
3. Irrespective of ownership, each condominium
unit shall be considered a separate lot for purposes of
notification and planning commission review thresholds
pursuant to subsection 19.65.060(A) (2).
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4. For the purposes of this chapter, any reference to
a short-term rental home property shall mean a property, lot,
or condominium unit.
B. Each permitted dwelling unit on a short-term rental
home property shall be rented to one group with a single rental
agreement, except:
1. On the island of Lanai; or
2. Any short-term rental home where the owner
resides on an adjacent lot.
C. The permit holder shall have a current transient
accommodations tax license and general excise tax license for the
short-term rental home.
D. The permit holder shall:
1. Hold a minimum of a fifty percent interest in the
legal title to the lot on which the short-term rental home is
located, except as provided in subsection G of this section[;
and].
2. Serve as manager of the short-term rental home;
provided that, the permit holder may designate:
a. An immediate adult family member of the
permit holder to serve as manager. Immediate family
includes a person’s parents, spouse or partner through
a civil union, children and their spouses, siblings,
stepparents, stepchildren, adopted children and their
spouses, and hanai children;
b. An individual with an active State of Hawaii
real estate license to serve as manager[;], except for
properties located in the Hana or Lanai community plan
areas, where an individual may act as a manager as
allowed by State law; or
c. An adult to serve as a temporary manager
for up to forty-five days in a twelve-month period.
3. The permit holder shall notify the department and
the immediate adjacent neighbors of:
a. Any designation of an individual as
manager pursuant to this section, including a
statement of the designated manager’s tenure,
residential and business addresses, and telephone
numbers[; and].
b. Any change in the manager’s addresses or
telephone numbers.
E. The manager of the short-term rental home shall:
1. Be accessible to guests, neighbors, and County
agencies. For purposes of this section, “accessible” means
being able to answer the telephone at all times, being able to
be physically present at the short-term rental home within one
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hour following a request by a guest, a neighbor, or a County
agency, and having an office or residence within thirty driving
miles.
2. Ensure compliance with state department of
health regulations, this chapter, permit conditions, and other
applicable laws and regulations[;].
3. Enforce the house policies[; and].
4. Collect all rental fees.
F. The short-term rental home shall only be rented when
the manager is accessible.
G. The short-term rental home permit [shall be] is issued
in the name of the applicant, who shall be a natural person or
persons [and hold] holding a minimum of a fifty percent interest in
the legal title [to] in the lot; except that, a permit may be issued for
a lot owned by a family trust, a corporation, a limited liability
partnership, or [an LLC] a limited liability company if the following
criteria are met:
1. The applicant [shall be] is a natural person or
persons who is [the] a trustee or who are trustees of the family
trust, or who represents fifty percent or more of the partner(s)
of a limited liability partnership, [a twenty-five] fifty percent or
more of the corporate [shareholder] shareholder(s) of a
corporation, or [a twenty-five] fjfty percent [member] or more
of the member(s) of [an LLC;] a limited liability company.
2. The limited liability partnership, corporation.1 or
[LLC shall not be] limited liability company is not publicly
traded[; and].
3. All of [a] the trustees, partners, corporation’s
shareholders [or all of the LLC’s] or limited liability company’s
members [shall be] are natural persons, and if there is more
than one trustee, partner, shareholder1 or member, they shall
be related by blood, adoption, marriage, or civil union.
H. An applicant may hold no more than one short-term
rental home permit, except when:
1. Additional permits are for short-term rental
homes that each have a County assessed market value of
$3,200,000 or higher at the time of each application[; and].
2. The permit holder [files] filed complete
applications for the short-term rental home permits within
one year of this chapter’s original effective date[.] of May 23,
2012.
I. A permit [shall not be] is not transferable; provided that,
a permit may be transferred upon the death of a permit holder to an
immediate family member as defined in [section] subsection
19.65.030(D)(2)(a).
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J. The applicant shall provide with the application, copies
of any applicable homeowner or condominium association bylaws or
rules and any other applicable private conditions, covenants, or
restrictions. The documents, if any, shall assist the department in
determining the character of the neighborhood.
