Bills set standards for rentals, B&Bs

WAILUKU — Five bills drafted by the Maui County planning staff under direction of Planning Director Jeff Hunt would establish new standards to permit bed-and-breakfast and short-term vacation rentals outside the hotel/resort districts.

The bills have been reviewed by the county planning commissions, with new drafts prepared for review by the County Council including modifications suggested by the commissions.

The bills differentiate between bed-and-breakfast operations or rental units within the home of the operator, and transient vacation rentals or rental units separate from an owner-operator’s home. The proposals would ease the process for permitting bed-and-breakfast operations, while imposing strict limits on transient vacation rentals.

As currently drafted, the bills would:

• Permit bed-and-breakfast operations in the rural district, as is now allowed in the residential district, with up to six units allowed in a home based on lot size. There would be no requirement for a state special use permit.

• Permit bed-and-breakfast operations in the agricultural districts, with a state special use permit, and requirements for operators to show income from a farming operation. The minimum income standards would be $1,000 for 2-acre agricultural properties, and $2,500 for properties that are more than 2 acres in size.

The draft is amended from a previous version setting a minimum income of $35,000.

• Allow transient vacation rentals as permitted uses in all facilities within the Makena, Wailea, Kaanapali and Kapalua resort districts, including within single-family and multifamily units.

The proposal would also allow transient vacation rentals within all business districts, unless the use is prohibited in the community plan for the region. As a permitted use, the proposal would allow up to 20 vacation rental units in a business district subject to limitations of lot size and to any restrictions established in the regional community plan.

• Prohibit applications for conditional permits for transient vacation rentals within all residential districts, except on Lanai and Molokai, pending adoption of new community plans for the two districts. If the Lanai or Molokai community plans allow vacation rentals, conditional permits will be allowed for those planning regions.

• Permits for bed-and-breakfast operations in residential, rural and agricultural districts could be approved administratively by the planning director — subject to a request for a public hearing from 30 percent of neighboring residents or if there is another bed-and-breakfast operation within 500 feet. The proposal would require notification of all homeowners within 500 feet of a proposed bed-and-breakfast and require posting of a project notice sign on the operator’s property to notify neighboring residents of the application.

The proposals do not address grandfathering of existing vacation rentals and bed-and-breakfast operations that have been granted conditional permits and special permits.