Aloha. I'm writing to urge you to respect the very thorough and balanced process that resulted in the current caps. Capriciously reducing the upcountry cap from 40 to 12 and/or the Kahului cap to nearly zero undermines and disrespects the diligent work that was done by the community barely three years ago.
If you're serious about bringing down housing costs in Maui County, aim your ire at the restrictive zoning policies coming from Honolulu. While Maui County allows up to two ohanas on thousands of parcels, current owners are still prohibited from building by the more restrictive state Ag and Rural zoning designations. Government works best when you tackle the big issues head on, and then give the community enough time to plan and organize around the rules of the road. Fiddling around the margins might be good for optics, but it won't actually move the needle on housing costs.
Finally, if you proceed with reducing the caps despite the thoughtful opposition expressed in many other comments, please consider grandfathering-in existing property owners who are patiently waiting out the required 5-year hold period. Make additional permit allocations (up to the existing caps only) available to owners who purchased prior to this proposed rules change. These property owners made purchase decisions with an expectation that the new STR rules would be given ample time to be the law of the land. These owners are respecting the process and deserve reciprocal respect from the Council.
Aloha, Please Maui County do not lower short term rental home permit caps. Neighborhoods and condo assocations here on Maui have their own restrictions/enforcements. I don’t understand why Maui County is not for the “little guy” - Maui County sold the beautiful golf courses in Kaanapali to Big Businesses who want to build more high rises, hotels, and time shares here in West Maui, the property taxes here on Maui are higher for the “little guy” (short term rental rates) than hotels, that in itself is shameful.. why on earth would you want to penalize someone trying to make ends meet? Ka‘anapali golf courses sold to Host Hotel & Resorts | News, Sports, Jobs - Maui News I don’t run or operate a B&B but I think you should put our home owners here first instead of big businesses! My 2 cents. Deb Tosch
Aloha Committee Chair Paltin and member of the Planning and Sustainable Land Use Committee:
Mahalo for the opportunity to provide comment. I support capping the number of short term rental homes at existing levels at a minimum. However, I prefer that the ordinance that created Short Term Rental Homes be rescinded and existing permits be phased out over time. STRH must be phased out - multiple strategies must be utilized to address the lack of affordability and inventory of homes on Maui - this is just one strategy.
As Kama`aina, we all feel and resent the impacts of overtourism. We should phase out STRH in favor of a select number of B&Bs which should also be capped. With B&Bs, the owner of the home is still in residence, not living elsewhere, enjoying the benefits of their investment while local people suffer with the consequence.
STRH has made home costs unreachable numbers for Maui families. The existing permits should not last forever. They need to be phased out. The taxes generated by STRH do not cover the costs of addressing multiple impacts. They generate more problems than they solve. Mahalo for allowing testimony!
We do not need anymore short term rentals
Leave the neighborhood in tact with local people and start getting rid of the illegal short term rentals you do nothing when concerned neighbors call the county shame on the people in charge sorry to say !
Thank you for your time in considering the people's opinion on this matter. I oppose all new permits for short term rentals in all areas on Maui. I have seen many long-term residents move away during the last few years because housing is becoming too expensive and scarce. There are plenty of rentals available for visitors and short term renters and not enough affordable options for people who are here and contribute to the community, not just the tourism industry. Landlords need more incentive from the government to offer affordable long-term housing, and if that needs to come in the form of a lower cap on permits that would be the best option. Thank you for your consideration.
Sara Jelley
I am Tom Croly testifying on my own behalf. I have an almost 15 year involvement in this issue and may be am the only person still involved in this issue who was around when the B&B and STRH caps were first established.
The caps that were initially established for B&B, and later STRH, permits were based on a study by the Kauaiian institute of the existing short term rentals that were operating on Maui island in 2005. I have attached a copy of that study to this email.
In 2005 the Kauaiian Institute study found 800 single family home properties on Maui island were identified operating as short term rentals and this represented approximately 1069 short term rental units. When the B&B caps were first established in 2008, the planning director chose a cap of 400 B&B permits which represented 1/2 of the total 800 short term rental properties then in operation. And then proportioned these 400 permits to match the proportions already identified as operating in each community plan district. Later, in 2012, the caps for STRH permits was set to account for the other 400 operating properties as identified in the Kauaiian institute study and distributed accordingly. Since that time the caps were reduce in Hana from 48 to 30 and from 88 to 55 in Paia-Haiku. So the current cap for Maui island is 349. Currently there are a total of 193 permitted STRHs on Maui island.
Before any informed decision can be made about the appropriate number of Short Term Rental Home (STRH) permits in each Community plan area of the island, it would be prudent to accurately answer the following questions
How many single family homes exist in each of the 7 community plan districts on Maui Island?
