Maui County proposes Bill 9 to address housing crisis and transition vacation rentals

June 09, 2025 | Maui County, Hawaii


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Maui County proposes Bill 9 to address housing crisis and transition vacation rentals
In a pivotal meeting on June 9, 2025, Maui County's Housing and Land Use Committee addressed the urgent housing crisis facing the community, emphasizing the need for immediate action through the proposed Bill 9. This legislation aims to transition transit vacation rentals (TVRs) in apartment districts to long-term residential use, a move that supporters argue is essential for restoring balance between tourism and community needs.

Mayor Bissen opened the discussion by highlighting the severe housing challenges that have reached unprecedented levels in Maui County. He stressed that the bill is not intended to create divisions but to preserve the community by addressing the pressing issue of housing shortages. The proposed amendments to Bill 9 include a three-year amortization period for properties wishing to continue operating as TVRs, with an option to seek a change in zoning to comply with land use regulations.

The mayor acknowledged the economic implications of phasing out TVRs, noting that while some may fear job losses, the transition could lead to a more stable housing market. He pointed out that many jobs would shift to the over 8,000 legal TVRs that will remain operational, and that hotels provide comparable employment opportunities. The administration is also focused on diversifying the workforce beyond tourism, aiming for sustainable job growth in sectors like education and healthcare.

The meeting also referenced a report from the University of Hawaii Economic Research Organization (UHERO), which outlined the potential benefits and trade-offs of reducing TVRs. However, the mayor emphasized that economic data alone cannot capture the emotional toll on families forced to leave their homes due to rising housing costs. He articulated the broader social implications, including the loss of cultural heritage and community cohesion.

Finance Director Martin provided insights into the financial aspects of Bill 9, revealing that approximately 6,000 properties classified as TVRs would be affected. He projected a potential decrease in real property tax revenue of up to $75 million annually if these properties transition to long-term residential use. Despite this, he argued that the long-term benefits of increasing housing inventory would outweigh the short-term revenue losses, leading to a more stable fiscal outlook for the county.

The committee also discussed enforcement measures against illegal TVRs, noting that recent efforts have resulted in minimal enforcement cases. The Department of Planning has implemented new software to monitor online rental advertisements, which has proven effective but has not uncovered a significant number of violations.

As the meeting concluded, the urgency of addressing the housing crisis was clear. Bill 9 represents a critical step in reclaiming residential spaces for local families and restoring the integrity of Maui's neighborhoods. The committee's discussions underscored the need for a balanced approach that considers both economic and social factors, aiming to create a sustainable future for the community. The next steps will involve further deliberation on the bill and its potential impacts on Maui County's housing landscape.

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