In a development that has sparked widespread frustration and concern on both sides of the issue, the Maui Planning Commission postponed a crucial hearing this week on the proposed measure to phase out over 7,000 short-term Maui vacation rentals. This decision came after not enough commissioners were available to form a quorum. The commission’s forthcoming final recommendation will play a key role in the County Council’s decision, which is expected later this year.
This week’s hearing was expected to see another onslaught of opposing public testimony. That began at last month’s Commission meeting which was long and grueling. During that session, nearly 250 individuals had signed up to provide testimony, highlighting both the intense public interest and the divisiveness surrounding this issue. The next scheduled meeting is now planned for July 23.
Proposal would begin eliminating Maui vacation rentals within one year.
The proposed phase-out targets Maui vacation rentals located in apartment-zoned districts built before 1989, referred to as those on the Minatoya List. The proposed measure would begin eliminating those rentals in West Maui one year from now and in the rest of Maui County by January 2026. The Mayor Bissen-driven plan seeks, rightly or wrongly, to address severe housing shortages made worse by the Lahaina wildfire.
Proponents of the measure argue that converting these short-term rentals into long-term housing units will provide much-needed relief for the local Maui housing market, with the potential to increase long-term residential housing by up to 13%, according to research from UHERO. They also say that the measure will help restore the cultural and social fabric of Maui communities.
Opponents caution that if the measure passes, it would have vast economic repercussions, including the potential loss of more than 14,000 jobs per a prior economist’s report and huge decreases in needed tourism and tax revenues. They also say that the plan is unjust, capricious, and wrongly focused. In addition, they point to the assurance of lawsuits that would prevent the implementation of the plan for years at best.
Maui Planning Commission is struggling at the flashpoint.
The commission’s struggle to achieve a quorum at this pivotal time is partly related to the three vacancies among its nine members. In addition, some members cannot attend the full duration of such lengthy and critical meetings. Planning commission members are unpaid volunteer citizens appointed by the Mayor and confirmed by the County Council.
In the meantime, the debate over the future of Maui vacation rentals remains intense.
We welcome your input!
Beat of Hawaii © photo at Wailea Beach Path.
The mayor has the wrong info and the wrong agenda. This move will not create any more long term rentals. First like any other attempt all over Canada and the US it simply means the current owners will need to cheat or find a loop-hole. Second what current resident could afford the units as they will be sold if the loop-holes or ways to cheat do not work.
Most importantly he is ignoring massive job loss and tourism dollars. I know many people who go regularly and buy from small local stores and restaurants who will go elsewhere.
Old saying! Bite off your nose to save your face.
why are they not rebuilding the peoples homes? they had insurance etc. I dont see any mass housing going up, it doesn’t take a year to build houses, why is that? are the politicians/companies taking the natives lands again?
STR’s and those unintended consequences – So looking at just Property taxes for STR’s – When the mayor’s dream of removing over 7,000 condominiums from being STR’s. Some will get sold at much lower prices and some will become 2nd homes. In both of those cases the property taxes go way down 90% if it’s a second home or own occupied. This is were the county starts losing the $350million they claim, they have no idea but they will be looking for ways to replace all that income. My guess they will be looking to eliminate the super low property taxes on owner occupied units and bring those rates way up to offset the loss of STR income or will they cut the size of the government of Maui County to offset the losses.
Unintended consequences?
They know what eliminating 7,000 STR’s will do to the local economy, tourism.
They know many locals will leave.
They know 7,000 properties paying significantly less property tax will decimate local government & services.
They know properties with high maintenance fees will Never be affordable housing.
And yet, they keep pushing this.
They are zealots with an agenda. Their feelings don’t care about these opposing facts.
“Less people, more open space”
Connect the dots:
sdgs.un.org/goals
“Stay away!” “No, come!” “We are taking away STR’s!” “Please, please come!” The Wonderful Wizard of Maui has spoken. But voices are saying “Ignore the man behind the curtain!” Even long-time visitors (and supporters) of Maui are growing weary of the back-and-forth. Locals want something for nothing, and the visitors who would love to be appreciated are treated like trespassers. Hardly an attractive offer for a Maui vacation – which might be by design.
