City Faces Legal Bill After Losing Short-Term Vacation Rental Battle
But a measure in the Legislature would allow Honolulu to phase out short-term rentals over time.
The City and County of Honolulu spent countless hours battling owners of short-term vacation rentals over the city’s attempt to impose a 90-day minimum for short-term leases. Now, adding to the city’s stinging loss in federal court, where District Court Judge Derrick Watson struck down the Honolulu’s ordinance, there’s a legal bill coming due.Ìý
The City Department of Planning and Permitting, corporation counsel, and other defendants have agreed to pay the Hawaii Legal Short-Term Rental Alliance $292,514.27 for attorneys’ fees and $619.07 costs, subject to the approval of the Honolulu City Council.
Still, while Honolulu lost the battle, the war continues.
Ìý would allow counties to phase out short-term vacation rentals over time: a move that could undermine the basis of Watson’s ruling, and let Honolulu go after vacation rentals again with increased legal ammunition. The measure passed out of a joint hearing by the Senate Committees on Commerce and Consumer Protection; Energy, Economic Development, and Tourism, and Public Safety and Intergovernmental and Military Affairs. Its next stop is a joint hearing of the Ways and Means and Judiciary committees.