How many of these homes in each district are used as the full time homes of their owners?
How many of these homes in each district are used exclusively as second (vacation) homes?
How many of these homes in each district are used as long term rentals?
What is the market demand for visitor accommodations in each community plan area?
How many unpermitted short term rentals have been identified as operating in each community plan district?
Even at the current permit caps, STRHs represent a very small percentage (0-3%) of the of the single family homes in any community plan area. However, should the number of legally permitted short term rentals homes in a given area be inadequate to meet the well established market demand for such accommodations, this demand has, and will continue to be, met by unpermitted unregulated rentals, should an appropriate number of legal rentals are not be available.
The 193 currently permitted Short term rental homes on Maui island represent less than 0.5% of all single family homes on the island and less than 1% of the total number of single family homes sold on Maui island since 2005. And since 2018, any new STRH permit applicants must have owned their home for at least 5 years before they may make application for a short term rental home permit, ensuring that the availability if this permit is not any kind of factor affecting the single family home marketplace.
Maui property tax records identify more than 20,000 single family homes that are non-owner occupied. Some minority number of these homes are rented out on a long term basis, 193, less than 1%, are rented out legally under a short term rental home permit. But the vast majority of these 20,000 plus homes are solely used as part-time or second homes of their owners. Further limiting the availability of STRH permits will not reduce this number.
Eliminating additional future STRH permits will only result in most of these properties returning to, or remaining as, second homes and will deprive the County of the additional property tax that is paid by legally permitted short term rental homes and depriving the state of the GET and TAT revenues paid by the legal short term rental homes.
Many short term rental home permits have facilitated families having an opportunity to keep a family property in the family after the passing of their parents or during periods of time when the family members must be away because of work or to care for elderly family members. There are numerous scenarios where the long term rental of the property is not practical because the property owner or owners, require some regular use of their property.
Most properties that neighbors complain about causing negative impacts to their communities are NOT permitted short term rentals. They are most commonly long term rentals, or often the second homes that may look like a short term rental because the owner does not live their full time and may even allow others to use their home while they not in residence. And because these properties are not regulated as permitted short term rentals are, eliminating future short term rentals will not address these problems. In fact problems from unregulated second homes will most certainly get worse.
The current proposal to reduce STRH caps is not based in any sound planning principle or actual facts. The current STRH permitting standards and caps were based on very thoughtful considerations and were designed to meet the established demand from the traveling public, while limiting any possible impacts. The market demand is not currently being met by legally permitted STRHs as evidenced by ongoing illegal short term rental uses.
Converting permitted short term rental homes to second homes or visa versa, will not have much affect on the number visitors to Maui, because every person arriving in Maui, who is not a full time resident, is classified by HTA’s reports, as a visitor. Currently 22% of Maui’s housing is that of (non STRH) second homes. And the owners and friends of these property owners are counted as visitors, but they are simply visitors who pay no accommodation taxes.
This committee should initiate a more thorough analysis of the questions posed in this testimony, rather than blindly setting the STRH caps too low. Such an action would result in the County and State suffering millions of dollars in lost tax revenues and adding to the ongoing issue of enforcement.
Using data provided to the Budget committee by the Real property tax department in their annual report answers to some of the questions posed above can be found in this report.
In the Hana District, RPT’s report shows 991 properties with single family homes. 23 of these, or 2.3%, have been issued STRH permits, 430 are owner occupied properties, of which 15 have been issued a B&B permit and 538 non owner occupied properties, most of which are second homes and some that are long term rentals.
In Makawao-Paia-Haiku* the report shows a total of 5876 single family home properties. 47, or 0.8% have been issued STRH permits, 3792 are owner occupied of which 62 have a B&B permit and 2097 are non owner occupied, mostly second homes and some long term rentals.
In upcountry Kula and Ulapalakua*, there are 5357 single family home properties, 8 that have STRH permits, 3586 that are owner occupied 14 of which have a B&B permit and 1764 that are non owner occupied mostly second homes.
In West Maui there are a total of 13,755 properties that have dwellings, and we know from RPT data that 6375 of these are condo units allowed to make short term rental uses and that 62 are single family homes granted STRH permits, but we don’t know the breakdown of Non owner occupied and owner occupied properties between single family and apartment style condos. So it is difficult to estimate the exact number of single family homes in West Maui using the RPT data, but my best guess would be about 6200 single family homes of which 62 have been granted STRH permits, 2830 that are owner occupied with 14 of them holding B&B permits and 3370 that are non owner occupied, mostly second homes and some long term rentals.
In Kihei-Makena there are a total of 16,413 properties with dwellings, of which 6242 are condominium style short term rentals, 45 short term rental home permits, 5089 owner occupied properties of which 48 hold B&B permits and 5037 non owner occupied, mostly second home properties.
