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Agenda Item

HLU-3(20) RENT STABILIZATION (HLU-3(20))

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    Edward Codelia 2 months ago

    My name is Edward Codelia and as a realtor and resident of Maui, I support the County Council in its exploration of a rent stabilization and/or a rent control plan, with the hope that, if necessary, the Council can translate this into legislation benefiting the residents of Maui County, however, I oppose the implementation of either plan until two critical conditions are met:
    1. The proposed A-1 and A-2 zoning amendments are voted on.
    2. Legislation is concurrently enacted requiring all property owners in the County of Maui who rent residences long-term (six months or more) to hire a licensed real estate brokerage firm located on Maui as their property manager.
    Altering A-1 and A-2 zoning laws should be the immediate priority, as it represents a foundational shift that can influence the types and densities of housing available in Maui's current market. While rent stabilization offers short-term relief to tenants facing rising costs, it addresses only a symptom of the larger housing crisis. Changing the zoning laws, however, directly targets the root of the problem by enabling the development of more diverse, multi-family housing options, which will have a lasting and wide-reaching impact on affordability and availability. By focusing on zoning reform, you can create sustainable housing solutions that benefit all residents, reshaping the market in ways rent stabilization alone cannot achieve.
    To create a more organized, accountable, and fair rental market in Maui, it is essential to require professional property management as part of a rent stabilization plan. This would ensure all long-term rentals (six months or more) are managed by licensed real estate brokers, with exemptions for homeowners who apply to the rent stabilization program. Professional property managers provide vital services such as tenant screening, property maintenance, accounting, and regulatory compliance, which protect tenant rights, maintain property standards, and address issues efficiently.
    This level of oversight benefits both property owners and tenants by ensuring that rental properties are safe, well-maintained, and meet all local housing standards. Additionally, requiring Maui-based realtors certified in property management to oversee long-term rentals outside the rent stabilization program ensures high-quality management and accountability. Implementing this requirement is a necessary step toward solving the housing affordability crisis and improving the rental market for the entire community.
    While a rent stabilization program with licensed realtor management offers immediate and tangible benefits, it is not a complete solution to Maui's housing crisis. Amending A-1 and A-2 zoning laws remains a critical step in addressing the underlying supply constraints that exacerbate housing issues. A comprehensive strategy, incorporating both rent stabilization with licensed realtor oversight and zoning law changes, will be the most effective path forward for creating a stable and sustainable housing market in Maui.
    Maui's challenges are distinct and should not be directly compared to those of other cities or counties around the world. These comparisons often serve as a rationale for delaying action, allowing critical issues to persist and leading to the misallocation of taxpayer resources on solutions that may not be effective. It’s important to recognize that many of the problems we face today were not present 25 years ago, a time when policymakers emphasized regulated and measured development.
    However, there are jurisdictions where similar approaches have successfully combined rent stabilization with requirements for professional management of rental properties;
    1. San Francisco, California:
    San Francisco has established rent control laws that limit the annual rent increases landlords can impose. Additionally, landlords are often required to engage licensed property managers for their rental properties, particularly when managing multiple units. This ensures compliance with local regulations and improves tenant relations.
    2. New York City, New York:
    New York City features a rent stabilization program that caps rent increases for qualifying units. While the use of licensed real estate professionals is not universally mandated, many landlords opt to employ them to navigate the complexities of rent regulations and maintain effective tenant relationships.
    3. Los Angeles, California:
    The Rent Stabilization Ordinance in Los Angeles limits rent increases and provides essential protections for tenants residing in numerous rental units. The city actively encourages landlords to utilize licensed property managers, which facilitates compliance with housing regulations and maintenance standards.
    4. Portland, Oregon:
    Portland has enacted rent stabilization policies that limit rent increases and protect tenants from displacement. While professional property management is not a formal requirement, there is a strong advocacy for its use to ensure that rental units meet necessary safety and habitability standards.
    The integration of rent stabilization with professional property management yields several notable benefits:
    Stability for Tenants: These approaches contribute to increased housing stability for tenants, allowing them to remain in their homes over longer periods.
    Professional Standards: Engaging licensed professionals typically enhances the quality of property management, leading to more effective resolution of maintenance issues.
    Compliance with Laws: The requirement for professional management helps ensure that landlords adhere to local housing regulations, thereby reducing disputes and reinforcing tenant rights.
    A rent stabilization program combined with professional management of long-term rentals can potentially help stabilize Maui’s housing market. Rent stabilization would directly address the issue of rising rental costs, offering tenants protection from sudden price increases. Meanwhile, requiring licensed professionals to manage rentals ensures higher standards of property management, tenant screening, and legal compliance, fostering accountability and improving overall rental conditions.
    Professional property management, even without the implementation of rent stabilization, can significantly impact the rental market in Maui by enhancing the quality of housing and ensuring compliance with regulations.
    In summary, while rent stabilization can provide immediate relief to tenants, the implementation of professional property management practices can have a far-reaching positive impact on the rental market. It enhances the quality of housing, protects tenant rights, and ensures accountability, ultimately fostering a more stable and sustainable rental environment in Maui.

    Attachments: final_part_2.docx
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    Stan Franco 2 months ago

    I believe we need rent stablization now because of the unaffordable rents which are being required by landlords. Three yrars ago, the Maui County Council established a plan to build 5000 homes. Where is the 5000 homes? When we build them, we may reconsider rent stabilization.