Rules & Clarifications
Transient Accommodations (Vacation/Short-Term Rentals)
‘Transient accommodations’ (vacation rentals) are not considered ‘residential use’, therefore not permitted in the Kaka’ako Community Development District.
The definition of transient accommodations is provided in Hawaii Administrative Rules (“HAR”) §18-237D-1-07. Transient accommodations is defined as, the furnishing of a room, apartment, suite, or the like which is customarily occupied for less than one hundred eighty consecutive days for each letting by a hotel, apartment hotel, motel, condominium property regime or apartment as defined in chapter 514A, Hawaii Revised Statutes, cooperative apartments, or rooming house that provides living quarters, sleeping, or housekeeping accommodations, or other place in which lodgings are regularly furnished to transients for a consideration.
The State of Hawaii, Department of Taxation (January 12, 1987), provided the following clarification on month-to-month leases: Should the taxpayer/owner prove to the satisfaction that the facility was not let for transient purpose, it shall not be considered ‘transient accommodations’. The law defines the term ‘transient’ to mean that the accommodations are being furnished to a person who does not have the intention of making the accommodation a permanent place of ‘domicile or residence’. Transient purpose does not apply to an individual on a month-to-month lease, if the individual:
- 01Does not have another true, fixed and permanent home and principal establishment;
- 02Moves from place to place through the use of month-to-month rentals; and
- 03Establishes a permanent home and principal establishment at each place which is rented on a month-to-month lease.
The Honolulu Community Development Authority (HCDA) advises that should you see violations of legitimate residential use, to contact them at 594-0300 or email at dbedt.hcda.contact@hawaii.gov and provide the following information if possible.
2. Address of Violation
3. Any other pertinent information, including dates of violation and name(s) of violator.
The Collection’s Declaration, Article 7.2 – states that leases less than 30 days are prohibited. Since the laws of the State of Hawaii supersedes The Collection’s Governing Documents, The Collection must abide by the transient accommodations laws as stated above.