HLU-4 Bill 9 (2025) BILL 9 (2025), AMENDING CHAPTERS 19.12, 19.32, AND 19.37, MAUI COUNTY CODE, RELATING TO TRANSIENT VACATION RENTALS IN APARTMENT DISTRICTS (HLU-4)
My name is Stephanie Cleveland and I own a short-term rental property at Kanai a Nalu in Maui County. I am writing today to express my deep concern and strong opposition to the proposed legislation to phase out more than 7,000 vacation rentals. Thank you for your time.
I work hard to be a responsible and community-oriented owner. I have acted legally as a short-term rental for years and have generated a great deal of GET/TA/MCTA taxes to benefit Maui County. I took some time to consider the ways in which I have impacted the Maui Community over those years and want to share that with you. I like all the other short-term rental owners have poured lots of money into the community by hiring large and small local business, some of whom have become good friends and family. For me personally, those businesses include: Tree trimmers, plant nurseries, pool companies, solar companies, yard people, landscaping companies, handymen, carpenters, construction companies, air conditioning companies, laundromats, mechanics, plumbers, electricians, rescreeners, window washers, garbage/recycling companies, upholsterers, painters, moving companies, property managers and cleaning companies to name a few of the businesses I have employed over the years. Most of these are small businesses that rely on business like mine and all of them employ local people and rely on business like mine to make payroll.
In addition, I put money in local banks, use Spectrum services, shop for goods and appliances at Lowes, Home Depot and Costco which provide payroll for local people who work at those places, and I support local fruit and vegetable growers and artists. I am an integral part of the Maui community.
I keep my short-term rental beautiful, clean and up to date and it has provided many renters some peace which they have needed whether it be suffering from the death of a loved one, they are dealing with cancer or suffering from burnout. They thank me sincerely for that and in that way I am giving them an important experience and good impression that affects how they feel about Maui and giving them a reason to return with fond memories. I have had renters say they would not have come to Maui if there weren’t short-term rentals, which tells me I play an important part of successful Maui tourism and the small business, restaurants, tours, activities, etc my guests support during their stay.
Owning in my complex has not been easy. I have faced high HOAs, special assessments, beach erosion issues and massive increases in flood,hurricane and homeowner insurance after the fires. I have to pay these costs to keep my property safe. Income from my unit is necessary to cover those costs and at the same time supports local workers and businesses.
Doing away with legal, responsible short-term rentals is not the answer. We as owners are an invaluable part of the community and are doing our part in supporting the community at large and the tourism industry which is its most important industry and provides for the people. New housing needs to be built and that has been true for many, many years. Now with the cane fields gone it would seem like there is plenty of land to build on and by employing good financial responsibility and accountability a path could be made clear to do so. I appreciate your time and consideration. Stephanie Cleveland
My name is Kjell Vanghagen and I own a unit at Kaanapali Royal. If the proposed short term rental restriction takes effect for my unit Q102 I will have to sell and stop visiting Maui. Without the rental income I can not afford to keep my unit. Property taxes, condo assesments, electric and insurance totals $ 35550.00. I go to Maui 3 times a year and spend 3 to 4 months there, and I bearly brake even. I 2024 due to the Lahaina fire I lost $21000. I hope this will not affect my unit as I love Maui. Thanks Kjell Vanghagen
My name is Mike Proctor, and I own a short-term rental property in Maui County. I am writing today to express my deep concern and strong opposition to the proposed legislation to phase out more than 7,000 vacation rentals.
I've been visiting Maui for over 56 years, usually staying in short-term rentals and supporting local businesses. Short-term rental availability was essential for our ability to visit the island.
I’ve worked hard to be a responsible and community-oriented owner. I recommend local restaurants and tour guides in my welcome guide. I employ local service providers — cleaners, maintenance techs, and landscapers — many of whom have become like family over the years. My guests often leave Maui saying they felt more connected to the island because of the personal experience they had in my home.
I do believe without a vacation rental option you will see a major decrease in Tourism and all the associated revenue it generates to any local that is working. Almost everything on the island is tourism driven in some form.
Owning on Maui has not been easy. We’ve faced huge maintenance costs, special assessments, and massive increases in insurance after the fires, and exorbitant Property Taxes. These aren’t luxuries — they’re costs that ensure the property remains safe, functional, and appealing. STR income helps cover those costs while supporting local workers. Take away the short-term rentals and most locals will not be able to afford to live in any area on the island, since all business revenue will drop significantly.
I believe that the lawsuits arising from this situation will be very costly for both Maui and Hawaii. Owners have a right to protect the bundle of rights they acquired when they purchased the property.
This legislation feels rushed and one-sided. I urge the Council to work with owners like me to find a fair and balanced path forward — one that protects local jobs, supports the economy, and holds STR owners to high standards, instead of phasing us out completely.
Mahalo for your time and consideration
Mike Proctor
Kapalua Golf Villas
Mike.proctor@comcast.net
Hello, My husband and I purchased our unit at the Kapalua Ridge in 1988. We love Maui and have always considered ourselves members of the Maui community. We have welcomed short term renters into our home and encouraged them to patronize the local restaurants and business establishments that we also go to. We employ many local workers to maintain our property and have become friends over the 37 years. Our purchase was based on its designation as a resort property. It was never built to be be workforce housing.
Our property at Kapalua brings much income to Maui and supports many jobs for the residents. Passage of this legislation would end all that. Please do not include Kapalua in this program.
I oppose Bill 9 and its underlying proposal to convert all units in apartment districts to long-term rental use - especially those listed on the formerly exempt Minatoya list. Grand Champions (in which my husband and I are owners) in particular was never intended for long term rental use since its inception in 1989. The units and the property are not conducive to long term rental use. Owners of condos within this complex (like other complexes on the Minatoya list) were never intended for anything but short term occupancy and have been operated in this capacity since the complex first opened. If this bill is passed, not only will it hurt the state and county revenue collections by the loss of short term rental (STR) property taxes but all those local businesses which depend on the STR industry for their livelihoods. Most of these businesses are small, Maui-owned businesses that will need to lay off staff, reduce operations - if not go totally out of business. These STR properties also contribute to other local tourist businesses such as tours, lessons, restaurants, grocery stores that are not patronized by those island visitors that stay in the large resorts and hotels. And these large resorts and hotels as well as timeshare properties are almost entirely owned by mainland or global organizations that are seeking to maintain as much of the activities and food consumption within their own walls and pass their income to their off island headquarters. It is imperative that the STR business remains a viable part of the Maui community to ensure that tourist income and local jobs remain within the county and the state.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
I oppose Bill 9 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.
• The majority of 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.
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 and cultural efforts.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Kim Vernor
3543 Lower Honoapiilani Road, Apartment J203
My name is Megan Pearl and I’ve been a full-time resident of Maui for over 17 years. In 2012, we were fortunate to purchase a condo in a hotel-zoned complex using savings from a business we built right here on island in a completely different industry. It was a significant personal investment — not a corporate acquisition — rooted in our deep commitment to Maui.
I’m writing to express my strong opposition to the proposed legislation to phase out more than 7,000 short-term rental properties across Maui County.
I’ve worked hard to be a responsible and community-oriented owner. I support local restaurants and activity providers by featuring them in my welcome guide. I hire local cleaners, landscapers, and maintenance professionals — many of whom have become like family over the years. Guests often tell us that staying in our home gave them a more personal, meaningful connection to Maui — and many say they wouldn’t have visited at all if vacation rentals weren’t an option. That matters, not just to me, but to the dozens of small businesses they support during their stay.
There’s also a misconception that these properties were out of reach for local buyers. In truth, these condos were much more affordable in past decades, and mortgage rates were far more manageable than they are today. Local residents have always had the opportunity to purchase these units but may have chosen not to — for their own reasons. Today, there are still units on the market, both for sale and for rent. This didn’t become “unfair” overnight — it’s simply the result of decisions made over time, with open opportunities along the way.
Additionally, there’s confusion around HOA operations. For instance, our HOA fees were recently reduced by \$150 per month — not because someone “got on the board,” but because we worked with our insurance company to review upgrades made possible through responsibly managed HOA funds. Fee reductions like this come from long-term investment, planning, and collaboration — not activism or quick fixes. HOA board members must be elected by a majority of owners, and their responsibility is to uphold budgets for operations, insurance, and maintenance. They can’t simply vote to reduce fees without risking the property’s financial health.
What’s most frustrating is that this proposal is being presented as a solution to the housing crisis, when in reality, it’s not. There is no quick fix. The housing crisis on Maui is the result of decades of poor planning and execution by Maui County — including past councils, planning departments, and administrations. For years, they approved luxury residential enclaves, high-density apartment complexes, and only a limited number of single-family home communities. The current housing shortage didn’t happen overnight, and eliminating STRs in legal hotel-zoned properties will not solve it. This is a systemic issue born out of misguided development priorities, not vacation rental owners. Eliminating STR's will further deter tourism to Maui, which many individuals are cheering on, but there is no immediate alternative to sustain the local economy here. Agriculture based economy? Going back to the plantation days? But then again, even in plantation style living, the workers at least had a little bit of a yard and garden they were able to tend. Not something available with ccondo living.
This legislation feels impractical, imbalanced, and misguided. I urge you to work with long-time, community-invested owners like myself on a more thoughtful path forward — one that upholds high standards, protects local jobs, sustains economic stability, and addresses the root causes of the housing crisis rather than scapegoating STRs.
