Mayor Richard Bissen is urging the Maui County Council to approve Bill 9, a controversial piece of legislation designed to phase out vacation rentals in apartment-zoned districts. Maui Now's recent report highlights the Mayor's stance, emphasizing the need to prioritize long-term housing for residents and restore balance to the community. Bissen views this as a crucial step towards addressing the housing crisis, asserting that housing should be a basic human need, not a speculative asset. The proposed bill targets approximately 6,100-7,000+ short-term rental units, which constitute roughly 13% of Maui’s housing stock, with the goal of converting them to long-term housing by 2028 and 2030 depending on location, as detailed in Maui Property's blog.
The origins of the debate can be traced back to a 2001 legal opinion that led to the creation of the so-called “Minatoya List”, which grandfathered certain properties for vacation rental use, later codified by county ordinance in 2014. Bill 9 seeks to close this loophole. The Maui County Council's Housing and Land Use Committee has already voted in favor of the bill, indicating a strong likelihood of its eventual enactment. However, the legislation has faced some resistance, with some advocating for exceptions, as a Civil Beat article indicates a temporary investigative group is recommending exemptions for several properties, particularly in West and South Maui, creating an evolving landscape.
From a business perspective, the implications of Bill 9 are significant. The shift could potentially impact real estate values, especially for properties currently operating as short-term rentals. Investors and property owners may face difficult decisions, while developers might see opportunities in long-term housing construction. Entrepreneurs in the tourism sector may need to adjust their business models to account for reduced vacation rental availability. The bill's passage could lead to increased demand for long-term rentals, affecting the local rental market and potentially making housing more affordable for residents. Maui County's official website provides an overview of the bill's purpose, referencing the existing ordinances and the context behind the proposed changes.
The final outcome of Bill 9, and its long-term impact on Maui's economy and housing market, remains to be seen. The decisions made by the Maui County Council will have considerable repercussions for residents, businesses, and investors alike. As the situation develops, it is crucial for stakeholders to stay informed and adapt to the changing realities of Maui's business environment.
