The latest controversial issue on Kauai seems to be the County of Kauai cracking down on illegal Bed and Breakfast businesses (B&B) or Homestay. There seems to be two sides to this controversy.  A concern of the county’s is that there are many illegal Transient Vacation Rentals (TVR’s) claiming that they are B&B homestays. The meaning of a homestay is that the owner  lives on site versus a TVR where the owner doesn’t need to be on site.

A permit is needed to legally run a B&B, although many Kauai B&B’s don’t have the proper use permits. This is where the other side of the story comes in. People operating their B&B say there is no clear way to get a permit and some have been trying for years to work with the county and obtain a permit. This issue and various public hearings have come about because the Planning Department has been sending out zoning compliance notices and cease-and-desist letters. One B&B owner said that his cease-and-desist letter told him to shut down in 2 weeks or face a $10,000 a day fine.

According to the county there are currently 8 legal B&B operations on Kauai. Two changes that the county is considering are:

1. To better define what makes a B&B/Homestay.
2. To limit the number of B&B permits given out to 10 a year. (This is also starting some controversy.)

In one of the public hearings Council man Gary Hooser noted that he was surprised that no one complained about noise or too many cars. It’s pleasant to hear that our visitors are respectful around our residential housing. A personal concern of mine with many illegal B&B’s or TVR’s is that it allows visitors to purchase Residential housing and use them as vacation rentals. This would decrease our long term resident housing inventory. Therefore I understand the need for regulation.

Bill 2578 was passed on June 3, 2015 to better define a Homestay. The new definition states that guests stay in the same dwelling or guest house of the owners. This property must also be the owner’s primary residence. To prove this they must have a homeowner’s exemption from the county tax office. The mayor is allowing anyone to apply for a use permit right now under Bill 2578 the deadline was June 19^th and no exceptions for late applications.

UPDATE: According to Kaaina Hull who is with the County of Kauai Planning Department said… He thought people would be knocking down the county doors to apply for their B&B permit. Although in July 2015 he said that so far only 2 people applied. I’m thinking its not too late to apply if you missed the deadline.