HOUSE OF REPRESENTATIVES
H.B. NO.
972
THIRTY-THIRD LEGISLATURE, 2025
H.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO IMPACT FEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"[Underlined: §421J- ] [Underlined: Transient vacation rentals; impact fee.] [Underlined: (a) The board of directors of an association located in a zoning district that allows transient vacation rentals may assess an impact fee on members who use their units as transient vacation rentals.]
[Underlined: (b) Impact fees assessed and collected pursuant to this section shall be used for:]
[Underlined: (1)] [Underlined: Maintenance and repair of common areas;]
[Underlined: (2)] [Underlined: Enhanced security measures, including surveillance systems and security personnel;]
[Underlined: (3)] [Underlined: Administrative costs incurred by the association related to monitoring and regulating transient vacation rentals; and]
[Underlined: (4)] [Underlined: Insurance costs associated with an insurance policy procured by the association or its board of directors.]
[Underlined: (c) The board of directors shall:]
[Underlined: (1)] [Underlined: Notify any member who uses the member's unit as a transient vacation rental of the impact fee structure no later than thirty days before assessing the impact fee; and]
[Underlined: (2)] [Underlined: Establish clear procedures, by a resolution adopted by the board, for the assessment, collection, and use of impact fees, including any penalties for noncompliance; provided that any decision regarding whether to assess an impact fee pursuant to this section shall be included on the agenda for the annual meeting or a duly noticed special meeting of the association.]
[Underlined: (d) As used in this section, "transient vacation rental" means "short-term rental home", "short-term vacation rental", "transient vacation rental", "transient vacation unit", or "transient vacation use", or any other similar term as defined by county ordinance.]"
SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:
"[Underlined: §514B- ] [Underlined: Transient vacation rentals; impact fee.] [Underlined: (a) The board of directors of an association located in a zoning district that allows transient vacation rentals may assess an impact fee on unit owners who use their units as transient vacation rentals.]
[Underlined: (b) Impact fees assessed and collected pursuant to this section shall be used for:]
[Underlined: (1)] [Underlined: Maintenance and repair of the common elements;]
[Underlined: (2)] [Underlined: Enhanced security measures, including surveillance systems and security personnel;]
[Underlined: (3)] [Underlined: Administrative costs incurred by the association related to monitoring and regulating transient vacation rentals; and]
[Underlined: (4)] [Underlined: Insurance costs associated with an insurance policy procured by the association or its board of directors.]
[Underlined: (c) The board of directors shall:]
[Underlined: (1)] [Underlined: Notify any unit owner who uses the owner's unit as a transient vacation rental of the impact fee structure no later than thirty days before assessing the impact fee; and]
[Underlined: (2)] [Underlined: Establish clear procedures, by a resolution adopted by the board, for the assessment, collection, and use of impact fees, including any penalties for noncompliance; provided that any decision regarding whether to assess an impact fee pursuant to this section shall be included on the agenda for a regular or duly noticed special meeting of the association.]
[Underlined: (d) As used in this section, "transient vacation rental" means "short-term rental home", "short-term vacation rental", "transient vacation rental", "transient vacation unit", or "transient vacation use", or any other similar term as defined by county ordinance.]"
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Condominium Associations; Planned Community Associations; Transient Vacation Rentals; Impact Fee
Description:
Authorizes condominium associations and planned community associations located in a zoning district that allows for transient vacation rentals to impose an impact fee on owners or members who use their units as transient vacation rentals. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.