K. The number of bedrooms used for short-term rental
home use on a short-term rental home lot shall be no greater than
six on Lanai and Maui, and no greater than three on Molokai. The
total number of guests staying in the short-term rental home at any
one time shall be no greater than two times the number of bedrooms.
L. Single-station smoke detectors shall be installed in all
guest bedrooms.
M. Single-family dwellings used as short-term rental
homes shall not qualify for real property tax exemptions permitted
pursuant to chapter 3.48 of this code.
N. Short-term rental homes shall conform to the character
of the existing neighborhood in which they are situated. Prior to
issuing a permit, the department or applicable planning commission
shall consider the following:
1. If a proposed short-term rental property is subject
to any homeowner, condominium association, or other private
conditions, covenants, or restrictions, then correspondence
from the association or other entity responsible for the
enforcement of the conditions, covenants1 or restrictions is
required. The correspondence shall include specific
conditions that determine whether or not the proposed shortterm
rental home use is allowed. The correspondence shall
be used to assist the department in determining the character
of the neighborhood. If no such association or entity exists,
this requirement shall not apply. The director and the
planning commissions shall not be bound by any private
conditions, covenants, or restrictions upon the subject parcel.
Any such limitations may be enforced against the property
owner through appropriate civil action.
2. Existing land-use entitlements and uses.
3. The applicable community plan.
4. Community input.
5. Potential adverse impacts, including excessive
noise, traffic, and garbage.
6. The number of permitted short-term rental
homes surrounding the proposed short-term rental home
property and their distance to the property.
7. The number and substance of protests to the
short-term rental home application and protests related to the
cumulative short-term rental homes in the neighborhood or
area.
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8. Existing or past complaints about rental
operations on the property.
9. Existing or past noncompliance with government
requirements and the degree of cooperation by the applicant
to become compliant.
0. Short-term rental homes shall be limited to singlefamily
[structures] dwelling units and accessory dwelling units
existing and constructed at least five years prior to the date of
application for the short-term rental home permit.
P. A two-square-foot sign shall be displayed along the
main access road of the short-term rental home identifying the valid
short-term rental home permit, a twenty-four hour telephone
number for the owner or the manager, and a telephone number for
the department. The signs shall not be subject to the provisions of
chapter 16.13 of this code.
Q. The permit holder or manager shall prominently display
“house policies” within the dwelling. The house policies shall be
included in the rental agreement, which shall be signed by each
registered adult guest. At a minimum, the house policies shall
include:
1. Quiet hours from 9:00 p.m. to 8:00 a.m., during
which time the noise from the short-term rental home shall
not unreasonably disturb adjacent neighbors. Sound that is
audible beyond the property boundaries during non-quiet
hours shall not be more excessive than would be otherwise
associated with a residential area.
2. Amplified sound that is audible beyond the
property boundaries of the short-term rental home is
prohibited.
3. Vehicles shall be parked in the designated onsite
parking area and shall not be parked on the street.
4. No parties or group gatherings other than
registered guests shall occur.
R. The County shall be restricted in approving the number
of permits for short-term rental homes as distributed per the
following community plan areas and as further restricted by the
applicable community plan:
1. Hana: [48.]3~
2. Kihei-Makena: 100; provided that, there are no
more than five permitted short-term rental homes in the
subdivision commonly known as Maui Meadows.
3. Makawao-Pukalani-Kula: 40.
4. Paia-Haiku: 88.
5. Wailuku-Kahului: 36.
6. West Maui: 88.
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The council shall review the community plan short-term
rental home restrictions when the number of approved short-term
rental homes exceeds ninety percent of the restriction number.
Short-term rental homes operating with a conditional permit
pursuant to chapter 19.40 of this title that meet the criteria of this
section shall be included in the number of short-term rental homes
permitted pursuant to this subsection.
S. Prior to issuing a permit, the director or planning
commission may impose conditions for a short-term rental home if
the conditions are reasonably designed to mitigate adverse impacts
to the neighborhood.
