Policy Committee on Planning, Land Use, and Economic Development Meeting - September 1, 2026

The Policy Committee on Planning, Land Use, and Economic Development of the Hawai‘i County Council met on September 1, 2026, starting at 2:51 PM and adjourning at 4:19 PM. The primary agenda item was Bill 147, which proposes amendments to Chapters 2 and 25 of the Hawai‘i County Code to establish operational standards and use regulations for transient vacation rentals, including hosted bed and breakfasts (B&Bs) and unhosted short-term vacation rentals (STVRs). The committee heard public testimony, deliberated, and voted to postpone the bill to the September 15, 2026, committee meeting.

Public Comments & Testimony

• John Pellateer (Kona CDP Action Committee) supported removing STVRs from RM (multifamily residential) and CN (neighborhood commercial) zoning, citing the need to preserve housing for residents and align with recommendations from the Windward and Leeward Planning Commissions and the Office of Hawaiian Affairs.
• Joy Dillon (Hilo resident) opposed Bill 147, arguing that the term “bed and breakfast” creates confusion for mortgages, insurance, and HOA regulations, and that proposed penalties are punitive.
• Richard Henderson (individual resident) expressed concerns about the bill’s impact on legally established RM visitor use projects, reliance on General Plan resort nodes, CN zoning eligibility, and the definition of hosted rentals, recommending amendments to preserve existing uses.
• Mary Begier (individual citizen) urged the committee to leave the existing bed and breakfast rules unchanged.
• Caitlin Miller (Executive Director, Hawaii Mid and Short-Term Rental Alliance) thanked the committee for amendments but requested further refinement of definitions (e.g., B&B, host, hosted TVR) and urged careful review of practical impacts before moving forward.
• Sherry Rockwood (Wycloa Village resident) asked the committee to distinguish between owner-occupied hosted rentals and investor-owned vacation rentals, noting that her property taxes increased from $1,900 to $9,000 after renting part of her home, and urged protection for resident hosts.
• Madeline Ross (North Kohala farmer and Airbnb co-host) opposed the bill, stating that it would prohibit existing hosted rentals with more than five bedrooms without a grandfather clause, and that the council’s own economic impact study found only 4% of owners would convert to long-term housing. She requested a grandfather clause and definition of “hosted” as living on the same TMK.
• Jesse Rubendahl (North Kohala property manager and farmer) opposed the bill, emphasizing that the five-bedroom cap would eliminate his family’s affordable housing provided by the rental, and requested a grandfather clause for existing operators.
• Martina Wing (Big Island resident, 25+ years) opposed Bill 147, calling the permitting process “cumbersome and confusing,” and argued that the bill adds bureaucratic burdens on small operators, especially after Hurricane Lala.
• Anna Ruth Piffer (North Kohala hosted rental owner) opposed the five-bedroom rule, stating that her seven-bedroom property supports numerous local jobs and that a reduction to five bedrooms would cut revenue by 40%, harming the local economy and tax revenue. She recommended increasing the cap to 10 for existing compliant properties.
• John Moss (Waikaloa vacation rental operator, 16 years) opposed the bill, citing cumulative tax increases that have made Hawaii too expensive for visitors, leading to a decline in bookings.
• Julie Eliason (Kohala Ranch resident) opposed the bill, expressing concerns about the cost and complexity of obtaining a special use permit, excessive fines, and lack of clarity on midterm rentals (31-179 days). She requested lower fines and clear guidance.
• Linda Halbriter (North Kohala resident, 79 years old) opposed the bill, stating that the new rules would be a “huge burden” on her as a kapuna, and that the permit process is overwhelming. She asked that existing legal operators be guaranteed permits.
• Jamie Humphrey (North Kohala single mom and cleaner) opposed the bill, stating that her cleaning jobs for five Airbnb owners with more than five bedrooms provide flexible work and that shutting down these rentals would harm local families. She noted that the homes would not become affordable long-term housing.
• Gina Gugliamelli was called but did not testify.

Discussion Items

• Councilmember Heather Kimball, the bill’s sponsor, introduced a motion to approve Bill 147 and forward it to the full council with a favorable recommendation. She described the bill as a “housekeeping” measure that clarifies existing policies, aligns with state law, and removes administrative burdens for hosted rentals by eliminating the need for use permits in state land use urban and rural areas. She noted that the five-bedroom cap aligns with existing zoning and building code requirements for lodges or hotels.
• Councilmember James Hustace raised questions about terminology (TVR vs. hosted/unhosted vs. B&B), the definition of midterm rentals (31-179 days), and the burden of proof in enforcement, suggesting that the fine schedule may lack a clear rebuttal process.
• Planning Director Jeffrey Darrow explained that the bill is the result of eight years of work and aims to bring existing hosted rentals into compliance without requiring land use permits, in coordination with the new registration system (Chapter 6) that launched on September 1, 2026. He noted that the fines were based on other counties’ rates.
• Councilmember Jenn Kagiwada asked about outreach to the public and the impact on property loans. Councilmember Kimball noted a webinar and website (HawaiiCountyTVR.com) with FAQs, and Darrow stated that the administration has been asked to do a public media announcement.
• Councilmember Matt Kāneali‘i-Kleinfelder expressed concerns about the density implications of allowing multiple units on pre-1976 lots, including impacts on infrastructure (roads, water, sewer). He noted that while the bill is about housekeeping, it could lead to significant density increases. Councilmember Kimball responded that the bill does not increase density and that Bill 123 already limits STVRs to one per building site when an ADU is present.
• Councilmember Ashley Kierkiewicz (Chair) proposed postponing the bill to allow fresh minds and further public input, noting the complexity and the late hour. Councilmember Kimball made a motion to postpone to September 15, 2026, which was seconded by Councilmember Inaba.

Key Outcomes

• Motion to postpone Bill 147 to the September 15, 2026, committee meeting was passed unanimously (9-0). The bill was not approved or forwarded to the full council. The committee will consider the bill and four proposed amendments (clerical, midterm rentals, CN zoning, RM zoning) at the next meeting.