Huge blow for vacationers to gorgeous island as they sign historic law axing thousands of short term rentals
A Hawaii mayor has signed a law that is set to eliminate thousands of short-term rentals on the gorgeous island.
The Maui City Council passed the law, known as Bill 9, on Monday, that will phase out over 6,200 transient vacation rentals (TVRs) in west and south Maui, SFGate reported.
Mayor Richard Bissen introduced the legislation in 2024 to increase housing for locals following the devastating 2023 Maui wildfires.
In August 2023, six wildfires ripped through Hawaii's island of Maui, including the resort town of Lahaina, killing 102 people, destroying almost 3,000 buildings and burning more than 2,000 acres.
TVRs in West Maui will be phased out by January 1, 2029, and units in South Maui by January 1, 2031.
'Mahalo to Maui County Council members and staff for their extensive work on Bill 9 and for taking crucial and courageous steps to improve life for Maui's most important resource – our people,' Bissen said.
'Thank you especially to every community member who testified, engaged in the democratic process respectfully, and showed up to change the course of history.'
Bissen insisted that the legislation will create more long-term housing and does not eliminate short-term rentals because approximately 6,500 TVRs, along with hotels, timeshares and bed-and-breakfasts will still be allowed to operate.
Maui (pictured) has enacted a law that is set to eliminate thousands of short-term rentals on the gorgeous island
Mayor Richard Bissen (pictured) introduced the legislation in 2024 to increase housing for locals following the devastating 2023 Maui wildfires
'Bill 9 has consistently stood out as the most immediate way to bring thousands of units back online and expand housing inventory in Maui County,' Bissen said.
'Today, transient vacation rentals make up 21 percent of Maui County's overall housing stock — more than any other county in Hawaii. For far too long, short-term rentals, offshore investors, and private interests have overwhelmed our housing inventory.'
Opponents of the bill are worried about the economic impacts that losing the vacation rental revenue will have
'Bill 9 represents a loss of roughly $65 million in real property taxes per year, along with an estimated $50 million in general excise tax and transient accommodations tax revenues,' said Council Vice-Chair Yuki Lei Sugimura at Monday's hearing.
'The proposed solution is to offset those losses by raising taxes on who? You, the taxpayers, are going to be burdened with the tax losses.'
Lynette Pendergast, president of the Realtors Association of Maui (RAM), also said, 'RAM remains gravely concerned that Bill 9 as currently drafted will negatively impact Maui's economy, restrict property owners' rights and result in insufficient reentry of housing units into the long-term market.'
However, supporters of the bills insist that the legislation is returning the property to the people of Maui.
'Bill 9 is about getting closer to a quality of life we promised our residents when we campaign every other year,' said Councilwoman Keani Rawlins-Fernandez.
In August 2023, six wildfires ripped through Hawaii's island of Maui killing 102 people, destroying almost 3,000 buildings and burning more than 2,000 acres
Bissen insisted that the legislation will create more long-term housing and does not eliminate short-term rentals because approximately 6,500 TVRs, along with hotels, timeshares and bed-and-breakfasts will still be allowed to operate
'Profits are replaceable. Generational communities are not. This bill doesn't just seek to do one thing. It intends to do all of the above: Reclaim housing, reining in tourism, conserve water, correct zoning, all of the above.'
Grassroots organization Lahaina Strong inspired the mayor to propose the legislation after they camped out on the popular beach with wildfire survivors to demand change.
'We've been fighting for, I would say, almost two years. We started on Kaanapali beach just advocating for dignified housing,' Lahaina Strong organizer Jordan Ruidas told KITV.
'There are still many people that are between housing, needing housing, especially Lahaina fire survivors, and this is giving them a little bit of hope.'
She added, 'The prices for condos are already dropping. The last write-up I saw, which is probably a month or two ago, condo prices have dropped more than 20 percent, so it's honestly just making it more affordable already.'
