As a long time voting resident of Maui, I strongly oppose Bill #9. After paying County taxes as a short term rental property, it is not fair to now not allow the use for which people having been paying. The bill will not produce more usable housing, it will only result in less jobs, less revenue, and severe impact on viable condo complexes. This bill bill destroy south Maui. Converting apartment zoning to hotel is not viable in three years.
The housing crisis on Maui is not unique. This is happening all over the US. In small towns everywhere from MA to MN to CA. However the leaders in these communities are actually doing things to solve the problem, such as building new houses and apartment complexes and it's actually starting to improve the situation. It's time to move forward. Maui is suffering as people don't have work, tourism is down, tax revenue is down, and no one wants to visit. It's simple. The leaders need to announce new plans for building on the many of available acres of land and announce to all media outlets nationally and worldwide that Maui is open and needs people back. Since the fires we've donated time and money, and we've had a fire victim live in our unit. Stop punishing owners, and treat us like human beings who are doing everything to help as well.
Rid the island of all out of state short term rental owners. If you are afraid of the lost revenue, legalize Hawaiian State lottery, my state brings in over $1 billion dollars a year. Legalize recreational marijuana and the taxes alone bring in $450 million.
Quit relying solely on vacationers for your revenue.
As a Maui property owner for more than 25 years, I strongly oppose the STR ban. The damage to the local economy will be enormous. Most of the people, if not all, who maintain my property will lose their jobs and become reliant on county, state and federal money to survive. With the loss of STR tax income, it will be very hard for you to meet those financial needs. Please consider the Lahaina land trust report model for Maui. It looks at successful solutions in places like Aspen Colorado which deal with unaffordable housing issues that are even worse than Maui’s. Mahalo
Maui County Council June 5, 2025
200 S. High Street
Wailuku, HI 96793
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
As an owner of Papakea Resort, I respectfully urge you to reconsider the proposed phase-out of transient vacation rentals (TVRs) in apartment-zoned districts, particularly as it pertains to properties like ours that have long been legally recognized for such use.
Background and Legal Precedent
Papakea Resort was developed in 1977 and marketed as a legal vacation rental property. It has operated under the legal framework established by Maui County Ordinance 1797 in 1989, which allowed properties like ours—constructed before that date—to continue as lawful short-term rentals. This status was further affirmed by the Minatoya legal opinion.
Community Contributions
Papakea is a vital part of the local economy and community:
Employment: We provide full-time, benefited employment to many local residents
Local Services: Our operations support a wide range of local trades and small businesses, including housekeeping, maintenance, and property management services.
Tax Contributions: We contribute significantly to state and county revenues through property taxes, Transient Accommodations Tax, and General Excise Tax.
Economic Impact
The proposed phase-out could have significant economic repercussions. A study by the University of Hawaiʻi Economic Research Organization estimates that eliminating TVRs in apartment-zoned districts could reduce visitor spending by nearly $900 million annually and result in job and income losses, declining property values, and a potential $60 million drop in county property tax revenues by 2029 and and additional annual loss of $15 million in General Excise Tax (GET) and Transient Accommodations Tax (TAT) revenues.. mauicounty.us+2hawaii.edu+2mauinews.com+2
Conclusion
Papakea Resort is a longstanding, legally recognized part of Maui's tourism infrastructure and community fabric. We urge the Council to consider the legal precedents, economic contributions, and community ties that properties like ours represent and to allow short-term rentals to continue at Papakea Resort..
Thank you for your consideration.
Sincerely,
Kathy Wilmovsky
3543 Lower Honoapiilani Rd. #A201
Dear Chair, Vice Chair, and Committee Members,
My wife and I own a short-term rental property in Maui County, Kihei. As a property owner and taxpayer, I would like to express my concern and opposition to the proposed legislation to phase out more than 7,000 vacation rentals.
I would like to point out the significant benefits which short-term rentals provide to Maui.
1. Positive Economic Impact:
o Short-term vacation rentals contribute to a city or county’s economy in various ways.
o They provide additional income through tax revenues.
o The market for short-term vacation rentals is projected to grow significantly, reflecting their robust presence in the market.
o Visitors staying in these rentals spend money on local amenities like restaurants, bars, and stores further boosting the economy.
2. Growth of Experiences:
o Travelers today prioritize experiences over material possessions.
o Short-term rentals allow guests to have real, local experiences.
o Staying in unique places provides a more authentic travel experience.
3. Increased Tourism Activity:
o Short-term vacation rentals foster cultural exchange between travelers and locals.
o Visitors engage with locals, receiving personalized recommendations and insights into the local way of life.
4. Job Creation and Business Support:
The demand for short-term rentals generates job opportunities.
o Local entrepreneurs benefit from businesses like cleaning services, property management, and local tours.
It’s strongly believed that if Maui does not have the short-term rental option most of these travelers will not necessarily stay at hotels but will move on to locations outside of Maui that give them their preferred options. Therefore, Maui could stand to lose significant tax revenue, local business growth, and jobs. Let’s work together to find alternative solutions for the housing issues, i.e. solutions that do not create other issues in terms of loss of jobs and tax revenue.
This destructive bill must die a natural death. Now. Not in five years.
Council Members, Please understand that we have been living with the adverse effects of the mayor's thoughtless, self-serving disaster of a bill for over a year. Our homegrown evil genius decided to get the campers off the beach by promising them ocean-front condos. Not only did his publicity stunt clear the beach, it also pleased the hotel lobby that keeps him fed. It also depressed the condo market so maybe, just maybe, locals could buy Minatoya List condos. Finally, it depressed tourism, so that local businesses and government revenue have suffered, along with STR owners watching their occupancy rates fall.
Lahaina Strong, a lobbying organization supported by dark money (BigHotel/Ing/Our Hawaii) found enough malcontents and sovereign supporters online to launch a massive anti-tourism campaign, which was also embraced by our mayor and governor. Anyone who makes their living from Maui's visitor industry saw this as a disaster. The cleaners, handymen, and property owners who depend on STRs for their living watched their income melt away. STR owners anxiously checked their savings accounts to see how many months of no or little income they could endure with their high carrying costs. And the condo market did fall in value - over 30% by now - with properties taking over a year to sell (or never sell).
The Planning Commission hearings began, and the Lahaina Strong attack dogs came after STR owners, calling us colonizers and slave owners, for the crime of having worked hard all our lives to afford to invest in a property, so that we would have retirement income. Maui went from having friendly, welcoming vibes to violent, foreboding vibes: people followed and taunted, cars damaged and threats of violence against people. Despite all evidence to the contrary, every Planning Commission supported the mayor's bill. As political appointees, they bought Lahaina Strong's argument that because the owners are "extractors," they should forfeit their property, profits, rights, and simply rent to locals for below their cost. And if they don't do that, they should just walk away from their investments because, you know, before the Great Mehele, it belonged to Hawaiians anyway. So just "give it back."
All that ugliness has spilled into the public airwaves, and for months now, visitors have been uneasy about vacationing here, Will they be welcome? Will someone yell at them? For the most part, they have been welcomed, because so many of us depend on them for our livelihood, so of course we show our appreciation.
And all along, it was obvious to anyone with a calculator that Minatoya List condos can never be affordable housing. The carrying costs are just too great, and the age of the buildings and their plumbing/roofing/electrical/painting projects means unplanned special assessments, which could mean foreclosure to someone barely making their mortgage. A minority of the units are occupied by owners or their long-term tenants because the mortgage was paid off years ago, but the number of these is ever decreasing as the HOA fees climb, and price out owners and long-term landlords. These aging beauty queens truly need STR income to bankroll maintenance.