T. Any dwelling unit developed pursuant to chapter 201H,
Hawaii Revised Statutes, or chapter 2.96 of this code, shall not be
used as a short-term rental home.
19.65.040 Advertising. A. All advertising for a short-term
rental home shall include the valid permit number issued to the
permit holder.
B. Reservation websites shall include the short-term rental
home house policies or a working link to the short-term rental home
house policies.
19.65.050 Procedures for application and public notice.
A. Applicants shall submit an application for a short-term rental
home permit to the department in accordance with the provisions of
this chapter. Permit application fees and permit renewal fees shall
be set forth in the annual budget. [All permit] Permit applications
shall include all of the following information:
1. The name, address, and telephone number of the
applicant[;].
2. Verification of property ownership, and
signatures of all owners of the property unless waived by the
director in cases where the requirement is unduly
burdensome[;].
3. The tax map key number of the lot on which the
proposed short-term rental home is situated[;].
4. Proof of compliance with section 19.65.0301;].
5. A site and floor plan identifying the location of
parking and bedrooms [to be used] for short-term rental home
use[;].
6. A list of the names and addresses of the owners
and lessees of record, within a [five hundred foot] five
hundred-foot radius of the lot of the proposed short-term
rental home[;].
7. A planning department short-term rental home
inspection report that states the structures proposed for
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short-term rental home use meet the minimum health and
safety standards established by the department, or a
miscellaneous inspection report issued by the department of
public works. The planning department report is to be
completed and signed by a home inspector certified by the
American Society of Home Inspectors.
8. A certification form signed by the owner of the
property attesting to the following:
a. No part of the property has been used for
any rentals of less than one hundred eighty days at a
time, with or without the owner’s permission, since
January 1, 2013; or, if any part of the property has been
used for any rentals of less than one hundred eighty
days since January 1, 2013, the owner shall:
(1) Identify the periods the property was
rented for less than one hundred eighty days.
(2) Provide proof that the owner paid
applicable general excise taxes and transient
accommodations taxes for the periods the
property was rented for less than one hundred
eighty days.
(3) Provide a State tax clearance
showing all applicable State taxes have been paid.
(4) Pay an after-the-fact permit fee to the
County in an amount as set forth in the annual
budget ordinance.
b. The owner has not previously advertised, or
has ceased advertising, for the short-term rental home
that is the subject of the application, and will not begin,
or resume, any advertising until a permit is approved.
c. The owner either has no financial interest
in any property within the county associated with a
short-term rental home permit; or, if the owner has a
financial interest in a property that is subject to a shortterm
rental home permit, the nature of the financial
interest and the property address.
d. The owner has paid, or will pay, all fines
that have been assessed as a result of a notice of
violation previously issued to the owner for unpermitted
short-term rental use or activity, prior to the processing
of the short-term rental home permit application.
e. All statements made by the owner on the
certification form and provided during the short-term
rental home permit application process are correct to
the best of the owner’s knowledge.
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f. The owner acknowledges that any false
information or misrepresentations made in the
application or during the application process shall
result in an enforcement action pursuant to section
19.530.030 of this title, the denial or revocation of the
permit, and a prohibition against the current property
owner applying for a short-term rental home permit for
the property for a period of two years after the date of
denial or revocation of the permit.
[8.] ~ Additional information as may be requested by
the director.
B. All applicants shall send, by certified mail, written
notice of the application for a short-term rental home permit to the
owners and lessees of record located within a [five hundred foot] fivehundred-
foot radius of the lot of the proposed short-term rental
home. The written notice shall [contain:] include all of the following:
1. A description of the proposed short-term rental
home operation[;].
2. The location of proposed on-site parking[;].
3. The total number of bedrooms proposed for shortterm
rental home use[;].
4. A map identifying the short-term rental home lot
in relation to all other lots within a [five hundred foot] fivehundred-
foot radius[; and].
5. A provision that the owners and lessees of record
within [five hundred feet] a five-hundred-foot radius of the
proposed short-term rental home may file a written protest
with the director via fax, email, or letter; provided that, all
protests must be postmarked within forty-five days of the
mailing of the notice of application.
