Honolulu quickly backs down from demand that retiree pay $600,000 fine for advertising a rental

When a car crash hospitalized Honolulu homeowner Sandra May, the last thing on her mind was her rental listing. She had been in and out of the hospital for months before she discovered that a website error had allowed would-be renters to inquire about short-term rentals. That error caused her to unknowingly run afoul of a local ordinance that prohibits renting out any part of your property for fewer than 30 days.

Under that prohibition, the City and County of Honolulu charge property owners a staggering $10,000 a day for even advertising short-term rentals.

By the time Sandra caught the error on her rental listing, the City had slapped her with $600,000 in fines, placed a lien on her home, and prohibited her from accessing any City services, even essential services like driver’s license renewal and vehicle registration.

When the government imposes fines, they must be proportionate to the alleged offense—not crushing fines exceeding half a million dollars.

Represented at no cost by Pacific Legal Foundation, Sandra filed a lawsuit to challenge the City’s attempt to impose excessive fines in violation of her constitutional rights. The City quickly backed down.

On July 24, Sandra celebrated a victory when she formally accepted a settlement reducing the City of Honolulu’s initial fine by 95% and resolving all other claims against her. She then voluntarily dismissed her lawsuit, ending the legal proceedings.

“We are thrilled with this win for Sandra May,” said Loren Seehase, an attorney with Pacific Legal Foundation, which represented Sandra in her federal lawsuit free of charge. “Under the Eighth Amendment, fines must be proportionate to the alleged offense, not whatever the government thinks it can get away with demanding. This outcome reaffirms that principle and ensures Sandra can keep her home, which the City’s initial demands would have forced her to sell.”

Photography by Michelle Mishina Kunz.