Hawaii Passes Law to Limit Short-Term Rentals

Image: Sunset view in Maui, Hawaii (photo by Eric Bowman)
Image: Sunset view in Maui, Hawaii (photo by Eric Bowman)
Donald Wood
by Donald Wood
Last updated: 9:00 AM ET, Sat May 4, 2024

On Friday, Hawaii Governor Josh Green signed into law landmark legislation (SB 2919) that grants local governments the power to regulate short-term rentals to meet the needs of their communities. 

The legislation provides localities the power to rein in short-term rentals that have taken over local communities and bring back affordable housing for hotel employees and other permanent residents in Hawaii.

“For too long, illegal short-term rentals have encroached into residential neighborhoods and put homeownership out of reach for hard-working families, including the thousands of Hawaii residents who work in hotels,” AHLA Interim President and CEO Kevin Carey said. 

“AHLA has worked hand-in-hand with community partners and the government to support commonsense regulation that ensures hotel employees and all residents can afford to live where they work, and this critical law will help achieve that outcome,” Carey continued.

As part of the new law, counties across the Hawaiian Islands now have the authority to tax and regulate short-term rentals by the same standards as hotels, designate them as non-residential use for zoning purposes, or restrict their operation.

“We thank Gov. Green, Hawaii legislators, and our partners at the Hawaii Hotel Alliance, UNITE HERE Local 5, and the International Longshore & Warehouse Union Local 142 for their leadership in passing this important law,” Carey concluded.

In January, Governor Green delivered his second State of the State Address at the Hawaii State Capitol, addressing concerns about short-term rentals and reducing the state’s reliance on fossil fuels with a proposal for charging tourists a new $25 fee. 


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