Meeting Time: June 09, 2025 at 10:00am HST
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Agenda Item

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)

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    Guest User at June 08, 2025 at 8:27pm HST

    I request that the Council follow the advice of the Planning Commission and exclude Papakea Oceanfront Resort from the scope of this Bill.

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    Guest User at June 08, 2025 at 8:26pm HST

    Aloha Chair, Vice Chair, and Committee Members,

    My name is Valerie Hudcovic, and I was born on Oahu and raised on Maui where my family has been long term residents. My brother and I were only toddlers when we moved to Maui, and at that time my father worked for an established construction company for Maui County. Our family expanded and my parents became first time home owners of a single-family home located on Halama Street in Kihei, Maui in the late 1960’s. Back then Kihei had no high-rise condominiums, apartment buildings and no hotels or resorts. There was the famous Maui Lu and lots of Kiawe trees, one elementary school (grade K to 8), and dirt roads through Wailea and Makena. As tourism increased, zonings began changing, and development of resorts, condos, and hotels began rising. Eventually pineapple and sugar cane fields became the past, and tourism has taken the forefront. Times have changed no doubt, and my family along with many other local families have had to adjust to these changes.

    When the zoning changes occurred in Kihei, our property was on the Minatoya list. The residential street where my siblings and I grew up on became a street of million-dollar homes and investments. Property taxes kept increasing and increasing. Families we grew up with eventually sold their homes and some could no longer afford the high property taxes. My father was a home builder and contractor who built many homes for our local families in Maui County. Both he and my mother owned their own construction business and helped families with building and buying their first home. So as these changes occurred in Kihei, our family adjusted. We did long term rental for years, and my parents worked extremely hard to maintain our Kihei property with long term rentals. When my father passed away in 2013, and my mother in 2011, adjusting was challenging. By this time our property taxes were extremely high. There were much more unfamiliar people in our neighborhood, and many more huge luxury homes and apartment/multiple dwellings on our street. There were out of state investors interested in our property but we were not interested in giving up on what our parents worked hard for. My siblings and I then decided to become a short-term rental property as we wanted to continue to sustain and maintain our Kihei property for our families and future families. We are fortunate to our parents who worked years to provide what we have. We are not by any means multimillionaires or out of state investors but working families who have lived in Hawaii all our lives and would like to continue to do so.

    The phase-out of short-term rentals will impact my family and also those families who we work with on a day to day basis to maintain our property. Our family’s short-term rental known as Al’s Paradise, depends on visitors who stay in short term rentals. We accommodate both out of state visitors and local visitors. Our local visitors come from neighbor islands for various reasons such as medical appointments, family reunions, special events/occasions, youth sports, church groups, and stay-cations. We even have Maui residents as guests. Some of our out of state visitors are often returnees who have had such a positive experience at our short-term rental as well as enjoying all the things Maui has to offer. We encourage our visitors to support and shop local in our restaurants, gift shops, and local venues. We also share about Maui’s culture, nature, ocean awareness and our personal experiences growing up on Maui with our visitors from all parts of the world. My brother lives on-site and is the host; one of my sister’s manages some of the book-keeping tasks; and my brother’s family provides our cleaning services. Our short-term rental is family-owned and operated. We all participate to some compacity and do utilize small local businesses to upkeep our property that includes plumbing, electrical, landscaping, construction, air-conditioning, pest control, tree trimming, and other services.

    Honestly, we don’t make huge profits operating our short-term rental but it does help us to sustain and maintain our property. In retrospect, we are a local family trying our best to sustain and maintain our property. During the aftermath of the Maui Fires, our short-term rental offered temporary housing to our emergency responders and others in need of temporary housing. We do our best to contribute to our community and economy.

    If this bill passes, it will not only impact our family’s ability to sustain and maintain our property but it will impact all those we employ that help us with operating our short-term rental with loss of jobs, income and services. And these are our local people who live on Maui and are trying their hardest to maintain and stay here.

    I feel this phase out of short-term rentals as described in this bill is just a short-term fix with no clear solutions or long-term projections. The cost of living and housing has been issues for years; not only for Maui but for our state. It would make more sense for Maui and our state to develop and build more affordable housing than to eliminate short-term rentals on the Minatoya list.

    I am opposed to this Short-Term Rental phase out, and I humbly ask that we don’t move forward with this phase-out. Let’s find other long-term solutions to support our local families and communities, protect our jobs, address housing, and support our economy.

    Mahalo for your time.

