Maui Will Open to Visitors October 15

Thank you to everyone who took the time to express to Governor Ige, Lt. Gov. Josh Green and Mayor Victorino that they did not want mandatory secondary testing. As it stands right now the State is moving forward with their Pre-test trans-pacific travel program and they are not requiring second tests. You can see the Governor's press conference here:  facebook.com/GovernorDavidIge/videos/265766994642511   Governor Ige said he remained committed to finding a safe and healthy way to bring back trans-pacific travelers. The state recommends going to the website HawaiiCOVID19.COM for more information

At the press conference John DeFries, President & CEO, Hawai‘i Tourism Authority shed some light on what the new face of the visitor industry looks like.

“ We have a whole new echelon of responsibility with our jobs,” says DeFries. It has to do with hygiene, sanitation, sterilization at standards that heretofore were reserved for clinics and hospitals. All in the name of keeping co-workers safe, work environments safe. All that so we can prepare to receive visitors who in turn must exhibit a level of responsibility and sensitivity toward our people as they come here and enjoy their vacation in the islands.”

Hawaii Tourism Authority recommends going to GOHawaii.Com and checking out the new standards there and other travel resources for your business and informing your guests.

Yesterday evening Managing Director Sandy Baz announced County of Maui is committed to the pre travel testing program and opening on Oct. 15. He also informed us travelers awaiting their pre-travel test results (if their results were not available at time of arrival) must quarantine at their place of lodging when they arrive. Approved pre-test quarantine hosts are hotel, motel, bed and breakfast, condo or legal transient vacation rentals. You can watch Maui County’s announcements here: https://www.facebook.com/watch/?v=258519562164465.

You can see the County statement in writing here: Press Release_County of Maui moving forward with Pre-Travel Testing Program_10.7.20.pdf

You can require your guests to show their test results. You cannot request this information from the partner testing facilities, we can ONLY ask guests for their Covid test results. Homeowners are responsible for the guest quarantining if they don’t receive negative test results, or become sick while here. Our standing within our communities rely upon our vigilance and responsibility in this area. 

Note, In a meeting with the administration, they informed us that arriving guests should have your permit number (if there is one associated with your rental) because they will be checking that information at the arrival gates. If you can send it with reservation confirmation information that would be great. This will ensure a smoother entry and quicker transaction as every passengers credentials are reviewed upon arrival to Maui.

Another thing that the County is requesting is to inform your arriving guests of our own safety mandates here like wearing a mask, washing your hands and watching your distance, please remain 6 feet apart, in addition to Maui's limit of groups of 10 or less in public spaces.

The County is requesting from the State that resident’s travel within County of Maui be approved to opened up with no quarantine restrictions, and for interisland travel to reopen with a pre-travel testing program equivalent toTrans Pacific travel. 

Current travel and testing partners with the state include include: AFC Urgent Care, Carbon Health, CityHealth Urgent Care, Color, CVS Health, Hawaiian Airlines, Kaiser Permanente, Quest Diagnostics, Southwest Airlines, United Airlines, Vault Health and Walgreens and Alaska Airlines is in the final phase of getting approved.

Update on the Molokai Case

Our attorneys at Revere and Associate have filed the opposition to the County of Maui's motion to dismiss.

You can read the opposition document here.

The hearing before Judge Jill Otake is scheduled for November 13, 2020.

MVRA Letter to Gov Ige

I am sharing MVRA's letter that we set to Governor Ige last week. Feel free to utilize any of our suggestions or data in your letters to the Governor and Lt. Gov as well.

A Message from RBOAA

Rental By Owner Awareness Association (RBOAA) has sent over an urgent Call to Action that we would like to support. RBOAA is an unrelated organization, but we work closely together and share similar goals. Here is the the gist of the message:

As most of you hopefully know, Governor Ige on September 16 cautiously reopened tourism starting October 15 when pre-travel testing will allow visitors to bypass the mandatory 14 day quarantine upon arrival in Hawaii. There are many state rules and what-ifs, and the counties may have their own rules, so please read up on these prior to taking bookings or planning any trips.