The messages are mixed for sure but not fair. I am a PM on the West Side. Because of the things I am reading about guests being treated badly I ask every guest how they were treated during their stay in Lahaina. Every single one has said they were treated with respect, love and gratitude. Last week a guest showed me a bracelet a server at a famous and normally busy, hard to get into restaurant gave her to thank her for coming. The restaurant had diners at 2 tables only. My guest said the server had tears in her eyes she was so grateful. A small minority of people here are anti-tourist, they were before the fire. Their attitude is causing great harm to the majority of us. Don’t listen to them. Come see for yourself. Maui Is Open and is as wonderful as ever.
These condo owners are mostly residing out of state, chafe exhibit any fees, pay minuscule Hawaii property taxes and funnel little of their profits back into the local Hawaii economy. They are profiteers. While eliminating them will have unintended consequences, in the long term Maui is better off without them.
Eldo, I think you have condo owners confused with hotels.
Condo owners do the opposite of everything you say – they pay 6X the taxes that residents pay, and make peanuts in profit because they are “funneling” all of their income into local taxes and employing local workers. There are Much better investments if money was the goal.
In addition, condo renters feed their dollars into the local economy by buying at shops owned by locals, eating at local restaurants, and buying luaus, cruises, and other activities from local vendors.
Where are you getting your information? This is a serious question I’m asking you, because you have it all wrong.
The only profiteers are the hotel industries. There are out of state owners, and there are local owners that operate STR businesses, these premises provide quality accommodations to families that help families, local and visitors manage their spending and travel to Hawai’i. Visitors patronize local businesses. STRs are a lovely alternative to a hotel room with a bed.
The STRs that are being targeted are legal, tax paying properties, in fact the highest tax payers, hotels do not pay as high of fees. Property taxes are substantial and the tax increases over the most recent years have been communicated as being collected for the purpose of supporting long-term housing.
The question is where has Maui County allocated those funds, why has the government decided to delay versus beginning breaking down barriers to rebuilding?
I have to question if this is really about housing, or are the politics of this intended to divert from a different purpose?
With all do respect Eldo, this is the education that most folks need. The STR rates (highest) subsidize the rest of us. Less emotion, more brain.
While hotels & timeshares are 100% not local owned, many str’s are owned by people living in Hawaii.
Reality is far more complex than a sound bite. But if banning non-local ownership is the solution, then lets start with timeshares – they pull the most $ out of Hawaii.
Agreed! The only thing most time share owners do is drive to Costco and hang by the pool. No interest in Hawaiian culture and not contributing to the local economy here on Maui. And none of the resorts are locally owned. Their profit doesn’t stay on Maui.
Profiteers, you say?
1. Go to HonoluluPropertyTax dot com.
2. Put in 1777 ala moana blvd (the Ilikai)- then choose a unit.
For a 500 s.f. studio in Waikiki, some Ilikai units pay $11,000/year in property tax.
Between airbnb / vrbo fees (14% of booking) city / state taxes) 18% of booking,
Cleaning fee (local), mangement fee (local – usually 20% of each reservation), maintenance fee (local), most STR owners keep 21% – 25% of what comes in.
Eldo, I’m going to help you with how taxes work for STR owners. I bought my condo from someone who did not live on the island but somehow had a homestead (local)tax exemption. That is likely what you have. I was honest and pulled a permit to rent nightly when not on the Island. I pay 11x the homestead tax rate! With these prolific taxes, your local Gov’t was supposed to build affordable housing. They did not…for twenty years. One other detail: Did you know your local Gov’t lost $20M tax dollars? Your local Gov’t wants you to hate mainlanders to distract you from their own horrible mismanagement.
Reality beginning to sink in…?