    Sincerely,
    Valerie Hudcovic
    hudcovicvtj@yahoo.com

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    Guest User at June 08, 2025 at 8:23pm HST

    I am a property owner at Kamaole Sands, which has been designated by Bill 9 to have short term rental rights terminated. I oppose Bill 9 for the following reasons.
    1. Nearly 99% of the condos on the list have a carrying cost of over $3,000.00. This makes the condos unaffordable to locals for long term rental.
    2. Most of the condos were designed for short term hotel style use. They lack parking, storage and amenities for long term tenancy.
    3. Over 40% of the revenue here on Maui is or can be traced to the transient tax (soon to be 19%); restaurants, shopping, small businesses, support employment positions, activities and services (including government positions and services. If these go away, it is not unreasonable to assume we will have less work, less people here needing housing and so our housing crisis is avoided by sheer volume of people no longer living here.
    Please use the resources to put an end to illegal short term rentals, which can then be utilized to accommodate the housing shortages.
    Respectfully,
    Debbie Barba
    2695 S Kihei Rd.
    Kihei, HI

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    Guest User at June 08, 2025 at 8:23pm HST

    Aloha Chair, Vice Chair, and Committee Members,

    My name is Cherri Gallison and my husband and I (and the Bank of Hawaii) have owned a short-term rental property in Maui County in Kahana for the last 3 years. I write today to voice our strong concerns and opposition to the bill you are considering that would phase out 7,000+ vacation condos, including ours. Please do not support this STR ban.

    We love Maui and consider it our second home. We spend 5+ months a year as active participants in our Maui community and rent to others when we are not in residence.

    Why did we buy this condo? Because we had been coming to Maui for years and fell in love -- with the people, the culture, the sea, the fish and fauna, the sun, the tradewinds, and so many wonderful places to eat fresh, fabulous food. Since the fire, we have endeavored to support our Maui community. We have spent hot, dirty hours digging out burned vegetation for Lahaina fire survivors property through Hands and Heart, participate with the Lahaina Restoration Foundation, offer our donation dollars to recovery, attend local events that raise up the community like the blessing of the new temporary Kamehemeha grade school, the Unity Gathering (such a healing time!), and we help rescue entangled sea turtles as trained volunteers. We shop locally and spend our own vacation and daily living dollars into the local community.

    Do you realize that this bill would decimate the people who keep our condo functioning? -- the local people-- those who manage the grounds (landscapers, electricians, plumbers, pool repair folks, roofers, window washers, the cleaners who do such a fabulous job of caring for our vacationing guests and ourselves, and more). Many of those who work for us have told us that if this STR ban passes, they could not financially afford to stay in Maui. And local shopkeepers have told us this STR ban leaves them sleepless at night wondering how they will survive as STR guests are their lifeblood.

    We rent to vacationers so that they can both enjoy the specialness of Maui and the North area and to be able, in our modest retirement, to afford to have and be in Maui ourselves. We endeavor to be responsible members of our Maui community by renting through a locally owned management company that employs locals and makes sure to recommend lots of local restaurants and tours through their concierge services. They actually boost the local economy by providing one free ticket a day to our guests such as a whale watch, sunset dinner cruise, guided tours and this stimulates our guests to add tickets for the other members in their party (smart marketing promotion for Maui businesses).

    Our guests have said they wouldn’t have come at all to Maui if they didn’t have a vacation rental option with a kitchen and the space our 2 bedroom condo allows for them to share time with family and friends. That matters — not just to me, but to all the small businesses they supported during their stay and matters to you as you consider what is best for Maui residents.

    Owning in this complex has not been easy, especially after the fire. We’ve faced huge maintenance costs, special assessments, and massive increases in insurance since the fire. The ocean salt is very unforgiving on our man made buildings -- in the three years we have owned the condo, we have had to replace our refrigerator twice, the dishwasher, our AC controllers, window hardware, furniture, and lots of plumbing fixtures, and that means we buy local and have local workers do the services. These aren’t luxuries — they’re costs that ensure the property remains safe, functional, and appealing. STR income helps us cover part of these costs while supporting local workers. Without this rental income, we would not be able to afford to continue owning this condo.

    I know that Maui is hurting especially after the fire for affordable housing for Maui's working residents but this legislation is not the answer. Our complex was built as a vacation condo not a year-round residence -- it has one small closet for storage, no pets are allowed, only one car can park in the lot per condo, there is no outdoor storage, and it is expensive to maintain. The mortgage, the lease, and the HOA costs to keep the complex and condo functioning would not be within a worker's budget and without STR income that supports the local workers, these costs are not sustainable in our budget either.

    And, as you know, STR condos pay the highest rate on taxes, even more than the hotels pay. This is a huge way that we personally (and all the other owners of condos on the Minatoya list) pay into the support of all the people who live and work in Maui. The loss of that taxation would be in the millions and be devastating to all Maui residents. The UHERO study put the loss of revenue from decreased tourism dollars at $900 million annually, the tax reduction at $60 million and even more sadly, 1,900 workers are projected to lose their jobs! Maui lost so much culture and life with the Lahana fire, it can not afford to lose the heart of Maui, its people.

    This legislation feels extremely shortsighted, unfair, and fraught with negative consequences and will surely produce unintended consequences that harm local workers rather than help them be housed. Not every vacationer wants to come to Maui and stay in a hotel. In fact, most do not, especially families and larger parties.

