Maui County is taking a significant step to address its housing shortage by advancing a plan to phase out thousands of short-term vacation rentals. The controversial measure, Bill 9, aims to convert these properties into long-term housing for local residents, sparking debate over economic impacts and community needs.
Key Takeaways
- Maui County Council voted to phase out approximately 7,000 short-term vacation rentals.
- The move is intended to increase the availability of long-term housing for residents.
- The legislation faces opposition due to potential economic repercussions and legal challenges.
- Companion bills are being considered to potentially exempt a portion of these rentals through rezoning.
The Push for Housing
Maui County Council has advanced Mayor Richard Bissen’s Bill 9, a plan designed to reclaim residential units for local families struggling with affordability. The legislation seeks to end exemptions that have allowed roughly 7,000 apartment-zoned units to operate as vacation rentals. Supporters argue this is a crucial step to alleviate the island’s housing crisis, exacerbated by the devastating 2023 wildfires.
Councilmember Keani Rawlins-Fernandez emphasized the bill’s importance for local families, stating, "The difference between opponents and proponents of Bill 9… is that some people see Maui as a business, and some people see Maui as our home." The bill aims to convert these units into long-term rentals, with deadlines set for January 1, 2029, for West Maui and January 1, 2031, for South Maui.
Economic Concerns and Potential Exemptions
Opponents, including vacation rental owners and some council members, have voiced significant concerns about the economic fallout. Council Chair Alice Lee described the bill as one of the worst she’s seen, highlighting potential losses in tax revenue and jobs. A University of Hawaiʻi study suggests phasing out nearly half of the county’s vacation rentals could lead to widespread job losses and weaken the tourism-driven economy, though it also projects improved housing affordability.
In an effort to mitigate some of the impacts and potentially head off lawsuits, the council is considering companion legislation to create new hotel zoning districts. This could allow approximately 4,500 of the affected properties to continue operating as vacation rentals. However, this rezoning process faces its own hurdles, including review by planning commissions and further council votes, leading to uncertainty.
Legal and Political Challenges
Bill 9 has already encountered legal challenges, with lawsuits filed by property owners arguing the bill constitutes an unconstitutional taking of property rights. These legal battles are expected to prolong the uncertainty surrounding the future of these vacation rentals.
The Maui County Council has shown division on the issue, with a 5-3 vote advancing Bill 9, but subsequent discussions on the rezoning bill have hit gridlock. This political maneuvering, coupled with ongoing legal challenges, means the full impact and implementation timeline of the vacation rental phase-out remain unclear. The situation highlights the complex balance between addressing housing needs and managing the economic realities of Maui’s tourism-dependent economy.
Sources
- Maui County Council Advances Plan To Phase Out Short-Term Vacation Rentals, Honolulu Civil Beat.
- Hawaii Just Promised 10,000 Vacation Rentals Will Go. Will They?, Beat of Hawaii.
- Maui passes bill to phase out vacation rentals, Courthouse News.
- Thousands Of Maui Vacation Rentals In Limbo After Council Hits Gridlock, Honolulu Civil Beat.
- Maui County passes historic law to phase out thousands of vacation rentals, Hawaii Public Radio.