When the mayor brought his bill before the Council (and then immediately left to avoid having to listen to public testimony), we begged the committee to vote it down immediately. But it was an election year, and there was a process, and so this very harmful bill has festered like an open sore for months. The answer is not to extend the torture for another five years. The question is when and where will locals find affordable housing. The Council has made great strides this year and many projects have been launched to build houses, ADUs, and apartments that will meet local needs. STRs are valuable to Maui because they give so many local people excellent income. They bring people to the island that then support local businesses and restaurants. And finally, STR's pay the taxes that support our government and pay for affordable housing to be built.
As many other commenters have written, Bill 9 helps only one entity, and that is BigHotel, which pays lobbyists to scream that STRs are owned by off-islanders and "foreigners," i.e. people from the Mainland. Very ironic that ALL hotel owners live off-island and take their profits off-island.
So Council Members, you are not supporting locals by voting for this bill. You are voting for hotels not to have competition and that will certainly be pointed out to voters in the next election cycle. These letters of opposition are not just written by STR owners; they are written by the people who make their living from STRs, either by running a small business or performing a service. These are people who would have to move off island if Bill 9 passes.
Please end the hate and animosity voiced by the paid lobbyists. Those of us who testified in 2023 still remember the Council Members who emblazoned their Council space with Lahaina Strong banners and clothing. it was not appropriate to flagrantly decorate election materials with lobbyist marketing. Council members must always do what is best for Maui as a whole, for her people, for her economy. Vote no against racist indignation. It has run rampant too long.
Aloha Chair, Vice Chair, and Committee Members,
My name is Mary Pedretti. We own a short-term rental property in Maui County. We are writing today to express our concerns and strong opposition to the proposed legislation to phase out over 7000 vacation rentals, including the one that I have owned and legally operated for the past 30 years.
I am proud to have supported the Maui economy. I utilize a small Maui-based rental management company, Cleaners and maintenance people. We are proud that many of my family, friends, friends-of-friends, and others have visited Maui to vacation and spend their dollars here. Our vacation rental has brought much economic benefit to Maui over the past quarter century. Our visitors like the personal experience of an affordable, privately-owned vacation rental, rather than a big resorts. Those visitors and that economic activity will cease if STR’s like ours are phased-out.
Our local management company does a wonderful job, and employs local residents for cleaning, maintenance, repairs and office needs. They have already suffered a significant loss of business since Bissen announced his proposal to phase out STR’s early last year, and I fear for their future should STR’s be phased out. They haven't even fully re covered from the impact of covid and now they are faced with this loss of work if it gets phased out. We fear they will loss everything!
We contribute personally to our Maui community. We financially support local businesses and visitor attractions through memberships and donations to the Maui Ocean Center, Pacific Whale Foundation, Ma'alaea Village Association (MVA) and in other needed areas including helping in several places after the fires. We spent countless volunteer hours trying to get a sub-station in Ma'alaea, helping local PD, cleaning up our area including numerous engagements with community leaders. Our visits to Maui are always filled with volunteer activities. On our morning walks We pick up litter pick-up on the local street, park and harbor. We take great pride in contributing to the betterment of Maui.
At present, our condo association fees and assessments total over $2400/month. This does not include utilities, insurance, and steep property taxes. The buildings are old and assessments are continuously increasing to address maintenance needs and shoreline erosion issues. It is hard to imagine that local residents would want or could afford to purchase or rent units in our condo association. At present there have been 9-10 units on the market for over a year. Only 1 unit has sold and it went for half of the value we had a year and half ago. Even though our property taxes are still sky high.
In short, the goal of Bill 9, to phase out all STR’s in “apartment zoned” properties will not lead to affordable housing or solve Maui’s housing shortage. Other solutions should be pursued. We all know housing has been needed for a long time but this isn't the solution. Many workers involved with STR's are at risk here. It is unfair to make them suffer to help others. We need to do better.
Mahalo for your consideration.
TO: Maui HLU Committee
FROM: Doug Mitchell, Maui Kamaole property owner
I am opposed to the proposed change to exclude Minatoya List properties from being used as short-term rentals. I believe doing so would cause a good deal of damage to the local economy. Our rental property brings in thousands of dollars each year to Maui County and the state of Hawaii in property taxes, TA taxes and GE taxes as well as Maui County taxes and state income taxes. In addition to that we help provide income to several local residents. We have a housekeeper who is a single mother supporting her family.We hire locals for a variety of maintenance issues in order to keep our property safe and in prime condition and we help support various businesses by using their services as needed. Our clients also support many local businesses.
Please say no to to these proposed changes.
Thank you for your consideration.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
My name is Joseph Goldberg, with my we are the owners of a 1br unit at the Papakea Resort in Maui.
I oppose Bill 9 in as drafted and propose that the Council amend Bill 9 to exclude Papakea Oceanfront Resort which the County has historically identified as having A2-H2 zoning.
Background on Papakea:
• Papakea was initially marketed and sold as a legal vacation rental property before any zoning restrictions limited transient vacation rentals in apartment zoned properties.
• Papakea owners have been operating legal vacation rentals for almost fifty years.
• Papakea has never been workforce housing, so Papakea is not an example of a property that converted from workforce housing to transient vacation rental use.
• Most units at Papakea are under 600 square feet and the property has limited parking.
• Papakea is not in a residential neighborhood and is located alongside a long stretch of hotel-zoned properties and directly adjacent to multiple commercially-zoned properties.
• Unlike apartment buildings designed for long-term residential use, Papakea has a front desk, an activity concierge, shared activity space, and numerous other common resort amenities.
• Owners purchased condos at Papakea with the reasonable expectation that short-term rentals were legal based on ordinances as far back as 1989, and as recent as 2022.
• In reliance on the Maui County ordinances and published documents, Hawaii state law, and constitutional protections, owners invested in costly renovations, furnishings, and long-term financial commitments such as mortgages that make any phase out of short-term rental right offensive of each buyer’s investment-backed expectations.
Papakea’s Contributions to the Community:
• Papakea’s resort operations provide full-time, benefited, employment for 35 local resident employees; some have worked at the property for over 17 years; some started in entry-level positions and worked into supervisory roles.
• Papakea supports a wide variety of local trade professionals including pest control, HVAC, painting, plumbing, electrical, general contracting, masonry, tile and flooring, fitness instructors, entertainers, and tree trimming.
• Papakea operation supports: 35 full time on-site staff, 161 housekeepers, 26 handyperson, 30 rental management companies , 30+ contractors.
• Papakea owner paid $16,902,298 in property taxes in the last 5 years.
Individual Owner Contributions to the Community:
• Many small businesses owned and operated by local residents from the Maui community rely on Papakea short-term rentals including housekeepers, handymen, on-island agents, and contractors. These service providers set their own rates, work hours, select their own clients, work conditions and standard operating procedures. Shutting down short-term rentals at Papakea means telling local entrepreneurs that worked hard to build a small business that they need to just go get a job somewhere else to make less money, have less flexibility, and be subject to oppressive corporate policies.
• Papakea STRs support the State of Hawaii and County of Maui through payment of property taxes (many at the short-term rental rate), Transient Accommodations Tax, General Excise Tax, and Maui County Transient Accommodations Tax.
• Papakea guests support many small businesses on the island including restaurants, food trucks, tour operators, activities, state parks, the national park, and shops.
• Papakea owners and guests regularly participate in community activities including volunteering at beach cleanups, Maui Humane Society, the hospital, and many other local organizations, and contribute to local philanthropic nd cultural efforts.
There is very high costs to maintain our 1br unit at the Papakea which include:
a. HOA: $1,503/mo. (includes seawall and exterior renovation assessment)
b. Facility use fee $25/day or $775/mo
c. Insurance: $1,250/yr
d. Property tax: $9,380/yr
e. Current major plumping project: about $80,000 (anticipating that our monthly payment for this plumbing update will be about $750/mo additional)
f. In total: our monthly holding cost (including mortgage and utilities) is: ~$5,500/mo. Unlikely to be affordable to a local person for a small 597sf, 1br unit.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Joseph Goldberg
Papakea Resort.