    I urge the Council NOT to ban Short Term Rentals for the Minatoya vacation condos. They were never built to accommodate workers. Instead, shutdown all those illegal rentals (they number in the thousands) that you somehow gave up on closing and return those Ohanas to local workers. And work with us, responsible Maui taxpaying condo owners who are also local members of the Maui community (like my husband and I), to find a fair and balanced path forward — a path that protects local jobs, continues to support the economy rather than damage it, and allows STRs so that owners can continue to pour back money into the local economy and support local workers. Phasing us out completely is not a viable, long term or even short term solution to lack of worker housing. Please vote against this STR ban and keep this terrible potential decision from destroying the community you and we know and love.

    You can make the right decision for all of Maui and do the right thing to keep local workers employed. They are counting on you. And so are we. If this STR ban passes, we will have to sell and say goodbye to our adopted heart community.

    Mahalo for your time and consideration.

    Sincerely,

    Cherri and Dave Gallison

    4531 Lower Honoapiilani Rd, Unit 17

    Lahaina, HI 96761

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    Guest User at June 08, 2025 at 8:20pm HST

    Kapalua Bay villas, Kapalua Ridge’s and Kapalua Golf villas were all designed to be used for short term rentals. They were never set up to be workforce housing. My property taxes as well as annual maintenance costs are more than $6000 a month and that’s does not including any mortgage payments. Even if I were to let someone live in my place for free, they would not be able to afford the monthly expenses, so it’s not practical for this to be used as affordable family housing. The Kapalua Resort was a master planned resort community designed for a short term rentals. It’s been that way for over 45 years. I would suggest that you use the hundreds of millions of dollars in tax revenue that you get on short term rentals to help built affordable housing for the families that need it. The mayor recently stated that his intention was to ban short-term rentals for properties that was designed for workforce housing which makes sense. However, Kapalua resorts was never designed for workforce housing and clearly does not fall under this category. Thank you for your time. Bob Berry

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    Guest User at June 08, 2025 at 8:15pm HST

    Please note that this input is in addition to the previously sent input which may not have included the comments below.

    The STR proposal:
    - may not assist Lahaina fire victims, as it is not even to take effect until 2028 or 2030
    - has SIGNIFICANT economic impact on Maui tourism
    - may not be affordable to many/most tenants (given HOA fees, property taxes, etc.) if enacted
    - "apparently" is opposed by 68% of the Maui voting community
    - is currently impacting the ability of owners to sell apartment zoned units, the ability of Realtors to assist in purchases/sales... all due to the uncertainty
    - was apparently not very urgent in the Mayor's eyes, given that it took him until December 20, 2024 to file the paperwork (SEVEN months after proposing it (May, 2024)
    - has not been able to see the results of the proposed economic study (to be completed by October, 2024), given that the Ts and Cs could not even be agreed
    - has SIGNIFICANT impact on the Maui budget (GET, TAT, property taxes, etc.)
    - has a variety of other thoughts that I can't relate to you right now due to traveling... but none of those thoughts are in support of this proposal.

    In short, it is difficult to see any real benefits to Maui County that will outweigh the negatives. FYI, it seems to be politically motivated to appease or benefit a minority of Maui citizens.

    I urge you TO NOT SUPPORT THIS PROPOSAL... it is simply not logical to many people that have heard about it... residents, voters and visitors.

    Best regards and aloha,
    Steve Fuller
    (808)23-2420

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    Guest User at June 08, 2025 at 7:41pm HST

    Dear members voting on this proposal:

    Have you seen the images in the news recently with Elon Musk jumping around the stage with a chainsaw signifying his attempts to cut government spending via DOGE? First, he promised 2 trillion dollars in cuts, then 1 trillion, then $150 billion (ironically what he lost in value in one day with his Tesla brand after he tangled with Trump), and now we're hearing reports of negligible savings, and maybe none. Why didn't it work? Because it wasn't planned out. Most of us agree that government spending is full of pork that could use cutting, but it's HOW you do it that really matters!

    Bringing this closer to home, most of us agree that affordable housing needs are great on Maui. A significant reason is that our state has the highest property values in the USA. Yes, even higher than California and New York. But this is NOT because of an extra nearly 7,000 STRs on the Island. Yet, the Mayor makes his proposal to just ban all of them except the few that are zoned as hotels. This is overkill. Just like Musk firing entire staffs of workers in agencies in the Federal government. Think, UNPLANNED, INEFFECTIVE, OVERKILL!

