The efforts to convert short-term Maui vacation rentals into long-term housing solutions for survivors of the Lahaina fires does not appear to be working. With that fact comes the very real and soon-looming threat from Hawaii’s governor for a moratorium on Maui vacation rentals. That was recently postponed until April 1, but it appears that won’t be the case for much longer.
At this point, over 3,500 fire survivors are still in emergency housing, and the FEMA program supporting them will end in a month. Efforts to move survivors into long-term housing have been problematic for multiple reasons. And the idea that the governor will get enough housing without a moratorium appears to be wanting. FEMA data indicates that fewer than 500 displaced families have been placed in the FEMA program.
Gov. Green’s ultimatum will hit in two weeks’ time.
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Green has indicated that by April 1, he must secure the additional housing units needed from those Maui vacation rental owners thus far unwilling to join his program. Even as concerns exist about the legality and enforceability of a moratorium, the governor is moving forward with a plan, the details of which have not yet been revealed. Nothing of this nature has ever been done in Hawaii. If it happens, it will be as a result of emergency powers the governor may try to enact due to last August’s fire.
Green has offered huge payment and property tax incentives for those letting go of their vacation rentals in favor of providing homes for long-term renters.
What will happen to Maui tourism in light of the vacation rental moratorium likelihood?
If much-needed Maui Tourism is impacted by even the news of a moratorium that could come in days, that could impact visitor numbers. We believe, in fact, that is highly likely. That would also result in more unemployment on Maui and have other unintended and wide-ranging consequences.
In addition, short-term rental property owners are likely to take legal action.
This won’t go down easily. Some have suggested this is Green’s misplaced desire to help fire victims. Other have suggested various alternative ideas, including converting some hotels into long-term rentals. That might move the impact from being exclusively focused on vacation rental owners. Others have even wondered about stationing ships off-shore for housing.
Is a Maui vacation rental moratorium a smart move?
Aside from unquestionably opening a long, complex and expensive legal battle, Hawaii is still in a struggle to achieve strong Tourism numbers. In addition, as we reported previously, long-term rentals on Maui are already negatively impacted by the results of the fire and higher FEMA rents that have caused some owners to try to eliminate prior long-term renters.
Does the threat of a Maui vacation rental moratorium impact your plans?
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Isn’t there just one political party in complete control of the state…..? Maybe some diversity could help. Or voting out every single incumbent next election? How could new people do worse than the “leaders” who are currently slowing down the rebuilding and moving forward? Totally open to hearing how having only one political party in power has helped the beautiful people of Maui.
lol! That’s a great point. Diversity, diversity, diversity everywhere! Except when it comes to political parties. No conservatives allowed.
Well the way it works back home the week after a fire owners are back to their lot cleaning it up. Is the gov nat allowing people back in? Insurance will start the rebuild. Is insurance not a thing in Maui. No insurance you are out of luck, now you have a lot to sell. If you are waiting for the gov to solve personal problems you will wait forever. Let the gov finish their little cover up and get out of the way. The people need to rebuild.
My understanding is the vast majority of the owners (not necessarily the displaced, since upwards of 60% of them were renters) are either uninsured or woefully underinsured. They didn’t expect something like this to happen – it’s quite a rare event for houses to be leveled like this.
It would pay for all of us to check our homeowner’s insurance policies. “Full replacement coverage” costs quite a bit more.
I have some sympathy for those who took the risk that something like this wouldn’t happen, and who got a more affordable insurance policy. They made a reasonable gamble, and lost.
Consensus is many will sell off the land and go do something else. Understandable, but such a pity.
What you describe is if one house burns down. Here you have an entire town burn. A town full of old buildings with asbestos and other toxic materials that require additional cleanup. The problem now is not whether anyone has insurance, it’s that Maui already had a shortage of housing and now you’ve got thousands of people with no place to live. It’s way more complex situation than your example.
I suspect that condo owners who have no interest in taking on long-term rentals when asked will not suddenly agree while being blackmailed. Instead, a moratorium will likely result in lots of empty condos while the owners wait him out.
It is very difficult to manipulate such a large and rich market as this. And, to be honest, I think the governor is in over his head — manipulated by the hotel industry and the anti tourist groups who are using this tragedy for their own gain.
Anyone ever play the board game Monopoly?
You buy houses. Goal is to buy more houses. The more houses you get, you trade them in for hotels. Why?
Because, you as the owner of the property gets to collect more money for people landing there. And, as a hotel owner, you have to pay higher taxes.