3543 Lower Honoapiilani Road,
Thank-you councilmembers, and members of the HLU Committee.
You will likely hear a lot of in-person testimony in support of this phase-out. You will likely hear something to the effect of " STR’s take housing stock away from local people", as this has been the explicit instruction provided by Lahaina Strong to their supporters.
This is a lie. 6 months after the fire, Civil Beat published a story about those displaced by the fire, but refused to move to larger accommodations with more practical amenities (basics, like a fridge and a stove).
___________________________
From the article: "...as difficult as it has been for FEMA to secure 1,495 units, including enough that accept pets and meet Americans with Disabilities Act standards, it is proving to be equally challenging to get survivors to move into the more stable and comfortable housing.
Many households are turning down the units they are offered because of the location.
“We stood firm and said we really needed to stay in Lahaina,” said Cynthia Shibao.
Their kids attend Lahaina schools, her husband coaches wrestling in Lahaina, both adults are in the process of replacing their lost jobs and they share an “unreliable van” with 109,000 miles.
“It’s really more than logistics and geography, it’s the community,” she said. “You take the people out and you don’t have Lahaina.”
Shibao said her family was willing to live in a two-bedroom or even a one-bedroom unit if it meant they could stay in West Maui. But she said she was told that under the U.S. Department of Housing and Urban Development rules governing federal housing that they had to have a three-bedroom unit because their school-age children were of different genders. That rule is spelled out on HUD’s website as well.
So far only 219 of the 1,196 eligible households now live in direct-lease properties, despite many units being available for weeks. That includes a remodeled two-bedroom condo in Kihei with an ocean view that has been sitting empty for more than a month.
The direct-lease units are furnished, complete with kitchenware and bedding, and are free to the survivors, with the rent and utilities paid directly by FEMA. There are no financial background checks.
___________________________
Also from the article:
"To entice owners of vacation rentals to rent long-term to survivors, Maui County passed a bill to exempt their property taxes for a year to 18 months.
Figuring it was a win-win, remote worker Kristina Paras put her two-bedroom condo in Kihei into the direct-lease program and will relocate to the mainland for up to two years so a survivor can stay in her place. With the revenue more than covering her expenses, she said she can afford to do so.
The process included her replacing a queen bed with two singles, making minor repairs and meeting other requirements. But so far, more than two weeks after it became available to be moved into, nobody has."
I personally know of 3 condos / condo owners in Wailea who offered their units for "up to 2 years" - these were $1.5M+ condos in Wailea, and they were ultimately pulled from the direct lease program because nobody wanted them.
If someone rejects free accommodations for up to 24 months, they lose the ability to say that an STR owner or an STR condo "is taking housing stock from local people".
In May of 2024, Civil Beat reported that there were 500 vacant units that FEMA was paying for.
If these condos were being rejected when they were being offered for free, then what makes anyone think they will be more desirable when they are $2500/month. $3500/month? $5000/month?
Minatoya STRs aren't taking housing stock from any local. Locals are rejecting THIS KIND of housing stock - and they rejected them after the fire, they rejected them in 2017 when they were 60% cheaper than today, and in 2012 when they were 70% cheaper than today, all they way back to the genesis of these condos when they were just $200k.
Council needs to look at this pattern and ask this question: If these people are saying that STRs take housing stock from local people, why did the local people not take them when they were offered for free - especially in a time of dire need? Why did local people not buy them when they were valued at a fraction of current values? Seems the supporters of this bill just want to make outrageous claims that have absolutely no real-world meaning. If Wailea "took housing stock from locals", why have they not bought these units as they've come up for sale? Why are they not buying them now at these steep discounts?
Maybe we need to admit that this push for "housing" is actually a way to push out tourists - tourists they openly admit are too cheap for their liking.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
We oppose Bill 9 as drafted and propose that the Council amend Bill 9 to exclude the Mahina Surf. Here is some background on this property for your consideration. The Mahina Surf has never been workforce housing. The Mahina Surf was initially marketed and sold as a legal vacation rental property before any zoning restrictions limited transient vacation rentals in apartment zoned properties. Owners at the Mahina Surf have been operating legal vacation rentals since 1969. Personally, we have been owners at this property since 1998. As members of our owners organization we provide full-time, benefited, employment for local resident employees; some have worked at the property for over 25 years. Addtionally the Mahina Surf supports a wide variety of local trade professionals including pest control, HVAC, painting, plumbing, electrical, general contracting, masonry, flooring, and tree trimming.
We thank the members of the committee for their service and for taking the time to read our testimony in opposition of Bill 9.
Unfair, lots of primises with no houses in the end. Seems people not working with tourists don't care aobout tourism but thats my pachek. These condo make lotta money for the couny fat budget so its like a trump tarif looks good on paper but going to cost me more money when hes off stage.
My name is Judd Holiday. We are property owners on Maui’s Westside in the Kapalua Ridge development and have been so for 12 years. Just the proposed legislation has caused us to already cut back on the hours we employ our maintenance and cleaning service. If this passes we will need to end all of our contracts that keep some very special people employed at well above what the hotels pay.
Do not be fooled by the stereotyping that owners of STR’s are off island millionaires. We are also residents who work hard to provide for our families and in doing so pay excellent wages to the folks who assist us. We also pay inordinate taxes on the income generated by our unit. Our unit and others in our complex were built as adjunct hotel rooms for the original Kapalua Bay Hotel. We even have hotel room numbers on our front doors. If someone is telling you these were built as workforce housing, they are lying to you. Our carrying costs on our unit are $5200.00 per month and that does not include the mortgage payment. Is the county going to magically lower the proprty taxes and insurance and maintenance fees $3000.00 per month so this becomes affordable even with out a mortgage? With a mortgage the carrying costs rise to 12,0000 per month.
Do not be fooled into thinking these STRs have been great investments that have made their owners rich. Monies would have been much better invested in off island investments that have generated greater returns. But we wanted to invest in the area we loved and wanted to be able to share our unit with other visiting Maui.
If this proposal passes, even if it’s pushed off five years, the message to tourists will be clear. You are not welcome except in hotels and zones.
Identify and address units that were actually built as long term rental housing. Stop issues short term rental licenses and renewals in residential areas.
Do not attack those of us that have been following the rules and paying our taxes in a misguided effort that will force us to lay off good hardworking neighbors.
To: Housing and Land Use Committee, Maui County Council
From: Kathy Fleming
Re: Bill 9
Committee Members.
Thank you for holding this public hearing, which has been a long time coming. Much harm has been done from its inception. But we are here now to talk about the future.
A solution is only a solution if it solves a problem. Maui's housing problem is a lack of affordability. Over a year ago, the mayor held up Bill 9 as a solution, without any study of whether it would work. Its proponents like it, because it gets rid of visitors to Maui. They probably realize it doesn't provide affordable housing. You are our decision-makers. You must support or oppose this legislation on the basis of whether or not it provides affordable housing and whether it is legal. Should you be able to answer those two questions affirmatively, you must still ensure that the cost to the government and to Maui's economy is not too high, that its benefits outweigh the disadvantages, before you can support it.
You will find that, should the Minatoya List condos lose their codified right to rent short-term, there will be very little increase in affordable, long term housing, either owned or rented. This is for two reasons: 1) Nothing in this bill can compel owners to rent long-term. They have many other options, and they are very unlikely to choose to convert to long-term, because to do so would put them in the red every month. 2) Their carrying costs are too great to offer rents that locals can afford. These are fixed carrying costs and can't be wished away. The HOA fees are enormous and increase every year. Special assessments must be levied to fix 50 year-old buildings. Insurance takes 25% or more of fees. Since the mayor's announcement, condo prices have fallen nearly 30%. But they are still out of reach for most locals, who wisely shy away from a big mortgage, when it's combined with unpredictable HOA fees.
