The Maui County Council is currently weighing whether or not to pass a bill that would phase out roughly 7,000 transient vacation rentals in apartment-zoned districts, nearly half of the island’s supply.
The council’s Committee on Housing and Land Use heard more than five hours of testimony Monday from over 50 of the nearly 200 testifiers who signed up.
Since being proposed by Mayor Richard Bissen last year, Committee Chair Tasha Kama says Bill 9 has fueled contention in the community.
“Members, this item has been one of passionate discussion, and unfortunately, has created division to the point of bullying, intimidation and fear of retribution within our community. We're starting our considerations on this matter, and I expect, given the division, that we'll be hearing from public in several following meetings,” she told fellow committee members.
“The matter before us represents a substantial shift in land use with potentially dramatic economic and social effects. It will not be a decision that will be taken lightly. We'll consider all arguments, those who support and those who oppose.”
Proposed amendments to the bill would exclude timeshare units from the phase-out, and include a three-year amortization period during which properties could pursue a change in zoning to hotel district, allowing them to continue operating as short-term rentals.
Supporters of Bill 9 say housing for the local community needs to be prioritized over investment interests. They say using these existing units to address Maui’s housing crisis makes sense over waiting for future construction that’s hampered by a lack of water.
Opponents say passing the phase-out bill would bring job loss and business closure for those dependent on the tourism industry. They point to rising costs of insurance and HOA fees that they say would make the housing unaffordable for local residents.
Shane Albritton supports the bill. He was born and raised on Maui and works as the agriculture teacher at Baldwin High School.
“When I talk to my students at Baldwin about staying on Maui and living on Maui, you can feel the hopelessness, like they really don’t feel like they have a chance, they have the opportunity to stay here and make a living here and really build a life here,” Albritton said in his testimony. “And it’s heartbreaking.”
Generational Lahaina fire survivor Shannon I’i said it’s hard to hear about people who own multiple vacation rentals when her friends and family have had to move off Maui.
“We are tired of watching our communities get carved out for outside gain while we are left fighting for scraps. But we will continue to do so for and with the generations to come,” she testified, supporting the bill.
“I currently live at Ka La’i Ola, a temporary solution by the State of Hawaiʻi, an approximate 500 square foot fishbowl,” she continued. “So don’t you dare, the opposition, use the excuse that these condos cannot be used to house our local community. We will make it work, because that’s what we’ve always done, but we will no longer let this continue.”
Dave Englert said he was born and raised on Maui, manages short-term rentals, and opposes Bill 9.
“In managing these condos for over 15 years, the expense is astronomical. Most of my clients are simply trying to cover their expense every year,” he testified. “Given the high expense of these condos, these units do not pencil out at long-term rates, as we can see with the $4,500 a month for a one-bedroom.”
Caitlin Miller, executive director of the Maui Vacation Rental Association, said, in opposition to the bill, that she does not believe it will accomplish its intended goals.
“This bill does not guarantee that any housing will be converted into long-term rentals or will be made affordable to local families,” she said in her testimony. “The people most directly impacted by this bill are not the wealthy investors; they are local working families — cleaners, property managers, contractors, who have built their lives and livelihoods around legal short-term rentals.”
Maui County staff say transient vacation rentals account for 21% of all housing in Maui County — and a much higher percentage in South and West Maui. Maui County also has the highest rate of actively listed vacation rentals in the state.
A recent University of Hawaiʻi Economic Research Organization analysis predicted the possibility of a $900 million annual loss in visitor spending, along with nearly 2,000 jobs if the bill passes. But Bissen says tax adjustments could make up for any losses, and the numbers don't tell the whole story.
“As mayor, my responsibility is always to put the greater good of our people first,” said Mayor Bissen in his statements supporting Bill 9. “Housing is not a speculative asset, it is a basic human need, and when the balance is tipped so far that our residents become outsiders in their own neighborhoods, we have a moral obligation to act.”
Testimony on the bill will resume on June 18, with continuation at a third meeting highly likely.
