3/14/08 Weekly Report: Hawai`i County’s Rent-A-Room Ordinance

The following is a brief introduction to the County’s "Rent-a-Room" ordinance by Kathy Kirk, a member of the Mayor's Task Force on Employment Solutions. The lack of affordable housing is a significant barrier to full employment, especially in West Hawai`i. The County Council passed the "Rent-a-Room" ordinance in 2006, so that homeowners could rent out part of their own residence without penalty.

Back in 2006, the County Council passed an ordinance to increase the supply of affordable housing by changing the real estate tax code. We would like to remind homeowners and prospective tenants about the rental opportunities available to them thanks to this “Rent-a-Room” law.

I’m a homeowner with an extra room I could rent. But won’t I lose my homeowner’s property tax exemption if I rent part of my own residence?

Not any longer. The “rent-a-room” ordinance allows homeowners to rent space in their own residence without losing this exemption or tax rate. As a landlord, you would earn some rental income, increase your personal security by having someone else in your home, and perhaps gain a companion.

What is the Rent-a-Room Ordinance?

Ordinance No. 06-147 was passed by the Hawaii Island County Council to address the need for additional affordable housing units, especially in West Hawaii. The ordinance allows “homeowners to be able to rent a portion of their home as residential rental and retain the home exemption.”

How will additional affordable housing help?

Many West Hawaii workers commute daily from distant parts of the Big Island and are looking for a room to rent several days a week. Other workers might move to Kona or Kohala with its many employment opportunities, if they could find affordable housing.

Are there restrictions?

The rented space must be within the main structure occupied by the homeowner. The landlord must be in or apply for the “Homeowners Class.” Applications are available at both County of Hawaii’s Real Estate Tax Offices.

The Federal Fair Housing Act and other applicable State and County landlord/tenant laws must be adhered to. Homeowners should also consult any applicable homeowner association regulations.

I’m not a property owner. How does this new law help me?

If you’re looking for affordable housing, this will help you because it will open up more housing units. Many homeowners have extra rooms or second floors you could rent. You could live close to your job, in a homey and safe environment, on either a full- or part-time basis, and leave the long daily commute behind.

Employers will benefit, too

If you’re an employer looking for workers, this will help you. If a prospective employee is able to find an affordable place to live in West Hawa`ii, he or she is more likely to accept your job. Employers can help by linking up their employees who need a room with other employees who might have a room to rent.

Where can I get more information?

If you have questions about real property tax matters, please contact:

County of Hawaii Real Property Tax Office

Hilo: 961-8201

Kona: 327-3540

If you have questions about employment please contact:

Big Island Workplace Connection

Workforce Development Division

Hilo: 981-2860 x 223 (Blayne Hanagami)

Kona: 327-4797 (Lori Sasaki)

Tuesday, March 18 5:00-6:00	Mokupapapa Discovery Center
Wednesday, March 19 4:30-5:30	Pacific Tsunami Museum
Thursday, March 27 4:30-5:30	Pacific Tsunami Museum
Tuesday, April 1 4:30-5:30	Pacific Tsunami Museum

Location of Project	Council District	Work being done
Kea`au Transfer Station	5	Reuse Area under construction 12/06/07
Hilo Transfer Station	2	Contractor installing new water main for East Hawai`i Sort Station 02/08
Pa`auilo Transfer Station	1	Fence and gates. Bid opening 3/18/08
Waimea Regional Transfer Station	1 and 9	Sign installations, Bid opening 3/18/08