Yes, there are locals who live in Minatoya condos, either as long-term renters or owners. If a unit has a paid-off mortgage, and the rent is high enough, it can cover the HOA fee, insurance and taxes. But these units are few and far between. My development used to be 75% owner occupied or long-term rental. That has now fallen to 25%, and many owners are trying to sell, as the HOA fees and special assessments have increased their costs, just as they are retiring on fixed incomes.
The Council has tried to circumvent the legality of stripping away 50 year-old, codified property rights by providing owners with a five year phase-in. This is not a guarantee of success in the courts. Owners will still be able to show decades of codified rights that began when their units were built. The County will not be able to show it is an "emergency," which might justify the taking of private property rights. It won't be an "emergency" six years after the fire, after Maui has finally gotten serious about building appropriate affordable homes for locals.
And finally, there is no way the Council, or this committee, can justify the massive loss of government revenue that would result from the loss of the Minatoya List condos, the same revenue that makes the building of affordable housing possible - the win/win system we have now, in which owners rent their units short term, and the government collects billions of tax dollars. And with those funds, develop reliable housing for our people.
Council and Committee Members, don't kick this can down the road. End it here. Bill 9 will never provide affordable housing, but it will bankrupt Maui's economy and her government. Even the UHERO study supports this conclusion, as conservative as it was.
Thank you for listening.
Kathy Fleming
Wailuku
My name is Jahya Costa, and I am a Native Hawaiian, born and raised in Hawaiʻi. I currently serve as a Program Operations Manager overseeing properties that are housing fire survivors through the FEMA long-term housing program. I have been in this industry nearly six years and have worked directly with property owners, contractors, tenants, and FEMA to help displaced families find safe housing.
I’m writing today in strong opposition to Bill 9, which would phase out short-term rentals in apartment-zoned areas across Maui County. I understand the desire to create more housing for local residents, and I support that goal. However, this bill, as written, will not achieve that outcome. In fact, it could create more harm than good.
Since the Lahaina fires, I’ve helped place families into many of these short-term rental units. Are they perfect? No. Families have told me they struggle with limited parking, no storage space, restrictions on pets, and layouts that are not ideal for long-term living. But right now, these units are the only available option for many displaced residents. If these properties are phased out without any real alternative in place, we risk displacing people again, this time because of policy decisions.
What is often misunderstood is that removing short-term rental use from apartment districts does not guarantee those units will become affordable long-term housing for local families. Many owners rely on the short-term rental income to cover their mortgage and may not be able to offer their unit as a traditional long-term rental. Without clear programs or financial incentives to help transition these properties, the most likely outcome is that many of these units will sit vacant, be sold to off-island buyers, or be removed from the rental market altogether. That is not a solution to the housing crisis.
This bill also threatens the livelihood of local workers who support the STR economy. I work alongside cleaners, landscapers, inspectors, and small business vendors, many of them Native Hawaiian or born and raised on Maui, who rely on the steady work that this industry provides. Eliminating that income source without offering another option will cause serious hardship for hundreds of working families.
As a Native Hawaiian, I deeply care about protecting our land and ensuring that local people can continue to live, work, and thrive here. I support solutions that are thoughtful, balanced, and community-informed. We do need affordable housing, but we also need stable jobs, temporary housing for survivors, and a realistic plan for how to move forward. This bill takes away critical resources without offering anything concrete in return.
Please do not move forward with Bill 9 as currently written. I ask you to work with community members and industry professionals to find a more sustainable path forward. Let’s create a strategy that protects our families, preserves economic opportunity, and provides truly viable housing for our people.
Mahalo for your time and for listening to our voices,
Jahya Costa
Aloha ~ as an owner of a short-term vacation rental on the island of Moloka’i , Maui County- I am asking that the Housing Land Use Bill 9 be voted down.
Wavecrest Resort on Moloka’i has owner occupied, long-term renters and short-term vacation renters on this property at any given time. It has never been an issue on who or why people choose to live/rent/stay at this resort. When we purchased our condo at Wavecrest, the deed specified it as a CONDOTEL which has the definition as follows:
A Condotel, short for “ condominium hotel” is a real estate investment where individuals purchase individual units within a hotel property”. These units are then typically rented out to guests. Condotels offer potential rental income as well as personal use of the unit, making them a hybrid model between traditional condominium living and hotel
Ownership.
We purchased our condo with this in mind. We have rented to short term renters and long term renters of the Moloka’i community.
Moloka’i is a different island, although it is Maui County. There is not a demand for one bedroom condos to be rented by Hawaiian families on this island.
Hawaiian families don’t purchase condos at Wavecrest. Many are one bedroom units with little square footage. There are HOA fees of $1000 per month, only One parking spot per condo and no storage which is not desirable for families.
Moloka’i’s economy - the grocery stores, retail shops, restaurants rely on guests, tourism and people coming to visit this special island.
I am asking that you VOTE NO on the elimination of short term rentals especially on the island of Moloka’i
I truly believe that the Hawaiian economy thrives from the income made of short term rental properties.
The taxes paid on such income properties is beneficial to the State of Hawaii.
Affordable housing is a national problem not just for the State of Hawaii.
Rental properties are necessary to benefit the economy and to give renters options for housing when they are not attainable for purchase.
Please VOTE NO to eliminate short term rental properties.
Aloha ~ as an owner of a short-term vacation rental on the island of Moloka’i , Maui County- I am asking that the Housing Land Use Bill 9 be voted down.
Wavecrest Resort on Moloka’i has owner occupied, long-term renters and short-term vacation renters on this property at any given time. It has never been an issue on who or why people choose to live/rent/stay at this resort. When we purchased our condo at Wavecrest, the deed specified it as a CONDOTEL which has the definition as follows:
A Condotel, short for “ condominium hotel” is a real estate investment where individuals purchase individual units within a hotel property”. These units are then typically rented out to guests. Condotels offer potential rental income as well as personal use of the unit, making them a hybrid model between traditional condominium living and hotel
Ownership.
We purchased our condo with this in mind. We have rented to short term renters and long term renters of the Moloka’i community.
Moloka’i is a different island, although it is Maui County. There is not a demand for one bedroom condos to be rented by Hawaiian families on this island.
Hawaiian families don’t purchase condos at Wavecrest. Many are one bedroom units with little square footage. There are HOA fees of $1000 per month, only One parking spot per condo and no storage which is not desirable for families.
Moloka’i’s economy - the grocery stores, retail shops, restaurants rely on guests, tourism and people coming to visit this special island.
I am asking that you VOTE NO on the elimination of short term rentals especially on the island of Moloka’i
I truly believe that the Hawaiian economy thrives from the income made of short term rental properties.
The taxes paid on such income properties is beneficial to the State of Hawaii.
Affordable housing is a national problem not just for the State of Hawaii.
Rental properties are necessary to benefit the economy and to give renters options for housing when they are not attainable for purchase.
Please VOTE NO to eliminate short term rental properties.
This is wrong and will hurt Maui! Besides being a betrayal to homeowners and the terms in which the properties were purchased, it’s not how to solve a housing issue. There is no way anyone can afford the outrageous HOA fees, on top of rent or mortgage. Plus so many people are employed due to visitors like laundry, grounds keepers, handymen, plumbers, contractors that keep the property beautiful. Then the grocery stores, restaurants, car rentals etc. Plus all the tax revenue! Locals need jobs. Agriculture is no longer the predominate industry. And families need places bigger than a hotel room to stay. Short term rentals are a plus to Maui all around. So build more family type of affordable housing like you’re already doing. This is simply not the right solution and will be a scorn to beautiful Maui for years to come.
As a long time voting resident of Maui, I strongly oppose Bill #9. After paying County taxes as a short term rental property, it is not fair to now not allow the use for which people having been paying. The bill will not produce more usable housing, it will only result in less jobs, less revenue, and severe impact on viable condo complexes. This bill bill destroy south Maui. Converting apartment zoning to hotel is not viable in three years.