C. [At least five days prior to submitting an application for
a short-term rental home, the applicant shall display a four-squarefoot
sign along the main access road of the proposed short-term
rental home. The sign shall contain wording prescribed by the
department to notify interested parties of the proposed short-term
rental use on the property. The applicant shall remove the sign no
later than five days after a final decision on the application.] No more
than ten days prior to mailing the notice of application, a four
square-foot project notice sign shall be posted at the front of the
property along the main access road. The sign shall be clearly visible
from the roadway and shall contain information and wording as
prescribed by the department. The sign shall be removed after forty
five days from the mailing of the notice of application. The sign [shall
not be] is not subject to the provisions of chapter 16.13 of this code.
D. If planning commission review is required pursuant to
subsection 19.65.060(A)(2), the [application shall be subject to the
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requirements of section 19.5 10.020 of this title.] processing
requirements shall be as follows:
1. The director shall set the application for public
hearing on the agenda of the planning commission.
2. The director shall notify the applicant and the
appropriate State and County agencies of the date of the
public hearing not less than forty-five calendar days prior to
the public hearing.
3. The director shall publish the notice of the date,
time, place, and subject matter of the public hearing once in
a newspaper printed and issued at least twice weekly and
generally circulated throughout the County, at least thirty
calendar days prior to the public hearing.
4. The applicant shall provide notice of the public
hearing date on the application to the owners and lessees of
record located within a five-hundred-foot radius from the
parcel identified in the application by complying with the
following procedures:
a. Mailing, by certified mail, a notice of the
date of the public hearing of the application in a form
prescribed by the director to each of the owners and
lessees not less than thirty calendar days prior to the
public hearing.
b. Submitting each of the receipts for the
certified mail to the director not less than ten business
days prior to the public hearing.
E. For purposes of this chapter, notice shall be considered
valid if the director finds that the applicant has made a good faith
effort to comply with the requirements of this section.
F. If an application does not meet the requirements of this
chapter, it shall be denied.
19.65.060 Permit processing. A. The short-term rental
home permit process shall be as follows:
1. The applicant for a short-term rental home permit
shall [file] submit an application [with the director] to the
department as provided in section 19.65.050.
2. The director shall approve or deny the application
pursuant to the requirements of this chapter; provided that,
the applicable planning commission shall approve or deny the
permit pursuant to the requirements of this chapter when any
of the following occur:
a. The director receives two or more written
protests from the owners or lessees of record of two or
more lots adjacent to or directly across the street from
[a] the driveway access area for the proposed short-term
– 15 –
rental home[;]. Roadway lots and road widening lots
abutting the access street shall not be considered lots
for purposes of this section.
b. Thirty percent or more of the owners and
lessees of record within [five hundred feet] a fivehundred-
foot radius of the proposed short-term rental
home lot submit written protests to the director when
there are less than forty lots within [five hundred feet] a
five-hundred-foot radius of the proposed short-term
rental home lot[;].
c. Fifteen percent or more of the owners and
lessees of record within [five hundred feet] a fivehundred-
foot radius of the proposed short-term rental
home lot submit written protests to the director when
there are forty or more lots within [five hundred feet] a
five-hundred-foot radius of the proposed short-term
rental home lot[;].
d. A variance is obtained to meet the
requirements for a short-term rental home[;].
e. [An] Two or more existing short-term rental
[home is] homes are operating within [five hundred feet] a five-hundred-foot radius of the proposed short-term
rental home lot[, except that applications for short-term
rental homes submitted prior to December 31, 2012
shall not be reviewed by the planning commission based
on this subsection; or].
f. [The proposed short-term rental home is
located within the Hana community plan area, and the
number of bedrooms proposed for short-term rental
home use is greater than three.] An owner of the lot for
which a short-term rental home permit application has
been submitted or a trustee, partner, corporate
shareholder, or limited liability company member of the
entity which holds title to the lot is also an owner,
trustee, partner, corporate shareholder, or limited
liability company member of an entity which holds title
to or an ownership interest in a lot with a short-term
rental home permit.
