Settlement Allows 83-Year-Old Widow to Keep Her Home in Honolulu

An 83-year-old widow can continue residing in her Honolulu home after reaching a settlement with the city regarding nearly $600,000 in fines related to a rental listing mistake.

Sandra May, a retiree, rents out an apartment connected to her property to help with her fixed income. The city fined her $10,000 each day for almost two months because her rental unit was incorrectly listed online as available for short-term rentals.

May, recovering from a serious car accident and hospitalization, missed the city’s notice initially, allowing her fines to accumulate to a staggering $590,000. Honolulu law prohibits renting or advertising residential properties for less than 30 days outside designated resort areas.

Attorneys from the Pacific Legal Foundation represented May, asserting that her unit was never truly available for short-term rentals, attributing the listing error to a glitch in the online platform. Despite her attempts to mitigate the situation, the city placed a lien on May’s home, hindered her ability to renew her driver’s license and vehicle registration, and urged her to “retain an attorney.”

May subsequently filed a federal lawsuit against the city, resulting in a settlement that slashes her total fines by 95% and allows her to stay in the home she has occupied for 56 years.

“This victory is a huge relief since it resolves all the city’s violations and excessive fines,” May shared. “Even though the case has been settled, I don’t think I did anything wrong.”

According to May, her rental properties include both a daily rate and a minimum 30-day rental period, simplifying calculations for guests wishing to extend their stays.

“It just made sense to me,” she remarked. “The city seemed to have a different perspective, but I really didn’t feel like I was breaking any laws.”

Attorney Lauren Seehasse from the Pacific Legal Foundation stated that the settlement settles all of May’s outstanding charges, including three additional violations brought by the city post their involvement.

“Fines must be proportionate to the alleged violation,” she noted. “This outcome reinforces that idea and guarantees that Sandra can keep her home, which the city originally aimed to have her sell.”

Scott Humber, communications director for the City and County of Honolulu, acknowledged that May consented to a $30,000 reduction in fines. The arrangement entails the city recording a $30,000 civil penalty lien against her property, but they won’t pursue foreclosure while she is alive. The fine would be resolved through escrow if she sells the property, or through foreclosure after her passing.

Humber reported that factors influencing the settlement included May’s age, health issues, her long-term residency, and her minimal involvement in creating the rental advertisements.

Part of the agreement also means May will dismiss her federal lawsuit and withdraw her administrative appeal.

“The Planning and Permissions Authority takes violations of short-term rental agreements seriously and enforces substantial fines for such breaches,” Humber said. “Typically, the fine for advertising an unauthorized short-term rental on Oahu amounts to $10,000 per day.”

He further explained that the Department might not have all the relevant facts when determining the daily penalty and could adjust the total based on new information obtained during their investigation into May’s situation.

May’s legal team indicated that her case underscores a larger issue in Oahu, where the city has levied over $90 million in fines for similar rental advertising infractions.

Seehasse remarked that the settlement delivers a decisive message to Honolulu and other municipalities nationwide: “The government cannot impose disproportionate financial penalties without constitutional limitations.”

“No homeowner should risk losing their house due to a fine that is significantly more than the supposed infraction,” she emphasized.