[Kale Carey]
THERE’S TROUBLE IN PARADISE. FOR YEARS AN EVER-LOOMING HOUSING CRISIS HAS GROWN IN THE HAWAIIAN ISLANDS. THAT THREAT CAME TO A HEAD IN 2023 WHEN A FIRESTORM LEVELED THE OLD CAPITOL OF LAHAINA (LAH·HAI·NUH) ON THE ISLAND OF MAUI. THOUSANDS FOUND THEMSELVES WITHOUT HOMES OR JOBS. IN THE WAKE OF THE DISASTER MANY CALLED FOR THE GOVERNMENT TO FORCE SHORT TERM VACATION RENTALS USED BY TOURISTS TO BE FLIPPED INTO LONG TERM RENTALS FOR LOCALS.
LAHAINA STRONG RALLY
“LISTEN, MAYOR BISSEN! WHEN I SAY ‘HOUSING’ YOU SAY ‘PEOPLE!’ HOUSING! PEOPLE! HOUSING! PEOPLE!”
[Kale Carey]
THE MOVEMENT CONTINUES, BUT OWNERS OF THE SHORT-TERM RENTALS ARE PUSHING BACK.
THE DEBATE ABOUT FLIPPING VACATION RENTALS IS BEING BROUGHT TO THE FOREFRONT AS THE MAUI COUNTY COUNCIL’S HOUSING AND LAND USE COMMITTEE PREPARES TO EXAMINE A PROPOSAL BY MAUI COUNTY MAYOR RICHARD BISSEN. (like “listen” with a B)
RICHARD T. BISSEN JR. | MAYOR, MAUI COUNTY
EVERY DAY, LOCAL FAMILIES ARE BEING FORCED TO LEAVE THE ONLY HOME THEY’VE EVER KNOWN. MAUI’S HOUSING MARKET HAS BECOME INCREASINGLY OUT OF REACH, A CRISIS WORSENED BY THE EVENTS OF AUGUST 8TH, LEAVING THOUSANDS OF DISPLACED SURVIVORS STILL IN NEED OF PERMANENT HOMES. BUT THIS ISSUE EXTENDS BEYOND DISASTER RECOVERY—IT’S ABOUT OUR FUTURE.
[Kale Carey]
BILL 9 PLANS TO PHASE OUT UNITS RENTED OUT FOR LESS THAN 180 DAYS, KNOWN AS TRANSIENT VACATION RENTALS, IN APARTMENT-ZONED DISTRICTS. THIS MEANS A TARGET IS PLACED ON UNITS FROM WHAT IS CALLED THE MINATOYA LIST. NAMED AFTER THE MAUI COUNTY OFFICIAL WHO CREATED THE LEGAL MEMO GIVING THEM AN EXEMPTION IN 2001, THE LIST CONTAINS THE ADDRESSES OF OVER SEVEN THOUSAND RENTAL UNITS – ABOUT SIX THOUSAND OF WHICH ARE ACTIVELY BEING USED AS SHORT TERM RENTALS. THESE SEVEN THOUSAND UNITS WERE GRANDFATHERED IN AS LEGAL SHORT TERM RENTALS IN APARTMENT ZONES SINCE THEY WERE OPERATING AS SUCH BY APRIL 20, 1989 WHEN THE COUNTY PASSED AN ORDINANCE LIMITING TVR PERMITS IN SUCH AREAS.
FOR YEARS THESE PROPERTIES HAVE OPERATED IN APARTMENT ZONES AS SHORT TERM RENTALS, WHILE LOCALS STRUGGLE WITH INCREASINGLY HIGHER COSTS OF LIVING AND A HOUSING SHORTAGE IN THE ALOHA STATE. OVER HALF OF MAUI RESIDENTS ARE “RENT BURDENED” FROM SPENDING OVER 30% OF HOUSEHOLD INCOME ON RENT. OVER A QUARTER OF RESIDENTS SPEND MORE THAN HALF OF THEIR INCOME ON RENT. THE GROWING CRISIS WAS COMPOUNDED BY THE 2023 FIRES DESTROYING MORE THAN 2,200 STRUCTURES. MAYOR BISSEN AND OTHERS ARE HOPING BILL 9 OPENS UP AFFORDABLE LIVING SPACES FOR LOCALS, BUT THE RELEASE OF A UNIVERSITY OF HAWAIʻI ANALYSIS ON THE PROPOSAL, POINTED OUT SOME CRACKS IN THE PLAN.