[3. The department or appropriate planning
commission may consider, but is not limited to, the following
factors in reviewing, and approving or denying, an application:
a. The number and distance from the subject
parcel to other permitted short-term rental homes;
b. The number and substance of protests for
the short-term rental home application and protests
– 16 –
related to the cumulative short-term homes in the larger
neighborhood or area;
c. Existing or past complaints about rental
operations on the property;
d. Existing or past noncompliance with
government requirements and the degree of cooperation
by the applicant to come into compliance; and
e. Correspondence received by the
department pursuant to section 19.65.030(N) (1).] B. The director may transmit applications for public
hearing by the appropriate planning commission in accordance with
complaints received or some other substantive reason.
C. For short-term rental homes [that are] operating under
existing conditional permits that meet the criteria set forth in section
19.65.030, those operations shall be given the option of changing
existing permits to short-term rental home permits, subject to
section 19.65.070(B), and upon expiration, such permits may be
extended for periods of up to five years on Lanai and Maui and up
to one year on Molokai, or may continue to operate under existing
conditional permit requirements and time extension procedures.
D. In addition to any enforcement action pursuant to
section 19.530.030 of this title, the rules of the appropriate planning
commission, and the rules of the department, the permit for the
short-term rental home shall be denied and the owner-applicant
may not re-apply for another permit for two years after the date of
denial if it is shown that the [owner/applicant] owner-applicant
provided false or misleading information during the application
process.
E. In the department’s annual report, the director shall
specify the number of short-term rental home permit applications
received and approved.
F. [The department may issue a temporary short-term
rental home permit for up to one hundred eighty days if the
application meets the following criteria:
1. The application contains all submittals required
under section 19.65.050(A), and is deemed a complete
application by the department prior to January 1, 2013;
2. The applicant obtains a state land use
commission special permit, pursuant to Hawaii Revised
Statutes section 205-6, prior to the director granting a
temporary permit if the subject property is located in the State
agricultural district; –
3. The applicant provides notice of the application
pursuant to section 19.65.050(B) and complies with the
signage requirements of section 19.65.050(C). The director
may issue a temporary permit only after the forty-five day
– 17 –
period for the filing of any protests in section 19.65.050(B)(5)
has expired, and the director verifies that:
a. The director has not received two or more
written protests from the owners or lessees of record of
two or more lots adjacent to or directly across the street
from a proposed short-term rental home;
b. Thirty percent or more of the owners and
lessees of record within five hundred feet of the
proposed short-term rental home lot have not
submitted written protests to the director when there
are less than forty properties within five hundred feet of
the proposed short-term rental home lot; and
c. Fifteen percent or more of the owners and
lessees of record within five hundred feet of the
proposed short-term rental home lot have not
submitted written protests to the director when there
are forty or more properties within five hundred feet of
the proposed short-term rental home lot.
4. The applicant shall include the temporary permit
number in all advertising for the short-term rental home.
Failure to do so shall constitute a violation of this title.
G. The department may extend the temporary permit for
up to an additional one hundred eighty days, but in no event shall
a temporary permit be issued for a period totaling more than three
hundred sixty days. All short-term rental home use shall cease
upon the expiration of the temporary permit if a short-term rental
home permit has not been issued.
H. Any temporary permit shall terminate and all shortterm
rental use shall cease immediately if:
1. The director determines that the applicant has
not provided requested information to the department in a
timely manner, or provides false or misleading information; or
2. The short-term rental home permit application is
denied.