A potential problem has arisen because the county mayors have since decided that they want all arrivals to take a second test within 72 hours of arrival. During those proposed 72 hours, all arriving would need to remain quarantined, and on Maui at least, that means travelers (though not owners) would need to stay in quarantine-approved accommodations (which excludes the majority of vacation rentals). Additionally, as homeowners we may be responsible for a fine if our guests were to stay in our vacation rentals during their quarantine. Some local groups have also been lobbying the Governor to adopt a two test policy.

Here are links to media reports with two county mayors of Maui and Kauai on record pushing for the second test.

 

Maui Mayor Victorino 

https://www.hawaiinewsnow.com/video/2020/10/02/maui-mayor-mike-victorino-explains-how-nd-test-travelers-would-work/

 

Kauai Mayor Derek Kawakami 

https://www.hawaiinewsnow.com/2020/10/02/kauai-mayor-asks-governor-ok-require-second-covid-test-all-arrivals/

 

Hawaii Lt Governor Josh Green is on record opposing the second test as it will severely reduce the number of visitors who will come. 

https://www.hawaiinewsnow.com/2020/10/01/live-lt-gov-josh-green-discuss-details-testing-program-trans-pacific-visitors/

 

It sounds like the mayors need the Governor's approval to implement the second test requirement.

 

URGENT: We ask that you, TODAY, send out three emails voicing your concern that legal vacation rentals (a large part of the tourism economy) are being now pushed out of the reopening equation AND also that this second test will severely restrict the restarting of the tourism economy.

 

1.  Contact your county's mayor and voice your concern. 

• Maui Mayor, Michael Victorino: Mayors.Office@co.maui.hi.us   
• Kauai Mayor, Derek Kawakami: mayor@kauai.gov
• Hawaii Mayor, Harry Kim:   https://www.hawaiicounty.gov/our-county/mayor
• Honolulu Mayor, Kirk Caldwell:  http://www.honolulu.gov/mayor/contactthemayor/message-request-form 

2.  Contact Governor David Ige https://governor.hawaii.gov/contact-us/contact-the-governor/

3.  Contact Lt Governor Josh Green https://ltgov.hawaii.gov/contact-us/contact-the-lieutenant-governor/

 

In addition there is a petition started by HomeyHawaii.com that you can sign:

Maui

https://www.change.org/p/hawaii-governor-david-y-ige-request-gov-ige-to-deny-maui-s-additional-quarantine-request

It will also help to ask people to write a comment under Josh Green’s FB video. He is against the second test but many of the comments are criticizing him.

https://www.facebook.com/LtGovJoshGreen

Thank you to all the stakeholders who submitted their testimony both written and oral for today’s meeting. A big Mahalo to the planning department for meeting with us, and RAM, and amending their presentation with some of our suggestions. Your words and voices are so important, because only you folks know the state of the industry, and can speak to what changes to the ordinance could result here on Maui. Many of us stated the unintended consequences that could be associated with the proposed legislation and the commissioners and the County heard the message. 

There were a lot of procedural revisions that we supported in this legislation, but unfortunately these were tied to other restrictions, like adding the 15 years ownership for STRH or the 5 years ownership and construction to B&B applications. The language on the trusts still needed work, in order to be sure beneficiaries were not left out.

The commissioners along with the director of the planning department, Michele McLean said their recommendation is to defer this bill. The department will make edits detailed by the director, McLean:

“Allow Jacky and me to make the changes we included in the powerpoint, 

• Eliminating the proposed changes to B&Bs including the 5 year owner and construction requirement, 
• Removing the 15 year requirement for STRH and leaving that as is at 5 years
• Removing the property tax as prima facie evidence from B&B and STRH
• Working some more with corp counsel on the trust language, taking into account some of the testimony that we saw
• Clarifying that ads should use TMK not physical addresses
• Clarify that each lot gets one vote per lot, pertaining to the changes in mailing notifications and letters that come in 
• Clarify what the changes mean for existing permit holders,

Those were the main takeaways that I got from the meeting with MVRA, RAM and written and oral testimony.