The hotel owners win with a whole lot of money coming in, and the government wins with more tax money coming in.
Looks just like what is happening in Maui.
A monopoly!
Good analogy, but hotels and STVR owners both pay the same TAT and GET tax rates.
Just one problem, short term rentals pay a higher property tax rate on Maui than hotels currently under this Administration. Hotels win here, individuals one again lose.
Looking at Maui the answer is barely… (per $1000)
Agricultural 5.74
Apartment 3.50
Owner-Occupied Tier 1: up to $1,000,000 1.90
Owner-Occupied Tier 2: $1,000,001 to $3,000,000 2.00
Owner-Occupied Tier 3: more than $3,000,000 2.75
Hotel and Resort 11.75
TVR-STRH 11.85
Time Share 14.60 <– WOW looks like these people are taking it hard.
realpropertyhonolulu.com/media/1979/state-report-fy24-final-tax-rates.pdf
Hawaii governor wants to “drop the hammer” on STR owners and pass a morotorium on them, and use their condos for the Lahaina fire victims. Has he ever said
even once about also “dropping the hammer” on the hotels and resorts too???
In 2005, New Orleans floods, FEMA brought in lots of trailors for the victims to live in. Why can’t the governor and FEMA do the same and put the trailers in the old sugar cane fields or other opened fields with the temporary infrastructures to suppout them? Instead, he proposes to put the morotorium on short-term vacation rentals punishing the owners. Now, the owners can’t even use the condos themselves.
The repercussions on this act will be very detrimental. How many industries will this hurt?
Trailers? On Maui? You want to sail ~2000 trailers 3000 miles then prepare infrastructure? Even at $15k per month that the hotels now get, it’s a drop in the bucket compared to that cost.
The governor should have been on the phone to FEMA asking for them to start loading up travel trailers the day after the fires. They could have had hundreds of them there within weeks. Seems like it would be easier to find some land to use rather than the proposed actions.
Please use some logic. New Orleans and other mainland disasters are connected to one huge chunk of land. Mobile homes are already staged because the gulf coast is so prone to hurricanes. Shipping thousands, not hundreds, of trailers to a remote island 3000 miles from anywhere makes zero sense.
However, in terms of ongoing cost, what would have made sense long ago would have been to never allow homes on barrier islands and right next to the ocean in hurricane alley.
Ok. Let ’em go homeless. Apparently it’s too much to ask to make a short commute from the free housing they are being offered. FEMA has the trailers or access to them. Shipping 150-200 of them at a time is not an insurmountable obstacle. There could have been enough of them here by now to make a dent in the issue that is happening as we speak.
Initially they advertised that they would get the tenant OUT if and when needed. It suddenly changed to you should be prepared to have long term tenant if (yeah right when) the program is extended. And them what? If you can’t trust them to kick out a bad egg or even a good one whrnt he time has come to go go go, then nope
Also it seems like Jeff bozos wants to dump alien looking snachez for Eva Longoria. Pretty pathetic.
Not sure how Bezos and Sanchez/Longoria are relevant here, but this is probably the funniest post I have read in a while.
You also made some very valid points leading up to the Bezos part, and I couldn’t agree more with those concerns.
Even if the Governor puts a moratorium on STR’s, and/or the change in zoning happens to force us into a long term rental, I won’t do it. period. It’s not that we don’t want to help but we won’t be bullied.
If you truly want to help, you would have already looked into your kuleana. There would have been no need to blame your apparent lack thereof to being bullied.
Let’s start with the words “pono”, “kuleana”, “aloha”, and “ohana”. All of these represent why Hawaii is (or should be) unique among the states. Pono: thankfulness for our blessings. Kuleana: responsibility (for more than ourselves). Aloha includes the purest of love, and ohana: family extends beyond relatives.
Let’s continue with another fact. 53% of all vacation rentals are owned by out-of-state owners. According to HTA that number rises to 70% on Maui, with a few owning more than 25 rentals.
If we all would look deep inside our hearts, we would recognize that providing a home is the least one can do to help the recently homeless their own. It’s past time for humane.
To imply that condo owners are somehow less humane than (real?) Hawaiians for not giving up their own units is wrong and does nothing to help anyone.
Please share that opinion with my homeless daughter, husband and one-year old baby who lost their home and tourist-oriented business. Give them your advice.