County Council Members, Housing and Land Use Committee Members, and Mayor,
I first moved to Hawaii in 1983. Though I now live Mainland, I do own a condo in Kihei that I rent when not visiting. I am a licensed real estate broker and watch the market carefully everywhere I go. I recognize that Maui has long had an affordable housing problem. I am absolutely and solidly in favor of responsible action to help alleviate the affordable housing issue -- but Bill 9 as it exists will do more harm than good for the residents of Maui.
When considering either UHERO's "best case" scenario or Paul Brewbaker's more severe 2022 analysis, the results of passing Bill 9 is clear: the impacts will be between massively disruptive and catastrophic. Simply proposing the bill has already had significant impact: values for Minatoya-listed apartment-zoned condos have *already fallen roughly 30%.* That drop in value has not been limited to apartment zones. I personally know others who own in hotel zones and their values have dropped almost as far. [Note that this will drop property valuations -- and resulting revenues -- across ALL related real estate markets, not just apartment zones.] That is already happening, and yet, unfortunately, that drop in values has not solved the housing issue.
The sweeping loss of inbound revenue is clear regardless of what analysis paper one reads. On the low end: $900 Million lost annually. Loss of annual tax revenue: $75 Million (Does this include the loss of values in *other* zoning areas impacted? The losses could be much higher). The loss of jobs and the population displacement this bill would have are equally massive.
Owning a condo in a resort area is expensive. My costs NOT including mortgage are about $2600/month -- not including any repairs (which are high on condos). At current value (which is down 33% since a year ago), a condo like mine may sell for $515,000. It's a 1/1. With 10% down and today's interest rates, mortgage is $3600/month. Add taxes and AOAO fees and insurance, the total is closer to $5200/month. That's with the current, 33% lower value of the property as it sits today. Add AOAO assessments and that's likely to be higher.
The larger point however is contained in the letter below which was from the Maui Vista AOAO board. My condo is in an apartment zone, but it was *never intended* as workforce housing. I do understand that some other complexes were in fact regular apartments and since transitioned into TVRs. I do not speak of those. I was very intentional to purchase a condo that was a resort from the beginning (see attached resort brochures and horizontal regimes). Our AOAO board sent a letter to the County and Mayor relating to this, but received no actionable steps in reply.
Above (and letter below) are my objections to Bill 9. However, what we need are SOLUTIONS. Here are some ideas I believe WILL work for establishing affordable housing on Maui without devastating the local economy:
• Deed restricted housing zones. Many other counties in other states use this and it is very effective in controlling costs. Summit County, Colorado is one I know well. It's not an instant solution, but it has very good sustainability without the negative impact on the larger real estate or tourist market (yes, Summit County is a tourist-driven economy).
• Housing grants toward rent or ownership. There are outstanding, hard-working people that just need a little bit of momentum and then they're rolling.
• Incentives to developers along with removal of development barriers could put houses on the ground quickly and solidly. Building is more sustainable than taking.
• A combination of any of the above would be a powerful boost to those who need it most.
• A careful delineation of what condo developments were always TVR-purposed vs. those which were transitioned from workforce (aka regular apartments) to TVR. Address this first.
• Re-evaluate the tax rates of TVRs vs. Hotel vs. other classes of use. Tax revenue is already going to take a huge hit with the crashing valuations, this may be the time to re-evaluate rates from the lowest-paying rungs of the ladder.
I want to see Maui succeed. I want to see industry and business flourish. An essential part of that is affordable housing. It's an issue all over the country, and especially in tourist-driven locations. There are steps toward solution, but I firmly believe that Bill 9 (as proposed) is not in the best interest of Maui's residents.
Respectfully,
Erik Stenbakken
owner #2107 Maui Vista, 2191 S. Kihei RD
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The letter below was sent in response to Mayor Bissen's comments relating to re-zoning. It is copied here in entirety (except attachments) because it contains relevant history and facts relating to the history and operation of Maui Vista.
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8 May 2025
Mayor Bissen,
Council Chair Alice Lee,
HLU Committee Chair Tasha Kama,
Council Members and Planning Department,
As the STR Task Force formed by the Maui Vista AOAO Board of Directors, we listened with interest to Mayor Bissen's comments of March 12 at the Kihei Community Center. In that presentation, invitation was made for complexes that "function more like hotels than homes" to seek rezoning or special use permits. Our complex has operated more like a hotel resort than homes since its founding. Here's why we believe we are an excellent candidate to pursue the Mayor's proposal:
Maui Vista's original horizontal regimes explicitly state that the purpose of the development was for "permanent or temporary residences." That is over 46 years of planned TVR use. (footnote 1)
Maui Vista's subsequent 1995 AOAO bylaw filing explicitly reaffirms this use as STR / TVR. (footnote 2)
Maui Vista was marketed and managed as: Aston at Maui Vista Tennis Resort. 1988-1996. Maui Vista was also managed by AA Oceanfront continuing front-desk check in services. (Aston is a hotel-like management company: AA Oceanfront is still operating in Kihei)
Our condo was professionally marketed as "Maui Vista A Vacation Condominium & Tennis Resort." Note this is marketing of the entire condominium as a vacation destination, not individual units advertised by individual owners. (scan of original color brochure attached)
Our current staffing, amenities, landscaping, high maintenance fees and structure are all in place to serve as a TVR destination. (budget and supporting documents available on request)
As a vacation destination, we want to seek clarification about what opportunities exist for rezoning or special use permit. Litigation is nobody's first choice and we would much rather pursue an equitable and mutually-beneficial outcome. Since this is a new invitation, we have questions:
Does the County have a clear, achievable pathway to rezoning?
What department will head up this process?
What are costs?
What is the timeline?
Is there a "Fast Track" process for condos like Maui Vista that have always been a resort community?
Are there specific criteria that if met, will give applicants assurance that a rezoning process will be successful?
Maui Vista wants to continue contributing to the vibrancy and success of both Kihei and Maui. We want to work with local government to come to solution. Finding answers to these questions will help us evaluate our next steps. So that we can plan appropriately for upcoming testimony, a response is kindly requested by May 1st, 2025.
Respectfully,
Tara Wells
Vice President, AOAO Maui Vista
Board Liaison to the STR Task Force, on behalf of
Maui Vista Board of Directors and STR Taskforce Committee
footnotes:
(1) October 1978 filing attached, P.11 quoted here: "PURPOSE OF BUILDINGS AND RESTRICTIONS AS TO USE: The proposed Declaration provides that all apartments shall at all times be used only as permanent or temporary residences…."
(2) November 1995 Restatement of Declaration of Horizontal Property Regime attached. P. 10 quoted here: #9. a. "Each apartment shall be used and occupied only as private dwellings by the owner thereof, his tenants, family, domestic servants and social guests. Subject to such limitation, the owner of each apartment shall have the absolute right to lease or rent same for long-term or transient purposes …."
[NOTE: attachments cannot be made on this comment form] However, attachments sent to Mayor & Council were of an early brochure marketing "Maui Vista Tennis Resort" and 1978 horizontal regimes as well as 1995 filing, each outlining the allowable "temporary residences" intent of the buildings. All AOAO documents are on public record.
My name is Shellyne Darst. We own a short-term rental property in Maui County. I am writing today to express my concern 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.
We are proud to have supported the Maui economy and live here over 6 months a year now. We use a small, locally owned, Maui-based rental management company. We are proud that many of our 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 resort hotel. 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 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. Most of them still have not recovered from Covid. I spoke with a couple of them recently. They were on the verge of losing everything and are just starting to get back on their feet. They fear this will cost them everything. It is unfair to make all these hard-working people suffer just to help others.
We need housing and have needed it for years. There must be a way to accomplice to help and not make other residents suffer.
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, the Ma'alaea Village Association (MVA). We spend countless volunteer hours on committees advocating for the needs of my Maui community. Currently trying to help get a substation for Maui PD in our area. Our visits to Maui are always filled with volunteer activities. We start our mornings with a litter pick-up on the local street, park and harbor area. In short, 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 residents would want or could afford to purchase or rent units in my condo association.
A little history in our area.
An Overview
In the early 1970s, Maalaea, Maui underwent significant zoning changes that shifted its focus from residential housing to resort and hotel development, leading to the construction of numerous condominium resorts along Hauoli Road
.
Here's why buildings on Hauoli Rd were likely shown as hotel/resorts in the 1970s:
• Zoning Changes: Maui County implemented zoning changes that favored tourism and resort development in Maalaea, paving the way for the construction of condo-resorts.
• Condominium Ownership: The concept of condominium ownership was being pioneered in Hawaii during this period, and Maalaea became a location where this type of development flourished.
• Tourism Boom: The 1970s saw a surge in tourism in Maui, and the development of resorts like those along Hauoli Rd aimed to cater to this growing industry.
• Infrastructure Development: Developers were required to contribute to infrastructure development, including water and wastewater systems, which further supported the growth of the resort industry.
In essence, the zoning changes in the 1970s, coupled with the rising popularity of condominium ownership and the burgeoning tourism industry, transformed Maalaea into a hub for resort development, thus resulting in the construction of what were often viewed and marketed as hotel/resort properties along Hauoli Road.
All but 2 properties chose to build the condos and lease or sale the land. We were all tasked with building our own wastewater treatment plant.
It is so unfair to now change this and least in this area as I do not know the history in the other communities. I agree we should not allow more STR’s to start at least not until the housing problem is under control.
Before 2018 we were Hotel/Resort (see below) then was changed TVR-STRH for tax base.
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.
Housing and Land Use Committee
County of Maui
200 South High Street
Wailuku, Hawaii 96793
Testimony Opposing The Phasing Out of Short-Term Rentals in Maui County Under Bill 9 Submitted by Christine A. Giles
Members of the Committee:
I want to express my opposition to the proposed draconian legislation which would phase out over 7,000 Short-Term Rental units on the Island. I am the owner of a Short Term Rental at Hale Kamaole, 2737 South Kihei Rd., Kihei.
