Maui County is taking significant steps toward phasing out thousands of vacation rentals, a move aimed at addressing the island’s severe housing shortage. The Maui Planning Commission recently voted against a proposal that could have allowed approximately 4,500 short-term rentals to continue operating, marking a critical juncture in the ongoing debate over housing versus tourism.
Key Takeaways
- The Maui Planning Commission voted 5-1 to recommend denial of a measure that would have created new hotel zoning districts.
- This decision makes it more challenging for roughly 4,500 vacation rentals to avoid a phase-out mandated by Bill 9.
- Bill 9 aims to convert apartment-zoned short-term rentals to long-term housing, with phase-out dates beginning in 2029 for West Maui and 2031 for the rest of the county.
- The Maui County Council will now need a supermajority vote to override the commission’s recommendation.
The Planning Commission’s Decision
The Maui Planning Commission has recommended against establishing new H-3 and H-4 hotel zoning districts. This proposal was intended to provide a pathway for approximately 4,500 grandfathered vacation rentals, primarily located in apartment-zoned districts, to continue operating as transient vacation rentals. The commission’s 5-1 vote against the measure signifies a setback for proponents seeking to preserve these units for tourist use.
Council Member Tom Cook, who introduced the resolution, expressed disappointment, stating that the new zoning districts were designed to align with existing apartment standards and were recommended by a Temporary Investigative Group as a structured solution. However, Commissioner Mark Deakos, who introduced the motion for denial, argued that the commission and County Council had already decided to phase out these uses through Bill 9, and creating new zones would undermine that decision.
Background on Bill 9 and the Housing Crisis
The push to phase out vacation rentals in residential apartment zones intensified following the devastating August 2023 Lahaina wildfire disaster. The initiative aims to return housing units to long-term residents and alleviate Maui’s critical housing shortage. Bill 9, signed into law in December, mandates the termination of short-term rentals in apartment districts, with specific timelines for different regions of the island.
Without the proposed zoning change, the roughly 4,500 affected units, many of which are on the "Minatoya List" of grandfathered rentals, face a mandatory phase-out. This list refers to vacation rentals allowed to continue operating even after a 1989 ordinance restricted transient accommodations in apartment-zoned districts.
Arguments For and Against the New Zoning
Supporters of the new hotel zoning districts argued that they would provide clarity for property owners and operators, maintain tax revenue, and acknowledge the long-standing legal use of these properties. They also contended that these units were often better suited for tourist use than for long-term residential living due to factors like cost or location.
Opponents, including community groups like Lahaina Strong and fire survivors, viewed the proposed zoning as an attempt to undermine Bill 9 and divert much-needed housing away from local residents. They emphasized the urgent need for affordable housing, especially for those displaced by the wildfires, and argued that creating new hotel zones would legitimize hotel uses in residential areas.
Next Steps and Future Uncertainty
The Maui Planning Commission’s recommendation now goes to the Maui County Council, which will require a two-thirds supermajority vote to override the commission’s denial. The Molokaʻi and Lānaʻi Planning Commissions are also scheduled to review the proposal. The ultimate fate of these thousands of vacation rentals remains uncertain, with potential legal challenges also looming.
Sources
- Future of 4,500 Maui vacation rentals uncertain following planning commission’s ‘no’ vote : Maui Now, Maui Now.
- Maui vacation rentals face more challenges after setback, Honolulu Star-Advertiser.
- Maui Planning Commission rejects bill save vacation rentals, Spectrum News.
- Maui commission votes to support path toward vacation rental phase-out, Hawaii Public Radio.
- Maui Just Made It Harder To Save 4,500 Vacation Rentals, Beat of Hawaii.