In Kahului and Wailuku, there are only a total of 6 STRH permits of which 4 are in Sprecklesville and 2 in Wailuku, so for this analysis they are essentially irrelevant.
*RPT’s annual report is not broken down in the exact same way as community plan districts that govern the caps on STRH and B&B permits.
This committee should file this communication and initiate a study as recommended by the Maui Planning Commission. Reducing the caps for STRHs will have only negative effects and will not aid is providing any additional housing at all.
Tamara Paltin, Chair
Maui County Planning and Sustainable Land Use Committee
200 South High Street
Wailuku HI 96793
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. I do support caps, we support managed STR home numbers in Maui County, and we support regulation.
I am an owner of a short-term rental. This should be seen as a valid business along with the “second home” lifestyle. Short-term rentals would not be successful or in demand if the owners did not continually maintain and upgrade their properties. I had my unit remodeled and it is continually improved. This management brought jobs and income to construction companies, retailers, wholesalers and delivery people. Jobs are important for the local people. The short-term rental business supports the local economy with tourism dollars.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
I fully support capping, or better yet, reducing drastically, the number of short term rental homes on Maui.
Tourism has come raging back in 2021. We all got a short reprieve from it last year, which is probably why, now that the tourists are back in full force, it feels so egregious and invasive.
Short term rentals are not good for Maui. They limit the number of long term rentals for our local people, they encourage out of state buyers to swoop in, buy an "investment property" and sit back and collect the cash. My husband and I are fortunate enough to own (and live on) a property in Makawao that has a separate cottage on it. Could we rent it short term? I'm sure we could - for a lot more than we collect from our hard working, local tenants. But we don't. Because we care about this community, we are not greedy, we care about our neighbors and our neighborhood, and we want the community, as a whole, to prosper. People/buyers that are not from here don't care about our community - they only care about their bottom line.
If short term rentals continue to be allowed in residential areas, I would suggest that at least it be required that the owner reside on property as well, creating more of a bed and breakfast situation. I think that helps a lot, when the owners live on property and work directly with their visitors. The visitors need to be educated on what it means to vacation here - it's not Disneyland - yet that's how many of them treat it.
And as for the stale argument "what about all the house cleaners, landscapers, pool cleaners, etc. They will all lose their jobs!" WRONG. My husband owns a pool business. He chooses not to take on very many short term rentals as clients because 1) they are a pain in the you know what, and 2) he'd rather deal directly with homeowners who live here. But he has about 10 STRs and guess what? Even when no one was there during 2020, the pool still needed to be cleaned. The massive yard and landscaping still needs to be kept up. Perhaps the rentals didn't need to be cleaned (inside) as much, but unless the owner is literally letting the place go, all of those things still need to happen. It doesn't matter who is living there. We lost almost no business during the pandemic, with the exception of a couple of rentals going to biweekly pool service instead of weekly during the severe shutdown (in April & May). So don't let HTA or whoever tell you how much those lowly workers are suffering without short term rentals. It's nonsense. If you have a pool, it has to be cleaned. If you have a property, it has to be maintained, and it's incredibly rare that a high end homeowner is going to do it themselves.
This is a bit of a rant and I could go on about the ills of Short Term Rentals, but I will stop here for now. Mahalo for looking for solutions, thinking outside the box, and not being afraid to take on problems that seem too large to solve. The community appreciates it!
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Aloha Maui County Legislators and Planning Commission:
Based on the wording of this bill it is unclear if by renewing the discussion of short-term rentals, you mean to increase the number of units or decrease the number of units-I am guessing that the Planning Commission is determined to increase these rentals. With new hotels opening in the Kihei/Wailea area-allowing for additional rooms for tourists, it is unclear why we do not decrease or eliminate short-term rentals in Kihei completely. The room capacities for visitors have increased. We need more homes for our families. If there is a market for these types of rentals, I suggest relooking at Bed and Breakfast permits and increasing those while phasing out short-term rentals completely. My daughter works at the Four Seasons and her boyfriend at a restaurant in Wailea-they should be able to find a better place to live than a converted garage. I live in Kihei Villages, most of our condos are being purchased for cash, from mainland owners. One condo just sold and is being rented out for $3000/mo. What young couple can afford that? When we have the option to improve, we need to always do the right thing. Thank you for allowing this testimony.
Sharon Goldenberg
From: Dennis Vandevelde <dennismaui1@aol.com>
Sent: Tuesday, June 29, 2021 1:32:52 PM (UTC-10:00) Hawaii
To: PSLU Committee <PSLU.Committee@mauicounty.us>
Subject: Vacation rentals permits
Maui County Planning and Sustainable Land Use Committee
200 South High Street
Wailuku HI 96793
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Aloha Committee Chair Paltin and member of the Planning and Sustainable Land Use Committee:
I support capping the number of short term rental homes at existing levels at a minimum. I prefer that the ordinance that created Short Term Rental Homes be rescinded and existing permits be phased out.
