Maui Planning Commission Rejects Move to Save Short Term Rentals

What This Means for the Housing Crisis

The battle over the future of Maui’s housing market reached a fever pitch this Tuesday. Following hours of emotionally charged testimony, the Maui Planning Commission officially voted to recommend the rejection of a bill that would have saved thousands of short-term vacation rentals (STRs) from a looming phase-out.

This decision marks a pivotal moment in the implementation of Bill 9, Mayor Richard Bissen’s landmark legislation designed to convert tourist accommodations back into long-term housing for residents.

---

The Conflict: Bill 9 vs. The Proposed Re-Zoning

To understand Tuesday's vote, we have to look at the two pieces of legislation currently at odds:

• Bill 9 (The Law): Signed in December 2024, this law aims to phase out approximately 7,000 vacation rentals currently operating in "apartment-zoned" districts. These units are scheduled to cease short-term operations by January 1, 2029 (West Maui) and January 1, 2031 (rest of the county).
• The "Re-Zoning" Bill: This newer proposal sought to create two fresh "hotel zoning districts." If passed, it would have allowed up to 4,500 of those affected units to keep operating as vacation rentals indefinitely, effectively bypassing the restrictions of Bill 9.

Why the Commission Stood Firm

The majority of commissioners viewed the re-zoning bill not as a compromise, but as a subversion of the community's will.

"This commission voted and the County Council voted in favor of Bill 9. We decided we wanted to phase those uses out," said Planning Commissioner Mark Deakos. He argued that the new bill served primarily as a way to "undermine Bill 9" and its goal of creating long-term housing.

However, the vote wasn't unanimous. Commissioner Brian Ward, the lone dissenter, argued that the re-zoning was a necessary shield against the wave of lawsuits from property owners claiming the county is violating their property rights.

---

A Community Divided: Perspectives from the Ground

The public testimony highlighted the deep scars left by the 2023 wildfires and the island's chronic housing shortage.

The Pro-Housing Stance

Groups like Lahaina Strong and local labor unions see the phase-out as a lifeline. For them, every unit kept for tourists is a unit denied to a fire survivor or a local family struggling to stay on the island. Lead organizer Paele Kiakona expressed frustration at the attempt to "circumnavigate" a hard-won community victory.

The Property Owner Stance

On the other side, property owners like Linda Mitchell feel they are being unfairly targeted. Many have operated legally for decades, paying high property taxes and contributing to the tourism economy. For these owners, the phase-out feels like the government is seizing a legitimate business they’ve built over 30 years.

---

What’s Next? The Path to a Supermajority

Because the Planning Commission recommended that the Council oppose the re-zoning bill, the stakes have just been raised significantly for its supporters.

• The Supermajority Requirement: The bill can now only become law if it receives a two-thirds supermajority vote (at least six out of nine members) from the Maui County Council.
• Neighbor Islands: The conversation isn't over. The Molokaʻi and Lānaʻi Planning Commissions are scheduled to review the re-zoning bill on March 11 and March 18, respectively.

The Bottom Line

Maui is currently a test case for how popular tourism destinations handle extreme housing crises. While the re-zoning bill offered a potential "middle ground" to avoid litigation, the Planning Commission has sent a clear message: The priority remains housing for residents over accommodations for visitors.

Tags