HB 972: RELATING TO IMPACT FEES.

Current Status:

Failed

(2025-12-08: Carried over to 2026 Regular Session.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

Version:

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)

Version:

HB972 HD1

HOUSE OF REPRESENTATIVES	H.B. NO.	972
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
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.

(1) Notify any member who uses the member's unit as a transient vacation rental of the impact fee structure no later than thirty 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 meeting or a duly noticed special meeting of the association.

(d) As used in 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.

(1) Notify any unit owner who uses the owner's unit as a transient vacation rental of the impact fee structure no later than thirty 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.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000.

Report Title:

Condominium Associations; Planned Community Associations; Transient Vacation Rentals; Impact Fee

Description:

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

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:

(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.

(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:

(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.

(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.

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:

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

Date	Status
Dec 8, 2025	Carried over to 2026 Regular Session.
Feb 10, 2025	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).
Feb 10, 2025	Reported from TOU (Stand. Com. Rep. No. 277) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
Feb 4, 2025	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.
Jan 31, 2025	Bill scheduled to be heard by TOU on Tuesday, 02-04-25 10:30AM in House conference room 423 VIA VIDEOCONFERENCE.
Jan 23, 2025	Referred to TOU, CPC, referral sheet 3
Jan 23, 2025	Introduced and Pass First Reading.
Jan 21, 2025	Pending introduction.

Date	Description	Location	Votes
Feb 4, 2025	The committee on TOU recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Tourism	6 0 1 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
Hawaiʻi Lodging & Tourism Association	** Support
UNITE HERE Local 5	** Support

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

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STAND. COM. REP. NO. 277

Honolulu, Hawaii

, 2025

RE: H.B. No. 972

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Tourism, to which was referred H.B. No. 972 entitled:

"A BILL FOR AN ACT RELATING TO IMPACT FEES,"

begs leave to report as follows:

The purpose of this measure is to authorize condominium associations and planned community associations located in a zoning district that allows for transient vacation rentals to assess an impact fee on owners or members, respectively, who use their units as transient vacation rentals.

Your Committee received testimony in support of this measure from the Hawaiʻi Lodging & Tourism Association; UNITE HERE Local 5; and one individual. Your Committee received testimony in opposition to this measure from three individuals. Your Committee received comments on this measure from the Tax Foundation of Hawaii and Hawaiʻi Association of REALTORS.

Your Committee finds that it is equitable for condominium associations and planned community associations to be able to assess impact fees on owners or members, respectively, who use their units as transient vacation rentals because of the additional costs and impacts on other units in the association.

Your Committee has amended this measure by:

(1) Requiring the board of directors of a condominium association or planned community association located in a zoning district that allows for transient vacation rentals to provide at least thirty days' notice to owners or members, respectively, who use their units as transient vacation rentals, before the association assesses the impact fee;

(2) Changing its effective date to July 1, 3000, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Consumer Protection & Commerce, should it deliberate on this measure, to consider setting a cap on the amount of impact fees that can be assessed and collected.

As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 972, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 972, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

ADRIAN K. TAM, Chair

Date	Testimony PDF
Feb 4, 2025	HB972_TESTIMONY_TOU_02-04-25_.PDF

Authors shown for version:
HB972_HD1 (2/7/2025)