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What is Maui Bill 9 (Phase-Out Ordinance)?
Maui Bill 9 (Phase-Out Ordinance) is a legislative proposal designed to address Maui's housing crisis by converting short-term rental units (STRs) back into long-term residential housing. The bill specifically targets properties in apartment-zoned districts that were previously permitted to operate as STRs, often referred to as being on the "Minatoya list." If passed, it would revoke the legal non-conforming status of these properties, prohibiting rentals for periods shorter than 180 days.
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How it works
The ordinance functions by amending Maui County's zoning code. Upon enactment, the bill would set a timeline for affected property owners to cease their transient vacation rental operations.
These owners would then be required to either rent their properties to long-term tenants, occupy the units themselves, or sell them. The phase-out would be implemented over a specific period to allow for a transition.
It is important to note that this bill is targeted and does not impact all STRs on Maui, such as those located in designated hotel or tourist resort zones.
Why it matters
This ordinance is highly consequential for property owners, the tourism industry, and the local community. For affected owners, it represents a major shift in property use and a potential loss of significant rental income, forcing a transition to the long-term rental market.
For the community and government officials, it is viewed as a critical measure to alleviate a severe housing shortage and stabilize the cost of living for residents. The bill is controversial, sparking debate between housing advocates and those in the vacation rental industry who are concerned about its economic impact and potential infringement on property rights.
See the official website for current details.
Examples
- A property management company specializing in vacation rentals in West Maui must pivot its business model after 60% of its managed units fall under the phase-out ordinance, forcing it to enter the long-term rental market.
- A real estate investor from the mainland decides against purchasing a condo in an apartment-zoned area of Maui after their agent explains that Bill 9 would prohibit its use as a lucrative short-term rental, making the investment less attractive.
- An owner of a condo in a Kihei apartment district, which has been legally operated as a vacation rental for two decades, is notified that under Bill 9 they must cease short-term operations by July 1, 2025, and can only offer leases of 180 days or more thereafter.
- Following the implementation of Bill 9, a local teacher searching for housing finds an increase in available annual leases in Napili, as former short-term rentals are converted to long-term housing stock.
Frequently asked questions
Which specific properties does Maui Bill 9 affect?+
What is the primary objective of phasing out these short-term rentals?+
When is Maui Bill 9 expected to take effect?+
Are there any exceptions for affected property owners?+
Related terms
Zoning Laws
Zoning laws are municipal or county regulations that dictate how property in specific geographic zones can be used, which directly impacts the legality and…
Honolulu Bill 41 (Ordinance 22-7)
Honolulu Bill 41, enacted as Ordinance 22-7, is a municipal law that significantly tightened restrictions on short-term rentals on the island of O'ahu by…
Long-Term Rental
A long-term rental is a property leased to a tenant for an extended period, typically six months or longer, under a formal lease agreement. Unlike short-term…
Maui Vacation Rental Association (MVRA)
The Maui Vacation Rental Association (MVRA) is a non-profit organization that represents and advocates for legally permitted vacation rental owners and…