We all feel the impacts of ove-rtourism. This needs to be controlled. Neighbors have been impacted, tranquility has been disrupted and discord has been created within our neighborhoods. All for money going to a select few at the expense of everyone around them.
We should phase out STRH in favor of a select number of B&Bs which should also be capped. With B&Bs if there is a disturbance the owner is there to take the calls and stand the heat and the home is still their residence. With STRHs, the owners are off somewhere sipping cocktails while their neighbors howl in aggravation.
We made a mistake in approving STRHs. It is driving up home costs to unreachable numbers for Maui families. The existing permits should not last forever. They need to be phased out methodically. It is the only way you will control the numbers of visitors coming to Maui. Currently these numbers are overburdening our infrastructure. The taxes generated by them do not cover the costs of addressing these infrastructure impacts. In short they generate more problems than they solve.
Maui land use planners back in the 1950's sought to limit the visitor industry to selected areas where all of the needs of visitors would be met without impacting the community. They had the right idea. We just lost sight of it along the way. We now need to adjust the numbers back into a more sustainable long term visitor industry. Resort destination areas are more than capable of handling demand. Neighborhoods are not. Employees need to be able to afford a home of their own, otherwise what is all the work good for?
I was a former planning commissioner for ten years. By approving these permits, I was part of the problem. We had not choice because the ordinance was clear. But the ordinance was a mistake. Our commission voted unanimously to cap STRHs back in 2010 in a letter to the council. Nothing was done. Now is the time to correct that mistake.
Thank you for allowing me to comment.
Aloha,
Wayne N. Hedani
586 Kuikahi Drive
Wailuku Maui HI.
96793
Capping STR permits limits the number of out of state/country buyers who buy up homes meant to be used for residential purposes and turning them into vacation homes. Furthermore, I request an even more drastic cap with even less available permits, which would increase local ownership and boost the local economy by providing security to working class families.
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Thank you for considering my testimony.
Sincerely,
Denise Tjarks
Olowalu Mauka HOA President
No more short term rentals my God, enough already. House your local people first. They are the backbone to serve all the guest yet they have to work 3 jobs to have a roof over their heads. Shameful sellouts!
Regarding testimony on Short Term Rental Home permit caps.
My strong preference is to leave the caps alone. We all worked hard to come up with a reasonable solution to legal Short Term Rental Homes. There is nothing wrong with the current caps. If the government must change the caps please do what is right and do not reduce the number of current active permits and pending applications.
Cheers,
Bob Hansen
Principal Broker RB-17532
808-283-9456
Maui Luxury Real Estate LLC
Please lower the short term rentals. People who live and work here need homes. We have more than enough hotels, condos and BnB to accommodate visitors right now.
It sure was nice having a reduced number of guests on island during the height of our awful pandemic. Then again, 40+% of our community was out of work and relying on government assistance. It wasn’t sustainable. I remember hearing people talking in the Lahaina breakwall surf line up saying, “we’re all professional surfers now…”.
I’m not born and raised on Maui, but I’ve been here long enough to have watched the progression of short-term rentals on island. When the Honorable Mayor Tavares declared all short-term rentals illegal, she inadvertently created a problem. Prohibition never works and instead many people worked for years to create the short-term rental permit program.
It may seem attractive to now say, “I want my island back, like it was during the pandemic”. And, there are many ways to create smart growth, smart planning, and sustainability. But, forgetting the lessons of history only ensures we make the same mistakes again, that we trip over the same obstacles again. That wouldn’t be a service to our community, even if it may seem sexy at the moment.
I ask that we keep the short-term rental program as is. Look at what it’s achieved so far:
• It’s so rigorous we haven’t even reached the original cap numbers
• Illegal rentals have declined significantly
• The County is now indemnified from liability
• The County and State collect millions in tax revenue not previously captured.
o This money is funding affordable housing programs.
• Ocean safety and Hawaiian culture is part of short-term renters’ arrival education
Thank you for your consideration and service,
Greg Mebel
Paia
Aloha. I'm writing to urge you to respect the very thorough and balanced process that resulted in the current caps. Capriciously reducing the upcountry cap from 40 to 12 and/or the Kahului cap to nearly zero undermines and disrespects the diligent work that was done by the community barely three years ago.