The housing crisis on Maui is not unique. This is happening all over the US. In small towns everywhere from MA to MN to CA. However the leaders in these communities are actually doing things to solve the problem, such as building new houses and apartment complexes and it's actually starting to improve the situation. It's time to move forward. Maui is suffering as people don't have work, tourism is down, tax revenue is down, and no one wants to visit. It's simple. The leaders need to announce new plans for building on the many of available acres of land and announce to all media outlets nationally and worldwide that Maui is open and needs people back. Since the fires we've donated time and money, and we've had a fire victim live in our unit. Stop punishing owners, and treat us like human beings who are doing everything to help as well.
Rid the island of all out of state short term rental owners. If you are afraid of the lost revenue, legalize Hawaiian State lottery, my state brings in over $1 billion dollars a year. Legalize recreational marijuana and the taxes alone bring in $450 million.
Quit relying solely on vacationers for your revenue.
As a Maui property owner for more than 25 years, I strongly oppose the STR ban. The damage to the local economy will be enormous. Most of the people, if not all, who maintain my property will lose their jobs and become reliant on county, state and federal money to survive. With the loss of STR tax income, it will be very hard for you to meet those financial needs. Please consider the Lahaina land trust report model for Maui. It looks at successful solutions in places like Aspen Colorado which deal with unaffordable housing issues that are even worse than Maui’s. Mahalo
Maui County Council June 5, 2025
200 S. High Street
Wailuku, HI 96793
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
As an owner of Papakea Resort, I respectfully urge you to reconsider the proposed phase-out of transient vacation rentals (TVRs) in apartment-zoned districts, particularly as it pertains to properties like ours that have long been legally recognized for such use.
Background and Legal Precedent
Papakea Resort was developed in 1977 and marketed as a legal vacation rental property. It has operated under the legal framework established by Maui County Ordinance 1797 in 1989, which allowed properties like ours—constructed before that date—to continue as lawful short-term rentals. This status was further affirmed by the Minatoya legal opinion.
Community Contributions
Papakea is a vital part of the local economy and community:
Employment: We provide full-time, benefited employment to many local residents
Local Services: Our operations support a wide range of local trades and small businesses, including housekeeping, maintenance, and property management services.
Tax Contributions: We contribute significantly to state and county revenues through property taxes, Transient Accommodations Tax, and General Excise Tax.
Economic Impact
The proposed phase-out could have significant economic repercussions. A study by the University of Hawaiʻi Economic Research Organization estimates that eliminating TVRs in apartment-zoned districts could reduce visitor spending by nearly $900 million annually and result in job and income losses, declining property values, and a potential $60 million drop in county property tax revenues by 2029 and and additional annual loss of $15 million in General Excise Tax (GET) and Transient Accommodations Tax (TAT) revenues.. mauicounty.us+2hawaii.edu+2mauinews.com+2
Conclusion
Papakea Resort is a longstanding, legally recognized part of Maui's tourism infrastructure and community fabric. We urge the Council to consider the legal precedents, economic contributions, and community ties that properties like ours represent and to allow short-term rentals to continue at Papakea Resort..
Thank you for your consideration.
Sincerely,
Kathy Wilmovsky
3543 Lower Honoapiilani Rd. #A201
Dear Chair, Vice Chair, and Committee Members,
My wife and I own a short-term rental property in Maui County, Kihei. As a property owner and taxpayer, I would like to express my concern and opposition to the proposed legislation to phase out more than 7,000 vacation rentals.
I would like to point out the significant benefits which short-term rentals provide to Maui.
1. Positive Economic Impact:
o Short-term vacation rentals contribute to a city or county’s economy in various ways.
o They provide additional income through tax revenues.
o The market for short-term vacation rentals is projected to grow significantly, reflecting their robust presence in the market.
o Visitors staying in these rentals spend money on local amenities like restaurants, bars, and stores further boosting the economy.
2. Growth of Experiences:
o Travelers today prioritize experiences over material possessions.
o Short-term rentals allow guests to have real, local experiences.
o Staying in unique places provides a more authentic travel experience.
3. Increased Tourism Activity:
o Short-term vacation rentals foster cultural exchange between travelers and locals.
o Visitors engage with locals, receiving personalized recommendations and insights into the local way of life.
4. Job Creation and Business Support:
The demand for short-term rentals generates job opportunities.
o Local entrepreneurs benefit from businesses like cleaning services, property management, and local tours.
It’s strongly believed that if Maui does not have the short-term rental option most of these travelers will not necessarily stay at hotels but will move on to locations outside of Maui that give them their preferred options. Therefore, Maui could stand to lose significant tax revenue, local business growth, and jobs. Let’s work together to find alternative solutions for the housing issues, i.e. solutions that do not create other issues in terms of loss of jobs and tax revenue.
Thank you,
Thad Evans
This destructive bill must die a natural death. Now. Not in five years.
Council Members, Please understand that we have been living with the adverse effects of the mayor's thoughtless, self-serving disaster of a bill for over a year. Our homegrown evil genius decided to get the campers off the beach by promising them ocean-front condos. Not only did his publicity stunt clear the beach, it also pleased the hotel lobby that keeps him fed. It also depressed the condo market so maybe, just maybe, locals could buy Minatoya List condos. Finally, it depressed tourism, so that local businesses and government revenue have suffered, along with STR owners watching their occupancy rates fall.
Lahaina Strong, a lobbying organization supported by dark money (BigHotel/Ing/Our Hawaii) found enough malcontents and sovereign supporters online to launch a massive anti-tourism campaign, which was also embraced by our mayor and governor. Anyone who makes their living from Maui's visitor industry saw this as a disaster. The cleaners, handymen, and property owners who depend on STRs for their living watched their income melt away. STR owners anxiously checked their savings accounts to see how many months of no or little income they could endure with their high carrying costs. And the condo market did fall in value - over 30% by now - with properties taking over a year to sell (or never sell).
The Planning Commission hearings began, and the Lahaina Strong attack dogs came after STR owners, calling us colonizers and slave owners, for the crime of having worked hard all our lives to afford to invest in a property, so that we would have retirement income. Maui went from having friendly, welcoming vibes to violent, foreboding vibes: people followed and taunted, cars damaged and threats of violence against people. Despite all evidence to the contrary, every Planning Commission supported the mayor's bill. As political appointees, they bought Lahaina Strong's argument that because the owners are "extractors," they should forfeit their property, profits, rights, and simply rent to locals for below their cost. And if they don't do that, they should just walk away from their investments because, you know, before the Great Mehele, it belonged to Hawaiians anyway. So just "give it back."
All that ugliness has spilled into the public airwaves, and for months now, visitors have been uneasy about vacationing here, Will they be welcome? Will someone yell at them? For the most part, they have been welcomed, because so many of us depend on them for our livelihood, so of course we show our appreciation.
And all along, it was obvious to anyone with a calculator that Minatoya List condos can never be affordable housing. The carrying costs are just too great, and the age of the buildings and their plumbing/roofing/electrical/painting projects means unplanned special assessments, which could mean foreclosure to someone barely making their mortgage. A minority of the units are occupied by owners or their long-term tenants because the mortgage was paid off years ago, but the number of these is ever decreasing as the HOA fees climb, and price out owners and long-term landlords. These aging beauty queens truly need STR income to bankroll maintenance.
When the mayor brought his bill before the Council (and then immediately left to avoid having to listen to public testimony), we begged the committee to vote it down immediately. But it was an election year, and there was a process, and so this very harmful bill has festered like an open sore for months. The answer is not to extend the torture for another five years. The question is when and where will locals find affordable housing. The Council has made great strides this year and many projects have been launched to build houses, ADUs, and apartments that will meet local needs. STRs are valuable to Maui because they give so many local people excellent income. They bring people to the island that then support local businesses and restaurants. And finally, STR's pay the taxes that support our government and pay for affordable housing to be built.