“Our analysis finds that the policy would have far-reaching economic effects, with both intended benefits and unintended consequences.”
THE ANALYSIS’ UHERO (YOU-HERO) AUTHORS FOUND THE POLICY AS IT CURRENTLY READS “WOULD HAVE FAR-REACHING ECONOMIC EFFECTS, WITH BOTH INTENDED BENEFITS AND UNINTENDED CONSEQUENCES.”
THOSE POTENTIAL EFFECTS ARE BROAD, AND INCLUDE A NINE-HUNDRED MILLION DOLLAR ANNUAL DROP IN VISITOR SPENDING AND NINETEEN-HUNDRED LOST JOBS.
TASHA KAMA IS THE MAUI COUNTY COUNCIL MEMBER LEADING THE COMMITTEE HANDLING BILL 9 IN THE COMING WEEKS.
MAUI HAS A HEAVY RELIANCE ON VISITOR SPENDING TO SUPPORT ITS ECONOMY. THE LEISURE AND HOSPITALITY SECTOR EMPLOYED TWENTY-TWO THOUSAND, SIX-HUNDRED PEOPLE IN 2022, JUST OVER A QUARTER OF THE ISLAND’S TOTAL LABOR FORCE. THAT SAME YEAR VISITORS, EXCLUDING THOSE WHO ARRIVED VIA CRUISE SHIP, SPENT NEARLY $6 BILLION. THE POTENTIAL DROP IN VISITOR SPENDING THEORIZED BY UHERO (YOU-HERO) WOULD HAVE A LARGE IMPACT ON THE LOCAL ECONOMY.
“It’s important to recognize that economic models — while helpful — cannot fully shape the future of our communities. They do not reflect the lived experiences of our residents: the families crowded into multigenerational homes because younger generations can’t afford their own, the workers commuting longer distances or leaving Maui entirely, and the growing strain on our infrastructure and sense of place.”
MAYOR BISSEN SAID IN A STATEMENT RESPONDING TO THE ANALYSIS, QUOTE: “IT’S IMPORTANT TO RECOGNIZE THAT ECONOMIC MODELS — WHILE HELPFUL — CANNOT FULLY SHAPE THE FUTURE OF OUR COMMUNITIES. THEY DO NOT REFLECT THE LIVED EXPERIENCES OF OUR RESIDENTS: THE FAMILIES CROWDED INTO MULTI-GENERATIONAL HOMES BECAUSE YOUNGER GENERATIONS CAN’T AFFORD THEIR OWN, THE WORKERS COMMUTING LONGER DISTANCES OR LEAVING MAUI ENTIRELY, AND THE GROWING STRAIN ON OUR INFRASTRUCTURE AND SENSE OF PLACE.”
THE AUTHORS OF THE ANALYSIS PROPOSED SOME ADJUSTMENTS TO THE POLICY TO SOFTEN THE ECONOMIC SIDE EFFECTS.
GRADUAL IMPLEMENTATION: EXTENDING THE TRANSITION PERIOD AND PHASING OUT TVRS MORE SLOWLY IN SMALLER INCREMENTS OR GEOGRAPHIC AREAS, INSTEAD OF TWO LARGE PHASES.
GRADUAL IMPLEMENTATION: EXTENDING THE TRANSITION PERIOD AND PHASING OUT THE SHORT TERM RENTALS MORE SLOWLY IN SMALLER AMOUNTS OR AREAS, INSTEAD OF TWO LARGE PHASES.
LOTTERY-BASED PHASE-OUT: RANDOMLY SELECTING A SUBSET OF PROPERTIES EACH MONTH FOR TRANSITION OVER A 12-MONTH PERIOD, FOR MORE PRECISE MANAGEMENT OF INVENTORY LEVELS.
