In a decisive move with significant implications for Maui's economy, Mayor Richard Bissen immediately signed Bill 9 into law after the Maui County Council approved it by a 5-3 vote. The legislation, which focuses on phasing out transient vacation rentals (TVRs) in apartment-zoned districts, has been a source of intense debate, dividing the community and raising concerns among business owners and investors. This decision follows a protracted period of public discussion and several proposed amendments, highlighting the complexities of balancing the need for affordable housing with the economic interests of the tourism industry.
The final vote saw Council Members Gabe Johnson, Shane Sinenci, Keani Rawlins-Fernandez, Nohelani Uʻu-Hodgins, and Tamara Paltin voting in favor, while Yuki Lei Sugimura, Tom Cook, and Chair Alice Lee opposed the measure. HawaiiFreePress.com, confirmed the vote and the immediate action of the Mayor. This division reflects the divergent views on the bill's potential effects, with supporters emphasizing the urgent need for long-term housing solutions and opponents warning of severe economic consequences.
The core of Bill 9 is the discontinuation of TVR use in apartment districts over a defined phase-out period, aiming to convert existing units into long-term residential options. Maui County's official overview of Bill 9 details the historical context, the justifications for the bill, and the proposed amortization schedules. The implications of this new law are far-reaching. The immediate impact will be felt by property owners who currently operate vacation rentals within the affected zones. They now face the prospect of either converting their properties to long-term rentals or navigating the phase-out process.
The Maui County Council's decision has triggered varied reactions within the business community. While some welcome the potential for increased long-term housing availability and a shift away from a tourism-dependent economy, others express apprehension about job losses and reduced tax revenues. Local business owners, particularly those in the hospitality sector, are likely to face operational adjustments as a result. Moreover, investors will need to reassess their real estate strategies, considering the altered landscape of permissible land use and development possibilities.
Further analysis of the economic impact is expected. Some studies, like those referenced in the Honolulu Civil Beat report, suggest this could lead to widespread job loss and a weakened economy, balanced against the potential to lower housing costs.