    Let me explain further. One of the Mayor's arguments is that 85% of the ownership of these STRs are off-island and why should they get two or more homes when people here can't afford one place to live? So he's demonized these owners and helped plunge the property values of ALL owners of condos on Maui. But hold on, even his office admits that 15% are locally owned. That's OVER 1,000 UNITS that he wants to also ban. I guess he doesn't really care about the local population and would rather take away their property rights, too, while he's at it. Your retired Auntie, who can only afford to live here because she owns a vacation rental, could be out on the street. Apparently, the Mayor doesn't care, because if he did, there would already be a provision for an exemption for local owners. A simple test: show your Hawaii driver's license or that you're registered to vote here, and you don't have to be forced to fall under the OVERKILL of his proposal. I'm not seeing this exemption being announced. Why is that? Again, THE 15% OF THE NEARLY 7,000 UNITS SHOULD BE EXEMPT FROM THE BAN If we really care about the well-being of locals. Let me just throw this in here as well. It's obvious that the Mayor doesn't live on the south side. Because if he did and drove the highway here every day, he'd see all the abandoned, junked vehicles piling up here. Respect the Aina? Make it a wonderful place for us to live? Apparently, removing rubbish polluting our environment doesn't fall under his ability to do his job.

    Moving on, the Mayor has been making the point from the beginning that he just wants to return the WORK FORCE housing to its original use. Ok, fair enough. If that's truly his intention, THERE SHOULD BE A REQUIREMENT THAT IN ORDER TO BAN SHORT TERM RENTALS OF A CERTAIN COMPLEX, PROOF MUST BE PRESENTED THAT THIS WAS INDEED WORKFORCE housing. If not, move along, Mayor. You're engaging in more unplanned overkill, and providing a false rationale that doesn't apply to our small little one or two-bedroom places near the beach. There are hundreds of them for sale RIGHT NOW (thanks to you, Mayor!) Why aren't they being snapped up now if these are our housing solution? Let's be real here. Everyone knows that these units are NOT well-suited and way too expensive to offer any meaningful help. Thanks to the fires here and hurricanes in Florida, the insurance premiums have gone up sometimes tenfold, and the HOAs for these places have doubled to $1100 to $2000 a month or more. Locals in need of housing won't be able to afford to live here, even if they rent. First, STR owners had to live through and deal with COVID, then the devastating fires, and now, the Mayor! 

    In summary, 1) WE NEED AN EXEMPTION FOR LOCAL OWNERS, and 2) PROOF MUST BE PRESENTED THAT THESE WERE WORKFORCE HOUSING UNITS, BEFORE THEY ARE SUBJECT TO ANY BAN ON USAGE!

    Let me repeat this again for those skimming these hundreds if not thousands of comments: 1) WE NEED AN EXEMPTION FOR LOCAL OWNERS, and 2) PROOF MUST BE PRESENTED THAT THESE WERE WORKFORCE HOUSING UNITS, BEFORE THEY ARE SUBJECT TO ANY BAN ON USAGE!

    Another point worth mentioning. I hear people argue, we want less tourism and just the visitors who can really afford to come here. That's the illusory plan that balances this all out and avoids any issues when there are less STRs here. NEWSFLASH: We already have this NOW! Only the rich can afford to come here now, and thanks to Trump offending Canada and practically every other foreign country but Russia, people aren't coming here as much as they used to. When they do come, they usually stay longer than a few days, and these people WANT a place with a kitchen, their own full-sized fridge, a place similar to home so they can relax and enjoy their stay. Like it or not, these STRs are providing a SERVICE to MAUI, and the Mayor doesn't understand this. We should be grateful for this! These rich people are coming here now! They are those 85% out-of-state owners the Mayor is demonizing! They spend lots of money when they come here and even when they don't when they have to fix up their places, or pay for plumbers or appliance repairs or cleaners. Let's anger them, take away their property rights, and see how happily they'll want to sell or rent their places out to those who need affordable housing. That's the Aloha spirit!

    So much of what this Mayor is doing is misguided. Even the new temporary (or are they permanent?) residences across from Zippy's in town are future slums being created in front of our eyes, under his watch, while empty shopping center space could have been converted instead. There are no well-planned solutions here. Just more UNPLANNED, INEFFECTIVE, OVERKILL!  To be honest, this is an embarrassment waiting to be compounded if this is allowed to pass.

    Here's hoping that anyone voting on this reads this before the chambers get packed on Monday with the red shirt Lahaina Strong handout artists. Please wake up! Thanks for wading through this. It kept me up last night worrying about it needing to be said and realizing that testifying in person wouldn't provide this opportunity. I remain anonymous because I don't want the intimidation and blowback from the community that wants this to pass. Just call me, KAMA'AINA STRONG!

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    Guest User at June 08, 2025 at 7:27pm HST

    I am aware of the housing issue on Maui and the state of Hawaii.
    The solution to this issue will not be to take away permits for legal vacation rentals like the ones on the Minitoya list.
    The tax revenue that these units generate is actually used to build affordable housing.
    The short term rental units will not provide the much needed affordable housing opportunity as most of them would need $4-5K to break even in monthly rent.
    The focus needs to be on building affordable housing units, with multiple parking stalls and a set up that is meant for long term renters.
    Thank you

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    Guest User at June 08, 2025 at 7:24pm HST

    Testimony in Opposition to HLU-4 Bill 9 (2025)

    Aloha Chair, Vice Chair, and Esteemed Council Members,

    My name is Randy Carpenter, and I am writing to express my strong opposition to HLU-4 Bill 9 (2025), particularly as it pertains to the island of Moloka‘i.

