County Council unanimously approves bill to allow guest houses despite heated debate

Despite heated discussion and concerns about the benefit for the public, the Kauaʻi County Council voted 7-0 on Wednesday to pass a bill that allows homeowners to build guest houses to address housing shortages.

Bill 2933, first introduced by Council Chair Mel Rapozo and Councilman Billy De Costa, would allow one guest house per dwelling unit on lands zoned for residential, agricultural, commercial, open, and university zones — primarily focusing on agricultural lands.

The bill defines a guest house as a maximum 800-square-foot unit that may or may not have a bathroom or a kitchen and prohibits the units from being used for transient vacation rentals or other short-term stays. The measure had been approved to head to second reading during last week’s committee meeting.

During the Wednesday meeting, council members Felicia Cowden and Ross Kagawa voiced concerns about the measure, as did Kauaʻi resident Lonnie Sykos.

Sykos, a regular attendee of council meetings, alleged council members had conflicts of interest in drafting the bill, saying some would “personally benefit” from the measure.

“If you’re creating legislation that benefits you or your immediate family or your business partners, it seems like our ethics code says very clearly you need to recuse yourself,” Skyos said. “But apparently, you can write legislation that benefits you, and it’s ethical.”

In written testimony, Sykos named DeCosta as having a conflict because he has been a cattle farmer for decades and owns agricultural property on the west side. At a candidate forum earlier this month, DeCosta noted he and his wife “own several homes on the island,” calling himself “a smart person that knows how to make people’s dreams come true.”

During the Wednesday council meeting, council members did not address the alleged conflicts of interest.

DeCosta called the bill a “no brainer,” and did not know what to say to those who could not “see the writing on the wall.”

The central debate revolved around concerns raised by council member Felicia Cowden, who presented a slideshow detailing limited sewer capacities, fire evacuation and water supply problems, challenges obtaining insurance, and over parking.

Rapozo told Cowden that people on properties with those issues would simply not be permitted to build the guest house.

“Should we ban certain rules because not everybody can have one?” he said.

Cowden later replied that “where we can actually build,” is a concern. She named Lāwaʻi, Poʻipū, Wailua, Wailua Homesteads, Kekaha, Moloaʻa, Kīlauea, Kalihiwai, Anahola, Hanamāʻulu, Anini, Wainiha and Hāʻena as “water constrained” areas.

“These people are going to want it, and they’re not going to be able to get it,” she said. 

Rapozo said: “It’s not a concern that should stop someone that can (build) from having the ability.”

Kauaʻi Planning Director Kaaina Hull did not know how many guest houses would be possible to build through the bill, or in which neighborhoods. He estimated 300 to 500 units, but called that an “optimistic number.”

Rapozo said it will “mean everything” for those families who are able to get a house through the measure even if overall impact seems small.

Cowden referred to a bill permitting additional rental units and accessory dwelling units on Kaua’i, saying it was “passed right before the election so we could all say, ‘Yay, this is what we did.'”

Bills 2740, 2741, 2742, regarding affordable rental units, were signed into law on Nov. 12, 2019.

Cowden claimed that while council members celebrated the legislation at the time, it ultimately has had little impact because infrastructure and permitting issues prevent people from building.

Rapozo said Bill 2933 has absolutely nothing to do with the election.

“To even infer that this was to be done before the election … I gotta defend myself because that’s a very strong allegation,” Rapozo said.

The bill was analyzed by the Planning Commission “months and months ago,” Rapozo said.

Cowden ultimately joined the other council members in voting in support of the measure, adding she hoped the news headline about the bill “doesn’t set undue expectations.”

Kagawa also voted in support of the bill after initially suggesting he wanted to defer it for further research and information.

“It’s not the greatest slam dunk I’ve ever seen, but I’m going to support it today,” he said.

Council members Bernard Carvalho, KipuKai Kualiʻi and Addison Bulosan joined Rapozo and DeCosta in full support of the measure.

“Many communities started as community living,” Bulosan said. “So we can be close to family and friends, and we all can help each other. It’s a smart way to live. It’s a way that we need to be because without family, without friends, life is nothing.”

In closing comments, Rapozo repeated that amendments to the bill added last week had addressed any “fear mongering” about congestion and overdevelopment in residential areas.

Carvalho also voiced support, saying the bill would not solve the whole housing problem, but it is “a big plus” for local families.