Maui County proposal would turn vacation units into long-term rentals

There's trouble in paradise. For years, an ever-looming housing crisis has grown in the

Hawaiian Islands. That threat came to a head in 2023 when a firestorm leveled the old capital of

Lahaina on the island of Maui. Thousands found themselves without homes or jobs. In the wake of

the disaster, many called for the government to force short-term vacation rentals used by tourists

to be flipped into long-term rentals for locals. Listen, Mayor, listen! When I say housing, you say people

Housing! People! Housing! People! The movement continues, but owners of the short-term rentals are pushing back

The debate about flipping vacation rentals is being brought to the forefront

as the Maui County Council's Housing and Land Use Committee prepares to examine a proposal

by Maui County Mayor Richard Bisson. Every day, local families are being forced to leave the only home they've ever known

Maui's housing market has become increasingly out of reach, a crisis worsened by the events of August 8th

leaving thousands of displaced survivors still in need of permanent homes. But this issue extends beyond disaster recovery

It's about our future. Bill 9 plans to phase out units rented out for less than 180 days, known as transient

vacation rentals in apartment zone districts. This means a target is placed on units from

what is called the Minotoya List named after the Maui County official who created the legal memo giving them an exemption in 2001 the list contains the addresses of over 7 rental units

about 6,000 of which are actively being used as short-term rentals. These 7,000 units were grandfathered in as legal short-term rentals in apartment zones

since they were operating as such by April 20, 1989, when the county passed an ordinance limiting TVR permits in such areas

For years, these properties have operated in apartment zones as short-term rentals

while locals struggle with increasingly higher costs of living and a housing shortage in the Aloha State

Over half of Maui residents are rent-burdened from spending over 30 percent of household income on rent

Over a quarter of residents spend more than half of their income on rent

The growing crisis was compounded by the 2023 fires, destroying more than 2,200 structures

Mayor Bisson and others are hoping Bill 9 opens up affordable living spaces for locals

But the release of a University of Hawaii ysis on the proposal pointed out some cracks in the plan

The ysis, Uhero authors found the policy as it currently reads, would have far-reaching economic effects with both intended benefits and unintended consequences

Those potential effects are broad and include a $900 million annual drop in visitor spending and 1,900 lost jobs

Maui has a heavy reliance on visitor spending to support its economy

The leisure and hospitality sector employed 22 people in 2022 just over a quarter of the island total labor force That same year visitors excluding those who arrived via cruise ship spent nearly billion

The potential drop in visitor spending, theorized by UHira, would have a large

impact on the local economy. Mayor Bisson said in a statement responding to the ysis

quote, it's important to recognize that economic models, while helpful, cannot fully shape the future of our communities. They do not reflect the lived experiences of our

residents. The families crowded into multi-generational homes because younger generations can't afford their own. The workers commuting longer distances or leaving Maui

entirely and the growing strain on our infrastructure and sense of place. The authors of the ysis

proposed some adjustments to the policy to soften the economic side effects. Gradual implementation

extending the transition period and phasing out the short-term rentals more slowly in smaller

amounts or areas instead of two large phases. Lottery-based phase-out, randomly selecting a

small number of properties each month for transition over a 12-month period so as not

to flood the market, and rezoning or special use permits, allowing limited short-term rental use

to continue in designated areas where it aligns with long-term planning goals

Mayor Bisson heard and shortly before the ysis even came out was already walking

back some of his previous statements in a South Maui community meeting

They were intended for workforce housing, they were built for workforce housing

and they became short rentals If that was built to be a workforce housing my goal is to convert those back to workforce housing That the simple answer The complicated answer is that only about 2 of the units on the Minotoya list meet that qualification

severely curbing the mayor's earlier promises. It's a compromise to make residents of the Valley Isle happy

both those looking for places to live and those who are renting out to tourists

But flipping vacation rentals isn't Maui County's only hope for local housing

Mayor Bisson has other plans in place he hopes will help residents find a place to call home

At the state level, Governor Green, Lieutenant Governor Luke, and Maui County state senators and representatives

are pushing to cut red tape, invest in housing stock, and strengthen infrastructure

Here at home, I'm working with our county council to explore public-private partnerships, inclusionary housing policies, tax incentives, and use in deed restriction programs

These are just a few of the critical efforts underway, but true change will take all of us

Tough decisions lie ahead, and while change requires sacrifice, the long-term future of our people depends on it

The bill is expected to be considered before the Maui County Council Housing and Land Use Committee in mid-May or early June

Sessions will be held in the evening to allow as many locals as possible to bring their testimony before the committee and have their voices heard

For Straight Arrow News, I'm Kaylee Carey. For more stories that matter to you, check out our app and website at san.com