LOTTERY-BASED PHASE-OUT: RANDOMLY SELECTING A SMALL NUMBER OF PROPERTIES EACH MONTH FOR TRANSITION OVER A TWELVE-MONTH PERIOD, SO AS NOT TO FLOOD THE MARKET.
REZONING OR SPECIAL USE PERMITS: ALLOWING LIMITED TVR USE TO CONTINUE IN DESIGNATED AREAS WHERE IT ALIGNS WITH LONG-TERM PLANNING GOALS.
AND REZONING OR SPECIAL USE PERMITS: ALLOWING LIMITED SHORT TERM RENTAL USE TO CONTINUE IN DESIGNATED AREAS WHERE IT ALIGNS WITH LONG-TERM PLANNING GOALS.
MAYOR BISSEN HEARD, AND SHORTLY BEFORE THE ANALYSIS EVEN CAME OUT, WAS ALREADY WALKING BACK SOME OF HIS PREVIOUS STATEMENTS IN A SOUTH MAUI COMMUNITY MEETING.
RICHARD T. BISSEN JR. | MAYOR, MAUI COUNTY
“THEY WERE INTENDED FOR WORKFORCE HOUSING. THEY WERE BUILT FOR WORKFORCE HOUSING. AND THEY BECAME SHORT-TERM RENTALS.”
“IF THAT WAS BUILT TO BE A WORKFORCE HOUSING MY GOAL IS TO CONVERT THOSE BACK TO WORKFORCE HOUSING. THAT’S THE SIMPLE ANSWER.”
[Kale Carey]
THE COMPLICATED ANSWER IS THAT ONLY ABOUT TWO THOUSAND OF THE UNITS ON THE MINATOYA LIST MEET THAT QUALIFICATION, SEVERELY CURBING THE MAYORS EARLIER PROMISES. IT’S A COMPROMISE TO MAKE RESIDENTS OF THE VALLEY ISLE HAPPY, BOTH THOSE LOOKING FOR PLACES TO LIVE, AND THOSE WHO ARE RENTING OUT TO TOURISTS.
BUT FLIPPING VACATION RENTALS ISN’T MAUI COUNTY’S ONLY HOPE FOR LOCAL HOUSING. MAYOR BISSEN HAS OTHER PLANS IN PLACE HE HOPES WILL HELP RESIDENTS FIND A PLACE TO CALL HOME.
RICHARD T. BISSEN JR. | MAYOR, MAUI COUNTY
“AT THE STATE LEVEL, GOVERNOR GREEN, LT. GOVERNOR LUKE, AND MAUI COUNTY’S STATE SENATORS AND REPRESENTATIVES ARE PUSHING TO CUT RED TAPE, INVEST IN HOUSING STOCK, AND STRENGTHEN INFRASTRUCTURE. HERE AT HOME, I’M WORKING WITH OUR COUNTY COUNCIL TO EXPLORE PUBLIC-PRIVATE PARTNERSHIPS, INCLUSIONARY HOUSING POLICIES, TAX INCENTIVES, AND USE AND DEED RESTRICTION PROGRAMS.” // “THESE ARE JUST A FEW OF THE CRITICAL EFFORTS UNDERWAY—BUT TRUE CHANGE WILL TAKE ALL OF US. TOUGH DECISIONS LIE AHEAD—AND WHILE CHANGE REQUIRES SACRIFICE, THE LONG-TERM FUTURE OF OUR PEOPLE DEPENDS ON IT.”
[Kale Carey]
THE BILL IS EXPECTED TO BE CONSIDERED BEFORE THE MAUI COUNTY COUNCIL HOUSING AND LAND USE COMMITTEE IN MID MAY OR EARLY JUNE. SESSIONS WILL BE HELD IN THE EVENING TO ALLOW AS MANY LOCALS AS POSSIBLE TO BRING THEIR TESTIMONY BEFORE THE COMMITTEE AND HAVE THEIR VOICES HEARD.
FOR STRAIGHT ARROW NEWS I’M KALÉ CAREY.
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