So what we will do is work on the bill and coordinate one last time with MVRA and RAM and then we can post that, and schedule it again at a future meeting.”

After the unanimous vote to support the deferment, Chair Carnicelli added, “I want to say thank you to all the testifiers, everybody that submitted written and oral testimony, its greatly appreciated. Its always good to see the community come out and have their voices heard and make a better mousetrap. So thank you to everybody.”

If you missed the meeting and you would like to see the deliberations and vote check our youtube channel for this short 8 minute video https://www.youtube.com/watch?v=Z3MZXN6zN0Y

A big mahalo to everyone that joined us for the first MVRA Zoom meeting last week Thursday. We have confirmation that the proposed changes to the B&B and Short Term Rental ordinances are on the Planning Commission agenda for September 22, 2020 at 9am. Please send in testimony with your feelings on the proposed ordinance changes, and state that we do not think this is the right time for changing the ordinance. The changes should be deferred and more information should be gathered, like determining what Maui’s visitor industry looks like after COVID restrictions have been lifted. Right now with the current closures we don’t know what the future is going to be like when we reopen. We need time, and we don’t want to eliminate any economic opportunities that could be critical to our county. We will be holding another zoom meeting this Thursday September 17th, at 11am HST to discuss further, please register at https://mvra.net/event-3979381 Planning Meeting agenda: https://www.mauicounty.gov/ArchiveCenter/ViewFile/Item/27623 Link to the Planning Department’s Report and the proposed legislation https://www.mauicounty.gov/DocumentCenter/View/123923/092220_Agenda-Item-B2_Amendments-to-Chapters-Short-Term-Rental-Bill_memo

Here is how you can get involved: Join our Zoom meeting: We have a meetup scheduled this Thursday September 17th, at 11am HST to discuss further, please register at https://mvra.net/event-3979381. Submit Written Testimony: To provide written testimony, email comments to planning@mauicounty.gov by noon, one business day before the meeting to ensure distribution to the commission. Oral Testimony via Phone: To listen to the meeting or provide oral testimony via phone, dial 1-888-748-9073 (toll free) or 1-408-915-6290 or 1-408-740-7256 and enter code: 696 111 670. At the beginning of the meeting each testifier will be given 3 minutes to testify per agenda item they are testifying on.  Video Testimony via BlueJeans: If you would prefer to give video testimony via video conferencing software, you can join the meeting via BlueJeans using the following link: https://maui.bluejeans.com/696111670. Note: Download the Bluejeans app ahead of time by clicking that link. It seems to work better if you download the app first ahead of time.  Submit written testimony by 5pm Friday September 18, 2020 to planning@mauicounty.gov   Because of social distancing all meetings are done over your computer or phone. No driving to Wailuku needed! All you have to do is click the link below to attend this meeting next week Tuesday, September 22, 2020 a few minutes before 9am.

Thank you to everyone who participated and reached out to the Planning and Sustainable Land Use Committee Council of the County of Maui. At today’s meeting the committee heard and took into consideration the concerns we had about property rights with regard to item (PSLU-59) Transient Vacation Rentals in the Apartment, Light Industrial, and Heavy Industrial Districts. The committee voted to amend the language in section G item 2 where it reads the qualifying criteria for TVRs. The amendments include “or payment of TAT and GET taxes” and the effective date the building needs to show that use changes to the date of the bill passage, instead of January 1, 2020. These amendments and the item passed with 6 affirmative votes, with council member Kelly King excused. (if you want to read why we asked for language changes go here)

The next step for item (PSLU-59) Transient Vacation Rentals in the Apartment, Light Industrial, and Heavy Industrial Districts is the PSLU committee will create report and that will be heard at a future County Council meeting.

Item Moratorium on Transient Accommodation Permits on Lana`i (PSLU-72) had a unanimous vote of 7 in favor of this bill. The committee will write a report for this item to be taken up at a future County Council meeting. Currently there are no bed and breakfast operations on Lana’i and there are 19 STRH permits operating on Lana’i and 1 permit pending in the que. Also to note, the Lana’i Planning Commission is working on its own set of changes in the B&B and STRH ordinances specific to Lana’i, that will be heard in the future. 