Best Regards
Small Lahaina business owners are being decimated by the mayor’s STVR proposal because visitors think because of what he said and by not coming they are doing the right thing. There is another side that is not being told – that affects the majority of us – and that is by staying away you are hurting the very people you intend to help. 4 people on my staff lost homes and because of the mayor’s proposal they stand to lose their jobs soon because Maui is almost empty. They are facing welfare and food stamps if things don’t change ASAP. If you love Maui and really want to help us recover Come Back Now. STVRs are still open and have not been shut down. That process may take years meanwhile they are sitting empty needlessly hurting thousands of us. We Need Your Help Now. Maui Is Open!
If you want us to come back now it is imperative that owners reduce the cost of their STRs. Prices are way higher than 2019 or other tropical countries across the world. It simply unaffordable for the average person.
I love Maui but have no plans to return after coming for 20 years.
Our company has the lowest prices in 25 years. I know other small STVR PMs have lowered prices as well. Prices are very low for quality stays. Please come back.
Nancy, Our 2 bedroom unit in Kapalua is now priced at less than half per night what is usually rents for! A Holiday Inn room on the mainland costs more right now!
Just saw an ad for a beautiful 2 Bedroom across the beach in South Kihei for $140 a night. Anyone who thinks that’s too high shouldn’t come to Maui.
Our condominium resort in Kahana is off over 40%, the constant barrage of “don’t come”’ by our elected officials, extremely bad traffic because of locals working on West Maui but moved to the other side for housing. Keeping Honoapiilani highway closed only makes it harder to get around and with construction beginning in the burn zone it’s going to get a lot worse for the contractors making them charge more for the work. If I were the mayor I would offer to fund both Myaki and Ace Hardware to have them keep larger supply levels to speed up the rebuild and lesson trips to the other side for supplies. They need to think outside the box.
If you have lowered prices I would love to know where I can see the property online.
Nancy, take a look and you will see that prices have been substantially reduced!
Where can I see it online? Thanks.
I don’t think this site allows that type of advertisement…
Hi Eve.
Thank you. That is correct.
Aloha.
Someone in the government actually has half a brain re: STR’s
Hard to believe!!
So a committee of 9 citizens where only 6 seats are filled and of the 6 for what ever reason most can’t make through a whole meeting is going to make a recommendation on if 7,000 STR’s will have their permits pulled and converted to single family housing.
Sounds reasonable to me…
Government of, for and by the people. Keep voting these same people in and keep getting the same results. Simultaneously insane and infuriating. We’ll keep coming and paying to help where we can, but the locals need to step up and oust the bureaucrats who’ve managed to put them in this mess.
Keep up the good work guys, we are counting on you for the very latest. I’m sure many of us are in the same boat, deciding future travel to Maui based on this decision. We want what’s best for Maui, but this seems like extreme overkill with many negative consequences.
1) Mayor Bissen has been thinking emotionally *only* and has catered to only the loud and few. This is not the majority.
2) Mayor Bissen might understand the law, but clearly doesn’t understand math.
3) The amount of jobs lost would exacerbate and already fragile workforce.
4) No commissioner will be able to walk with their head up in this community knowing they put neighbors, friends, relatives and constituents on unemployment.
5) No one has been able to articulate and convince anyone with common sense or any once of logic that freeing up 1 or 2 bedroom rentals will fix housing for families or multigenerational families. Most of them have already opted out of those type of opportunities that even FEMA is paying for.
Mayor Bissen knows what he is doing. He understands the math, and the consequences. He wants “less people, more open spaces”.
Going to Maui, Kihei, has been a real pleasure for me for years. I love the culture and friendliness of the islanders. I can only afford a condo rental. Would not consider a hotel. I love to eat in local cafes and restaurants. Love swimming in ocean if only playing in waves when they are rough or high. Hate to think I might be deprived of this one luxury in my life.
Please keep small condos for rent for people who love them, like me.
Mahalo, eva, Canada
Hi Eva, condos are still open and probably will be for years. The ban will need to work its way thru courts so please continue come on over, we need you and want you back. The majority of us here love visitors so know the love is till here. Maui Is Open.