    My wife and I were introduced to the beauty of Hawaii over 12 years ago during our honeymoon on Moloka‘i—a gift from my brother-in-law and his wife, who generously shared their condo with us. A year later, we had the opportunity to purchase that same condo and have proudly maintained ownership ever since.

    Over the past 12 years, we have consistently invested in our property and the local economy. We’ve hired island labor for renovations, purchased materials and appliances from Hawaii-based businesses, and regularly utilize local services such as vehicle maintenance, cleaning, and repairs. We also support nearby grocery stores, pharmacies, restaurants, and use inter-island airlines including Hawaiian Airlines, Mokulele, and Kamaka Air.

    Our ability to offer our condo as a short-term rental has not only allowed us to sustain these contributions but also supports a wide ecosystem of local employment, trades, and businesses that depend on visitor spending. The ripple effect of this activity helps to build and maintain healthy, sustainable communities.

    Crucially, the demand for long-term rentals of 1- and 2-bedroom condos on Moloka‘i is limited. Applying a one-size-fits-all approach by including Moloka‘i in this legislation overlooks the unique economic and housing landscape of the island. HLU-4 Bill 9 could impose significant and unnecessary harm on Moloka‘i’s economy without meaningfully addressing the housing challenges it seeks to solve.

    We believe this legislation—if passed as written—will create long-term economic damage not only to property owners but to the many people and local businesses who rely on the vibrancy of responsible short-term rentals.

    For these reasons, I respectfully urge you to oppose HLU-4 Bill 9 (2025) or, at minimum, exempt Moloka‘i from its provisions.

    Mahalo for your time, service, and thoughtful consideration.

    Respectfully submitted,
    Randy Carpenter

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    Guest User at June 08, 2025 at 7:20pm HST

    Aloha!
    I oppose the proposed bill as drafted, although I do acknowledge the acute need for affordable housing for our residents. If implemented,
    1) This bill will not create AFFORDABLE housing.
    The current AOAO monthly fees for a 1bd/1ba unit in one of the condos on Minatoya list, ranges from $1002.47 at Kahana Sunset to $2005.00 at Kahana Reef. This monthly payment is the equivalent of a $200,000 to $300,000 mortgage, at 6% interest rate. Is it worth taking on such debt, on a unit in a building that is at least 45 years old and that is bound to require retrofitting and upgrading all its components?
    2) This bill will further damage the economy. Most of the revenue of the local residents derives from tourism. Can we afford to lose more businesses than we have already lost? Many fire victims depend on income deriving from tourism. This bill is punishing them, intentionally. At a very minimum, you should consider areas that have been historically destined for tourism ( Kapalua, Ka'anapali and Wailea) to be exempt from this bill.
    3)This bill is a simple way out, that relieves the County and State government from their responsibility to create affordable housing. It is the duty of our elected officials, along with all the County Directors that now make more than $300,000 per year to put in REAL EFFORT to solve the affordable housing crisis. Why are these responsible parties offering our residents old buildings that will require significant investments to maintain or need to be protected from shoreline erosion?
    Please vote with a clear mind, considering ALL the consequences on ALL your constituents. You can not fix a wrong thing, by doing another wrong thing.
    Respectfully,
    Mihaela Stoops

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    Guest User at June 08, 2025 at 7:15pm HST

    This will seriously harm Maui County’s economy and will not accomplish the goal of providing suitable and affordable housing for locals.

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    Guest User at June 08, 2025 at 7:02pm HST

    Please consider my testimony in support of the short term rentals ban. There is a HUGE shortage of affordable housing for residents on Maui. This problem was made worse with the fires in Lahaina and Kula. Everyday I see or hear of people looking for places to rent. There’s so much inventory that could be rented out to residents vs being on the market for Airbnb or VRBO. Please help open up the market to those truly in need of a place to live

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    Guest User at June 08, 2025 at 6:58pm HST

    Aloha my name is Sharon gonsalves-
    I stayed in a Minatoya list (Kihei garden estates) unit for about 8-9 months before getting moved again by FEMA it was a great experience there/ in that unit. One of my friends is currently in that unit now. Please support this bill so there can be housing for people in need , esp the people of Lahaina .

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    Guest User at June 08, 2025 at 6:57pm HST

    I own at the Papakea Resort and am asking for the city council to exclude the Papakea from Bill 9 because its original intended use was for short term rentals which is why investors purchased at this resort. The 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. The fact is, it makes no economic sense to force Papakea owners to rent to long term tenants because an extremely high percentage of prospective local tenants looking to rent an apartment couldn’t afford to rent at the Papakea anyhow. The HOA dues alone push the majority out of the market. If this bill were to include the Papakea, the units would just sit vacant except for the occasional snow bird who rents 30+ days a year annually on Maui to get away from their winter weather in the states. Snow birds are not the intended benefactor of this legislation.