If you're serious about bringing down housing costs in Maui County, aim your ire at the restrictive zoning policies coming from Honolulu. While Maui County allows up to two ohanas on thousands of parcels, current owners are still prohibited from building by the more restrictive state Ag and Rural zoning designations. Government works best when you tackle the big issues head on, and then give the community enough time to plan and organize around the rules of the road. Fiddling around the margins might be good for optics, but it won't actually move the needle on housing costs.
Finally, if you proceed with reducing the caps despite the thoughtful opposition expressed in many other comments, please consider grandfathering-in existing property owners who are patiently waiting out the required 5-year hold period. Make additional permit allocations (up to the existing caps only) available to owners who purchased prior to this proposed rules change. These property owners made purchase decisions with an expectation that the new STR rules would be given ample time to be the law of the land. These owners are respecting the process and deserve reciprocal respect from the Council.
Mahalo for your careful consideration.
Aloha, Please Maui County do not lower short term rental home permit caps. Neighborhoods and condo assocations here on Maui have their own restrictions/enforcements. I don’t understand why Maui County is not for the “little guy” - Maui County sold the beautiful golf courses in Kaanapali to Big Businesses who want to build more high rises, hotels, and time shares here in West Maui, the property taxes here on Maui are higher for the “little guy” (short term rental rates) than hotels, that in itself is shameful.. why on earth would you want to penalize someone trying to make ends meet? Ka‘anapali golf courses sold to Host Hotel & Resorts | News, Sports, Jobs - Maui News I don’t run or operate a B&B but I think you should put our home owners here first instead of big businesses! My 2 cents. Deb Tosch
Aloha Committee Chair Paltin and member of the Planning and Sustainable Land Use Committee:
Mahalo for the opportunity to provide comment. I support capping the number of short term rental homes at existing levels at a minimum. However, I prefer that the ordinance that created Short Term Rental Homes be rescinded and existing permits be phased out over time. STRH must be phased out - multiple strategies must be utilized to address the lack of affordability and inventory of homes on Maui - this is just one strategy.
As Kama`aina, we all feel and resent the impacts of overtourism. We should phase out STRH in favor of a select number of B&Bs which should also be capped. With B&Bs, the owner of the home is still in residence, not living elsewhere, enjoying the benefits of their investment while local people suffer with the consequence.
STRH has made home costs unreachable numbers for Maui families. The existing permits should not last forever. They need to be phased out. The taxes generated by STRH do not cover the costs of addressing multiple impacts. They generate more problems than they solve. Mahalo for allowing testimony!
Respectfully,
Nicole Hokoana
We do not need anymore short term rentals
Leave the neighborhood in tact with local people and start getting rid of the illegal short term rentals you do nothing when concerned neighbors call the county shame on the people in charge sorry to say !
I support PSLU-67 CC 21-67 SHORT-TERM RENTAL HOME PERMIT CAPS (PSLU-67).
Thank you for your time in considering the people's opinion on this matter. I oppose all new permits for short term rentals in all areas on Maui. I have seen many long-term residents move away during the last few years because housing is becoming too expensive and scarce. There are plenty of rentals available for visitors and short term renters and not enough affordable options for people who are here and contribute to the community, not just the tourism industry. Landlords need more incentive from the government to offer affordable long-term housing, and if that needs to come in the form of a lower cap on permits that would be the best option. Thank you for your consideration.
Sara Jelley
I am Tom Croly testifying on my own behalf. I have an almost 15 year involvement in this issue and may be am the only person still involved in this issue who was around when the B&B and STRH caps were first established.
The caps that were initially established for B&B, and later STRH, permits were based on a study by the Kauaiian institute of the existing short term rentals that were operating on Maui island in 2005. I have attached a copy of that study to this email.
In 2005 the Kauaiian Institute study found 800 single family home properties on Maui island were identified operating as short term rentals and this represented approximately 1069 short term rental units. When the B&B caps were first established in 2008, the planning director chose a cap of 400 B&B permits which represented 1/2 of the total 800 short term rental properties then in operation. And then proportioned these 400 permits to match the proportions already identified as operating in each community plan district. Later, in 2012, the caps for STRH permits was set to account for the other 400 operating properties as identified in the Kauaiian institute study and distributed accordingly. Since that time the caps were reduce in Hana from 48 to 30 and from 88 to 55 in Paia-Haiku. So the current cap for Maui island is 349. Currently there are a total of 193 permitted STRHs on Maui island.
Before any informed decision can be made about the appropriate number of Short Term Rental Home (STRH) permits in each Community plan area of the island, it would be prudent to accurately answer the following questions
How many single family homes exist in each of the 7 community plan districts on Maui Island?
How many of these homes in each district are used as the full time homes of their owners?
How many of these homes in each district are used exclusively as second (vacation) homes?
How many of these homes in each district are used as long term rentals?
