A. Except as provided in this section, time share units, time share plans and transient vacation rentals are prohibited.

B. Existing time share units, time share plans and transient vacation rentals which were operating pursuant to and under law and which were registered pursuant to chapter 514E of the Hawaii Revised Statutes as of the effective date of the ordinance codified in this section shall not be impaired by the provisions of this section; provided any time share project operating under law that records in the bureau of conveyances within sixty days of the effective date of the ordinance codified in this section, a declaration in a form prescribed by the director of planning shall be deemed exempt from this section so long as the project or apartment unit identified by the declaration continues to operate under a lawful time share plan or registration.

C. Time share units, time share plans and transient vacation rentals are allowed in the hotel district; provided, such use is explicitly and prominently authorized by the project instrument. As used in this section, “project instrument” means one or more documents, including any amendments to the documents, by whatever name denominated, containing restrictions or covenants regulating the use or occupancy of a project. As used in this section, “project” means property that is subject to project instruments, including but not limited to, condominiums and cooperative housing corporations.

D. If the project in which the time share unit, time share plan, or transient vacation rental is to be created is not a hotel and does not contain time share units, time share plans, or transient vacation rentals, then such use may be created only if such use is explicitly and prominently authorized by the project instruments, or the project instruments are amended by unanimous vote of the unit owners to explicitly and prominently authorize time sharing or transient vacation rentals. (Ord. 1989 § 1, 1991: Ord. 1134 § 3, 1981)