Maui County’s Housing & Land Use Committee, led by Council Member Tasha Kama, is deep into deliberations on Bill 9, a proposed phase-out of short-term vacation rentals within apartment-zoned districts. A recent hearing drew more than 70 live testimonies—plus dozens more online. While verbal support slightly edged out opposition, written submissions have largely criticized the bill.
What Bill 9 Proposes
- Three-Year Grace Period: Roughly 6,000 existing units would have three years to convert to long-term rentals.
- Rezoning Option: Owners can apply to rezone as hotels if they wish to continue short-term operations.
- Target Area: Applies to units in apartment-zoned districts identified on Maui’s “Minatoya List,” especially in South and West Maui.
Voices on Both Sides
- Supporters argue that short-term rentals drive up housing costs, displace local families, and weaken community ties—issues intensified by the 2023 wildfires. They say converting these units to long-term housing will help essential workers stay on island.
- Opponents include rental owners—many from off-island—who contend that their properties underpin livelihoods and tourism. They note high upkeep and HOA fees make long-term leasing unprofitable. Legal experts warn the bill may face constitutional challenges as an unfair taking of property rights.
Potential Revisions & Economic Impact
- Under Consideration:
- Pushing the enforcement deadline to 2030
- Exempting timeshare units
- Strengthening owner-notification requirements
- Economic Concerns:
- University of Hawaiʻi analysts estimate up to $900 million lost in visitor spending and roughly 1,900 jobs at risk if all affected units cease short-term rentals.
- Condo values could drop by about 25%, which might improve affordability but also erode homeowner equity.
Next Steps & Timeline
- Ongoing Testimony: More than 230 speakers are slated to present through the end of June.
- Committee Action: Once public hearings conclude, the committee may amend or advance the bill to the full County Council for a vote.
Frequently Asked Questions (FAQs)
Q1: Who is affected by Bill 9?
Owners of vacation rentals in Maui’s apartment-zoned districts that were previously grandfathered in under the Minatoya List.
Q2: What options do owners have?
They can convert to long-term rentals within three years or seek hotel rezoning to maintain short-term status.
Q3: Why are proponents supporting it?
They believe it will ease the island’s housing shortage, keeping essential workers and families housed locally.
Q4: What do opponents warn?
They cite potential legal challenges over property rights and significant economic losses in tourism revenue.
Q5: Could the bill change before a final vote?
Yes—amendments such as deadline extensions or unit exemptions are under discussion.
Q6: When will a final decision be made?
After public testimony wraps in late June, the committee and full Council will debate and vote, likely in July.
Sources Maui Now