What is the market demand for visitor accommodations in each community plan area?
How many unpermitted short term rentals have been identified as operating in each community plan district?
Even at the current permit caps, STRHs represent a very small percentage (0-3%) of the of the single family homes in any community plan area. However, should the number of legally permitted short term rentals homes in a given area be inadequate to meet the well established market demand for such accommodations, this demand has, and will continue to be, met by unpermitted unregulated rentals, should an appropriate number of legal rentals are not be available.
The 193 currently permitted Short term rental homes on Maui island represent less than 0.5% of all single family homes on the island and less than 1% of the total number of single family homes sold on Maui island since 2005. And since 2018, any new STRH permit applicants must have owned their home for at least 5 years before they may make application for a short term rental home permit, ensuring that the availability if this permit is not any kind of factor affecting the single family home marketplace.
Maui property tax records identify more than 20,000 single family homes that are non-owner occupied. Some minority number of these homes are rented out on a long term basis, 193, less than 1%, are rented out legally under a short term rental home permit. But the vast majority of these 20,000 plus homes are solely used as part-time or second homes of their owners. Further limiting the availability of STRH permits will not reduce this number.
Eliminating additional future STRH permits will only result in most of these properties returning to, or remaining as, second homes and will deprive the County of the additional property tax that is paid by legally permitted short term rental homes and depriving the state of the GET and TAT revenues paid by the legal short term rental homes.
Many short term rental home permits have facilitated families having an opportunity to keep a family property in the family after the passing of their parents or during periods of time when the family members must be away because of work or to care for elderly family members. There are numerous scenarios where the long term rental of the property is not practical because the property owner or owners, require some regular use of their property.
Most properties that neighbors complain about causing negative impacts to their communities are NOT permitted short term rentals. They are most commonly long term rentals, or often the second homes that may look like a short term rental because the owner does not live their full time and may even allow others to use their home while they not in residence. And because these properties are not regulated as permitted short term rentals are, eliminating future short term rentals will not address these problems. In fact problems from unregulated second homes will most certainly get worse.
The current proposal to reduce STRH caps is not based in any sound planning principle or actual facts. The current STRH permitting standards and caps were based on very thoughtful considerations and were designed to meet the established demand from the traveling public, while limiting any possible impacts. The market demand is not currently being met by legally permitted STRHs as evidenced by ongoing illegal short term rental uses.
Converting permitted short term rental homes to second homes or visa versa, will not have much affect on the number visitors to Maui, because every person arriving in Maui, who is not a full time resident, is classified by HTA’s reports, as a visitor. Currently 22% of Maui’s housing is that of (non STRH) second homes. And the owners and friends of these property owners are counted as visitors, but they are simply visitors who pay no accommodation taxes.
This committee should initiate a more thorough analysis of the questions posed in this testimony, rather than blindly setting the STRH caps too low. Such an action would result in the County and State suffering millions of dollars in lost tax revenues and adding to the ongoing issue of enforcement.
Using data provided to the Budget committee by the Real property tax department in their annual report answers to some of the questions posed above can be found in this report.
https://www.mauicounty.gov/DocumentCenter/View/126511/2021-Selected-Real-Property-Statistics-for-Budget-Consideration-handout-for-Council-Mayors-Proposed-rates-
In the Hana District, RPT’s report shows 991 properties with single family homes. 23 of these, or 2.3%, have been issued STRH permits, 430 are owner occupied properties, of which 15 have been issued a B&B permit and 538 non owner occupied properties, most of which are second homes and some that are long term rentals.
In Makawao-Paia-Haiku* the report shows a total of 5876 single family home properties. 47, or 0.8% have been issued STRH permits, 3792 are owner occupied of which 62 have a B&B permit and 2097 are non owner occupied, mostly second homes and some long term rentals.
In upcountry Kula and Ulapalakua*, there are 5357 single family home properties, 8 that have STRH permits, 3586 that are owner occupied 14 of which have a B&B permit and 1764 that are non owner occupied mostly second homes.
In West Maui there are a total of 13,755 properties that have dwellings, and we know from RPT data that 6375 of these are condo units allowed to make short term rental uses and that 62 are single family homes granted STRH permits, but we don’t know the breakdown of Non owner occupied and owner occupied properties between single family and apartment style condos. So it is difficult to estimate the exact number of single family homes in West Maui using the RPT data, but my best guess would be about 6200 single family homes of which 62 have been granted STRH permits, 2830 that are owner occupied with 14 of them holding B&B permits and 3370 that are non owner occupied, mostly second homes and some long term rentals.
In Kihei-Makena there are a total of 16,413 properties with dwellings, of which 6242 are condominium style short term rentals, 45 short term rental home permits, 5089 owner occupied properties of which 48 hold B&B permits and 5037 non owner occupied, mostly second home properties.
