RELATING TO IMPACT FEES.

Housing Land Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: TAM, AMATO, BELATTI, GRANDINETTI, KUSCH, MARTEN, PERRUSO, Kila
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The exact number of days for notification is unspecified in the official source material.

Rules for Impact Fees in Condominiums and Planned Communities

This bill allows condominium associations and planned community associations to charge an impact fee on members who use their units as transient vacation rentals.

What This Bill Does

Allows condominium associations and planned community associations located in a zoning district that permits transient vacation rentals to impose an impact fee on owners or members using their units for such rentals.
Specifies that collected fees must be used for common area maintenance, enhanced security measures, administrative costs related to monitoring short-term rentals, and insurance expenses.
Requires the board of directors to establish clear procedures for assessing, collecting, and using these fees.

Who It Names or Affects

Condominium association members who use their units as transient vacation rentals.
Planned community association unit owners who use their units as transient vacation rentals.

Terms To Know

Transient Vacation Rental: A short-term rental of a property, such as an apartment or house, for vacations or temporary stays.

Limits and Unknowns

The bill does not specify the exact number of days before impact fees must be notified to members.
It is unclear how much discretion associations have in setting the amount of these fees.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment allows condominium associations and planned community associations in areas that permit transient vacation rentals to charge impact fees to unit owners who rent their units short-term.

Allows associations to assess an impact fee on members or unit owners using their units as transient vacation rentals.
Specifies the use of collected impact fees for maintenance, security measures, administrative costs, and insurance.
Requires boards to notify affected members/unit owners about the impact fee structure at least 30 days before assessment.

The amendment's effective date is set as July 1, 3000, which seems unusual and may be a placeholder or error.
Details on how fees are calculated and specific penalties for noncompliance are not provided in the text.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-10 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with Representative(s) Shimizu voting aye with reservations; Representative(s) Alcos, Garcia voting no (2) and Representative(s) Belatti, Cochran, Kila, Ward excused (4).
2025-02-10 H
Reported from TOU (Stand. Com. Rep. No. 277) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2025-02-04 H
The committee on TOU recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Tam, Templo, Hussey, Ilagan, Todd, Matsumoto; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Holt.
2025-01-31 H
Bill scheduled to be heard by TOU on Tuesday, 02-04-25 10:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to TOU, CPC, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO IMPACT FEES.
Condominium Associations; Planned Community Associations; Transient Vacation Rentals; Impact Fee
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)

Current Bill Text

Read the full stored bill text

HB972

HOUSE OF REPRESENTATIVES

H.B. NO.

972

THIRTY-THIRD LEGISLATURE, 2025

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:

����
"
�421J-
�
Transient
vacation rentals; impact fee.
�
(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.

����
(b)
�

Impact fees assessed and collected pursuant to this section shall be
used for:

����
(1)
�
Maintenance and
repair of common areas;

����
(2)
�
Enhanced
security measures, including surveillance systems and security personnel;

����
(3)
�
Administrative
costs incurred by the association related to monitoring and regulating
transient vacation rentals; and

����
(4)
�
Insurance costs
associated with an insurance policy procured by the association or its board of
directors.

����
(c)
�
The board of directors shall:

����
(1)
�
Notify any
member
who uses their unit as a
transient vacation rental
of the new impact fee structure no later than
days before assessing the impact fee; and

����
(2)
�
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 or duly noticed special
meeting of the association.

����
(d)
�
For purposes of 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:

����
"
�514B-
�
Transient
vacation rentals; impact fee.
�
(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.

����
(b)
�

Impact fees assessed and collected pursuant to this section shall be
used for:

����
(1)
�
Maintenance and
repair of the common elements;

����
(2)
�
Enhanced
security measures, including surveillance systems and security personnel;

����
(3)
�
Administrative
costs incurred by the association related to monitoring and regulating
transient vacation rentals; and

����
(4)
�
Insurance costs
associated with an insurance policy procured by the association or its board of
directors.

����
(c)
�
The board of directors shall:

����
(1)
�
Notify any unit
owner
who uses their unit as a
transient vacation rental
of the new impact fee structure no later than
days before assessing the impact fee; and

����
(2)
�
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.

����
(d)
�
For purposes of 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 upon its approval.

INTRODUCED BY:

_____________________________

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 who use their units as transient vacation rentals.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.