As many other commenters have written, Bill 9 helps only one entity, and that is BigHotel, which pays lobbyists to scream that STRs are owned by off-islanders and "foreigners," i.e. people from the Mainland. Very ironic that ALL hotel owners live off-island and take their profits off-island.
So Council Members, you are not supporting locals by voting for this bill. You are voting for hotels not to have competition and that will certainly be pointed out to voters in the next election cycle. These letters of opposition are not just written by STR owners; they are written by the people who make their living from STRs, either by running a small business or performing a service. These are people who would have to move off island if Bill 9 passes.
Please end the hate and animosity voiced by the paid lobbyists. Those of us who testified in 2023 still remember the Council Members who emblazoned their Council space with Lahaina Strong banners and clothing. it was not appropriate to flagrantly decorate election materials with lobbyist marketing. Council members must always do what is best for Maui as a whole, for her people, for her economy. Vote no against racist indignation. It has run rampant too long.
Thank you for listening.
Kathy Fleming
Wailuku
Aloha Chair, Vice Chair, and Committee Members,
My name is Mary Pedretti. We own a short-term rental property in Maui County. We are writing today to express our concerns and strong opposition to the proposed legislation to phase out over 7000 vacation rentals, including the one that I have owned and legally operated for the past 30 years.
I am proud to have supported the Maui economy. I utilize a small Maui-based rental management company, Cleaners and maintenance people. We are proud that many of my family, friends, friends-of-friends, and others have visited Maui to vacation and spend their dollars here. Our vacation rental has brought much economic benefit to Maui over the past quarter century. Our visitors like the personal experience of an affordable, privately-owned vacation rental, rather than a big resorts. Those visitors and that economic activity will cease if STR’s like ours are phased-out.
Our local management company does a wonderful job, and employs local residents for cleaning, maintenance, repairs and office needs. They have already suffered a significant loss of business since Bissen announced his proposal to phase out STR’s early last year, and I fear for their future should STR’s be phased out. They haven't even fully re covered from the impact of covid and now they are faced with this loss of work if it gets phased out. We fear they will loss everything!
We contribute personally to our Maui community. We financially support local businesses and visitor attractions through memberships and donations to the Maui Ocean Center, Pacific Whale Foundation, Ma'alaea Village Association (MVA) and in other needed areas including helping in several places after the fires. We spent countless volunteer hours trying to get a sub-station in Ma'alaea, helping local PD, cleaning up our area including numerous engagements with community leaders. Our visits to Maui are always filled with volunteer activities. On our morning walks We pick up litter pick-up on the local street, park and harbor. We take great pride in contributing to the betterment of Maui.
At present, our condo association fees and assessments total over $2400/month. This does not include utilities, insurance, and steep property taxes. The buildings are old and assessments are continuously increasing to address maintenance needs and shoreline erosion issues. It is hard to imagine that local residents would want or could afford to purchase or rent units in our condo association. At present there have been 9-10 units on the market for over a year. Only 1 unit has sold and it went for half of the value we had a year and half ago. Even though our property taxes are still sky high.
In short, the goal of Bill 9, to phase out all STR’s in “apartment zoned” properties will not lead to affordable housing or solve Maui’s housing shortage. Other solutions should be pursued. We all know housing has been needed for a long time but this isn't the solution. Many workers involved with STR's are at risk here. It is unfair to make them suffer to help others. We need to do better.
Mahalo for your consideration.
I support Bill 9!! Phase out STR’s
TO: Maui HLU Committee
FROM: Doug Mitchell, Maui Kamaole property owner
I am opposed to the proposed change to exclude Minatoya List properties from being used as short-term rentals. I believe doing so would cause a good deal of damage to the local economy. Our rental property brings in thousands of dollars each year to Maui County and the state of Hawaii in property taxes, TA taxes and GE taxes as well as Maui County taxes and state income taxes. In addition to that we help provide income to several local residents. We have a housekeeper who is a single mother supporting her family.We hire locals for a variety of maintenance issues in order to keep our property safe and in prime condition and we help support various businesses by using their services as needed. Our clients also support many local businesses.
Please say no to to these proposed changes.
Thank you for your consideration.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
My name is Joseph Goldberg, with my we are the owners of a 1br unit at the Papakea Resort in Maui.
I oppose Bill 9 in as drafted and propose that the Council amend Bill 9 to exclude Papakea Oceanfront Resort which the County has historically identified as having A2-H2 zoning.
Background on Papakea:
• Papakea was initially marketed and sold as a legal vacation rental property before any zoning restrictions limited transient vacation rentals in apartment zoned properties.
• Papakea owners have been operating legal vacation rentals for almost fifty years.
• Papakea has never been workforce housing, so Papakea is not an example of a property that converted from workforce housing to transient vacation rental use.
• Most units at Papakea are under 600 square feet and the property has limited parking.
• Papakea is not in a residential neighborhood and is located alongside a long stretch of hotel-zoned properties and directly adjacent to multiple commercially-zoned properties.
• Unlike apartment buildings designed for long-term residential use, Papakea has a front desk, an activity concierge, shared activity space, and numerous other common resort amenities.
• Owners purchased condos at Papakea with the reasonable expectation that short-term rentals were legal based on ordinances as far back as 1989, and as recent as 2022.
• In reliance on the Maui County ordinances and published documents, Hawaii state law, and constitutional protections, owners invested in costly renovations, furnishings, and long-term financial commitments such as mortgages that make any phase out of short-term rental right offensive of each buyer’s investment-backed expectations.
Papakea’s Contributions to the Community:
• Papakea’s resort operations provide full-time, benefited, employment for 35 local resident employees; some have worked at the property for over 17 years; some started in entry-level positions and worked into supervisory roles.
• Papakea supports a wide variety of local trade professionals including pest control, HVAC, painting, plumbing, electrical, general contracting, masonry, tile and flooring, fitness instructors, entertainers, and tree trimming.
• Papakea operation supports: 35 full time on-site staff, 161 housekeepers, 26 handyperson, 30 rental management companies , 30+ contractors.
• Papakea owner paid $16,902,298 in property taxes in the last 5 years.
Individual Owner Contributions to the Community:
• Many small businesses owned and operated by local residents from the Maui community rely on Papakea short-term rentals including housekeepers, handymen, on-island agents, and contractors. These service providers set their own rates, work hours, select their own clients, work conditions and standard operating procedures. Shutting down short-term rentals at Papakea means telling local entrepreneurs that worked hard to build a small business that they need to just go get a job somewhere else to make less money, have less flexibility, and be subject to oppressive corporate policies.
• Papakea STRs support the State of Hawaii and County of Maui through payment of property taxes (many at the short-term rental rate), Transient Accommodations Tax, General Excise Tax, and Maui County Transient Accommodations Tax.
• Papakea guests support many small businesses on the island including restaurants, food trucks, tour operators, activities, state parks, the national park, and shops.
• Papakea owners and guests regularly participate in community activities including volunteering at beach cleanups, Maui Humane Society, the hospital, and many other local organizations, and contribute to local philanthropic nd cultural efforts.
There is very high costs to maintain our 1br unit at the Papakea which include:
a. HOA: $1,503/mo. (includes seawall and exterior renovation assessment)
b. Facility use fee $25/day or $775/mo
c. Insurance: $1,250/yr
d. Property tax: $9,380/yr
e. Current major plumping project: about $80,000 (anticipating that our monthly payment for this plumbing update will be about $750/mo additional)
f. In total: our monthly holding cost (including mortgage and utilities) is: ~$5,500/mo. Unlikely to be affordable to a local person for a small 597sf, 1br unit.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Joseph Goldberg
Papakea Resort.
3543 Lower Honoapiilani Road,
Thank-you councilmembers, and members of the HLU Committee.