I. Any temporary permit issued pursuant to this section
shall not bestow any vested rights upon the permit holder and such
a permit will be terminated if any of the above events occur. As a
condition to granting the temporary permit, the department shall
require the applicant to sign an application form stating, at a
minimum, that:
1. The applicant understands that a temporary
permit is to be granted solely at the discretion of the
department;
2. The applicant may choose not to request a
temporary permit and instead cease all short-term rental
home use pending final disposition of the application;
– 18 –
3. The granting of a temporary permit does not
bestow any vested rights upon the applicant and such permit
will be terminated if any of the events listed in subsection
19.65.060(F)(3) occur; and
4. The applicant agrees to waive any and all claims
against the County arising out of, or relating to, any
temporary permit, including but not limited to, permit
issuance, denial or revocation, and shall defend, indemnify
and hold the County harmless against and from any and all
suits, claims, damages, judgments, costs and expense,
including reasonable attorneys fees, arising out of, or relating
to, any temporary permit, including, but not limited to, permit
issuance, denial or revocation.] Substantive amendments to a
permit, including but not limited to an increase in the number
of bedrooms or dwellings used for short-term rental home
purposes or the addition of a new dwelling to the permit, shall
be processed in the same manner as the initial application.
19.65.070 [Compliance and revocation.] Duration,
renewal, and nonrenewal of permits and compliance with permit
conditions. A. Initial short-term rental home permits [shall be] are
valid for a maximum period of [one year with an extension of two
years if there are no recorded complaints; shorter extension periods
may be required by the director to mitigate adverse impacts based
on the department’s investigation of recorded complaints.] three
years, except that shorter periods may be approved to mitigate
impacts.
B. [Subsequent permit] Permit renewal applications shall
be submitted to the department within ninety days prior to the
permit expiration date. Permit renewals may be granted by the
director for terms of up to five years on Lanai and Maui and up to
one year on Molokai. In reviewing a renewal application, the director
shall require evidence of compliance with conditions of the shortterm
rental home permit and this chapter.
[Verification of appropriate State and County tax filings shall
be submitted by June 30 of each year for the prior calendar year.] No permit shall be renewed without written verification of
appropriate State and County tax filings. [No permit shall be
renewed if the operation of the short-term rental home has created
adverse impacts or has caused the loss of the character to the
neighborhood in which it is situated.] C. [All permits shall require compliance inspections by the
department at reasonable times and upon presentation of
appropriate credentials.] Compliance inspections may be conducted
prior to granting a permit renewal or during the permit period.
Permit holders shall allow compliance inspections to be conducted
– 19 –
within one hour of notice. Refusal to allow access within one hour
may result in permit revocation.
D. Upon approval of the permit, the permit holder shall
send [a copy of the permit approval letter containing the conditions
of approval,] the permit number, a copy of the short-term Irental’s] rental home’s house rules, twenty-four hour contact information for
the manager, and the department’s contact information to the
owners and lessees of abutting properties land their adjacent
properties] and properties directly across the street from the shortterm
rental home. Proof of mailing shall be submitted to the
department within thirty days of the permit approval.
E. The permit holder shall send by certified mail
notification of any change to contact information for the manager to
the department, the owners or lessees of abutting properties [and
their adjacent properties] and those directly across the street from
the short-term rental home. Such notification shall be sent prior to,
or immediately after, the change in contact information occurs.
Proof of mailing shall be submitted to the department within thirty
days of the mailing.
F. [Revocation] Nonrenewal procedures.
1. [The short-term rental home permit shall be
revoked, pursuant to section 19.530.030 of this title, the rules
of the appropriate planning commission if the permit was
issued by the planning commission, and the rules of the
department,] The director may decline to renew the permit if
the director finds[:] any of the following:
a. The permit holder provided false or
misleading information during the application
process[;].
[b. The permit holder is in violation of state
department of health regulations, this chapter, the
permit conditions, or any other applicable laws or
regulations; or
c.] ii The permit holder is delinquent in payment
of State or County taxes, fines, or penalties assessed in
relation to the short-term rental home.
[2. If the department receives at least three
complaints about a short-time rental home within a twelvemonth
period, and the director’s investigation of the
complaints is inconclusive, the director shall refer the
complaints to the applicable planning commission for a
determination of whether the permit shall be revoked.
Complaints must be from property owners or lessees of record
located on two or more different lots within a five hundred
foot radius of the proposed short-term rental home. The
– 20 –
planning commission may consider any of the following
during its investigation of the complaints:
a.] c. Evidence of non-responsive management[;].