Short-Term Rentals provide a significant contribution to the island economy by offering lower to mid-price options for an Island stay. Many visitors prefer these types of accommodations because they can host families and have kitchens which hotels do not.
In my case, the Short-Term Rental directly supports a management company, cleaning staff, and maintenance personnel, rug cleaning company, plumber and electrician. In order to provide a clean, attractive unit we buy everything from furniture (Mind’s Eye Furniture, Beach House Maui) to bedding (Macy’s, T. J. Maxx, Costco, Walmart) mattresses (Costco) rug cleaning (Jack’s and Top Notch Carpet Cleaning) lighting (Valley Isle Lighting) Ace Hardware in Kihei, just to name a few. We also have a bookkeeping service (Quickbooks Maui) to help with the County and State taxes. We also contribute clothes and furniture to Goodwill, Habitat for Humanity, Makawao Union Church and St John’s in Kula.
Changing the current Short-Term Rentals to Long Term Rentals would eliminate the need for many of the supporting businesses mentioned above. It would also have a very negative impact on the tax revenue for the County and the State.
One study (Kloninger) estimated that the Short-Term Rentals generated between 7,800 and 13,000 jobs on island. If we take the formula of one direct job supports up to four other jobs, we can see that adoption of the proposed ban would have a huge negative impact on the island. In another study done by Paul Brewbaker, adoption of the proposed legislation eliminating Short-Term Rentals would eliminate up to 14,000 jobs.
The University of Hawaii Economic Research Organization in the study commissioned by Maui County on this Bill found that: • Property tax revenues could fall by up to $60 million annually by 2029 due to both changes in tax class and decreasing valuations. • General Excise Tax (GET) and Transient Accommodations Tax (TAT) revenues are projected to fall by 10% and 8% respectively, totaling to an additional -$15M annually.
The sale price for STR’s has already dropped significantly, which will have a negative impact on property tax collection as predicted by the UHERO report.
Again, I am opposed to the proposed elimination of Short-Term Rentals as set out on the Minatoya List.
Thank You,
Christine Giles
Owner, Hale Kamaole #6-258
Kihei, HI 96753
Aloha Chair, Vice Chair, and Committee Members,
My name is Wendy Wong Thayer, and I was born and raised here on Maui. I have strong ties to Maui with a deep conviction to ensure that Maui remains no ka oi. Our family has, for the past 2 generations, been fortunate to have invested in Maui through the purchase of real property and condos in south and central Maui, much of which was for long-term residents and local business growth. The proposed legislation seeks to “revert all Apartment District properties to long-term residential use, remove the exception allowing Transient Vacation Rental (TVR) use in Apartment District structures built or approved before 1989, and fully discontinue TVR use in Apartment Districts”. While this proposal was introduced with the aim of addressing housing availability and affordability concerns, there are several reasons to oppose it. Proponents for the proposed Bill 9 disproportionately push the fact that there will be more inventory on island for local residents, without a commensurate acknowledgment of the huge impact this will have on Maui. Previous responses to concerns raised by this legislation, including that tourism will not suffer since displaced condo visitors will simply go to hotels and that loss of tax revenues can easily be fixed by raising property taxes on the other condos are, in my opinion, unrealistic. My testimony addresses key arguments against the legislation based on its potential socio-economic, financial, and logistical impacts.
Economic Impacts
Reduction in Tourism Revenue
Transient Vacation Rentals contribute significantly to local tourism economies by providing diverse and generally more affordable accommodations for visitors who otherwise would not be able to afford the rates offered by hotels and resorts on Maui. A quick check of rates at the Grand Wailea for June 5 – 8, 2025 showed the lowest available rate found by the search app KAYAK is $816-standard room, plus resort fees. Conversely, a check of rates at condos in south Maui for the same time frame showed rates ranging from the low $200s to $400s-1 bed/1 bath and 2 bed/2 bath. Eliminating TVRs in Apartment Districts would deter this segment of more budget-conscious tourists, resulting in decreased revenue for local businesses such as restaurants, shops, property management companies, cleaning services and attractions that rely heavily on tourist spending.
Loss of Income for Property Owners = Loss of Tax Revenue for the County
Many of these condo owners depend on income generated from TVRs to supplement their livelihoods and to maintain their properties, and they pay hefty taxes on this income and on their real property. Reverting properties to long-term residential use, affecting both income and tax bracket, will not benefit the owner nor the county in terms of revenues. This can also discourage investment by owners in maintaining or upgrading properties, ultimately affecting the aesthetic and structural quality of these Apartment-zoned areas.
Housing Market Considerations
Potential Oversupply of (logistically inadequate) Long-Term Rentals
While the legislation aims to increase the availability of long-term rental units, it could inadvertently create an oversupply in certain areas because of the ancillary expenses required to own or maintain a unit currently operating as a TVR coupled with the condos’ inability to meet a long-term resident’s needs in terms of available parking, storage space, and pet policies. There are monthly AOAO fees which include funding to maintain the communal property but to also allow for expected costly and significant repairs in the future for these aging condos. Emergency projects may require special assessments to the owners of a TVR-condo-turned-long-term residence. These are standard expenses of a TVR, and they would be in addition to mortgage payments or passed on to the tenant in the form of higher rental fees if converted to a long-term residence. This may result in vacancies, financial losses for owners and diminish incentives for property development or improvement.
Displacement of Current TVR Tenants
Many individuals, such as business travelers, academic researchers, and seasonal or Oahu- or Mainland-based workers, rely on TVRs due to their flexibility and affordability. Eliminating these options could disrupt their ability to find suitable accommodations, particularly in neighborhoods where traditional hotels are either unavailable or prohibitively expensive. This issue affects business budgets and will eventually have an economic impact on customers and growth.
Legal and Logistical Challenges
Complexity of Implementation
Reverting properties to long-term residential use and discontinuing TVR operations would require significant administrative oversight. This includes tracking compliance, implementing and enforcing new regulations, overhauling the statutes governing the condos and currently requiring owner-majority approval, and resolving disputes between stakeholders. The associated costs and resource demands may outweigh the intended benefits of the legislation.
Potential Legal Disputes
The removal of TVR exceptions for structures built or approved before 1989 may lead to legal challenges from property owners who see this as an infringement on their established rights. Prolonged legal battles could delay implementation and result in additional expenses for the city.
Community and Infrastructure Impacts
Loss of Community Diversity
TVRs often attract visitors from diverse cultural, professional, and social backgrounds, enriching the character and vibrancy of these Apartment-zoned neighborhoods. Removing these short-term rental options may reduce the dynamic interactions between residents and visitors, making neighborhoods less inclusive and culturally vibrant.
Impact on Local Hosts
Many STVRs are managed by local residents who act as hosts. These hosts often serve as ambassadors for their neighborhoods, providing visitors with unique and personalized experiences. The removal of STVRs would strip these individuals of opportunities for economic and social engagement.
Increased Pressure on Infrastructure
Reverting properties to long-term residential use may increase the density of permanent residents in Apartment Districts, placing additional strain on local infrastructure such as water, waste management, and transportation systems. TVRs, by contrast, often have fluctuating occupancy rates that allow for periods of reduced demand on these resources.
The proposed legislation to revert Apartment-zoned properties on the Minatoya list to long-term residential use and discontinue Transient Vacation Rental operations raises several concerns. From economic repercussions and housing market disruptions to legal challenges and community impacts, the legislation may create more problems than it resolves. This legislation is NOT a balanced approach that ensures equitable outcomes for all stakeholders. In light of these potential consequences, the proposed solution of 1- and 2-bedroom TVR condos, with their limited living space and infrastructure and significant monthly maintenance costs, as a good solution for local families in addressing housing concerns does not make sense.
Mahalo for the opportunity to present my point of view. I support the continued re-evaluation and easing of regulations and fees associated with new developments involving affordable housing as an important step towards addressing this long overdue problem for our Maui citizens. I also support stronger adherence to requiring development plans to include a percentage of affordable housing in perpetuity.
Mahalo!
Wendy Wong Thayer
Subject: Testimony Opposing Bill 9 – Vacation Rental Use in Apartment-Zoned Areas
Aloha Chair and Members of the Housing and Land Use Committee,
My name is Dave Sabey, and I am a homeowner and part-time resident of Maui. I am writing to express my opposition to Bill 9, which would eliminate legal Transient Vacation Rental (TVR) use in apartment-zoned areas.
Vacation rentals play a vital role in sustaining year-round employment for Maui residents. Housekeepers, landscapers, repair technicians, property managers, and many other service providers depend on these rentals for steady work. Additionally, the visitors who stay in these units support local restaurants, shops, and recreational businesses, generating broader economic activity that benefits the island as a whole.
As a homeowner, I employ Maui residents to help operate my vacation rental. I rely on local professionals for cleaning, maintenance, landscaping, and guest support—people who are hardworking, skilled, and essential to the upkeep and success of the property. The income from the vacation rental allows me to continue providing them with dependable work.
Vacation rentals not only provide direct employment but also contribute to Maui’s capacity to accommodate visitors. This additional lodging supports the tourism industry as a whole, which remains a central part of the island’s economy. The guests who stay in vacation rentals contribute to local spending across a wide range of small businesses and service providers, helping to sustain community-based economic activity.
TVRs are a significant and reliable source of income for many working families on Maui. Phasing them out without a clear and immediate alternative risks removing an essential pillar of local economic support. At a time when the cost of living continues to rise and job stability remains uncertain, it is important to preserve lawful, community-supported means of employment and economic resilience.