I am one of 3000 condo owners who did give our STVR condo over to FEMA for 18 months to help families just like your daughters. I don’t know whats going on but it has been 3 months and FEMA has still not placed anyone in our unit. Stop criticizing all condo owners since many have given up there second homes to help. Hope your daughter is in FEMA program and if not, why?
Governor seems to be out of touch with reality. Majority of STR are already in long term lease.
Locals do not want to move in, because these rooms are not adequate for their needs, small kitchen , no storage space, limited parking, and totally inappropriate for two year stay.
Locals are now abusive and arrogant towards visitors inspite of getting free homes for two years at the tax payer expense, following remarks by the activits demonizing owners who have short term rentals
It might take along time to flip short term single family structures to full time living but that shouldn’t stop us from going forward with the change.
We can at least now come up with a bill that would stop off island buyers from buying property to use for income. If they buy here they must live in it.
For true rental property (apts.) We need some sort of rent control that coincides with the average income of islanders.
Jerry,
You should put your efforts into Hawaii seceding from the U.S. Because, whether you like it or not, Hawaii is a part of the U.S. This means you are stuck with that federal constitution-thingy that prevents you from discriminating against people from other states. Believe me, the residents of a lot of states would love to bar second home ownership by deplorable out-of-staters. I assure you this is the case in Teton Valley Idaho when it comes to folks from Utah.
It’s not about confiscating or slamming the door on second homes. Owners who convert won’t have to pay county property taxes—combined with government-paid rental income of $5, 000 a month for a one-bedroom unit, $7, 000 for a two-bedroom, $9, 000 for a three-bedroom and $11, 000 for a four-bedroom.
This is a temporary solution, not an outright ban, and the Governor most likely has the power to institute an emergency order. Governor’s have sweeping powers to act in the interest of public safety and emergencies all adjudicated many times in the past by courts.
You say this is a temporary solution? If you knew the lack of transparency in the details of turning one’s STVR over to FEMA you might understand where owners hesitancy lies. There is no guarantee it is temporary by any means. There have been so many unanswered questions and frankly the county/state are in cahoots with the hotel industry to eliminate STVR and have been long before the fires that there is little trust with this government. STVR contribute more than 5X the funds towards local affordable housing than hotels and the constituents of Maui should be asking leadership where are those funds. South Maui has 1000 units available to move in but people are refusing bc they don’t want to commute. Lots of people have to commute.
Jerry after reading your comment, I wonder what you think about celebrities buying large amounts of land and only coming once in awhile.
I wonder why no one is addressing this.
Do you know who first sold every single condo and acre of land now owned by an evil mainlander? A local who presumably benefited. And every time a condo goes up for sale, it is my understanding that locals are free to purchase.
You said “Stop off island buyers from buying property to use for income”.
This is Against The Law. Why are some not understanding this?
As the owner (not in Hawaii or Mexico) of an STR in a resort area that is worried about over-tourism, I am fully cognizant of the possibilities, or even likelihood, that one day rules will work against me. As such I am prepared for that eventuality. I know many (most?) owners of STR’s rent them out to help defray the costs – as we did for many years. The cloud of STR change hangs over the heads of those in this situation. If that’s you, have a plan to prepare for a different financial reality in Hawaii and other resort areas. They are coming after STR’s.
As Canadians, who had not been back to Maui since 2009, we have noticed a huge change. As our long awaited trip had been booked since March of 2023, we did not cancel or rebook after the Lahaina fire. Our rented condo in Kihei was great, but was downhill from there. Everything has become so expensive, buying basic groceries is a nightmare let alone paying for meals in a restaurant. Driving to various beaches will cost you just to park and look at the ocean. Everything was pay and pay some more. The people and the whole island seems to have lost energy and don’t care about anything but grabbing the next dollar. Unfortunately, we will not go back to Hawaii again; our tourist dollars will be spent elsewhere.
I agree! We just returned from a 9 day stay on Maui. It was for our anniversary. We have been coming to Maui for over twenty years. At one time we owned several timeshares there. To say that everything is different is an understatement! Everywhere you go now someone has their hand out! How can they justify paying to park at a public beach???? ( And then adding a per person fee on top of that) You can’t seem to find any local places to shop and eat that aren’t very overpriced. Even Kihei is ridiculous now. Everyplace you want to go seems to require a reservation!!! Vacations used to be spur of the moment,not a planned itinerary!Don’t know if we will ever be back! The vibe and the aloha are gone!
So more than 2000 families, old people and children now have no place to call home.