    Please exclude the Papakea from Bill 9 legislation and just continue to collect the transient tax revenue. The focus of this legislation should be on apartment/condo/home owners in residential neighborhoods that short term rent…not in resort communities. It makes no sense to risk litigation if city government chooses to include the Papakea as an apartment.

    Concerned Papakea Condo owner

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    Guest User at June 08, 2025 at 6:54pm HST

    Testimony of Colin Haubrich Regarding the Phasing Out of Short-Term Rentals in Maui County

    Dear Maui County Council Members

    I’m writing regarding the proposed short term rental ban. If enacted it will cause severe economic harm. Hundreds of people will lose their jobs and dozens of businesses will close. Please read my letter below which explains the reasoning behind my position. When it comes up for a vote, I fervently request that you vote NO on the STR ban.

    Thank you for taking the time to consider the following:

    My name is Colin Haubrich, I along with my wife own a short-term rental unit at Luana Kai in Kihei.

    The city council should recommend that the proposed bill to ban short-term rentals be REJECTED. Eliminating over 7100 short-term rental units would result in severe economic harm to the residents and businesses of Maui.

    Our major concern is for the well-being of Maui businesses and residents. Many Kihei area businesses will be forced to close their doors resulting in increased unemployment. I’m concerned that my cleaners and handyman who support many of the condos in Kihei that will be immediately out of work and whom we have befriended over the past 5 years. I think of Ulani’s shaved ice which caters to many of the tourists that stay in Kihei and is lined with tourists every afternoon. I reflect on the current visitors who are directly asking us for recommendations for dive trips, snorkeling, or baby rental products that solely exist to support tourists staying in short-term rentals.

    Please consider the fact that many of these business owners have worked for years to build their businesses. Many have risked their entire life’s savings and/or taken out large loans to start their business (particularly restaurant owners) and most have and signed multi-year leases for their storefronts. Those owners are “on the hook” for the loan payments and the lease payments. If the short-term rental ban goes into effect, many resident business owners will be “wiped out” and their lives completely ruined.

    We are sympathetic to the need for more housing in Maui, however, Short-Term rentals are not an “affordable” or “practical” solution. Our condo fees are $1140/month alone, add to that the mortgage, insurance, and taxes the cost is over 4k/month. We have no storage, no assigned parking space, no elevator, and pet restrictions.

    To contrast that cost, our 2-bedroom condo in 2024 generated over 34k in Taxes that directly support the Hawaii and Maui Economy:

    $13,672 in TAT
    $6,002 in GET
    $4,000 in Maui TAT
    $11,017 in Property tax

    This is just from our one condo, it’s estimated that STR’s generate 37% of the real property Tax revenue and 15% of the total operating budget. ⅓ of travelers to Maui stay in vacation rental properties due to the convenience and flexibility they offer. They shop locally and support the many businesses that depend on them in our community.

    Maui County earnings would decline by $747.7 million, seriously comprising the well-being of our county and are the #1 funding source for the Maui Affordable Housing Fund.

    The loss of real property tax revenue, as well as general excise and transient accommodations tax revenue, will be significant and quite possibly “the beginning of the end” for Maui.

    Thank you for carefully considering the likely impacts and devastating scenarios that would inevitably ensue if the elimination of LEGAL Transient Vacation Rentals in A-1 and A-2 Apartment Zoning Districts were to take place. Banning STRs will not solve this problem and will only create more victims.

    Possible Solutions May Include:

    Conduct regular studies to find out just how much housing is needed and adjust goals accordingly
    Fire victim housing should be prioritized, especially if owners are being paid for housing without the FEMA victims in place.
    Continue to build more affordable housing and streamline the permit process so it is easier and much more expedient.
    Hotel tax rates should be raised.
    Open Haggai International Facility housing in Kihei as soon as possible (this includes 175 furnished units) and was supposed to open in May.
    Allow for camper/motorhome parks
    Fast track the temporary housing clusters that were put up all over town that have been at a standstill for over 6 months
    Get creative with Queen Ka’ahumanu Center and/or other commercial properties that are going bankrupt to expand housing options for our residents
    Go after the illegal vacation rentals with the mandatory fines that are already set forth as well as permanently banning anyone caught operating an illegal vacation rental from ever operating a legal vacation rental.
    Set up proper consequences for those not paying their GET/TAT/MCTAT, property taxes, Hawaii state taxes, federal taxes, etc.
    Offer attractive incentives for those owners who choose to switch from short-term to long term.

    Thank you for your commitment and dedication towards expanding housing options for residents while also carefully considering the broader economic and social impacts as well as all the legal, financial, and community implications. I am confident that the Maui Planning Commission will make a well-informed decision that serves the best interests of our community at-large, including the effects on fire victims, our local businesses, and the livelihoods of those dependent on vacation rentals.