[b.] d. Police reports of noise or other
disturbances on the property[;].
[c.] e. Warnings or violations resulting from
requests for servicef; and].
[d.] L Neighbor complaints of noise and other
disturbances relating to the short-term rental home
operations[.]; provided that the department has received
at least three complaints about the short-term rental
home within a twelve-month period. Complaints must
be from property owners or lessees of record located on
two or more different lots within a five-hundred-foot
radius of the short-term rental home.
g. Noncompliance with permit conditions.
h. Noncompliance with this chapter.
i. Noncompliance with other governmental
requirements.
2. If the permit is not renewed by the director, the
department shall not accept a new application for a shortterm
rental home permit from the permit holder for two years
after the date of the previous permit’s expiration.
[3. If the permit is revoked, the department shall not
accept a new application for a short-term rental home permit
from the permit holder for two years after the date of
revocation.] G. No later than January 15 of each calendar year, the
department shall transmit to the real property tax division of the
department of finance, and the state department of taxation, an
annual list of all short-term rental homes as of January 1 of that
calendar year. The real property tax division shall regularly review
its records and determine that no short-term rental home has an
exemption pursuant to chapter 3.48 of this code.
19.65.080 [Enforcement.] Revocation and enforcement.
A. Revocation procedures.
1. The permit may be revoked if the director finds
any of the following:
a. The permit holder provided false or
misleading information during the application process.
b. The permit holder is delinquent in payment
of State or County taxes, fines, or penalties assessed in
relation to the short-term rental home.
c. Evidence of non-responsive management.
-21 –
d. Police reports of noise or other
disturbances on the property.
e. Warnings or violations resulting from
requests for service.
f. Neighbor complaints of noise and other
disturbances relating to the short-term rental home
operations: provided that the department has received
at least three complaints about the short-term rental
home within a twelve-month period. Complaints must
be from property owners or lessees of record located on
two or more different lots within a five-hundred-foot
radius of the short-term rental home.
g. Noncompliance with permit conditions.
h. Noncompliance with this chapter.
i. Noncompliance with other governmental
requirements.
2. If the permit is revoked, the department shall not
accept a new application for a short-term rental home permit
from the permit holder for two years after the date of
revocation.
B. Advertising that offers a property as a short-term rental
home shall constitute prima facie evidence of the operation of a
short-term rental home on the property and the burden of proof
shall be on the owner, operator, or lessee of record to establish that
the subject property is being used as a legal short-term rental home
or is not in operation[.1 as a short-term rental home.
lB.] C Any communication by a property owner,
operator, or lessee to any person where the owner, operator, or
lessee offers their home for rent as a short-term rental home on the
property shall constitute prima facie evidence of the operation of a
short-term rental home on the property and the burden of proof
shall be on the owner, operator, or lessee [of record] to establish that
the subject property is being used as a legal short-term rental home
or is not in operation[.] as a short-term rental home.
[C.] D. Advertising for a short-term rental home without
a valid permit number is prohibited and constitutes a violation of
this title and may result in enforcement action pursuant to section
19.530.030 of this title; provided that:
1. The alleged violator and the property owner shall
be notified that all advertising without a valid permit number
shall be terminated within seven days of the notice[; and].
2. Enforcement action, including fines, may
commence pursuant to section 19.530.030 of this title if
advertising without a valid ~permit number continues after
such warning.
– 22 –
[D.1 E. Operating a short-term rental home without a
valid permit is prohibited. Evidence of operation may include:
advertising, guest testimony, online reviews, rental agreements,
receipts, or any other information deemed relevant by the
department. Operating without a permit shall result in a property
owner being ineligible to apply for a permit for five years[.], except
that:
1. An ineligible applicant may apply for a short-term
rental home permit and the permit application may be
processed provided that at the time of the application, the
ineligible applicant has:
a. Provided proof that prior to enactment of
the ordinance that created this exception and during
the entire period that the applicant has been operating
without a permit, the applicant has had valid general
excise tax and transient accommodations tax licenses,
and has paid all applicable general excise taxes and
transient accommodations taxes due and owing.