In Kahului and Wailuku, there are only a total of 6 STRH permits of which 4 are in Sprecklesville and 2 in Wailuku, so for this analysis they are essentially irrelevant.
*RPT’s annual report is not broken down in the exact same way as community plan districts that govern the caps on STRH and B&B permits.
This committee should file this communication and initiate a study as recommended by the Maui Planning Commission. Reducing the caps for STRHs will have only negative effects and will not aid is providing any additional housing at all.
Tamara Paltin, Chair
Maui County Planning and Sustainable Land Use Committee
200 South High Street
Wailuku HI 96793
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. I do support caps, we support managed STR home numbers in Maui County, and we support regulation.
I am an owner of a short-term rental. This should be seen as a valid business along with the “second home” lifestyle. Short-term rentals would not be successful or in demand if the owners did not continually maintain and upgrade their properties. I had my unit remodeled and it is continually improved. This management brought jobs and income to construction companies, retailers, wholesalers and delivery people. Jobs are important for the local people. The short-term rental business supports the local economy with tourism dollars.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Thank you for considering my testimony.
Sincerely,
Carl Gann
Permit Holder
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
I fully support capping, or better yet, reducing drastically, the number of short term rental homes on Maui.
Tourism has come raging back in 2021. We all got a short reprieve from it last year, which is probably why, now that the tourists are back in full force, it feels so egregious and invasive.
Short term rentals are not good for Maui. They limit the number of long term rentals for our local people, they encourage out of state buyers to swoop in, buy an "investment property" and sit back and collect the cash. My husband and I are fortunate enough to own (and live on) a property in Makawao that has a separate cottage on it. Could we rent it short term? I'm sure we could - for a lot more than we collect from our hard working, local tenants. But we don't. Because we care about this community, we are not greedy, we care about our neighbors and our neighborhood, and we want the community, as a whole, to prosper. People/buyers that are not from here don't care about our community - they only care about their bottom line.
If short term rentals continue to be allowed in residential areas, I would suggest that at least it be required that the owner reside on property as well, creating more of a bed and breakfast situation. I think that helps a lot, when the owners live on property and work directly with their visitors. The visitors need to be educated on what it means to vacation here - it's not Disneyland - yet that's how many of them treat it.
And as for the stale argument "what about all the house cleaners, landscapers, pool cleaners, etc. They will all lose their jobs!" WRONG. My husband owns a pool business. He chooses not to take on very many short term rentals as clients because 1) they are a pain in the you know what, and 2) he'd rather deal directly with homeowners who live here. But he has about 10 STRs and guess what? Even when no one was there during 2020, the pool still needed to be cleaned. The massive yard and landscaping still needs to be kept up. Perhaps the rentals didn't need to be cleaned (inside) as much, but unless the owner is literally letting the place go, all of those things still need to happen. It doesn't matter who is living there. We lost almost no business during the pandemic, with the exception of a couple of rentals going to biweekly pool service instead of weekly during the severe shutdown (in April & May). So don't let HTA or whoever tell you how much those lowly workers are suffering without short term rentals. It's nonsense. If you have a pool, it has to be cleaned. If you have a property, it has to be maintained, and it's incredibly rare that a high end homeowner is going to do it themselves.
This is a bit of a rant and I could go on about the ills of Short Term Rentals, but I will stop here for now. Mahalo for looking for solutions, thinking outside the box, and not being afraid to take on problems that seem too large to solve. The community appreciates it!
Mahalo nui,
Jennifer McGurn
(808) 281-7386
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Thank you for considering my testimony.
Aloha Maui County Legislators and Planning Commission:
Based on the wording of this bill it is unclear if by renewing the discussion of short-term rentals, you mean to increase the number of units or decrease the number of units-I am guessing that the Planning Commission is determined to increase these rentals. With new hotels opening in the Kihei/Wailea area-allowing for additional rooms for tourists, it is unclear why we do not decrease or eliminate short-term rentals in Kihei completely. The room capacities for visitors have increased. We need more homes for our families. If there is a market for these types of rentals, I suggest relooking at Bed and Breakfast permits and increasing those while phasing out short-term rentals completely. My daughter works at the Four Seasons and her boyfriend at a restaurant in Wailea-they should be able to find a better place to live than a converted garage. I live in Kihei Villages, most of our condos are being purchased for cash, from mainland owners. One condo just sold and is being rented out for $3000/mo. What young couple can afford that? When we have the option to improve, we need to always do the right thing. Thank you for allowing this testimony.