A video excerpt of todays meeting is available on the MVRA youtube channel

The Loophole bill is on the agenda 

We have another update on the Minatoya Loophole bill, it will be on the Planning and Sustainable Land Use Committee Agenda as item PSLU-59 this Wednesday at 9am.

I am going to paraphrase the information that the Realtor Association of Maui (RAM) sent out, because their information was concise and to the point: 

We would like to see a change in the language in Section G 2, because that language could potentially threaten the property rights of a small subsection of non-condominium properties that have lawfully been conducting short-term rentals pursuant to permitted uses in the A-1 and A-2 zoning district, but have not been categorized in the Short-Term Rental real property tax class.

MVRA is supporting the proposed amendment from RAM: 

that MCC 19.12.020(G)(2) be replaced with the following language instead

“Transient vacation rental use was conducted in any lawfully existing dwelling unit within the building or structure prior to January 1, 2021, as determined by real property tax class or payment of transient accommodations tax.”

By adding these two details highlighted above into the language of the bill we can protect the property rights of the owners, increase Short Term Rental tax class without a net increase in TVR operators, and accomplish the goal of keeping non-TVR condominiums from converting to TVR use based on an old loophole.

Please send your own two-cents in to help get this change in the language included in the bill.

Here is what you can do:

1. Submit Written Testimony: Written testimony should be submitted no less than 24 hours before the meeting via email to: pslu.committee@mauicounty.us . I've attached a copy of RAM’s testimony, but I would recommend drafting your own individual testimony. 
2. Oral Testimony via Phone: Oral testimony can be provided via telephone by dialing in to 1-408-915-6290 and entering meeting code 994 504 421. At the beginning of the meeting each testifier will be given 3 minutes to testify per agenda item they are testifying on. 
3. Video Testimony via BlueJeans: If you would prefer to give video testimony via videoconferencing software, you can join the meeting via BlueJeans using the following link: https://bluejeans.com/994504421
4. View Live: If you don't want to testify but you still want to see what happens, you can watch the meeting live on Akaku Channel 53 or online using links at http://mauicounty.us/agendas/
5. Contact Your Council Representative: As always, you should feel free to reach out directly to your local County Council representatives on any issue using the following info:

• Alice Lee, Chair: alice.lee@mauicounty.us, (808) 270-7760
• Keani Rawlins-Fernandez, Council Vice Chair: keani.rawlins@mauicounty.us, (808) 270-7678
• Tasha Kama, Presiding Officer Pro Tempore: tasha.kama@mauicounty.us, (808) 270-5501
• Riki Hokama, Councilmember: riki.hokama@mauicounty.us, (808) 270-7768
• Kelly King, Councilmember: kelly.king@mauicounty.us, (808) 270-7108
• Mike Molina, Councilmember: mike.molina@mauicounty.us, (808) 270-5507
• Tamara Paltin, Councilmember: tamara.paltin@mauicounty.us, (808) 270-5504 <- Chair of the Planning and Sustainable Land Use Committee
• Shane Sinenci, Councilmember: shane.sinenci@mauicounty.us, (808) 270-7246 <- Vice Chair of the Planning and Sustainable Land Use Committee
• Yuki Lei Sugimura, Councilmember: yukilei.sugimura@mauicounty.us, (808) 270-7939

If you have any questions or need more information email us at membership@mauivacationrentalassociation.org

New Hawaii Vacation Rental Report

Kloninger & Sims has just released a new report on Vacation Rentals in Hawaii. The report is a snap shot of economic activity short term rentals generate for the state, including consumer travel trends and implications for the Hawai'i visitor industry.

The vacation rentals hosted 2.5 million visitors state of Hawaii in 2019, representing an increase of 5.2% over the previous year. The report finds that vacation rentals comprise 30.4% of the visitor market in Maui County.