For your benefit, I’ll drop a piece of aloha from an earlier post:
“Now step back and read the numerous posts whining about how all of this brouhaha is ruining their vacation plans and how they’ll never visit Hawaii again.
Noblese oblige anyone?”
Since the recording of time people have had to move due to disasters, natural and manmade.
I do not understand the mentality of why it should be different for Maui residents. Yeah, it sucks. But when you decide to move to an island in the middle of the ocean, you take certain risks. And certain conditions.
Maui did not take care of the tall grasses that fueled the fire, the lack of safe updated electrical wires. Maui did not update the old housing that had horrible toxins in them, so when they burned it polluted the island and the ocean.
This has nothing do with tourists and STR Owners.
Maui residents voted in govt that didnt take care of their island.
I am getting fed up with arrogance of some Maui residents.
Well stated. Hearing the “whining” is tiring. I came from a WWII household. No whining. Get out there and start over again. We were taught to plan ahead. Prepare prepare prepare. LIke boyscouts and girlscouts, be prepared. That means being insured properly. Not having children that one can not afford. Blaming, tourists, and the wealthy that have earned their right to build and enjoy life is a cop out. Never ever be complacent with your lifestyle. Life can be cruel and is iffy at best these days.
OK. I understand your perspective. Now step back and read the numerous posts whining about how all of this brouhaha is ruining their vacation plans and how they’ll never visit Hawaii again.
Noblese oblige anyone?
I own a condo in Kihei. I have called twice now offering our condo for the program. FEMA designated 3 property management groups to take care of on boarding rentals. The first time I called in January, I was told they had enough. I called in March and was told they were needing more. I was to receive an application packet I have yet to receive after 2 weeks. What’s the ploy here?
Ronald Reagan said that these are the 9 most dangerous words in the English language, “I’m with the government and I’m here to help”. Unfortunately most of government in this country has long ago lost sight of what civil service means. And their common sense.
The locals are turning their noses up at housing, they’re living in resorts, 3 free meals a day, pool at their disposal. It’s really not anyone complaining, other than the hotel lobbyists that want their hotels back and No competition from STR’s. Hotels do not care if a family can’t afford their hotels, they’re catering to people with $$. The gov is following the $ that is being tossed his way. There are many places rented in Kihei, and West Maui by FEMA with no one that wants to move in Go Figure!
We have traveled to Maui over 15 times and will not return until the housing issue is resolved. Maui no longer seems like paradise.
Dozens of property owners I know in Kihei and central Maui ha e been turned away by the companies that are intermediating between FEMA and STR rental owners. They are offering their properties and being told there is no need for properties anywhere except west Maui. This information about the governor and how too many people are still in hotels confuses me.
I’ll try to help with the confusion. One simple example of why Kihei works for some, but not for most families:
A resort worker, construction worker or other job requires being in west Maui. Each day from Kihei, it’s a 1 – 1 and 1/2 hour drive round trip along the single strip that connects to west Maui. Two children of each of those workers attend the new temporary school north of Honokawai. To reside in Kihei and make those destinations in time, little is left of the day to even say hello to one another.
Let’s express pono, kuleana, aloha and ohana, and all will begin to look beyond their attitudes about the plight of west Maui families.
It seems that I am picking up on a trend which seems to be backed up by your comment. There is an emergency that has dislocated how many people and they are going to pass up temporary lodging because it involves a commute? Is yours a serious statement? Is it even possible to be as entitled and privileged as to turn down free or subsidized emergency housing because it’s Out Of Your Way? It’s an emergency folks. This simply reinforces the attitudes that we experienced on our single visit to your state. Good luck with that.
I understand your lack of understanding. I was one who commuted by necessity two hours each work day. You know what? I got to really be with my kids mostly on the weekends as bedtime was usually earlier than my arrival.
What you are suggesting is that it’s too much of a sacrifice for mainland owners on the west side to offer up their seldom-used or tourist-only properties during a time of collective suffering.
Your suggestion is one key reason i live in Hawaii and not on the mainland.
I understand that commuting is not ideal. However, people do it everyday all over the country. My family was impacted for years commuting. While it might be nice to not have to commute, to refuse housing based on this alone suggests sheer entitlement. There are solutions that could be devised if the leadership in Maui were able to think critically, sadly they don’t. With a 1000 units available for people to move into in South Maui, if regularly scheduled shuttle service was offered to residents from the south to west side it would cut down on the cars on the road & travel expenses. Google & Facebook offer this in the most traveled corridor in the US, Silicon Valley to their employees. Myopic thinking leads to poor solutions.
