Hawaii STVR (TAR): "Vacation Node"​, What Is It? News for Hawaii Vacation Rentals

Hey, forget about picturing yourself lounging on a Hawaiian beach - we're talking "Vacation NODE" here (not MODE). You know, that thing that nobody seems to be able to explain. Well, it's the latest proposal from the Hawaii County Council Members and honestly, it's got me shaking in my slippahs (flip-flops) .I mean, have you ever been to a parade and seen the clowns throwing candy to the kids? That's basically what's happening as this draft gets added to the new TAR bill (which, by the way, is on its 4th draft and hasn't been released yet). They're saying not to worry about losing your "hosted rental" status - just get it designated as a "vacation node." But let's be real, rezoning your property can take years and it's not a common occurrence. Plus, you might be giving up current property rights for something you'll never actually get.Oh, and don't forget the "ke anuenue ma luna o ke kukui" (*) , even if you do manage to get your property rezoned, the Director or Council can just take it away at any time. Yikes! I'll share the full section of the draft with you below, but let's just say I'm not feeling too optimistic about this whole "vacation node" thing. Please, take 2 minutes and reach out to your local council members and ask them to stop this nonsense.Hawaii County Council DirectoryHere is the actual draft section:“Division 7. Vacation Nodes.Section 25-6-70. Purpose.The purpose of a vacation node is to provide a mechanism to designate a particular area as a suitable location for transient accommodation rentals in areas not included in section25-4-16(a). Creation of this vacation node designation is intended to spare transient accommodation rental operators from the requirement that they file for a nonconforming use certificate.Section 25-6-71. Criteria for establishing a vacation node.(a) A vacation node may be granted if the following criteria are satisfied:(1) The proposed amendment is consistent with the State land use boundary urban designation;(2) The parcel or parcels affected are suitable for designation as a vacation node and the designation will not conflict with any existing uses or designations;(3) The proposed vacation node designation will not place a substantial burden that would compromise the use of existing public infrastructure or services; and(4) The proposed designation will not negatively impact surrounding residents or the environment in the form of noise, light, air, soil, or water pollution.(b) Preference for designating an area as a vacation node shall be given to areas that:(1) Are underserved by hotel and resort facilities and do not have undeveloped and appropriately zoned properties within a fifteen mile radius;(2) Where one-third of the transient accommodation rentals do not conform to the regulations for the zoning district in which they are located;(3) Are proximate to outdoor or commercial recreational facilities, such as: beaches; County and National Parks; golf courses; event venues; and similar facilities.Section 25-6-72. Who may initiate establishment of a vacation node.Requests to establish a vacation node may be initiated by the director, council, or a property owner or their designee.Section 25-6-73. Request initiated by the director.(1) The director shall submit the proposal to the commission with the director’s recommendations, and justifications for the director’s recommendations for the commission’s review and recommendation.(2) The commission shall conduct and complete at least one public hearing on the proposal within sixty days from the date of receipt of the proposal from the director. Notice of the hearing by publication shall be provided by the commission in accordance with section25-2-5.(3) The commission shall transmit the director’s proposal together with its recommendations through the mayor to the council within thirty days from the close of the hearing. The commission shall recommend approval in whole or in part, with or without modifications, or rejection of such proposal.(4) In the event that the commission fails to act on the proposal within the thirty day period from the close of the hearing, such inaction shall be considered to be an unfavorable recommendation by the commission. The amendment shall then be submitted through the mayor to the council with such unfavorable recommendation.Section 25-6-74. Request initiated by the council.Council initiated process.(1) The council shall refer any council-initiated proposal to establish a vacation node to the director and the commission with requests for their respective comments and recommendations thereon, prior to the first reading of any such amendment.(2) The director and the commission shall each submit comments and recommendations on the proposed amendment to the council within one hundred twenty days from the date that the amendment is transmitted by the council.(3) Within the one hundred twenty day review period:(A) The director shall submit comments and any recommendations to both the commission and the council;(B) The commission shall hold at least one public hearing on the proposed amendment;(C) The commission shall transmit the proposed amendment together with its recommendation thereon through the mayor to the council. The commission shall recommend approval in whole or in part, with or without modifications, or rejection of such amendment.(4) If the commission fails to act on the amendment within the one hundred twenty day review period, such inaction shall be considered to be an unfavorable recommendation by the commission. The amendment shall then be submitted through the mayor to the council with such unfavorable recommendation.Section 25-6-75. Request initiated by a property owner.(a) A property owner or their designee, may apply to establish a vacation node on a form prescribed by the director. The application shall be accompanied by:(1) A filing fee of $500;(2) A description of the vacation node in sufficient detail to determine its precise location;(3) Maps and a plot plan of the vacation node, drawn to scale;(4) A statement of the reasons for granting the request;(5) A list of elements of the general plan and community development plan that are relevant to establishment of the proposed vacation node; and(6) Other supportive information, and any other information necessary to a proper determination relative to the request.(b) Upon receipt of a properly filed and completed application, the director shall have one hundred twenty days to take one of the following actions:(1) Reject the application to establish a vacation node; or(2) Initiate the process to establish a vacation node.(c) If the director rejects an application to establish a vacation node pursuant to subsection (b), the applicant may submit a request to the council to initiate an application to establish a vacation node on the applicant’s behalf.(d) If the council declines the applicant’s request to initiate an application on the applicant’s behalf pursuant to subsection (c), the applicant may not submit the same or a substantially similar application for consideration within one year following such denial, unless the applicant submits significant new data or additional reasons that the director determines to be a sufficient basis to consider a new application.Section 25-6-76. Action on a proposal to establish a vacation node.(a) Within ninety days following the close of the public hearing or public hearings as the case may be, or within such longer period as agreed to by the director, the commission shall transmit its recommendations regarding the application to the council. The commission’s recommendations shall be accompanied by a statement of factual findings supporting the decision.(b) In considering any proposal to establish a vacation node, the council may issue its approval subject to conditions on the applicant for the vacation node. The conditions imposed by the council shall bear a reasonable relationship to the purpose on the vacation node project designation.Section 25-6-77. Revocation of a vacation node.Revocation of a vacation node can be initiated at any time by the planning director or the council.SECTION 6. Sections 25-1-5, 25-5-3(a)(13); 25-5-22(a)(15); 25-5-32(a)(18);25-5-42(a)(24); 25-5-92(a)(32); 25-5-102(a)(35); 25-5-112(a)(52); and 25-5-122(a)(45), Hawai‘i County Code, are amended by substituting the word “transient accommodation rental”, or similar term, wherever the word, “short-term vacation rental”, or similar term, appears, as the context requires.SECTION 7. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included.SECTION 8. Severability. If any provision of this ordinance, or the application thereof to any taxpayer or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.(*) "the rainbow above the candlenut tree" or you may know it better as the icing on the cake.#TAR #STVR #VacationNode #Vacation #Node #hawaii #BigIsland #news Lance Owens RB-24133  808.936.8383 LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740        REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage Hawaii Association of REALTORS® (HAR)      2025 President | 2023/24 State RPAC Chair     2023 HARLA Graduate National Association of REALTORS® (NAR)      2023-25 Director | 2024-25 RPAC Participation Council | Safety Advisory Committee | Region 13 Leadership NAR Designations       AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor) West Hawaii Association of REALTORS® (WHAR)     2023 REALTOR® of the Year | 2018/2022 Preside