To read the report click here.

The County of Maui has announced and posted Updated Public Health Emergency Rules at MauiCounty.gov.

The update is titled “Public Health Emergency Rules, Amended July 31, 2020.” It can be found under “COVID-19 Coronavirus Information.”

The revised rules took effect July 31 and outline that a STRH, B&B or TVR may be used as a quarantine location for new or intended Hawaii residents leasing the STRH, B&B, or TVR. The quarantine is subject to the rules and regulations observed for the full 14 day period, and the property owner, manager, landlord, tenant and guest shall be responsible for the compliance. The STRH, B&B, or TVR may only designate as a quarantine location for a new or intended resident only once in a 6 month period.

The new updated emergency rules include a limit of indoor and outdoor social gatherings to no more than 10 people. Face coverings are required, and physical distancing of at least 6 feet between separate groups must be maintained.

Businesses and places of worship will still be allowed to function under existing County and State rules. Businesses such as restaurants, bars and beauty salons must continue to follow health and safety guidelines outlined in the emergency rules.

The county also announced that Maui Police Department is the task force and contact for quarantine violations. Contact them on the non emergency email mpdquarantine@mpd.net.

Governor Ige's 8/3 Press Conference Cliff Notes

Q: Is the Sept. 1 Pre-Travel Testing Program deadline hard and fast at this point, and will people be allowed in whether or not they have received negative test results?

GOVERNOR IGE

-- We are working hard to complete all of the preparations for the Sept. 1 announcement of when we would begin the Pre-Travel Testing Program.

-- The visitor industry needs to have time ahead of those decisions if there will be changes made.

-- We continue to monitor the conditions in the state, and as well as around the country, and will be making a further determination as we get closer to the Sept. 1 date.

-- The hotels have said three- to four-weeks’ notice is needed, and the airlines would like at least two-weeks’ notice if there will be a change.

-- I will be meeting with the mayors. We would like to see a stopping of the increase in new cases in the state, and hopefully begin the trend downward.

-- If there are too many cases here, and we have not stopped the increase, then we would be looking at delaying the Sept. 1 date.

Q: What was the problem with the digital contractor? When will Google begin and is there an additional cost?

GOVERNOR IGE

-- In testing the application, they had finished the first phase. During the stress testing and assuring that we could move from the prototype to production, it became clear that we would have performance issues. The responsiveness of the app was not to our liking and would cause a delay.

-- Google was selected by Chief Information Officer Doug Murdock who interviewed several of the leading software developers.

-- Google is best positioned to develop a working app that would be able to scale to the level we need it to. If you recall, we used to get 30,000+ arrivals per day.

-- They have been on for a day or two now. We expect to catch up to the original development schedule, although three to five days behind.

-- We believe we would have a working application well ahead of the Sept. 1 date.

[Summarized from HVCB Newsletter]

Click here for the Governor's 10th proclamation.

To See the full press conference here: https://www.facebook.com/MauiVacationRentalAssociation/posts/184949253035662

Cost of Government Meeting

Planning Director Michele McLean made a presentation at the The Cost of Government meeting on 7/23/2020.

She stated that the planning department has successfully curtailed illegal vacation rentals on Maui. In this presentation she also goes over the recent legislation efforts including resolution 20-27 to reduce STRH Caps, and the most recent loop hole bill, pertaining to vacation rentals in the apartment district.

One of the criteria in the loop hole bill is that the property have done vacation rental use prior to January 1 2020, using the real property tax classification. In the loop hole bill link above there are two different lists that Real Property tax provided with names of condo buildings where there are some STR classified units and where there are no STR classified units.

Neither of these lists are comprehensive of legal short Term rental use properties under current law. The list of properties where there are some STR classified units includes buildings where STR use is not legal.

The other list of 74 properties that is being touted as a list of properties that the loop hole bill is designed to protect, however, this list includes 17 properties where short term rental use is not allowed because they were built after 1991.

You can view the director's presentation in this youtube link: https://www.youtube.com/watch?v=t1D18KsVAqc&t=6s