83-Year-Old Reaches Settlement With Honolulu Over $590K Fine Tied to Rental Listing Error

Sandra May, an 83-year-old retiree, has reached a settlement with the City and County of Honolulu that drastically reduces fines accumulated after a website hosting error listed her rental unit as available for short-term stays. The city initially assessed her $10,000 daily penalties for nearly two months, during which May was hospitalized following a serious automobile accident and unable to address the city’s notices. The fines grew to $590,000 under Honolulu ordinances that prohibit advertising residential properties for rental periods shorter than 30 days outside designated resort zones.

The Pacific Legal Foundation, representing May in federal court, argued that the property was never actually available for short-term occupancy and that the listing resulted from a technical malfunction on the rental platform. City officials placed a lien against May’s home, revoked her ability to renew her driver’s license and vehicle registration, and directed her to seek legal counsel. May had lived at the property for 56 years before the dispute arose.

Under the settlement terms, the city reduced the total fine by 95 percent to $30,000, which will be recorded as a civil lien against her home but will not trigger foreclosure during her lifetime. The lien will be satisfied through escrow proceeds if she sells the property, or through foreclosure following her death. City officials acknowledged May’s age, medical circumstances, long residence at the property, and minimal personal involvement in creating the advertisement as factors in reaching the agreement.

May stated that her rental listing included both a daily rate and a 30-day minimum option to simplify calculations for guests extending their stays beyond one month. She expressed relief that the settlement resolved all violation charges and emphasized she never believed she had violated city ordinances. Loren Seehase, an attorney with the Pacific Legal Foundation, noted that the outcome reaffirms constitutional protections against excessive fines under the Eighth Amendment.

Scott Humber, communications director for Honolulu, stated that the Department of Planning and Permitting typically imposes $10,000 daily fines for advertising unpermitted short-term rentals on Oahu. He noted that the department may adjust penalties after reviewing additional circumstances that emerge following initial fine assessments. May’s attorneys highlighted that Honolulu has issued more than $90 million in fines for similar rental violations, signaling a systemic enforcement issue affecting other homeowners.