You will likely hear a lot of in-person testimony in support of this phase-out. You will likely hear something to the effect of " STR’s take housing stock away from local people", as this has been the explicit instruction provided by Lahaina Strong to their supporters.
This is a lie. 6 months after the fire, Civil Beat published a story about those displaced by the fire, but refused to move to larger accommodations with more practical amenities (basics, like a fridge and a stove).
___________________________
From the article: "...as difficult as it has been for FEMA to secure 1,495 units, including enough that accept pets and meet Americans with Disabilities Act standards, it is proving to be equally challenging to get survivors to move into the more stable and comfortable housing.
Many households are turning down the units they are offered because of the location.
“We stood firm and said we really needed to stay in Lahaina,” said Cynthia Shibao.
Their kids attend Lahaina schools, her husband coaches wrestling in Lahaina, both adults are in the process of replacing their lost jobs and they share an “unreliable van” with 109,000 miles.
“It’s really more than logistics and geography, it’s the community,” she said. “You take the people out and you don’t have Lahaina.”
Shibao said her family was willing to live in a two-bedroom or even a one-bedroom unit if it meant they could stay in West Maui. But she said she was told that under the U.S. Department of Housing and Urban Development rules governing federal housing that they had to have a three-bedroom unit because their school-age children were of different genders. That rule is spelled out on HUD’s website as well.
So far only 219 of the 1,196 eligible households now live in direct-lease properties, despite many units being available for weeks. That includes a remodeled two-bedroom condo in Kihei with an ocean view that has been sitting empty for more than a month.
The direct-lease units are furnished, complete with kitchenware and bedding, and are free to the survivors, with the rent and utilities paid directly by FEMA. There are no financial background checks.
___________________________
Also from the article:
"To entice owners of vacation rentals to rent long-term to survivors, Maui County passed a bill to exempt their property taxes for a year to 18 months.
Figuring it was a win-win, remote worker Kristina Paras put her two-bedroom condo in Kihei into the direct-lease program and will relocate to the mainland for up to two years so a survivor can stay in her place. With the revenue more than covering her expenses, she said she can afford to do so.
The process included her replacing a queen bed with two singles, making minor repairs and meeting other requirements. But so far, more than two weeks after it became available to be moved into, nobody has."
I personally know of 3 condos / condo owners in Wailea who offered their units for "up to 2 years" - these were $1.5M+ condos in Wailea, and they were ultimately pulled from the direct lease program because nobody wanted them.
If someone rejects free accommodations for up to 24 months, they lose the ability to say that an STR owner or an STR condo "is taking housing stock from local people".
In May of 2024, Civil Beat reported that there were 500 vacant units that FEMA was paying for.
If these condos were being rejected when they were being offered for free, then what makes anyone think they will be more desirable when they are $2500/month. $3500/month? $5000/month?
Minatoya STRs aren't taking housing stock from any local. Locals are rejecting THIS KIND of housing stock - and they rejected them after the fire, they rejected them in 2017 when they were 60% cheaper than today, and in 2012 when they were 70% cheaper than today, all they way back to the genesis of these condos when they were just $200k.
Council needs to look at this pattern and ask this question: If these people are saying that STRs take housing stock from local people, why did the local people not take them when they were offered for free - especially in a time of dire need? Why did local people not buy them when they were valued at a fraction of current values? Seems the supporters of this bill just want to make outrageous claims that have absolutely no real-world meaning. If Wailea "took housing stock from locals", why have they not bought these units as they've come up for sale? Why are they not buying them now at these steep discounts?
Maybe we need to admit that this push for "housing" is actually a way to push out tourists - tourists they openly admit are too cheap for their liking.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
We oppose Bill 9 as drafted and propose that the Council amend Bill 9 to exclude the Mahina Surf. Here is some background on this property for your consideration. The Mahina Surf has never been workforce housing. The Mahina Surf was initially marketed and sold as a legal vacation rental property before any zoning restrictions limited transient vacation rentals in apartment zoned properties. Owners at the Mahina Surf have been operating legal vacation rentals since 1969. Personally, we have been owners at this property since 1998. As members of our owners organization we provide full-time, benefited, employment for local resident employees; some have worked at the property for over 25 years. Addtionally the Mahina Surf supports a wide variety of local trade professionals including pest control, HVAC, painting, plumbing, electrical, general contracting, masonry, flooring, and tree trimming.
We thank the members of the committee for their service and for taking the time to read our testimony in opposition of Bill 9.
Sincerely,
Jesse and Donna Todd - Mahina Surf 214
Unfair, lots of primises with no houses in the end. Seems people not working with tourists don't care aobout tourism but thats my pachek. These condo make lotta money for the couny fat budget so its like a trump tarif looks good on paper but going to cost me more money when hes off stage.
My name is Judd Holiday. We are property owners on Maui’s Westside in the Kapalua Ridge development and have been so for 12 years. Just the proposed legislation has caused us to already cut back on the hours we employ our maintenance and cleaning service. If this passes we will need to end all of our contracts that keep some very special people employed at well above what the hotels pay.
Do not be fooled by the stereotyping that owners of STR’s are off island millionaires. We are also residents who work hard to provide for our families and in doing so pay excellent wages to the folks who assist us. We also pay inordinate taxes on the income generated by our unit. Our unit and others in our complex were built as adjunct hotel rooms for the original Kapalua Bay Hotel. We even have hotel room numbers on our front doors. If someone is telling you these were built as workforce housing, they are lying to you. Our carrying costs on our unit are $5200.00 per month and that does not include the mortgage payment. Is the county going to magically lower the proprty taxes and insurance and maintenance fees $3000.00 per month so this becomes affordable even with out a mortgage? With a mortgage the carrying costs rise to 12,0000 per month.
Do not be fooled into thinking these STRs have been great investments that have made their owners rich. Monies would have been much better invested in off island investments that have generated greater returns. But we wanted to invest in the area we loved and wanted to be able to share our unit with other visiting Maui.
If this proposal passes, even if it’s pushed off five years, the message to tourists will be clear. You are not welcome except in hotels and zones.
Identify and address units that were actually built as long term rental housing. Stop issues short term rental licenses and renewals in residential areas.
Do not attack those of us that have been following the rules and paying our taxes in a misguided effort that will force us to lay off good hardworking neighbors.
Thank you
To: Housing and Land Use Committee, Maui County Council
From: Kathy Fleming
Re: Bill 9
Committee Members.
Thank you for holding this public hearing, which has been a long time coming. Much harm has been done from its inception. But we are here now to talk about the future.
A solution is only a solution if it solves a problem. Maui's housing problem is a lack of affordability. Over a year ago, the mayor held up Bill 9 as a solution, without any study of whether it would work. Its proponents like it, because it gets rid of visitors to Maui. They probably realize it doesn't provide affordable housing. You are our decision-makers. You must support or oppose this legislation on the basis of whether or not it provides affordable housing and whether it is legal. Should you be able to answer those two questions affirmatively, you must still ensure that the cost to the government and to Maui's economy is not too high, that its benefits outweigh the disadvantages, before you can support it.
You will find that, should the Minatoya List condos lose their codified right to rent short-term, there will be very little increase in affordable, long term housing, either owned or rented. This is for two reasons: 1) Nothing in this bill can compel owners to rent long-term. They have many other options, and they are very unlikely to choose to convert to long-term, because to do so would put them in the red every month. 2) Their carrying costs are too great to offer rents that locals can afford. These are fixed carrying costs and can't be wished away. The HOA fees are enormous and increase every year. Special assessments must be levied to fix 50 year-old buildings. Insurance takes 25% or more of fees. Since the mayor's announcement, condo prices have fallen nearly 30%. But they are still out of reach for most locals, who wisely shy away from a big mortgage, when it's combined with unpredictable HOA fees.
