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What is Honolulu Bill 41 (Ordinance 22-7)?
Honolulu Bill 41 (Ordinance 22-7) is a key piece of legislation that amends the land use regulations for short-term rentals (STRs) on O'ahu. Its most significant provision redefines a short-term rental as lodging provided for fewer than 90 consecutive days, a substantial increase from the previous 30-day minimum.
This measure was implemented to address concerns about the impact of vacation rentals on housing affordability and neighborhood character.
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How it works
The ordinance works by restricting the operation of rentals for periods under 90 days primarily to designated resort-zoned areas and properties with a valid Nonconforming Use Certificate (NUC). For properties in residential and apartment zones without an NUC, any rental advertisement or agreement must be for a minimum of 90 days.
The law also mandates that online travel agencies (OTAs) remove listings that fail to display a required government-issued registration number. The Department of Planning and Permitting (DPP) is tasked with enforcement, with provisions for substantial fines for non-compliance.
Why it matters
This ordinance is critical for property owners and managers in Honolulu as it fundamentally alters the legal landscape for vacation rentals. It significantly narrows the pool of properties eligible to operate as traditional STRs, impacting revenue streams for many who previously rented for 30-day terms.
To remain compliant, hosts must verify their property's zoning classification and ensure they meet the 90-day minimum stay requirement unless they are in a permitted zone or hold an NUC. See the official website for current details.
Examples
- An owner of a condo in a residential zone in Kaneohe who used to attract 30-day corporate renters must now exclusively seek tenants for 90 days or longer to comply with Ordinance 22-7.
- A property manager trying to list a cottage on the North Shore on Vrbo is now required by the platform to enter a valid NUC number or TMK identifier before the listing can be published for stays under 90 days.
- A property owner with a rare, pre-existing Nonconforming Use Certificate (NUC) for their home in a residential area is legally permitted to continue offering 7-day rentals, provided the NUC number is displayed in all advertisements.
- An investor planning to purchase a property for vacation rental use in O'ahu must now concentrate their search on properties within specific resort-zoned areas of Waikiki or Ko Olina to legally operate for short terms.
Frequently asked questions
What is the primary change introduced by Honolulu Bill 41?+
Are all short-term rentals on O'ahu now illegal?+
Can I still rent my property for a 30-day term?+
How is Ordinance 22-7 enforced?+
Related terms
Zoning Laws
Zoning laws are municipal or county regulations that dictate how property in specific geographic zones can be used, which directly impacts the legality and…
STR Permit
An STR permit is an official license issued by a local government authority that legally allows a property to be operated as a short-term rental.
Minimum Length of Stay (MLOS)
A rule set by property managers requiring guests to book a specific number of consecutive nights to confirm a reservation.
Transient Occupancy Tax (TOT)
Transient Occupancy Tax (TOT) is a tax levied by local or state governments on the rental of short-term accommodations, such as vacation rentals, hotels, and…