Hundreds of potential rental properties might be added to the housing market if legislation by Shawn Gumataotao passes into law. According to the freshman Republican senator, his affordable housing bill along with other measures by other senators can help to bring down the cost of rentals.
His Bill No. 125-38, introduced Tuesday, would authorize the Department of Revenue and Taxation to issue one-year temporary business licenses to homeowners to rent out their homes that don’t meet the current set of regulatory process guidelines. The homeowner, if he or she wishes to continue renting the property beyond the year-long period, would have that year to meet the “red tape” requirements of the government.
The bill is silent on whether the government would allow homeowners to rent parts of their homes. For example, if a homeowner of a four-bedroom home wishes to rent out one unused room, the bill does not make mention of whether DRT would be authorized to issue a temporary business license for the rental of that room. “That’s something we can address in markup,” the senator said.
Markup is a legislative process, where following a public hearing on a certain bill, senators hold a working session to make changes (mark up) the legislation based on public input. It is a public process, one the new Republican legislature has resurrected after years of Democrats not utilizing the process.
The senator said it was the Guam Association of Realtors that lobbied his office to introduce this legislation and that provided him the data suggesting the passage of this legislation could open up “a couple hundred” homes for rent.
According to a news release the senator published Tuesday:
“This bill recognizes that the price and availability of residential units remain a challenge for individuals and families across our island,” said Senator Gumataotao. “With a limited housing inventory and a market influenced primarily by the immediate housing needs of our military partners and federal contractors we need a solution to meet this challenge head on.”
The average cost of a single-family home in Guam is reported to have doubled over the past 10 years. At a Society of American Military Engineers Guam Post Forum held in November 2024, Cornerstone Valuation Guam Inc. told those in attendance that what used to be about $213,600 for that home costs $420,000 in today’s dollars. Additionally, the Guam Housing and Urban Renewal Authority (GHURA) has stated publicly that outside of housing supply and demand issues, the overseas housing allowance provided to military service members is artificially inflating the cost of housing in Guam. GHURA expects that as of 2025, Guam faces a demand for 9,908 additional housing units driven by population growth, pent-up demand and hidden homelessness.
“If approved, this proposal creates a legal pathway for residential units to be rented out if they meet the inspection requirements of a Certified Home Inspector including, but are not limited to, structural, electrical, plumbing, and cooling systems,” said Senator Gumataotao. “Property owners will be given up to one year to complete any pending business license requirements and within that time frame, this bill allows them to generate income by providing other families with safe and affordable housing options.”
As drafted, the bill provides that if a residential unit is found in violation of any of Guam’s real property use laws or any health or safety regulations after a temporary business license is issued, the temporary business license shall be immediately revoked. All provisions in Guam law relating to fair housing and taxes including income taxes, property taxes, gross receipts taxes, insurance, and rentals would apply to temporary business licenses, and the Government of Guam shall not be held liable for any injury, death, or legal or financial obligation arising from a rental unit temporarily licensed under the proposed law.
