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83 Year Old Wins Settlement After $590K Honolulu Fine
Explorehotelworld.com – An 83 year old wins settlement with the City and County of Honolulu after a website glitch triggered nearly $600,000 in rental fines. Sandra May, a retiree who rents an attached apartment on her property to supplement her fixed income, can now keep her home following the agreement. The city had fined her $10,000 a day for nearly two months after her rental unit was accidentally advertised online as available for short-term stays.
What Happened to Sandra May
May was hospitalized following a serious car crash when the city began issuing fines, which allowed the penalties to balloon to $590,000. Under Honolulu ordinances, it is illegal to rent or advertise residential properties for periods of less than 30 days outside designated resort zones. Attorneys from the Pacific Legal Foundation argued that the unit was never actually available for short-term stays and that the listing stemmed from a website glitch on the hosting platform.
Despite efforts to resolve the issue, the city placed a lien on May’s home, blocked her from renewing her driver’s license and vehicle registration, and told her to “get an attorney.” May filed a federal lawsuit against the city and recently reached a settlement that reduces her total fine by 95%, allowing her to remain in the home where she has lived for 56 years.
Legal Arguments and Relief
“Winning this case is an enormous relief because it resolves all of the city’s violation charges and excessive fines,” May told Fox News Digital. “While the case ended in a settlement, I don’t personally feel guilty of doing anything wrong.” May said her rental listing included a daily rate alongside a minimum 30-day rental so that if a guest wanted to stay longer than a month, it would be easier to calculate the extra days.
“To me, that was simply common sense,” she added. “The city viewed it differently, but I never believed I was violating the law.” May added that she was grateful to God and her legal team at the Pacific Legal Foundation for stepping in at “the lowest point in [her] life.”
Settlement Terms and Future Implications
Loren Seehase, an attorney with the Pacific Legal Foundation, said the settlement resolves all of May’s outstanding charges, including three additional violations the city issued after the organization became involved in her defense. “Under the Eighth Amendment, fines must be proportionate to the alleged offense, not whatever the government thinks it can get away with demanding,” she said in a statement.
Scott Humber, communications director for the City and County of Honolulu, confirmed that May agreed to a reduced penalty of $30,000. Under the terms, the city will record a $30,000 civil fine lien against her home, but will not initiate foreclosure during her lifetime. The fine will be paid through escrow if she sells the property, or through foreclosure following her death.
Humber noted that the settlement factors in May’s age, her medical hardships, her decades residing at the home, and her “limited personal involvement in creating her advertisement.” As part of the agreement, May dismissed her federal lawsuit and agreed to withdraw her administrative appeals.
“The Department of Planning and Permitting takes short-term rental violations seriously and imposes significant fines for such violations,” Humber said in a statement. “Fines for advertising a property as an unpermitted short-term rental on Oahu are typically $10,000.00 per day.” “However, the Department may not have all of the relevant facts at the time of determining the daily fine rate for a particular violation and may adjust the total daily based on factors that become known to the Department after a fine has been assessed,” the statement continued.
“After performing this review and learning of Ms. May’s unique circumstances, the Department was able to reach an agreement with Ms. May on the appropriate penalty for her conduct.” May’s attorneys said her case highlights a broader issue on Oahu, where the city has issued more than $90 million in fines for similar rental advertising violations.
Seehase told Fox News Digital the settlement “sends a clear message to Honolulu and municipalities across the country” that “governments cannot impose crushing financial penalties without constitutional limits.” “No homeowner should face losing their home over penalties that are disproportionate to the actual violation,” she added.
Frequently Asked Questions
How much was Sandra May’s fine reduced to? May’s fine was reduced from $590,000 to $30,000, representing a 95% reduction in the total penalty.
Will Sandra May lose her home? No. Under the settlement terms, the city will not initiate foreclosure during her lifetime. The $30,000 lien will be paid through escrow if she sells the property or through foreclosure following her death.
Why was Sandra May fined so much? May was fined $10,000 per day for nearly two months after her rental unit was accidentally advertised online as available for short-term stays. She was hospitalized during this period and did not initially see the city’s notices.
What is Honolulu’s short-term rental rule? Under Honolulu ordinances, it is illegal to rent or advertise residential properties for periods of less than 30 days outside designated resort zones.
How much has Honolulu collected in rental fines? May’s attorneys said her case highlights a broader issue on Oahu, where the city has issued more than $90 million in fines for similar rental advertising violations.