I fully recognize the importance of addressing Maui’s housing needs. But meaningful housing solutions should not come at the expense of local jobs and economic opportunity. This situation calls for thoughtful, balanced policy—not the elimination of legally operating businesses that are deeply connected to the island’s economic fabric.
I respectfully ask that you oppose Bill 9 and instead pursue alternatives that preserve both economic opportunity and neighborhood integrity.
Thank you for your time and for your service to the Maui community.
Hello Committee Members,
My name is Dennis H. Pennell, and I own a short-term rental property in Maui County. I am writing today to share my story and help you see from my view how this proposed legislation to phase out the Short-Term vacation rentals would be so detrimental and short-sided.
I was truly saddened and horrified when the fires broke out in Lahaina. I have been coming to Maui since 1993 and have made many friends with residents and business owners and local workers over the years and I understand how devastating it was for many families.
I know we need to help people in need and come up with solutions to the housing situation, however phasing out vacation rentals may not really accomplish those goals. In the short term it sounds like it would help but in the long run it could create more hardship and negative impact on the people it supposedly is intended to help.
Alot of my guests say they come to Maui because of the option of the condo rental and probably wouldn’t have come at all if they didn’t have a vacation rental option. That is important as many local families rely on this tourist revenue to pay for goods and services and keep the local economy going. Those tourist dollars are vital to all the small businesses they support during their stay. My rental helps support local families by employing local service providers such as cleaners, maintenance techs, landscapers, and painters, --- My guests thank me for the local referrals and told me that they felt more welcomed and connected to the island.
For me owning a condo in this complex has not been easy. I have faced huge maintenance costs, special assessments, and massive increases in insurance after the fires. These costs ensure the property remains safe, functional, and appealing. My rental income helps cover those costs and helps to support local workers. These HOA costs, property taxes, and insurance costs would not be supportable with Long term rental rates, and for sure would not be affordable to most families in need of housing that this legislation aims to help.
This legislation doesn’t seem to value or acknowledge the contribution and importance of these short-term rentals to the community in terms of jobs created, property tax revenues generated, Rental and other taxes, increased tourism, and positive impact on local related business. I urge the Council to work with owners like me to find a fair and balanced path forward — one that protects local jobs, supports the economy, considers alternative solutions to the local housing issues and yet can co-exist with the STR owners to solve the housing situation instead of phasing out the short-term rentals completely.
Thank you for your time and consideration.
Sincerely,
Dennis H. Pennell
Kamaole Sands
Aloha Maui Mayor Bissen, Chair, Vice Chair, and Committee Members,
We have owned a Legal short-term rental at Maui Sunset for over 8 years. We are voicing our strong opposition and deep concern to the proposed legislation, Bill 9 to phase out more than 7,000 legal vacation rentals. Maui Sunset is considered a Condotel, which means it is considered a condominium hotel, for vacation rental purposes.
We have been very community oriented and responsible owners, as have our guests. We Always employ Only local service providers, such as maintenance and repair service people, housekeeping and cleaning services, and local property management to name a few. We also refer these local service providers to others which contributes to their Local businesses. We and our guests also support the local restaurants, small business shops, gas stations, rental car companies, etc. whom we encourage & recommend to our guests. These providers have become part of Our family over the years, and we truly feel an attachment to the island of Maui.
Many of the guests have mentioned they were Only able to visit Maui due to this vacation rental option. This option supports local businesses, their employees, and All of those families. If this were to end, Many local businesses would Not have the means to continue and would have to close! This really concerns us!
Our unit is Very small, only 1 car allowed per unit, no pets, and limited storage. Not setup for families. We as short-term rental owners contribute substantially to the county through the highest rate of property taxes, as well as GET and TAT taxes. Historically, these properties were designed and have been operating as vacation rentals for over forty years. They are not suitable for long-term residential use at scale due to various factors.
We have been faced with extreme expenses for this property. Such as higher monthly maintenance fees, increases in special assessments, and higher insurance costs. These expenses are to maintain the complex, ensure the property is safe, remains functional and appealing. Our vacation rental helps to cover these costs, which then utilize local businesses who employ local workers.
We kindly urge the Council to find a balanced and fair solution. One which protects the survival of local businesses and their families, supports Maui’s economy, This would allow owners like us to assist the community through our vacation rental, rather than phasing out completely which would be devasting to the local businesses and their families. Building of Affordable housing, abolishing of illegal vacation rentals in residential zones, to name a few.
Mahalo for your time and consideration, Bell Ohana
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
I oppose Bill 9 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.
• The majority of units at Papakea are under 600 square feet, our unit is a studio with about 525 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 and high HOA fees that make any phase out of short-term rental right offensive to 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.
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 and cultural efforts.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Catherine (Rosczewski) Love
3543 Lower Honoapiilani Road, Apartment C204
Aloha Chair, Vice Chair and Committee Members, I am in strong support of Bill 9.
Housing for our local population is a major emergency in Maui following the devastating wildfires, exacerbating an already challenging housing market. It is outrageous that only 34% of the housing supply in West Maui is housing residents. The remaining 66% of the supply is made up of short-term rentals and second homes. In South Maui, 50% of the housing supply is housing residents. The other 50% is made up of short-term rentals and second homes. 85% of owners of Minatoya units are from outside of Maui County. According to DBEDT, STR listing rates and occupancy rates, a Minatoya phase out would remove 15% of the total hotel and STR visitor lodging inventory. But, with 32% of that inventory typically sitting vacant, there are more than enough empty units to absorb the loss of those Minatoya units. Restrictions and more regulations on STR’s is not new, it a global phenomenon in many resort areas. Too many STRs have resulted in reduced housing inventory for residents, increased housing prices, and led to erosion of community, culture and environment. It is time to prioritize quality of life for the residents of Maui. We have witnessed mass displacement of our local population. Enough already!
Aloha Councilmembers
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We are owners at Kihei Bay Surf, buying our unit 10 years ago and happily living in it. I am in my 70's and my wife and I found an opportunity
to purchase another unit and be able to legally open an AirBnB unit. This unit ostensibly was a way to earn extra money so that we could
afford to live in Maui. It has been our dream to live here and enjoy all that the island offers. My wife dances Hula on the island and has loved
the spirit of Aloha that her dancing has afforded her and the many visitors who watched her perform. Our unit continually supplies work to
the service people(plumber/electrician/cleaning,etc) to properly maintain the property. Multiply that times the number of units in jeopardy and
you will see not only countless lives negatively impacted, but the amount of state revenue lost. We, as many people living here depend on
the government to make decisions that will help all of it's constituents. We bought our unit and have operated under legal guidelines set up by
the state government. Now we find that this bill is pulling the rug out from under the people who put belief in the state laws and made this
island their home. By passing this bill, you are not enriching Hawaii. You are enriching the multi-million dollar companies that control the large
hotel chains. Hotels that many people are unable to afford and would not visit this beautiful island if not for the short term rentals. By passing this bill, you will hurt and lose many people who live in and love this island and help many people who dont live here and love this island from
a financial point of view. We all hope you can make the right decision for the people of Maui.
I have been a property owner andTaxpayer in Maui since 1999. I am currently retired and rely on my income from my rental property for my daily expenses. If this Bill passes, I will lose my source of income and will be forced to sell the property. This will also be a great personal loss as I have cherished spending time in Maui with my family and also supporting the local economy on my visits since 1971. If I sell the property, I will no longer be able to visit. This will also cause financial harm to the wonderful service providers that I have employed over the years, initially for extensive remodeling of the property and over the years for regular upkeep and management of the property, You should consider the financial consequences od this Bill for everyone involved. Thank you for your time and consideration in this matter. Respectfully, Anthony S. Ravnik
Dear Chair Kama, Vice Chair U’u-Hodgins and Members of the Housing and Land Use Committee:
I own a condo at the Palms of Wailea and I am writing to oppose proposed Bill 9 to phase out short-term rentals.
I understand the imminent need for affordable housing and I’m truly impressed with all of the strides made just this year with new affordable housing options. Although the Mayor often says that “We can’t build our way out of the crisis” we are in fact addressing the issue in part with new construction projects that are much more appropriate options since the County can control rental costs. I do believe that some of the Minatoya List Properties would be affordable and immediate solutions, but overall the facts show that a total ban would do more harm than good.
Our condo—along with virtually every other condo in Wailea—was purpose build to be a second home and part-time vacation rental. As such, it pumps an extraordinary amount of money into the local economy and contrary to local narrative, most of it stays on island. A few examples of annual cost include: AOAO fees $15,844, Cleaning Fees of $10,894, Local Property Management Fees of $6,283, Electric Utility Fees of $5,464, Property Taxes $8847, Repair and Maintenance Fees of $6456, Supplies $1962 and Insurance beyond AOAO $654. Another extraordinary cost is our TAT/GET taxes of $19,986. In total we pay $83,000 a year in fees and this does not include the mortgage!
I do not consider renting our condo out for over $10,000 a month a very realistic scenario. Even then I would be barely breaking even. A much better scenario for Maui would be to continue renting it out short-term to the affluent travelers that Hawaii says it is targeting. The tax revenue, combined with our thousands of Wailea neighbors, will continue to lower local taxes and continue to pay for additional affordable housing.
My name is Stephanie Cleveland and I own a short-term rental property at Kanai a Nalu in Maui County. I am writing today to express my deep concern and strong opposition to the proposed legislation to phase out more than 7,000 vacation rentals. Thank you for your time.
