MAUI, Hawaii (KHON2) — Maui County councilmembers will head into day three of public testimony regarding a controversial bill to phase out thousands of short-term rentals on June 23, with the community divided on the cause as Lahaina fire survivors and short-term rental owners bring heated testimony to the hearings.
More than 230 people signed up to testify on Bill 9, which was introduced by Maui Mayor Richard Bissen last year and looks to convert thousands of short-term rentals in Maui into long-term housing.
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“Housing is not a speculative asset, it’s a basic human need and when the balance is tipped so far that our residents become outsiders in their own neighborhoods we have a moral obligation to act,” Bissen said.
The issue has sparked fierce debate over a variety of topics, including water, zoning and economics. Many of the 6,000 Minatoya List short-term rental owners and managers argued local residents wouldn’t be able to afford the units.
“Our HOA are $827.11 Our property taxes $730.33 a month. Insurance is about $100 a month. That adds to $1,657.44 a month without paying a penny on the mortgage of $2,500,” one testifier opposing the bill said.
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Makawao resident Alexis Collar strongly opposed the notion that local families could not afford the units, saying that it is not within the rental owners’ authority to determine what local families can afford.
“Please do not tell me what’s appropriate for me or my family to live in or tell me what we can or cannot afford,” Collar said. “Let me make that decision.”
The data also backs up that housing costs would go down with the passing of Bill 9 — University of Hawaiʻi’s Economic Research Organization says converting short-term rentals to long-term housing could drop monthly housing costs by 20 percent. In addition, the university’s organization also said average condo prices have already fallen by $140,000 this year, which is the first decline in nearly a decade.
“More than half of our Native Hawaiian population is gone from our islands, and it’s going to continue,” said Kuhio Lewis, CEO of Native Hawaiian Advancement. “And bold steps are required to reverse course.”
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Haiku resident Nora Boone said that short-term rentals harm the local housing market, therefore hurting local communities.
“Houses that seven years ago sold for $350,000 are now selling for $1.4 million,” Boone said. “Short term rentals help jack up our prices, [short-term rentals] take homes away from our people.”
Opponents, such as former Attorney General David Louie who is representing Airbnb, say the bill is not the right answer.
“Bill 9 is problematic and violates the U.S. Constitution and the Hawaiʻi Constitution,” Louie said.
Public testimony will continue with about 50 speakers left. Should the bill pass the council, Minatoya List properties will be phased out by July 2028.
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