In a unanimous decision, the Maui County Council’s Housing and Land Use Committee has recommended the passage of Bill 40, a significant step towards preserving workforce housing on the island. The committee voted 8-0, with one excused absence, to advance the measure, highlighting the urgent need to address Maui's ongoing housing crisis. This bill focuses on maintaining affordable housing through extended deed restrictions, giving the county increased flexibility in preserving workforce housing units.
The initiative arrives at a critical juncture for Maui's real estate landscape. Recent reports indicate a concerted effort by the county to address a shortage of long-term housing options. In July, the Maui County Council's Housing and Land Use Committee voted in favor of Bill 9, which seeks to reduce short-term vacation rentals to create more long-term housing opportunities for residents. Maui News reports that this bill aims to close a longstanding loophole that allowed thousands of condominiums in apartment districts to operate as short-term rentals. This signals a broader strategy by the council to tackle the housing shortage from multiple angles.
This council's actions arrive after Maui County Mayor Richard Bissen introduced Bill 9 late in 2024, as outlined in a blog post from VillaGroupMaui.com. The goal of this specific bill is to phase out approximately 6,000-7,000, short-term vacation rentals in Maui's apartment-zoned areas that currently operate with an exemption dating back to 1989/2001. According to the post, the return of these rental units could lower rents by up to 14% and increase supply by approximately 13%.
The implications of Bill 40 extend beyond just housing; they have significant ramifications for local businesses, investors, and the overall economy. Preserving workforce housing is crucial for ensuring a stable labor pool, reducing employee costs, and maintaining the economic vitality of Maui. Affordable housing also plays a critical role in attracting and retaining essential workers, from teachers and healthcare professionals to hospitality staff. With the passing of Bill 40, Maui takes a vital step in solidifying the island’s economy.