Holy mackerel. The entitlement coming through your comment is palpable. You mean to tell me that seizing control of private property, because of its location, is somehow a better option than asking the recipient to drive a little farther for a period of time and avoid seizing someone’s private property? This is temporary, right? Or is the recipient then going simply live in the other person’s property in perpetuity?
Short term rentals won’t fix the Governor’s housing problem. FEMA is cancelling leases on Maui as individuals are refusing to move into the housing provided by FEMA for a variety of reasons, doesn’t allow pets, not close to where they worked, or not close to family. Properties that allow pets is actually one of the biggest requests from FEMA.. and almost all condo associations, aka short term rentals, do not allow pets. If the Governor proceeds, he will incur incredible legal fees while at the same time destroying the state’s and county’s revenues. That’s a lose lose proposition for all the taxpayers in Hawaii and especially the business owners and workers on Maui dependent on tourism.
Our people deserve the best housing possible. Hotel rooms do not provide kitchens we which are necessary to have a good family environment. Tourism should take the back seat .
this whole thing is a big mess! People who live and work on Maui but did not get burned out of their homes cannot find anywhere to live. FEMA is offer so much money to landlords to take fire survivors that the rates for rentals have increased all over. 1 bed’s used to rent for $1500. Now up to $3000. and so scarce! It’s not just a shortage for fire victims but for everyone now. And forget it if you have a pet. Better plan to give it up (humane society Full) or move into your car. Just a horrible situation!
I have received two solicitations from Westin to stay at two separate properties, one on Kauai, the other on Maui. I personally think the Maui hotels should be utilized for housing the victims of the Lahaina fire, with the hotels doing this on a ‘cost basis’ and FEMA subsidizing the difference. It ain’t gonna be $500+/night billing, just actual ‘cost’. The hotels will not be raking in the Big Bucks they want, but they will be breaking even and doing the right thing, providing AFFORDABLE temporary housing for victims of the fire. And it the end, they will be getting a lot of positive PR.
‘
In the months and years ahead you will begin to hear the stories of how these properties were mistreated and exploited by many of the fire victims who stayed there. “Stain in the carpet? Who cares, it’s not mine.” “Dirt on the walls? Not my problem.” Not to mention the appliances brought in against the rules (rice cookers, microwaves, electric burners) blowing circuits in hotels not meant for that kind of load. And the obvious: drug use/abuse and its consequences – that doesn’t stop because someone was relocated to a hotel. I am betting the hotels can’t wait to “move on” from this.
Auwe! I doubt that hotels are ready to move on. At $15,000/month guaranteed, there’s little concern for occupancy rates. As for you observations about damage, please know that the same can be said for tourists and rental car users.
When tourists check into a STVR, they have signed a rental agreement, paid the fees themselves, usually along with a significant security deposit they won’t get back if the property is damaged or they don’t adhere to the rules of the association. They have personal/financial accountability… they have skin in the game. Offshore property management companies handling FEMA placements, owners have no say in who goes into their property add a moratorium and could be a potential nightmare for owners. $5K, $7K, $11K may not be worth it. Most people would likely prefer to sell vs being unincluded long term owners. There are lots of properties for sale right now.
I know of many STR owners who put there properties in this program and have already had major problems from tenants not obeying HOA rules to units being totally destroyed. Some people just got too used to handouts during covid and now expect the government to totally take care of them.
Yes. Lahaina proved to every uncle and auntie actually from here that there is no housing shortage, just too many vacation rentals.
Local governments fault for allowing this to happen, I feel bad for the people that are being affected by this incompetence.
Every uncle and auntie were babies, or weren’t even born yet, when the vast majority of vacation rentals were built 60 years ago for the express purpose of providing accommodations to visitors. There definitely Is a housing shortage – proper housing with yards, storage, parking, play areas, etc. built As housing for residents is woefully underbuilt. Vacation rentals don’t have any of those amenities.
Building housing will also make all housing more affordable as well, since it will improve the supply/demand situation. Building housing is the true solution for residents.
Now, if only the politics, permitting processes, and daunting, snails-crawl bureaucracy can be improved, maybe this can happen.
My big question is the people that lost their homes in the fire, where is the fire Insurance, did these people not have fire insurance? I don’t understand why these homes can’t be built from the insurance money, would really like to know, Mahalo.