b. Agreed to pay and has paid in full real
property taxes at the rate applicable to short-term
rental home properties and has claimed no
homeowner’s exemption for the tax years in which the
applicant has been operating without a permit.
c. Ceased, and does not resume prior to
issuance of a permit, any and all advertising and
operations of the short-term rental home that is the
subject of the application as of the date of the
application.
d. Paid, in addition to any other applicable
permit fees, an after-the-fact short-term rental home
application fee as set forth in the annual budget
ordinance.
e. Paid any outstanding fees or fines for
violations on the property including, but not limited to,
initial and unwaived daily fines for unpermitted shortterm
rental home operation; after-the-fact zoning,
special management area, or building permit fees;
department of public works or department of planning
application fees; or other fees, dues, or fines imposed by
the State or County.
2. This exception to the five-year ineligible status for
owners operating without a permit shall apply from July 1,
2016 to December 31, 2016.
[E.] R The department shall notify the [county] department of finance, real property tax division~ of violations of this
chapter.
23 –
[F.] G The department shall file a report with the [state] State department of taxation for properties with violations of this
chapter.
[G.] H. Sixty days from the effective date of this
ordinance, and each year thereafter, the department shall provide
to the state department of taxation and the [county] department of
finance, real property tax division, a current list of:
1. Unpermitted operations with internet
advertisements for short-term rental homes; and
2. Unpermitted short-term rental home operations
identified by a department request for service form.
[The department shall notify listed operations of the need for
a short-term rental home permit, and information on how to obtain
one. Upon submitting an application, applicants with operations
listed by the department shall submit evidence of general excise tax
and transient accommodation tax payments for the prior year. If
the applicant does not live on the property, the applicant shall also
submit documentation showing that the applicant did not receive a
home exemption pursuant to section 3.48.450 of this code, and did
not receive a circuit breaker credit pursuant to section 3.48.780 of
this code for the short-term rental home during the previous tax year
when the short-term operation was in place.] 19.65.090 Administrative rules. The director may adopt
administrative rules to implement the provisions of this chapter.”
SECTION 7. Material to be repealed is bracketed. New material is
underscored. In printing this bill, the County Clerk need not include the
brackets, the bracketed material, or the underscoring.
SECTION 8. This ordinance shall take effect upon its approval.
APPROVED AS TO FORM AND LEGALITY:
Department of the Corporation Counsel
County of Maui
paf: 16-062c:gjg
– 24 –
WE. HEREBY CERTIFY that the foregoing BILL NO. 43 (2016), Draft 1
I. Passed FINAL READING at the meeting of the Council of the County of Maui, State of Hawaii, held on the
20th day of May, 2016, by the following vote:
Michael B. Donald S. Gladys C. Robert Eleanora Donald G. S. Stacy G. Riki Michael P.
WHITE GUZMAN BAlSA CARROLL COCHRAN COUCH, JR. CRIVELLO HOKAMA VICTORINO
Chair Vice-Chair
Aye Aye Aye Aye Aye Aye Aye Aye Aye
2. Was transmitted to the Mayor of the County of Maui, State of Hawaii, on the 23rd day of May, 2016.
DATED AT WAILUKU, MAUI, HAWAII, this 23rd day of May, 2016.
THE FOREGOING BILL IS HEREBY APPROVED THIS
ALAN M. ARAKAWA, MAYOR
County of Maui
I HEREBY CERTIFY that upon approval of the foregoing BILL the Mayor of the County of Maui, the said BILL
was designated as ORDINANCE NO. 4315 o the County of Ma i, State of Hawaii.
~ATEO, COUNTY CLERK
Co tyofMaui
Passed First Rea~g on April 15, 2016
Fftecttve ~iate of~~idinance May 23, 2016
I HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance
No. 4315 , the original of which is on file in the Office of the County
Clerk, County of Maui, State of Hawaii.
Dated at Wailuku, Hawaii, on
DENNIS A.
~23 DAYOF 2016.
County Clerk, County of Maui