SB2890 HD1

Report Title:

Time Share Plans; Geographic Limitations

 

Description:

Allows time share units and plans on property in a county with a population in excess of 500,000, where an existing hotel is a valid nonconforming use under county ordinance; provided that hotel has at least sixty units and forty per cent are available for sale as residential apartments. Exempts time share units from the provisions relating to the ownership of parking stalls under section 514A-14.5, HRS. (SB2890 HD1)

THE SENATE	S.B. NO.	2890
TWENTY-FIRST LEGISLATURE, 2002		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

relating to time sharing plans.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Through the enactment of Act 186, Session Laws of Hawaii 1980, the legislature provided geographic limitations for time share units, time share plans, and transient vacation rentals.

Since the tragic events of September 11, 2001, there has been a significant number of cancellations of hotel bookings, leading to cutbacks in airline flights and reduced retail sales. These events have caused higher unemployment, reduced sales and other negative impacts on the people and the economy of Hawaii.

The legislature finds that one notable exception has been in the time share industry. Time share owners have continued their visits to the State with very few cancellations. Time share unit owners and time share unit sales have continued to contribute positively to the overall state economy and have added an element of stability to our visitor industry. In addition, the average length of stay of a time share plan owner is typically longer than the visitor who stays in a Hawaii hotel.

Currently, there are existing hotels in areas of Waikiki, appropriate for time share use, which are prevented from conversion to time share plans because the land on which they are sited was rezoned to apartment after the hotel was built. Although such existing hotels do not conform to the new underlying apartment zoning, the longer average stay of time share unit owners would be more similar to an apartment than a pure hotel operation, therefore, time share plan use of the property would lessen its nonconformity.

The legislature further finds that it would be helpful in revitalizing and adding stability to the visitor industry and the State's economy if time share plans were permitted in areas appropriate to such uses.

The purpose of this Act is to allow time share units and plans on properties in a county with a population in excess of five hundred thousand, where an existing hotel is a valid nonconforming use under county ordinance and has at least sixty units, forty per cent of which shall be made available for residential apartments or rented as residential apartments. This Act also exempts time share units from the provisions relating to the ownership of parking stalls under section 514A-14.5, Hawaii Revised Statutes.

SECTION 2. Section 514A-14.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) This section does not apply:

(1) To apartments developed under chapter 201G; [and]

(2) To apartments in a mixed-use project developed under

chapter 206E that has a shared parking program

approved by the Hawaii community development

authority; provided that such a program shall require

the availability of the use of not less than one

parking space per apartment[.]; and

(3) To apartments designated in the declaration of

condominium property regime for hotel, time share,

transient vacation rental, or commercial use."

SECTION 3. Section 514E-5, Hawaii Revised Statutes, is amended to read as follows:

"§514E-5 Geographic limitations. Except as provided in this section, time share units, time share plans, and transient vacation rentals are prohibited.

(1) Existing time share units, time share plans, and transient vacation rentals are not impaired by the provisions of this section.

(2) Time share units, time share plans, and transient vacation rentals are allowed:

(A) In areas designated for hotel use, resort use, or transient vacation rentals, pursuant to county authority under section 46-4, or where the county, by its legislative process, designates hotel, transient vacation rental, or resort use; or

(B) [In a hotel where the county explicitly approves such use, in advance, as a nonconforming use.] On any property in a county with a population in excess of five hundred thousand, on which the operation of an existing hotel is a valid non-conforming use under county ordinance; provided that the property shall have at least sixty units and at least forty per cent of the units, upon completion of sales of the time share intervals in the project, shall be made available for sale as residential apartments or rented as residential apartments."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.