My understanding is that many individuals did not have insurance, aside from that this will likely be a slow processes regardless.
Another salient point is that upwards of 70% of the displaced were renters. Who owns those houses?
1. Many older downtown homes were 80+ years old, mortgage free and hardly worth the exorbitant insurance rates now only getting worse. The land is the value.
2. It will be 3-5 years before the land will be suitable for rebuilding. The entire infrastructure will have to be replaced.
3. Even those with insurance quickly discovered that rebuild reimbursements were priced at “original build costs”, not current replacement costs.
BOH, how recent is your info?
The most recent data that I’ve seen has indicated that of the 1500 STRs they were trying to get, 1300 owners had already applied, and FEMA was starting to reject applications.
Green also stated that he didn’t think a moratorium would happen, and if by chance he felt forced to do something like that, it would apply to West Maui only, since the displaced do not want to live elsewhere.
The displaced are also rejecting offered housing, which is why only <200 have been placed. They are trying to do something about that, as indicated in todays press about it, found at this link:
mauinow.com/2024/03/14/hi-ema-announces-new-housing-eligibility-policy-for-lahaina-fire-displaced-residents/
Your numbers are incorrect. Many have been placed & many refused the free unlimited time housing in other parts of the island. The governor approved housing for 1000 illegals that FEMA declined reimbursing for. Putting this on tourism & STRs is wrong. Our government seems to be making its own rules & getting away with it. Not for long because there are class action suits ready to move forward. We wish we could put this on the governor personally because we know who will end up making up for the loses. Many STR owners have jumped through hoops to convert to long term without any return calls or emails. The government is using this as an excuse for their own land grabs. It doesn’t make sense. Eminent domain and now re-zoning? Wow!
I live in Lahaina and your are correct…I have more than one friend who has given a home and/or condos (11+) to FEMA and they Remain Empty! Yes, you read that right…they are getting FEMA money already but FEMA has Not place people in them and they are on the preferred “west-side”! FEMA is either 100% understaffed to manage this or 100% incompetent. I personally know of (2) families; one of 6 members; one of 5 members who are Still in the hotels…while these places stay Empty! What the heck is really going on here??? Govt. is useless !
I own and manage a 2 bedroom 2 bath unit in Kaanapali. After the fire, Red Cross and FEMA would not return my phone calls because they would only deal with people who control 100 or more units. Now, with the Governor continuing to threaten his suicidal moratorium on west Maui’s tourism based economy if more west Maui condos don’t sign up with FEMA’s direct lease program, FEMA says it has all the 2/2 units it needs. I know owners who have refused and cancelled vacation rentals and signed up with FEMA, but FEMA ignores calls from the owners and the displaced folks wanting to move into those units. The best I can do is to continue STR and paying TAT, GET, and property taxes and I’ve paid well north of half a million over the years.
Hawaii has bigger problems than housing and discouraging vistors and that is Josh Green he is in way over his head and is time for him to return back to California.
Governor Josh Green is not from California…Pennsylvania.
Why are there FEMA approved homes that are Still vacant? Just today I confirmed with a homeowner that a 3-bedroom house with approval that will allow pets is without a family. It’s been a month since FEMA approval. The homeowner is receiving 10K/mo.
More than 1 case. Fire victims refusing housing, for whatever reason should not affect visitors or STRs. It’s a blessing to be offered free housing for 2-3 yrs, anywhere!!! Many of us did not qualify for any benefits including the Presidents $700 slap in the face because we didn’t actually lose our homes- yet. We lost our jobs & opportunities to make a living. There should not have been houses with 13 bedrooms & 4 bathrooms in the first place. If there weren’t so many illegal housing situations in Lahaina, those people would be living other places. Our future economy should not be impacted because of this. This is also slowing down any rebuilding because homes were under or not insured. Many of us want to work!
I know personally of multiple properties that are safe, clean, with kitchens, etc that have been empty for months because individuals have refused them while FEMA holds on to them. Not only is that insane but it also makes those homes not available to rent to individuals who want to rent them. There is assistance and there is abuse and arrogance and it seems like we are now encountering individuals who don’t care that the community is willing to help because they want more than they are being offered and they want it for free even if it hurts the rest of the community.
My daughter, son in law and I have had a Kihei STR reserved and flights booked since fall to visit Maui this May. If we can’t stay in a condo, we won’t come. The condo owner has guaranteed in writing that I’ll receive a full refund if this happens and our Southwest flights are fully refundable as well. Already have a Plan B to use that money and fly/stay in Mexico for that week. But would truly rather visit Maui again.