I work hard to be a responsible and community-oriented owner. I have acted legally as a short-term rental for years and have generated a great deal of GET/TA/MCTA taxes to benefit Maui County. I took some time to consider the ways in which I have impacted the Maui Community over those years and want to share that with you. I like all the other short-term rental owners have poured lots of money into the community by hiring large and small local business, some of whom have become good friends and family. For me personally, those businesses include: Tree trimmers, plant nurseries, pool companies, solar companies, yard people, landscaping companies, handymen, carpenters, construction companies, air conditioning companies, laundromats, mechanics, plumbers, electricians, rescreeners, window washers, garbage/recycling companies, upholsterers, painters, moving companies, property managers and cleaning companies to name a few of the businesses I have employed over the years. Most of these are small businesses that rely on business like mine and all of them employ local people and rely on business like mine to make payroll.
In addition, I put money in local banks, use Spectrum services, shop for goods and appliances at Lowes, Home Depot and Costco which provide payroll for local people who work at those places, and I support local fruit and vegetable growers and artists. I am an integral part of the Maui community.
I keep my short-term rental beautiful, clean and up to date and it has provided many renters some peace which they have needed whether it be suffering from the death of a loved one, they are dealing with cancer or suffering from burnout. They thank me sincerely for that and in that way I am giving them an important experience and good impression that affects how they feel about Maui and giving them a reason to return with fond memories. I have had renters say they would not have come to Maui if there weren’t short-term rentals, which tells me I play an important part of successful Maui tourism and the small business, restaurants, tours, activities, etc my guests support during their stay.
Owning in my complex has not been easy. I have faced high HOAs, special assessments, beach erosion issues and massive increases in flood,hurricane and homeowner insurance after the fires. I have to pay these costs to keep my property safe. Income from my unit is necessary to cover those costs and at the same time supports local workers and businesses.
Doing away with legal, responsible short-term rentals is not the answer. We as owners are an invaluable part of the community and are doing our part in supporting the community at large and the tourism industry which is its most important industry and provides for the people. New housing needs to be built and that has been true for many, many years. Now with the cane fields gone it would seem like there is plenty of land to build on and by employing good financial responsibility and accountability a path could be made clear to do so. I appreciate your time and consideration. Stephanie Cleveland
My name is Kjell Vanghagen and I own a unit at Kaanapali Royal. If the proposed short term rental restriction takes effect for my unit Q102 I will have to sell and stop visiting Maui. Without the rental income I can not afford to keep my unit. Property taxes, condo assesments, electric and insurance totals $ 35550.00. I go to Maui 3 times a year and spend 3 to 4 months there, and I bearly brake even. I 2024 due to the Lahaina fire I lost $21000. I hope this will not affect my unit as I love Maui. Thanks Kjell Vanghagen
Aloha Chair, Vice Chair, and Committee Members,
My name is Mike Proctor, and I own a short-term rental property in Maui County. I am writing today to express my deep concern and strong opposition to the proposed legislation to phase out more than 7,000 vacation rentals.
I've been visiting Maui for over 56 years, usually staying in short-term rentals and supporting local businesses. Short-term rental availability was essential for our ability to visit the island.
I’ve worked hard to be a responsible and community-oriented owner. I recommend local restaurants and tour guides in my welcome guide. I employ local service providers — cleaners, maintenance techs, and landscapers — many of whom have become like family over the years. My guests often leave Maui saying they felt more connected to the island because of the personal experience they had in my home.
I do believe without a vacation rental option you will see a major decrease in Tourism and all the associated revenue it generates to any local that is working. Almost everything on the island is tourism driven in some form.
Owning on Maui has not been easy. We’ve faced huge maintenance costs, special assessments, and massive increases in insurance after the fires, and exorbitant Property Taxes. These aren’t luxuries — they’re costs that ensure the property remains safe, functional, and appealing. STR income helps cover those costs while supporting local workers. Take away the short-term rentals and most locals will not be able to afford to live in any area on the island, since all business revenue will drop significantly.
I believe that the lawsuits arising from this situation will be very costly for both Maui and Hawaii. Owners have a right to protect the bundle of rights they acquired when they purchased the property.
This legislation feels rushed and one-sided. I urge the Council to work with owners like me to find a fair and balanced path forward — one that protects local jobs, supports the economy, and holds STR owners to high standards, instead of phasing us out completely.
Mahalo for your time and consideration
Mike Proctor
Kapalua Golf Villas
Mike.proctor@comcast.net
Hello, My husband and I purchased our unit at the Kapalua Ridge in 1988. We love Maui and have always considered ourselves members of the Maui community. We have welcomed short term renters into our home and encouraged them to patronize the local restaurants and business establishments that we also go to. We employ many local workers to maintain our property and have become friends over the 37 years. Our purchase was based on its designation as a resort property. It was never built to be be workforce housing.
Our property at Kapalua brings much income to Maui and supports many jobs for the residents. Passage of this legislation would end all that. Please do not include Kapalua in this program.
Thank you for your consideration.
Carole Scott
I oppose Bill 9 and its underlying proposal to convert all units in apartment districts to long-term rental use - especially those listed on the formerly exempt Minatoya list. Grand Champions (in which my husband and I are owners) in particular was never intended for long term rental use since its inception in 1989. The units and the property are not conducive to long term rental use. Owners of condos within this complex (like other complexes on the Minatoya list) were never intended for anything but short term occupancy and have been operated in this capacity since the complex first opened. If this bill is passed, not only will it hurt the state and county revenue collections by the loss of short term rental (STR) property taxes but all those local businesses which depend on the STR industry for their livelihoods. Most of these businesses are small, Maui-owned businesses that will need to lay off staff, reduce operations - if not go totally out of business. These STR properties also contribute to other local tourist businesses such as tours, lessons, restaurants, grocery stores that are not patronized by those island visitors that stay in the large resorts and hotels. And these large resorts and hotels as well as timeshare properties are almost entirely owned by mainland or global organizations that are seeking to maintain as much of the activities and food consumption within their own walls and pass their income to their off island headquarters. It is imperative that the STR business remains a viable part of the Maui community to ensure that tourist income and local jobs remain within the county and the state.
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
I oppose Bill 9 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.
• The majority of 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.
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 and cultural efforts.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Kim Vernor
3543 Lower Honoapiilani Road, Apartment J203
Aloha Chair, Vice Chair, and Committee Members,
My name is Megan Pearl and I’ve been a full-time resident of Maui for over 17 years. In 2012, we were fortunate to purchase a condo in a hotel-zoned complex using savings from a business we built right here on island in a completely different industry. It was a significant personal investment — not a corporate acquisition — rooted in our deep commitment to Maui.
I’m writing to express my strong opposition to the proposed legislation to phase out more than 7,000 short-term rental properties across Maui County.
I’ve worked hard to be a responsible and community-oriented owner. I support local restaurants and activity providers by featuring them in my welcome guide. I hire local cleaners, landscapers, and maintenance professionals — many of whom have become like family over the years. Guests often tell us that staying in our home gave them a more personal, meaningful connection to Maui — and many say they wouldn’t have visited at all if vacation rentals weren’t an option. That matters, not just to me, but to the dozens of small businesses they support during their stay.
There’s also a misconception that these properties were out of reach for local buyers. In truth, these condos were much more affordable in past decades, and mortgage rates were far more manageable than they are today. Local residents have always had the opportunity to purchase these units but may have chosen not to — for their own reasons. Today, there are still units on the market, both for sale and for rent. This didn’t become “unfair” overnight — it’s simply the result of decisions made over time, with open opportunities along the way.
Additionally, there’s confusion around HOA operations. For instance, our HOA fees were recently reduced by \$150 per month — not because someone “got on the board,” but because we worked with our insurance company to review upgrades made possible through responsibly managed HOA funds. Fee reductions like this come from long-term investment, planning, and collaboration — not activism or quick fixes. HOA board members must be elected by a majority of owners, and their responsibility is to uphold budgets for operations, insurance, and maintenance. They can’t simply vote to reduce fees without risking the property’s financial health.
What’s most frustrating is that this proposal is being presented as a solution to the housing crisis, when in reality, it’s not. There is no quick fix. The housing crisis on Maui is the result of decades of poor planning and execution by Maui County — including past councils, planning departments, and administrations. For years, they approved luxury residential enclaves, high-density apartment complexes, and only a limited number of single-family home communities. The current housing shortage didn’t happen overnight, and eliminating STRs in legal hotel-zoned properties will not solve it. This is a systemic issue born out of misguided development priorities, not vacation rental owners. Eliminating STR's will further deter tourism to Maui, which many individuals are cheering on, but there is no immediate alternative to sustain the local economy here. Agriculture based economy? Going back to the plantation days? But then again, even in plantation style living, the workers at least had a little bit of a yard and garden they were able to tend. Not something available with ccondo living.
This legislation feels impractical, imbalanced, and misguided. I urge you to work with long-time, community-invested owners like myself on a more thoughtful path forward — one that upholds high standards, protects local jobs, sustains economic stability, and addresses the root causes of the housing crisis rather than scapegoating STRs.
Mahalo for your time and consideration.
Sincerely,
Megan Pearl
County Council Members, Housing and Land Use Committee Members, and Mayor,
I first moved to Hawaii in 1983. Though I now live Mainland, I do own a condo in Kihei that I rent when not visiting. I am a licensed real estate broker and watch the market carefully everywhere I go. I recognize that Maui has long had an affordable housing problem. I am absolutely and solidly in favor of responsible action to help alleviate the affordable housing issue -- but Bill 9 as it exists will do more harm than good for the residents of Maui.
