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Maui council weighs new hotel zones in vacation rental phase-out equation

Papakea Resort is seen on June 24, 2024, in Lahaina, Hawaiʻi.
Mengshin Lin
/
AP
Papakea Resort is seen on June 24, 2024, in Lahaina, Hawaiʻi.

In an ongoing effort to address controversial Maui vacation rentals, the Maui County Council is considering a measure to create two new hotel zones that would allow legal short-term rentals. 

Last year, the council passed Bill 9, which phases out Maui's vacation rentals in apartment districts. The goal was to allocate more housing for local families.

Now, another legislation, known as Bill 88, would create two new hotel zones that could allow affected properties to continue renting short term.

This week, the Committee on Housing and Land Use voted 6-to-1 in support of the new designations. This comes after the Maui, Moloka’i and Lana’i Planning Commissions all recommended against the measure.

Critics said the move goes against the intent of Bill 9's vacation rental phase-out, which was proposed by Maui Mayor Richard Bissen in 2024.

FILE - Kapalua Ridge Villas in West Maui. (AP Photo/Mengshin Lin)
Mengshin Lin
/
AP
Kapalua Ridge Villas in West Maui.

But Bissen testified in support of the new zoning and said it does not change the county's position on prioritizing local housing.

“This legislation does not unilaterally reclassify any properties, nor does it undo Bill 9 or reverse the council's policy direction regarding the phase-out of transit vacation rentals in apartment zoning,” he said. “Instead, it creates a transparent process for the community planning commissions and the council also to consider whether certain properties may be appropriate for hotel district classification in the future.”

Bissen called the new zoning “an intentional next step in implementing Bill 9."

“It establishes a clear zoning framework for considering properties that have historically functioned as visitor accommodations while continuing to prioritize apartment districts for local housing,” he added.

Committee members approved an amendment to exempt Moloka’i from having the new hotel zones.

The measure now moves to the full council for a final vote. If approved, vacation rental properties affected by the phase-out would need to apply for the new zoning.


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Catherine Cluett Pactol is Hawaiʻi Public Radio’s Senior Reporter for Maui Nui. Contact her at cpactol@hawaiipublicradio.org.
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