Thank you so much for hanging in there. We need and appreciate you!!!!
The reason the owner is guaranteeing you a refund is because the owner knows that area is safe. You don’t have to worry Kihei – that is not the area where the government is trying to get housing, and it is definitely not where the displaced want to live – it’s quite far away from their previous life and community.
I wish you a pleasant stay in May!
The government has done almost nothing to create any temporary housing in the 7 months since the fire, except incentivize and threaten short term rental owners. The reality is that many of the buildings that were built to be short term rentals aren’t suitable for long term stays, with minimal storage space designed only for a few days clothing for visitors. They also typically have at most one parking space per unit.
I also know people who have attempted to offer their units to FEMA but have run into various hoops to jump through that have made it impossible so far. And I’ve read of tiny houses being constructed in Kahului that have gotten the run around from the water department about supplying water. Incompetence abounds.
Greg you are correct. Many of us have experienced this first hand. FEMA has helped not our government! Our government that is causing division between locals and visitors as a distraction for whatever plans they have has only offered excuses and blame- on the wrong entities. What about the red tape those that lost homes have to go through to re-build? Then re-zoning & eminent domain control restructured for them to enforce at will? Our state needs tourism for jobs & income to survive and rebuild not become dependent on government that can’t be trusted to do the right thing.
100% correct… in addition it was really frustrating to see Green and Bissen/others on tv criticizing people from the mainland, many were donating money and time to help the victims of the fire, this division is not needed. We should be pulling together in this challenging time.
Todays Honolulu civil beat describes the real problem why the fire victims don’t have a home yet,
It is a problem governors moratorium can not solve.
There are several owners who have offered their homes, but no takers from the hotel, or other reasons FEMA has not been able to tackle in timely manner.
Governor has already demonized and alienated short term rental owners, many of them have used their life earnings to retire in peace.
Kicking them out is not going to help solve the homelessness in Maui
Absolutely! I have experienced this. It now takes me so many tries to censor my responses on this forum…. Anyone else having issues?
Thousands of units suddenly shut down and the hotel cost increase for sure. The big hotels are not going to hold down the prices out of the goodness of their hearts. I don’t think I would visit and likely pay a higher nightly rate at the hotels. The short term rental is better for our family because of the kitchen and usually a bbq for us. Probably going to be to expensive for us.
There needs to be pressure on the Hotels to reduce these ridiculous gouging prices, since everyone knows this is to keep staff levels low & profits high. Just say it out loud. Also, hopefully the Governor & his team are doing math, since a $650k 2bd condo with HOA is $~5k a mo. mortgage, assuming you get $6k from the Gov’s plan. I wouldn’t risk squatting, damage for $1k. And yes, when being a landlord you must assess risk. I mean, why not park a cruise ship off the coast, get all hands on deck to rebuild and incentivize builders on output? Throwing more money in the wind isn’t building…
Is it a bad idea? Yes. Will he do it anyway? Yes. Will this cause some of the STR owners to take him up on the increased rent + tax relief? Maybe, but will be a waiting game.
Rob & Jeff: You do not mention (maybe you have in other posts?), but even if the hotels were as affordable as the STRs (from what I am reading, they are not) do they have the available room capacity and support staff to absorb all of the would-have-been STR renters?
Hi David.
Would-have-been is the appurtenant term as a moratorium will curtail travel to an unknown degree. Certainly the hotel industry envisions it working out well for them to have fewer visitors, but most if not all of them staying in their rooms instead of STR’s. Thank you for almost 700 comments!
Aloha.
If you take short term rentals off line then the hotels are going to benefit by raising the prices since rooms will be limited. You essentially kill the tourism market in Maui. This is not the answer and the gov may try a moratorium but his compensation offer probably doesn’t meet the HOA and mortgage payments made by owners. If you force STRs to go into default then your taking property unjustly since over many years the STRs have paying significant taxes even through Covid. I’ll find an owner I can deal directly with to rent and stay as a family member. The displaced won’t make it more than 2 months without financial aid, owners will sit it out.
BOH… I believe you have mentioned in a previous article that 1500 residences have been secured by FEMA, 500 of which are in West Maui. The remaining 1000 FEMA residences are outside of West Maui, of which only a few have been occupied. Is this still the case?
Is Green trying to secure additional residences in West Maui due to resistance from locals to move into residences outside of West Maui? If people were will to move into the 1500 available would there be a need for more housing?