    Sincerely,

    Colin Haubrich
    Luana Kai, Unit B313/A205
    940 S Kihei Rd, Kihei, HI 96753
    colin.haubrich@gmail.com
    408-425-8328

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    Guest User at June 08, 2025 at 6:41pm HST

    Hello we own a condo in Kapalua.. My wife and I strongly oppose the proposed phase-out of short-term rentals in apartment-zoned areas. Prior to purchasing a home in Maui we supported the local economy by visiting Maui for vacations. We continue to visit Maui for several weeks as tourists year supporting the local economy n our trips. While we love visiting the island, If this proposal passes we will not be able to visit the island as often. We feel the current proposal and lack of clarity on this matter is negatively impacting local businesses, our friends that live on Maui, and the affecting the island vibe. The uncertainty around this proposal and the possibility of it passing is negatively impacting tourism. We do not feel the proposal will help the stated goal of providing affordable housing for working families. Instead it will continue to negatively impact the local economy, which needs tourism to grow and thrive. Many families will no longer stay in Kapalua if the condos are no longer available for short term rentals. They provide a much more affordable option than the two main resort options (The Montage and The Ritz Carlton).

    The proposal is especially unfair to condo owners in Kapalua. These properties were never designed or intended to provide affordable, working class housing. It is very obvious this a resort community, where tourists come to play golf and enjoy the beaches. It seems completely unrealistic for the properties at Kapalua Bay Villas to be an option for working class families due to the high monthly maintenance costs, HOAs, and property taxes. If they were given the property at zero cost most local workers could not afford the costs that come with owning these properties. Also most of the properties do not have adequate storage space and parking for families. We do support the goal of providing more affordable housing for Maui residents and working class families. We just believe this proposal does not make sense.
    Please vote against this proposal so that we can turn our attention to other more realistic options towards the stated goal of increasing affordable housing, while also supporting tourism and the local economy in Maui.

    Thank You,
    Michelle and Amit Roy

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    Guest User at June 08, 2025 at 6:39pm HST

    Aloha,

    We offer wholehearted support for Bill 9 and the plan to ban short-term vacation rentals in apartment zones. The Minatoya exception should not be allowed to continue any longer. In particular, the 8 condominiums in Ma'alaea which are all apartment zoned but currently allowed to do short-term rentals, are well suited for workforce housing. Ma'alaea is centrally located and offers decent commute times to West Maui, Wailuku or Kahului. Most of the condominiums have generously sized 1, 2 and 3 bedroom apartments and boast on-site storage. All offer off-street parking, and the public transportation available at the harbor (an easily walkable distance away) even makes doing without a vehicle a possibility. Most of the condos in Ma'alaea in the recent past had a mix of homeowners, long-term renters, and snowbirds who spent many months in their apartments, and contributed to the local economy and community endeavors. Only in the last several years has there been more of a shift to short-term rentals; with investor owners who are sold the vacation rental jncome pitch by realtors and see a lucrative business opportunity, not a residential community or home away from home. Please pass Bill 9 and remove the short-term vacation rental exception from these apartment zoned buildings. They are apartments, not hotels or resorts. They are apartments with more square footage than most in big cities on the mainland; where people rent or own, work and manage to live in studios, one and 2 bedrooms just fine. Many investor owners are disengaged from the workings of their HOA, and that is one reason some condos have inflated maintenance fees. Noone is keeping an eye on the bills and investors just raise the daily rate charged to tourists if their fees go up. Removing the short-term vacation rental option will likely lead to more engaged owners, and more brainstormed solutions to reduce fees.
    Please begin as originally proposed, and put Bill 9 into effect as soon as practicable.

    Mahalo for your time.

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    Guest User at June 08, 2025 at 6:31pm HST

    Two of our biggest problems here on Maui are a lack of housing (made worse by the Lahaina fire) and Over-Tourism. Taking any short-term rents and converting them to long-term housing for existing Maui residents can only help us

    Stephen Beidner, Kula

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    Guest User at June 08, 2025 at 6:31pm HST

    I oppose this bill. It will do nothing to improve Maui’s economy.

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    Guest User at June 08, 2025 at 6:27pm HST

    Aloha Council Members,

    Mahalo for taking the time to read my testimony.

    I recognize the proposed bill is controversial, with two distinct voices and groups coming through.

    The first sees vacation rentals as the main cause of the lack of affordable housing here on Maui, and that we as a county and state have prioritized tourism over our local residents. I don't disagree with this. We have an affordable housing problem.

    The second group is comprised of those who are concerned about the economic impact on their livelihoods and those of the small local businesses, shops, restaurants that employ many of our residents, if the county repeals the ability to rent over 7000 properties as transient accommodations under the current county code.

    I want to be very clear. I support affordable housing here on Maui, both in the short term and with long term planning.

