Maui Council Advances Scaled-Back Vacation Rental Bill

Summary

Maui County Council advanced a bill that would rezone over 4,500 short-term rental units, reducing the scope of a broader phaseout plan.

Why this matters

The legislation could significantly impact the availability of long-term housing on Maui and reshape the island’s tourism-driven real estate market.

Nearly a month after passing a version of Maui Mayor Richard Bissen’s plan to phase out thousands of short-term vacation rentals, the Maui County Council on Wednesday advanced a bill that would reduce the number of affected units by more than half.

Known as Bill 9, the original legislation ends exemptions that allowed approximately 7,000 apartment-zoned units to operate as short-term rentals. These operations would cease beginning Jan. 1, 2029, in West Maui and Jan. 1, 2031, in other parts of the county.

The council is now seeking feedback from the Maui, Moloka‘i, and Lāna‘i planning commissions on a separate measure that would rezone more than 4,500 of those units to permit both hotel and residential uses. The commissions have up to 120 days to review the proposal and return recommendations.

The council voted to send the proposal forward with minor language adjustments. Only Keani Rawlins-Fernandez of Moloka‘i opposed the move, citing concerns about inadequate discussion.

“We’re being rushed to move this along and to not have a full and complete discussion,” Rawlins-Fernandez said. “My hope is that in committee we can continue to have these discussions to figure out what would be the best way to achieve the desires of all the council members.”

Council members Rawlins-Fernandez and Tamara Paltin of West Maui introduced amendments aimed at addressing coastal erosion and sea level rise. The council rejected those proposals in two 5-4 votes.

Council member Kauanoe Batangan, who was sworn in Monday to replace the late Tasha Kama, said such environmental issues should be addressed through separate legislation. “I would prefer to keep the zoning in the code clean,” Batangan said.

Council member Tom Cook of South Maui, who participated in a Temporary Investigative Group on Bill 9, introduced the rezoning bill. He said the measure could help reduce the risk of legal challenges from owners of affected properties. Some lawsuits have already been filed.

If passed, the proposal would create two new hotel zoning districts covering properties the investigative group deemed unaffordable for most residents, vulnerable to sea level rise, or unsuitable for long-term rentals.

Mayor Bissen introduced Bill 9 in May 2024, following the August 2023 wildfires that displaced more than 12,000 residents and worsened existing housing shortages.

The bill drew varied reactions from the community, with some fire survivors and local residents supporting increased access to housing, while some property and business owners expressed concern over economic impacts and potential legal consequences.

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