Hi David.
We aren’t clear on the answer to your question. The FEMA-secured units seem to be in some state of flux. Comments, as recently as today, so indicate as well.
Aloha.
I almost assume this “conspiracy” idea has been discussed, but here goes: In discussing insurance, my agent commented that there exists an idea in the insurance industry that the Maui fires were intentionally set. The reason being, is that “various interests” had no other way to obtain the land for future commercial development, of course at the expense and sacrifice of the “regular people.” Any comments?
Please Stop! The fires were not intentionally set. They were due to incompetence of the various governmental authorities and the utility.
January 2023 a bill was passed regarding eminent domain. Right before the fire in August another bill allowing the mayor to declare eminent domain in state of emergency. Traffic was not allowed out of Lahaina that day, sirens were not sounded, water was turned off… We keep reliving that day and the days that followed. Now the attention is diverted to tourism as the problem, STRs, housing. There are job postings every day and for places to live. Unfortunately many fire survivors are refusing to be relocated out of West Maui or refusing housing. It’s free housing for an unlimited amount of time! Once homes are rebuilt they can return but then there is the red tape. Catch 22 all points to our government!
There’s no chance that this could have been planned. The sheer speed of destruction could never have been expected. The amount of people needed to be involved to ensure this devious operation could have succeeded would have been significant, and keeping them quiet would have been impossible. Anyone considering this has not actually looked into what happened and how it happened nor have they actually seriously considered how it would have happened. It’s laziness, and a lack of critical thinking skills, and unfortunately for those of us who have lost loved ones it makes us angry, sad, or simply frustrated.
Lazy and utterly inept leadership for certain… August 2018 wasn’t a good enough wake up call.
FEMA and the Governor are not being transparent in their request for needed housing.
I received this from FEMA in January and March 5th. “We are currently looking for units that can house survivors with pets, people w/ disabilities, or 4-5+ bedroom type units in Lahaina”
They need to stop lying about what they are looking for and that they are Rejecting units smaller than 3-bedrooms.
They fail to mention that under HUD requirements, a family w/ different gender children cannot share a room. Hence, a parent with a son and daughter can only be placed in a 3-bedroom or larger home. Ironic considering many homes in Lahaina were occupied w/ multiple families living together without a bedroom per person.
I attempted to list my 2 bedroom ADA accessible unit and was told FEMA is not taking applicants. Had they accepted my application, I would have been out of pocket significantly every month. Many STR owners are trying to do their part.
Airbnb are neighborhood destroyers they eliminate long term rentals, so needed for residents. The Aloha experience has been destroyed by Airbnb! The neighborhoods are full of tourists and not Hawaiians.
I believe they still might be viable in resort areas, they should not be allowed more than 2 blocks from the beach.
Give the Islands back to the people!
It’s not Airbnb. It is the ones renting in the neighborhoods. Airbnb requires a GET and TAT license and checks zoning. The hosts are using false tax numbers but they are getting caught. If you have this problem in your neighborhood please report them. They are destroying neighborhoods not Airbnb and giving legal rentals and hosts a bad name.
Well somebody (native) probably sold the property to “outsiders”
10-20 or more years ago, however if any local would like to purchase it back, at current market value, a lot of people would sell. Case closed
The answer is simple. I have a place in Vegas that has a minimum 31 day rental policy. This allows monthly rentals but not weekly…. Anyone staying for a week or two would have to decide if they want to pay for a whole month or stay in a hotel (or I guess a timeshare)
Asking people to “live” in a hotel is impossible. They have no kitchen, no laundry, everyone is shoved into a single space. That can work fine for visiting a place, but that’s not a place anyone would call “hale”.
Sure people will bitch. Hell my place is right off the strip, I could make way more money if I rented by the day but there is a certain amount of relief that someone is going to “live” there instead of just “stay” there.
So what happens to the nine nights this summer I have booked in Kihei and Hana?
Take away short-term rentals and you take away most of the visitors, including my wife and me.
We can afford $200 to rent a nice condo near the beach. We can’t afford $1,000 a night (plus tax and resort fees) for a hotel room. And even if we could, we wouldn’t pay that amount.
Hey Steve my understanding is that they are only looking at West Maui, so those of us staying in Kihei, Wailea, Hana etc should be fine. We always stay at an AirBNB and are coming this July, our 20th trip the last 8 years, it may be our last. Tired of the lack of appreciation etc.