Sharon Goldenberg
From: Dennis Vandevelde <dennismaui1@aol.com>
Sent: Tuesday, June 29, 2021 1:32:52 PM (UTC-10:00) Hawaii
To: PSLU Committee <PSLU.Committee@mauicounty.us>
Subject: Vacation rentals permits
Maui County Planning and Sustainable Land Use Committee
200 South High Street
Wailuku HI 96793
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Thank you for considering my testimony.
Sincerely,
Aloha Committee Chair Paltin and member of the Planning and Sustainable Land Use Committee:
I support capping the number of short term rental homes at existing levels at a minimum. I prefer that the ordinance that created Short Term Rental Homes be rescinded and existing permits be phased out.
We all feel the impacts of ove-rtourism. This needs to be controlled. Neighbors have been impacted, tranquility has been disrupted and discord has been created within our neighborhoods. All for money going to a select few at the expense of everyone around them.
We should phase out STRH in favor of a select number of B&Bs which should also be capped. With B&Bs if there is a disturbance the owner is there to take the calls and stand the heat and the home is still their residence. With STRHs, the owners are off somewhere sipping cocktails while their neighbors howl in aggravation.
We made a mistake in approving STRHs. It is driving up home costs to unreachable numbers for Maui families. The existing permits should not last forever. They need to be phased out methodically. It is the only way you will control the numbers of visitors coming to Maui. Currently these numbers are overburdening our infrastructure. The taxes generated by them do not cover the costs of addressing these infrastructure impacts. In short they generate more problems than they solve.
Maui land use planners back in the 1950's sought to limit the visitor industry to selected areas where all of the needs of visitors would be met without impacting the community. They had the right idea. We just lost sight of it along the way. We now need to adjust the numbers back into a more sustainable long term visitor industry. Resort destination areas are more than capable of handling demand. Neighborhoods are not. Employees need to be able to afford a home of their own, otherwise what is all the work good for?
I was a former planning commissioner for ten years. By approving these permits, I was part of the problem. We had not choice because the ordinance was clear. But the ordinance was a mistake. Our commission voted unanimously to cap STRHs back in 2010 in a letter to the council. Nothing was done. Now is the time to correct that mistake.
Thank you for allowing me to comment.
Aloha,
Wayne N. Hedani
586 Kuikahi Drive
Wailuku Maui HI.
96793
Capping STR permits limits the number of out of state/country buyers who buy up homes meant to be used for residential purposes and turning them into vacation homes. Furthermore, I request an even more drastic cap with even less available permits, which would increase local ownership and boost the local economy by providing security to working class families.
Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,
Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.
As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.
We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.
The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.
The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.
The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.
We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.
These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.
Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.
Thank you for considering my testimony.
Sincerely,
Denise Tjarks
Olowalu Mauka HOA President
No more short term rentals my God, enough already. House your local people first. They are the backbone to serve all the guest yet they have to work 3 jobs to have a roof over their heads. Shameful sellouts!
Regarding testimony on Short Term Rental Home permit caps.
My strong preference is to leave the caps alone. We all worked hard to come up with a reasonable solution to legal Short Term Rental Homes. There is nothing wrong with the current caps. If the government must change the caps please do what is right and do not reduce the number of current active permits and pending applications.
Cheers,
Bob Hansen
Principal Broker RB-17532
808-283-9456
Maui Luxury Real Estate LLC
Please lower the short term rentals. People who live and work here need homes. We have more than enough hotels, condos and BnB to accommodate visitors right now.
It sure was nice having a reduced number of guests on island during the height of our awful pandemic. Then again, 40+% of our community was out of work and relying on government assistance. It wasn’t sustainable. I remember hearing people talking in the Lahaina breakwall surf line up saying, “we’re all professional surfers now…”.
I’m not born and raised on Maui, but I’ve been here long enough to have watched the progression of short-term rentals on island. When the Honorable Mayor Tavares declared all short-term rentals illegal, she inadvertently created a problem. Prohibition never works and instead many people worked for years to create the short-term rental permit program.
It may seem attractive to now say, “I want my island back, like it was during the pandemic”. And, there are many ways to create smart growth, smart planning, and sustainability. But, forgetting the lessons of history only ensures we make the same mistakes again, that we trip over the same obstacles again. That wouldn’t be a service to our community, even if it may seem sexy at the moment.
I ask that we keep the short-term rental program as is. Look at what it’s achieved so far:
• It’s so rigorous we haven’t even reached the original cap numbers
• Illegal rentals have declined significantly
• The County is now indemnified from liability
• The County and State collect millions in tax revenue not previously captured.
o This money is funding affordable housing programs.
• Ocean safety and Hawaiian culture is part of short-term renters’ arrival education
Thank you for your consideration and service,
Greg Mebel
Paia
Please limit short term rentals to very few or none at all. So that people who live and work here can have homes to live in.