When considering either UHERO's "best case" scenario or Paul Brewbaker's more severe 2022 analysis, the results of passing Bill 9 is clear: the impacts will be between massively disruptive and catastrophic. Simply proposing the bill has already had significant impact: values for Minatoya-listed apartment-zoned condos have *already fallen roughly 30%.* That drop in value has not been limited to apartment zones. I personally know others who own in hotel zones and their values have dropped almost as far. [Note that this will drop property valuations -- and resulting revenues -- across ALL related real estate markets, not just apartment zones.] That is already happening, and yet, unfortunately, that drop in values has not solved the housing issue.
The sweeping loss of inbound revenue is clear regardless of what analysis paper one reads. On the low end: $900 Million lost annually. Loss of annual tax revenue: $75 Million (Does this include the loss of values in *other* zoning areas impacted? The losses could be much higher). The loss of jobs and the population displacement this bill would have are equally massive.
Owning a condo in a resort area is expensive. My costs NOT including mortgage are about $2600/month -- not including any repairs (which are high on condos). At current value (which is down 33% since a year ago), a condo like mine may sell for $515,000. It's a 1/1. With 10% down and today's interest rates, mortgage is $3600/month. Add taxes and AOAO fees and insurance, the total is closer to $5200/month. That's with the current, 33% lower value of the property as it sits today. Add AOAO assessments and that's likely to be higher.
The larger point however is contained in the letter below which was from the Maui Vista AOAO board. My condo is in an apartment zone, but it was *never intended* as workforce housing. I do understand that some other complexes were in fact regular apartments and since transitioned into TVRs. I do not speak of those. I was very intentional to purchase a condo that was a resort from the beginning (see attached resort brochures and horizontal regimes). Our AOAO board sent a letter to the County and Mayor relating to this, but received no actionable steps in reply.
Above (and letter below) are my objections to Bill 9. However, what we need are SOLUTIONS. Here are some ideas I believe WILL work for establishing affordable housing on Maui without devastating the local economy:
• Deed restricted housing zones. Many other counties in other states use this and it is very effective in controlling costs. Summit County, Colorado is one I know well. It's not an instant solution, but it has very good sustainability without the negative impact on the larger real estate or tourist market (yes, Summit County is a tourist-driven economy).
• Housing grants toward rent or ownership. There are outstanding, hard-working people that just need a little bit of momentum and then they're rolling.
• Incentives to developers along with removal of development barriers could put houses on the ground quickly and solidly. Building is more sustainable than taking.
• A combination of any of the above would be a powerful boost to those who need it most.
• A careful delineation of what condo developments were always TVR-purposed vs. those which were transitioned from workforce (aka regular apartments) to TVR. Address this first.
• Re-evaluate the tax rates of TVRs vs. Hotel vs. other classes of use. Tax revenue is already going to take a huge hit with the crashing valuations, this may be the time to re-evaluate rates from the lowest-paying rungs of the ladder.
I want to see Maui succeed. I want to see industry and business flourish. An essential part of that is affordable housing. It's an issue all over the country, and especially in tourist-driven locations. There are steps toward solution, but I firmly believe that Bill 9 (as proposed) is not in the best interest of Maui's residents.
Respectfully,
Erik Stenbakken
owner #2107 Maui Vista, 2191 S. Kihei RD
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The letter below was sent in response to Mayor Bissen's comments relating to re-zoning. It is copied here in entirety (except attachments) because it contains relevant history and facts relating to the history and operation of Maui Vista.
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8 May 2025
Mayor Bissen,
Council Chair Alice Lee,
HLU Committee Chair Tasha Kama,
Council Members and Planning Department,
As the STR Task Force formed by the Maui Vista AOAO Board of Directors, we listened with interest to Mayor Bissen's comments of March 12 at the Kihei Community Center. In that presentation, invitation was made for complexes that "function more like hotels than homes" to seek rezoning or special use permits. Our complex has operated more like a hotel resort than homes since its founding. Here's why we believe we are an excellent candidate to pursue the Mayor's proposal:
Maui Vista's original horizontal regimes explicitly state that the purpose of the development was for "permanent or temporary residences." That is over 46 years of planned TVR use. (footnote 1)
Maui Vista's subsequent 1995 AOAO bylaw filing explicitly reaffirms this use as STR / TVR. (footnote 2)
Maui Vista was marketed and managed as: Aston at Maui Vista Tennis Resort. 1988-1996. Maui Vista was also managed by AA Oceanfront continuing front-desk check in services. (Aston is a hotel-like management company: AA Oceanfront is still operating in Kihei)
Our condo was professionally marketed as "Maui Vista A Vacation Condominium & Tennis Resort." Note this is marketing of the entire condominium as a vacation destination, not individual units advertised by individual owners. (scan of original color brochure attached)
Our current staffing, amenities, landscaping, high maintenance fees and structure are all in place to serve as a TVR destination. (budget and supporting documents available on request)
As a vacation destination, we want to seek clarification about what opportunities exist for rezoning or special use permit. Litigation is nobody's first choice and we would much rather pursue an equitable and mutually-beneficial outcome. Since this is a new invitation, we have questions:
Does the County have a clear, achievable pathway to rezoning?
What department will head up this process?
What are costs?
What is the timeline?
Is there a "Fast Track" process for condos like Maui Vista that have always been a resort community?
Are there specific criteria that if met, will give applicants assurance that a rezoning process will be successful?
Maui Vista wants to continue contributing to the vibrancy and success of both Kihei and Maui. We want to work with local government to come to solution. Finding answers to these questions will help us evaluate our next steps. So that we can plan appropriately for upcoming testimony, a response is kindly requested by May 1st, 2025.
Respectfully,
Tara Wells
Vice President, AOAO Maui Vista
Board Liaison to the STR Task Force, on behalf of
Maui Vista Board of Directors and STR Taskforce Committee
footnotes:
(1) October 1978 filing attached, P.11 quoted here: "PURPOSE OF BUILDINGS AND RESTRICTIONS AS TO USE: The proposed Declaration provides that all apartments shall at all times be used only as permanent or temporary residences…."
(2) November 1995 Restatement of Declaration of Horizontal Property Regime attached. P. 10 quoted here: #9. a. "Each apartment shall be used and occupied only as private dwellings by the owner thereof, his tenants, family, domestic servants and social guests. Subject to such limitation, the owner of each apartment shall have the absolute right to lease or rent same for long-term or transient purposes …."
[NOTE: attachments cannot be made on this comment form] However, attachments sent to Mayor & Council were of an early brochure marketing "Maui Vista Tennis Resort" and 1978 horizontal regimes as well as 1995 filing, each outlining the allowable "temporary residences" intent of the buildings. All AOAO documents are on public record.
Aloha Chair, Vice Chair, and Committee Members,
My name is Shellyne Darst. We own a short-term rental property in Maui County. I am writing today to express my concern 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.
We are proud to have supported the Maui economy and live here over 6 months a year now. We use a small, locally owned, Maui-based rental management company. We are proud that many of our 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 resort hotel. 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 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. Most of them still have not recovered from Covid. I spoke with a couple of them recently. They were on the verge of losing everything and are just starting to get back on their feet. They fear this will cost them everything. It is unfair to make all these hard-working people suffer just to help others.
We need housing and have needed it for years. There must be a way to accomplice to help and not make other residents suffer.
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, the Ma'alaea Village Association (MVA). We spend countless volunteer hours on committees advocating for the needs of my Maui community. Currently trying to help get a substation for Maui PD in our area. Our visits to Maui are always filled with volunteer activities. We start our mornings with a litter pick-up on the local street, park and harbor area. In short, 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 residents would want or could afford to purchase or rent units in my condo association.
A little history in our area.
An Overview
In the early 1970s, Maalaea, Maui underwent significant zoning changes that shifted its focus from residential housing to resort and hotel development, leading to the construction of numerous condominium resorts along Hauoli Road
.
Here's why buildings on Hauoli Rd were likely shown as hotel/resorts in the 1970s:
• Zoning Changes: Maui County implemented zoning changes that favored tourism and resort development in Maalaea, paving the way for the construction of condo-resorts.
• Condominium Ownership: The concept of condominium ownership was being pioneered in Hawaii during this period, and Maalaea became a location where this type of development flourished.
• Tourism Boom: The 1970s saw a surge in tourism in Maui, and the development of resorts like those along Hauoli Rd aimed to cater to this growing industry.
• Infrastructure Development: Developers were required to contribute to infrastructure development, including water and wastewater systems, which further supported the growth of the resort industry.
In essence, the zoning changes in the 1970s, coupled with the rising popularity of condominium ownership and the burgeoning tourism industry, transformed Maalaea into a hub for resort development, thus resulting in the construction of what were often viewed and marketed as hotel/resort properties along Hauoli Road.
All but 2 properties chose to build the condos and lease or sale the land. We were all tasked with building our own wastewater treatment plant.
It is so unfair to now change this and least in this area as I do not know the history in the other communities. I agree we should not allow more STR’s to start at least not until the housing problem is under control.
Before 2018 we were Hotel/Resort (see below) then was changed TVR-STRH for tax base.
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.
Mahalo for your consideration.
Shellyne Darst
Housing and Land Use Committee
County of Maui
200 South High Street
Wailuku, Hawaii 96793
Testimony Opposing The Phasing Out of Short-Term Rentals in Maui County Under Bill 9 Submitted by Christine A. Giles
Members of the Committee:
I want to express my opposition to the proposed draconian legislation which would phase out over 7,000 Short-Term Rental units on the Island. I am the owner of a Short Term Rental at Hale Kamaole, 2737 South Kihei Rd., Kihei.