Yes, there are locals who live in Minatoya condos, either as long-term renters or owners. If a unit has a paid-off mortgage, and the rent is high enough, it can cover the HOA fee, insurance and taxes. But these units are few and far between. My development used to be 75% owner occupied or long-term rental. That has now fallen to 25%, and many owners are trying to sell, as the HOA fees and special assessments have increased their costs, just as they are retiring on fixed incomes.
The Council has tried to circumvent the legality of stripping away 50 year-old, codified property rights by providing owners with a five year phase-in. This is not a guarantee of success in the courts. Owners will still be able to show decades of codified rights that began when their units were built. The County will not be able to show it is an "emergency," which might justify the taking of private property rights. It won't be an "emergency" six years after the fire, after Maui has finally gotten serious about building appropriate affordable homes for locals.
And finally, there is no way the Council, or this committee, can justify the massive loss of government revenue that would result from the loss of the Minatoya List condos, the same revenue that makes the building of affordable housing possible - the win/win system we have now, in which owners rent their units short term, and the government collects billions of tax dollars. And with those funds, develop reliable housing for our people.
Council and Committee Members, don't kick this can down the road. End it here. Bill 9 will never provide affordable housing, but it will bankrupt Maui's economy and her government. Even the UHERO study supports this conclusion, as conservative as it was.
Thank you for listening.
Kathy Fleming
Wailuku
Aloha Chair, Vice Chair, and Councilmembers,
My name is Jahya Costa, and I am a Native Hawaiian, born and raised in Hawaiʻi. I currently serve as a Program Operations Manager overseeing properties that are housing fire survivors through the FEMA long-term housing program. I have been in this industry nearly six years and have worked directly with property owners, contractors, tenants, and FEMA to help displaced families find safe housing.
I’m writing today in strong opposition to Bill 9, which would phase out short-term rentals in apartment-zoned areas across Maui County. I understand the desire to create more housing for local residents, and I support that goal. However, this bill, as written, will not achieve that outcome. In fact, it could create more harm than good.
Since the Lahaina fires, I’ve helped place families into many of these short-term rental units. Are they perfect? No. Families have told me they struggle with limited parking, no storage space, restrictions on pets, and layouts that are not ideal for long-term living. But right now, these units are the only available option for many displaced residents. If these properties are phased out without any real alternative in place, we risk displacing people again, this time because of policy decisions.
What is often misunderstood is that removing short-term rental use from apartment districts does not guarantee those units will become affordable long-term housing for local families. Many owners rely on the short-term rental income to cover their mortgage and may not be able to offer their unit as a traditional long-term rental. Without clear programs or financial incentives to help transition these properties, the most likely outcome is that many of these units will sit vacant, be sold to off-island buyers, or be removed from the rental market altogether. That is not a solution to the housing crisis.
This bill also threatens the livelihood of local workers who support the STR economy. I work alongside cleaners, landscapers, inspectors, and small business vendors, many of them Native Hawaiian or born and raised on Maui, who rely on the steady work that this industry provides. Eliminating that income source without offering another option will cause serious hardship for hundreds of working families.
As a Native Hawaiian, I deeply care about protecting our land and ensuring that local people can continue to live, work, and thrive here. I support solutions that are thoughtful, balanced, and community-informed. We do need affordable housing, but we also need stable jobs, temporary housing for survivors, and a realistic plan for how to move forward. This bill takes away critical resources without offering anything concrete in return.
Please do not move forward with Bill 9 as currently written. I ask you to work with community members and industry professionals to find a more sustainable path forward. Let’s create a strategy that protects our families, preserves economic opportunity, and provides truly viable housing for our people.
Mahalo for your time and for listening to our voices,
Jahya Costa
Aloha ~ as an owner of a short-term vacation rental on the island of Moloka’i , Maui County- I am asking that the Housing Land Use Bill 9 be voted down.
Wavecrest Resort on Moloka’i has owner occupied, long-term renters and short-term vacation renters on this property at any given time. It has never been an issue on who or why people choose to live/rent/stay at this resort. When we purchased our condo at Wavecrest, the deed specified it as a CONDOTEL which has the definition as follows:
A Condotel, short for “ condominium hotel” is a real estate investment where individuals purchase individual units within a hotel property”. These units are then typically rented out to guests. Condotels offer potential rental income as well as personal use of the unit, making them a hybrid model between traditional condominium living and hotel
Ownership.
We purchased our condo with this in mind. We have rented to short term renters and long term renters of the Moloka’i community.
Moloka’i is a different island, although it is Maui County. There is not a demand for one bedroom condos to be rented by Hawaiian families on this island.
Hawaiian families don’t purchase condos at Wavecrest. Many are one bedroom units with little square footage. There are HOA fees of $1000 per month, only One parking spot per condo and no storage which is not desirable for families.
Moloka’i’s economy - the grocery stores, retail shops, restaurants rely on guests, tourism and people coming to visit this special island.
I am asking that you VOTE NO on the elimination of short term rentals especially on the island of Moloka’i
I truly believe that the Hawaiian economy thrives from the income made of short term rental properties.
The taxes paid on such income properties is beneficial to the State of Hawaii.
Affordable housing is a national problem not just for the State of Hawaii.
Rental properties are necessary to benefit the economy and to give renters options for housing when they are not attainable for purchase.
Please VOTE NO to eliminate short term rental properties.
KEEP SHORT TERM RENTAL PROPERTIES on MOLOKA’I
Mahalo,
Sheila Meyer
Wavecrest Resort
Aloha ~ as an owner of a short-term vacation rental on the island of Moloka’i , Maui County- I am asking that the Housing Land Use Bill 9 be voted down.
Wavecrest Resort on Moloka’i has owner occupied, long-term renters and short-term vacation renters on this property at any given time. It has never been an issue on who or why people choose to live/rent/stay at this resort. When we purchased our condo at Wavecrest, the deed specified it as a CONDOTEL which has the definition as follows:
A Condotel, short for “ condominium hotel” is a real estate investment where individuals purchase individual units within a hotel property”. These units are then typically rented out to guests. Condotels offer potential rental income as well as personal use of the unit, making them a hybrid model between traditional condominium living and hotel
Ownership.
We purchased our condo with this in mind. We have rented to short term renters and long term renters of the Moloka’i community.
Moloka’i is a different island, although it is Maui County. There is not a demand for one bedroom condos to be rented by Hawaiian families on this island.
Hawaiian families don’t purchase condos at Wavecrest. Many are one bedroom units with little square footage. There are HOA fees of $1000 per month, only One parking spot per condo and no storage which is not desirable for families.
Moloka’i’s economy - the grocery stores, retail shops, restaurants rely on guests, tourism and people coming to visit this special island.
I am asking that you VOTE NO on the elimination of short term rentals especially on the island of Moloka’i
I truly believe that the Hawaiian economy thrives from the income made of short term rental properties.
The taxes paid on such income properties is beneficial to the State of Hawaii.
Affordable housing is a national problem not just for the State of Hawaii.
Rental properties are necessary to benefit the economy and to give renters options for housing when they are not attainable for purchase.
Please VOTE NO to eliminate short term rental properties.
KEEP SHORT TERM RENTAL PROPERTIES on MOLOKA’I
Mahalo,
Sheila Meyer
Wavecrest Resort
This is wrong and will hurt Maui! Besides being a betrayal to homeowners and the terms in which the properties were purchased, it’s not how to solve a housing issue. There is no way anyone can afford the outrageous HOA fees, on top of rent or mortgage. Plus so many people are employed due to visitors like laundry, grounds keepers, handymen, plumbers, contractors that keep the property beautiful. Then the grocery stores, restaurants, car rentals etc. Plus all the tax revenue! Locals need jobs. Agriculture is no longer the predominate industry. And families need places bigger than a hotel room to stay. Short term rentals are a plus to Maui all around. So build more family type of affordable housing like you’re already doing. This is simply not the right solution and will be a scorn to beautiful Maui for years to come.