Hawaii Passes Landmark Legislation to Rein in Illegal Short-term Rentals, Help Keep Housing Affordable for Aloha State Residents

Law ensures local control over lodging taxes and regulations

Hawai‘i Gov. Josh Green today 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. This legislation will give 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 Hawai‘i residents.

The law ensures Hawai‘i counties have the authority to tax and regulate short-term rentals by the same standards as hotels, designate them as a non-residential use for zoning purposes, or restrict their operation.

“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 Hawai‘i residents who work in hotels. 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,” said AHLA Interim President & CEO Kevin Carey. “We thank Gov. Green, Hawai‘i legislators, and our partners at the Hawai‘i Hotel Alliance, UNITE HERE Local 5, and the International Longshore & Warehouse Union Local 142 for their leadership in passing this important law.”