Short-Term Rentals provide a significant contribution to the island economy by offering lower to mid-price options for an Island stay. Many visitors prefer these types of accommodations because they can host families and have kitchens which hotels do not.
In my case, the Short-Term Rental directly supports a management company, cleaning staff, and maintenance personnel, rug cleaning company, plumber and electrician. In order to provide a clean, attractive unit we buy everything from furniture (Mind’s Eye Furniture, Beach House Maui) to bedding (Macy’s, T. J. Maxx, Costco, Walmart) mattresses (Costco) rug cleaning (Jack’s and Top Notch Carpet Cleaning) lighting (Valley Isle Lighting) Ace Hardware in Kihei, just to name a few. We also have a bookkeeping service (Quickbooks Maui) to help with the County and State taxes. We also contribute clothes and furniture to Goodwill, Habitat for Humanity, Makawao Union Church and St John’s in Kula.
Changing the current Short-Term Rentals to Long Term Rentals would eliminate the need for many of the supporting businesses mentioned above. It would also have a very negative impact on the tax revenue for the County and the State.
One study (Kloninger) estimated that the Short-Term Rentals generated between 7,800 and 13,000 jobs on island. If we take the formula of one direct job supports up to four other jobs, we can see that adoption of the proposed ban would have a huge negative impact on the island. In another study done by Paul Brewbaker, adoption of the proposed legislation eliminating Short-Term Rentals would eliminate up to 14,000 jobs.
The University of Hawaii Economic Research Organization in the study commissioned by Maui County on this Bill found that: • Property tax revenues could fall by up to $60 million annually by 2029 due to both changes in tax class and decreasing valuations. • General Excise Tax (GET) and Transient Accommodations Tax (TAT) revenues are projected to fall by 10% and 8% respectively, totaling to an additional -$15M annually.
The sale price for STR’s has already dropped significantly, which will have a negative impact on property tax collection as predicted by the UHERO report.
Again, I am opposed to the proposed elimination of Short-Term Rentals as set out on the Minatoya List.
Thank You,
Christine Giles
Owner, Hale Kamaole #6-258
Kihei, HI 96753
2271 English Court
Walnut Creek, CA 94598
June 5, 2025
Aloha Chair, Vice Chair, and Committee Members,
My name is Wendy Wong Thayer, and I was born and raised here on Maui. I have strong ties to Maui with a deep conviction to ensure that Maui remains no ka oi. Our family has, for the past 2 generations, been fortunate to have invested in Maui through the purchase of real property and condos in south and central Maui, much of which was for long-term residents and local business growth. The proposed legislation seeks to “revert all Apartment District properties to long-term residential use, remove the exception allowing Transient Vacation Rental (TVR) use in Apartment District structures built or approved before 1989, and fully discontinue TVR use in Apartment Districts”. While this proposal was introduced with the aim of addressing housing availability and affordability concerns, there are several reasons to oppose it. Proponents for the proposed Bill 9 disproportionately push the fact that there will be more inventory on island for local residents, without a commensurate acknowledgment of the huge impact this will have on Maui. Previous responses to concerns raised by this legislation, including that tourism will not suffer since displaced condo visitors will simply go to hotels and that loss of tax revenues can easily be fixed by raising property taxes on the other condos are, in my opinion, unrealistic. My testimony addresses key arguments against the legislation based on its potential socio-economic, financial, and logistical impacts.
Economic Impacts
Reduction in Tourism Revenue
Transient Vacation Rentals contribute significantly to local tourism economies by providing diverse and generally more affordable accommodations for visitors who otherwise would not be able to afford the rates offered by hotels and resorts on Maui. A quick check of rates at the Grand Wailea for June 5 – 8, 2025 showed the lowest available rate found by the search app KAYAK is $816-standard room, plus resort fees. Conversely, a check of rates at condos in south Maui for the same time frame showed rates ranging from the low $200s to $400s-1 bed/1 bath and 2 bed/2 bath. Eliminating TVRs in Apartment Districts would deter this segment of more budget-conscious tourists, resulting in decreased revenue for local businesses such as restaurants, shops, property management companies, cleaning services and attractions that rely heavily on tourist spending.
Loss of Income for Property Owners = Loss of Tax Revenue for the County
Many of these condo owners depend on income generated from TVRs to supplement their livelihoods and to maintain their properties, and they pay hefty taxes on this income and on their real property. Reverting properties to long-term residential use, affecting both income and tax bracket, will not benefit the owner nor the county in terms of revenues. This can also discourage investment by owners in maintaining or upgrading properties, ultimately affecting the aesthetic and structural quality of these Apartment-zoned areas.
Housing Market Considerations
Potential Oversupply of (logistically inadequate) Long-Term Rentals
While the legislation aims to increase the availability of long-term rental units, it could inadvertently create an oversupply in certain areas because of the ancillary expenses required to own or maintain a unit currently operating as a TVR coupled with the condos’ inability to meet a long-term resident’s needs in terms of available parking, storage space, and pet policies. There are monthly AOAO fees which include funding to maintain the communal property but to also allow for expected costly and significant repairs in the future for these aging condos. Emergency projects may require special assessments to the owners of a TVR-condo-turned-long-term residence. These are standard expenses of a TVR, and they would be in addition to mortgage payments or passed on to the tenant in the form of higher rental fees if converted to a long-term residence. This may result in vacancies, financial losses for owners and diminish incentives for property development or improvement.
Displacement of Current TVR Tenants
Many individuals, such as business travelers, academic researchers, and seasonal or Oahu- or Mainland-based workers, rely on TVRs due to their flexibility and affordability. Eliminating these options could disrupt their ability to find suitable accommodations, particularly in neighborhoods where traditional hotels are either unavailable or prohibitively expensive. This issue affects business budgets and will eventually have an economic impact on customers and growth.
Legal and Logistical Challenges
Complexity of Implementation
Reverting properties to long-term residential use and discontinuing TVR operations would require significant administrative oversight. This includes tracking compliance, implementing and enforcing new regulations, overhauling the statutes governing the condos and currently requiring owner-majority approval, and resolving disputes between stakeholders. The associated costs and resource demands may outweigh the intended benefits of the legislation.
Potential Legal Disputes
The removal of TVR exceptions for structures built or approved before 1989 may lead to legal challenges from property owners who see this as an infringement on their established rights. Prolonged legal battles could delay implementation and result in additional expenses for the city.
Community and Infrastructure Impacts
Loss of Community Diversity
TVRs often attract visitors from diverse cultural, professional, and social backgrounds, enriching the character and vibrancy of these Apartment-zoned neighborhoods. Removing these short-term rental options may reduce the dynamic interactions between residents and visitors, making neighborhoods less inclusive and culturally vibrant.
Impact on Local Hosts
Many STVRs are managed by local residents who act as hosts. These hosts often serve as ambassadors for their neighborhoods, providing visitors with unique and personalized experiences. The removal of STVRs would strip these individuals of opportunities for economic and social engagement.
Increased Pressure on Infrastructure
Reverting properties to long-term residential use may increase the density of permanent residents in Apartment Districts, placing additional strain on local infrastructure such as water, waste management, and transportation systems. TVRs, by contrast, often have fluctuating occupancy rates that allow for periods of reduced demand on these resources.
The proposed legislation to revert Apartment-zoned properties on the Minatoya list to long-term residential use and discontinue Transient Vacation Rental operations raises several concerns. From economic repercussions and housing market disruptions to legal challenges and community impacts, the legislation may create more problems than it resolves. This legislation is NOT a balanced approach that ensures equitable outcomes for all stakeholders. In light of these potential consequences, the proposed solution of 1- and 2-bedroom TVR condos, with their limited living space and infrastructure and significant monthly maintenance costs, as a good solution for local families in addressing housing concerns does not make sense.
Mahalo for the opportunity to present my point of view. I support the continued re-evaluation and easing of regulations and fees associated with new developments involving affordable housing as an important step towards addressing this long overdue problem for our Maui citizens. I also support stronger adherence to requiring development plans to include a percentage of affordable housing in perpetuity.
Mahalo!
Wendy Wong Thayer
Subject: Testimony Opposing Bill 9 – Vacation Rental Use in Apartment-Zoned Areas
Aloha Chair and Members of the Housing and Land Use Committee,
My name is Dave Sabey, and I am a homeowner and part-time resident of Maui. I am writing to express my opposition to Bill 9, which would eliminate legal Transient Vacation Rental (TVR) use in apartment-zoned areas.
Vacation rentals play a vital role in sustaining year-round employment for Maui residents. Housekeepers, landscapers, repair technicians, property managers, and many other service providers depend on these rentals for steady work. Additionally, the visitors who stay in these units support local restaurants, shops, and recreational businesses, generating broader economic activity that benefits the island as a whole.
As a homeowner, I employ Maui residents to help operate my vacation rental. I rely on local professionals for cleaning, maintenance, landscaping, and guest support—people who are hardworking, skilled, and essential to the upkeep and success of the property. The income from the vacation rental allows me to continue providing them with dependable work.
Vacation rentals not only provide direct employment but also contribute to Maui’s capacity to accommodate visitors. This additional lodging supports the tourism industry as a whole, which remains a central part of the island’s economy. The guests who stay in vacation rentals contribute to local spending across a wide range of small businesses and service providers, helping to sustain community-based economic activity.
TVRs are a significant and reliable source of income for many working families on Maui. Phasing them out without a clear and immediate alternative risks removing an essential pillar of local economic support. At a time when the cost of living continues to rise and job stability remains uncertain, it is important to preserve lawful, community-supported means of employment and economic resilience.
