A bill intended to increase Guam’s available rental housing by authorizing temporary business licenses for inspected residential units received general support June 11, but agency witnesses urged clearer standards and oversight.

Senator Sean Gumitatao introduced Bill 125‑38 COR, which would allow a residential unit—single‑family homes, apartments, or condominium units that meet inspection requirements established by a certified home inspector recognized by the government of Guam—to be issued a temporary, nonrenewable business license for up to one year so the owner may rent the unit while completing permanent licensing requirements.

The sponsor said the bill aims to expand housing inventory in the face of a reported shortfall. The sponsor referenced data provided to the committee: a Guam Housing and Urban Renewal Authority/industry estimate of demand for roughly 9,908 additional housing units and anecdotal rental pressures that place local two‑bedroom rates near $1,250 per month while similar units occupied by military‑subsidized tenants can rent for about $2,450 per month.

Department of Revenue and Taxation Director Marie Lizama said DRT typically issues business licenses after required clearances and underscored that a temporary license should not be renewable without progressing to a permanent license: “once the temporary business license expires, that it's permanent,” she said, clarifying that the owner should not be able to repeatedly renew temporary status to avoid full licensing. DRT asked that the committee clarify who reports violations that would trigger immediate revocation and whether the owner has appeal rights equivalent to permanent license processes.

The Department of Public Works (DPW) supported the bill in concept but said its inspectors are not currently certified by the International Association of Certified Home Inspectors (InterNACHI); DPW Director Vince Areola said his six inspectors have long experience with building codes but would need to complete InterNACHI online certification if the statute required that credential.

Fernando Estevez, deputy director at the Guam Housing and Urban Renewal Authority, did not take a position for or against the bill but said GURA does not conduct the inspections referenced and flagged operational and legal questions about recouping funds and civil enforcement if a temporary license holder later failed full licensing requirements.

Christopher Felix of the Guam Association of Realtors said the industry supports the bill’s intent but urged party (private) inspection to reduce permitting delay; he raised concern that requiring InterNACHI‑level inspections would be costly and that some commercial home‑inspection standards go far beyond what’s needed to certify a unit as habitable. Several senators suggested adopting the HUD‑backed INSPIRE standard (used for quality assurance in federally supported housing inspections) as a baseline for habitability rather than an exhaustive buyer’s inspection standard.

Lawmakers and agency witnesses agreed on several technical points for markup: define “residential unit” consistently with the Landlord‑Tenant law (dwelling unit), clarify whether M‑1 zoned units are eligible, specify whether temporary licenses are nonrenewable, require proof of bonding/insurance or professional liability for private inspectors if party inspection is allowed, and require DRT/DPW to submit written recommendations on inspection turnaround times and likely fees. The committee asked agencies to file written testimony and data within five working days.

No vote was taken. The sponsor said he will work with stakeholders to craft amendments for the committee’s markup and encouraged public comments and written testimony.