I fully recognize the importance of addressing Maui’s housing needs. But meaningful housing solutions should not come at the expense of local jobs and economic opportunity. This situation calls for thoughtful, balanced policy—not the elimination of legally operating businesses that are deeply connected to the island’s economic fabric.
I respectfully ask that you oppose Bill 9 and instead pursue alternatives that preserve both economic opportunity and neighborhood integrity.
Thank you for your time and for your service to the Maui community.
Sincerely,
Dave Sabey
Maui Homeowner
Hello Committee Members,
My name is Dennis H. Pennell, and I own a short-term rental property in Maui County. I am writing today to share my story and help you see from my view how this proposed legislation to phase out the Short-Term vacation rentals would be so detrimental and short-sided.
I was truly saddened and horrified when the fires broke out in Lahaina. I have been coming to Maui since 1993 and have made many friends with residents and business owners and local workers over the years and I understand how devastating it was for many families.
I know we need to help people in need and come up with solutions to the housing situation, however phasing out vacation rentals may not really accomplish those goals. In the short term it sounds like it would help but in the long run it could create more hardship and negative impact on the people it supposedly is intended to help.
Alot of my guests say they come to Maui because of the option of the condo rental and probably wouldn’t have come at all if they didn’t have a vacation rental option. That is important as many local families rely on this tourist revenue to pay for goods and services and keep the local economy going. Those tourist dollars are vital to all the small businesses they support during their stay. My rental helps support local families by employing local service providers such as cleaners, maintenance techs, landscapers, and painters, --- My guests thank me for the local referrals and told me that they felt more welcomed and connected to the island.
For me owning a condo in this complex has not been easy. I have faced huge maintenance costs, special assessments, and massive increases in insurance after the fires. These costs ensure the property remains safe, functional, and appealing. My rental income helps cover those costs and helps to support local workers. These HOA costs, property taxes, and insurance costs would not be supportable with Long term rental rates, and for sure would not be affordable to most families in need of housing that this legislation aims to help.
This legislation doesn’t seem to value or acknowledge the contribution and importance of these short-term rentals to the community in terms of jobs created, property tax revenues generated, Rental and other taxes, increased tourism, and positive impact on local related business. I urge the Council to work with owners like me to find a fair and balanced path forward — one that protects local jobs, supports the economy, considers alternative solutions to the local housing issues and yet can co-exist with the STR owners to solve the housing situation instead of phasing out the short-term rentals completely.
Thank you for your time and consideration.
Sincerely,
Dennis H. Pennell
Kamaole Sands
Aloha Maui Mayor Bissen, Chair, Vice Chair, and Committee Members,
We have owned a Legal short-term rental at Maui Sunset for over 8 years. We are voicing our strong opposition and deep concern to the proposed legislation, Bill 9 to phase out more than 7,000 legal vacation rentals. Maui Sunset is considered a Condotel, which means it is considered a condominium hotel, for vacation rental purposes.
We have been very community oriented and responsible owners, as have our guests. We Always employ Only local service providers, such as maintenance and repair service people, housekeeping and cleaning services, and local property management to name a few. We also refer these local service providers to others which contributes to their Local businesses. We and our guests also support the local restaurants, small business shops, gas stations, rental car companies, etc. whom we encourage & recommend to our guests. These providers have become part of Our family over the years, and we truly feel an attachment to the island of Maui.
Many of the guests have mentioned they were Only able to visit Maui due to this vacation rental option. This option supports local businesses, their employees, and All of those families. If this were to end, Many local businesses would Not have the means to continue and would have to close! This really concerns us!
Our unit is Very small, only 1 car allowed per unit, no pets, and limited storage. Not setup for families. We as short-term rental owners contribute substantially to the county through the highest rate of property taxes, as well as GET and TAT taxes. Historically, these properties were designed and have been operating as vacation rentals for over forty years. They are not suitable for long-term residential use at scale due to various factors.
We have been faced with extreme expenses for this property. Such as higher monthly maintenance fees, increases in special assessments, and higher insurance costs. These expenses are to maintain the complex, ensure the property is safe, remains functional and appealing. Our vacation rental helps to cover these costs, which then utilize local businesses who employ local workers.
We kindly urge the Council to find a balanced and fair solution. One which protects the survival of local businesses and their families, supports Maui’s economy, This would allow owners like us to assist the community through our vacation rental, rather than phasing out completely which would be devasting to the local businesses and their families. Building of Affordable housing, abolishing of illegal vacation rentals in residential zones, to name a few.
Mahalo for your time and consideration, Bell Ohana
Dear Chair Kama, Vice Chair Uʻu-Hodgins and Members of the Housing and Land Use Committee:
I oppose Bill 9 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.
• The majority of units at Papakea are under 600 square feet, our unit is a studio with about 525 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 and high HOA fees that make any phase out of short-term rental right offensive to 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.
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 and cultural efforts.
I would like to thank the committee for the opportunity to comment.
Sincerely,
Catherine (Rosczewski) Love
3543 Lower Honoapiilani Road, Apartment C204
Aloha Chair, Vice Chair and Committee Members, I am in strong support of Bill 9.
Housing for our local population is a major emergency in Maui following the devastating wildfires, exacerbating an already challenging housing market. It is outrageous that only 34% of the housing supply in West Maui is housing residents. The remaining 66% of the supply is made up of short-term rentals and second homes. In South Maui, 50% of the housing supply is housing residents. The other 50% is made up of short-term rentals and second homes. 85% of owners of Minatoya units are from outside of Maui County. According to DBEDT, STR listing rates and occupancy rates, a Minatoya phase out would remove 15% of the total hotel and STR visitor lodging inventory. But, with 32% of that inventory typically sitting vacant, there are more than enough empty units to absorb the loss of those Minatoya units. Restrictions and more regulations on STR’s is not new, it a global phenomenon in many resort areas. Too many STRs have resulted in reduced housing inventory for residents, increased housing prices, and led to erosion of community, culture and environment. It is time to prioritize quality of life for the residents of Maui. We have witnessed mass displacement of our local population. Enough already!
Homes for locals are needed now. Pass Bill 9.
Aloha Councilmembers
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We are owners at Kihei Bay Surf, buying our unit 10 years ago and happily living in it. I am in my 70's and my wife and I found an opportunity
to purchase another unit and be able to legally open an AirBnB unit. This unit ostensibly was a way to earn extra money so that we could
afford to live in Maui. It has been our dream to live here and enjoy all that the island offers. My wife dances Hula on the island and has loved
the spirit of Aloha that her dancing has afforded her and the many visitors who watched her perform. Our unit continually supplies work to
the service people(plumber/electrician/cleaning,etc) to properly maintain the property. Multiply that times the number of units in jeopardy and
you will see not only countless lives negatively impacted, but the amount of state revenue lost. We, as many people living here depend on
the government to make decisions that will help all of it's constituents. We bought our unit and have operated under legal guidelines set up by
the state government. Now we find that this bill is pulling the rug out from under the people who put belief in the state laws and made this
island their home. By passing this bill, you are not enriching Hawaii. You are enriching the multi-million dollar companies that control the large
hotel chains. Hotels that many people are unable to afford and would not visit this beautiful island if not for the short term rentals. By passing this bill, you will hurt and lose many people who live in and love this island and help many people who dont live here and love this island from
a financial point of view. We all hope you can make the right decision for the people of Maui.
Dear Commission Members, Oppose
I have been a property owner andTaxpayer in Maui since 1999. I am currently retired and rely on my income from my rental property for my daily expenses. If this Bill passes, I will lose my source of income and will be forced to sell the property. This will also be a great personal loss as I have cherished spending time in Maui with my family and also supporting the local economy on my visits since 1971. If I sell the property, I will no longer be able to visit. This will also cause financial harm to the wonderful service providers that I have employed over the years, initially for extensive remodeling of the property and over the years for regular upkeep and management of the property, You should consider the financial consequences od this Bill for everyone involved. Thank you for your time and consideration in this matter. Respectfully, Anthony S. Ravnik
Dear Chair Kama, Vice Chair U’u-Hodgins and Members of the Housing and Land Use Committee:
I own a condo at the Palms of Wailea and I am writing to oppose proposed Bill 9 to phase out short-term rentals.
I understand the imminent need for affordable housing and I’m truly impressed with all of the strides made just this year with new affordable housing options. Although the Mayor often says that “We can’t build our way out of the crisis” we are in fact addressing the issue in part with new construction projects that are much more appropriate options since the County can control rental costs. I do believe that some of the Minatoya List Properties would be affordable and immediate solutions, but overall the facts show that a total ban would do more harm than good.
Our condo—along with virtually every other condo in Wailea—was purpose build to be a second home and part-time vacation rental. As such, it pumps an extraordinary amount of money into the local economy and contrary to local narrative, most of it stays on island. A few examples of annual cost include: AOAO fees $15,844, Cleaning Fees of $10,894, Local Property Management Fees of $6,283, Electric Utility Fees of $5,464, Property Taxes $8847, Repair and Maintenance Fees of $6456, Supplies $1962 and Insurance beyond AOAO $654. Another extraordinary cost is our TAT/GET taxes of $19,986. In total we pay $83,000 a year in fees and this does not include the mortgage!
I do not consider renting our condo out for over $10,000 a month a very realistic scenario. Even then I would be barely breaking even. A much better scenario for Maui would be to continue renting it out short-term to the affluent travelers that Hawaii says it is targeting. The tax revenue, combined with our thousands of Wailea neighbors, will continue to lower local taxes and continue to pay for additional affordable housing.
Respectfully,
Jeff from Wailea