    However, my concern with the proposed bill is that it is not economically viable as written, unlikely to have the desired result of creating affordable housing, and it is too broad in scope. Property taxes are one of the main sources of funds for the county budget, so that needs to be considered as well.

    There have been several statements from government officials and publicized in articles that need to be clarified.

    The mayor and governor have both referred to “illegal rentals” in residential areas, and when presenting this bill, the Mayor emphasized that it is important to return buildings that were originally designed as workforce housing back to their original use.

    It is important to note the following:
    1. LEGAL VS ILLEGAL RENTALS:
    All of the properties in question under this bill are able to legally operate under the current county code Chapter 19.12.020.
    2. WORKFORCE HOUSING
    The scope is too broad and targets properties in resort areas that were never designed to be workforce housing. As far as I know, the county has not published a list of properties that started as workforce housing, and instead provided a list of all properties that are in the Apartment zone built prior to 1989.
    3. RESIDENTIAL AREAS
    These properties are not necessarily in residential areas. Several are in areas designed for tourism that are in designated resort areas, like Wailea, Kaanapali and Kapalua. If the goal is to keep rentals out of local neighborhoods, shouldn’t STR properties then be restricted to operate in the master planned resorts of our community plan?
    4. TAXES
    The Mayor said in a community meeting that it was time to make these properties that have been renting pay the hotel tax rate. This is misleading and incorrect. All of these properties are taxed at the highest and best use, which is the STR Rate and not the hotel rate, which is actually lower.

    Rates (2024-25)
    Hotel & Resort $11.75
    Short Term Rental $12.50-$15.00

    There are several reasons why the proposed bill is unlikely to have the desired result of creating affordable housing.
    1. By the very nature of the bill, all buildings that operate as legal vacation rentals under the current county code are 35 years old or older and were operating as rentals prior to 1989.
    This equates to aging infrastructure, high maintenance and reserve fees, and a legal requirement to maintain the common areas. This also can mean large special assessments to maintain those properties.
    When the bill was proposed, many AOAOs had not yet renewed their insurance policy in the wake of the fire. Once renewed, many found their policies had increased dramatically, both in terms of the rate and also the amount of coverage needed. One such condominium neighborhood found its insurance premium increased from $160,000 to $1,200,000. This resulted in a special assessment on top of maintenance fees ranging from $5624 to $8955 for one and two bedroom units on top of their maintenance fees.

    2. If the goal is to keep tourism out of local neighborhoods, wouldn’t it make sense to allow vacation rentals in the designated resort areas of Wailea, Kaanapali and Kapalua?
    These resort properties have the highest valuation for STRs in the apartment districts and pay the highest property taxes.
    The Chart below shows that among the highest property tax contributors in the Apartment zone are Kapalua Bay Villas, Wailea Ekahi, Palms at Wailea, Wailea Ekolu, Kapalua Ridge, Kapalua Golf Villas, Grand Champions and Hale Kaanapali.

    https://mvra.net/Maui-Vacation-Rental-Statistics

    Further, if these properties are no longer short-term rentals, they would then switch to considerably lower rates if purchased and sit empty. Additionally, the county would not collect the MCTAT, TAT, MCGET & GET from those nightly rentals, which tend to be higher than a long-term rate.

    3. In the resort areas here are the price ranges currently of properties in the apartment zones (data pulled from Maui MLS 6/8/25). These exceed affordable housing guidelines for purchasing a property. Additionally, they have high maintenance fees, which do not include electricity and will exceed Affordable Housing Guidelines if there is any mortgage on the property. As such, even if rentals are banned and prices drop, the likely outcome is that they will be bought by a property owner who does not use the property full-time and leaves it vacant. This will negatively impact small local shops and restaurants that survive on tourism. The only benefactor here would be the big hotels, which are owned by Multinational Corporations.

    Area Price (Lowest) Price (Highest) Maintenance Fees (Lowest) Maintenance Fees Highest) Lease Rents
    Wailea
    1B $899,000 $1,685,000 $850 $1,819
    2B $1,188,000 $2,995,000 $1,098 $3,231
    Kaanapali
    1B $699,000 Leasehold $999,000 $1,762 $2,528 $674-683
    2B $1,290,000 $1,499,000 $1,420 $2,528
    Kapalua
    1B $999,000 $1,900,000 $1,102 $1,517
    2B $1,500,000 $3,699,000 $1,376 $2,580

    Affordable Housing Purchase Price (low to high) for people earning 10-140% of median income, 6.5% interest rate
    1B $135,000 $379,000
    2B $164,000 $623,875
    Affordable Housing Guidelines (low to high, include utilities)
    1B $208 $2,909
    2B $249 $2,490

    Source: https://www.mauicounty.gov/DocumentCenter/View/146501/2024--28-Affordable-Sales--Rental-Guidelines

    It makes sense to take a much finer approach to the proposal in the bill and exclude the resort properties, as well as any with excessively high maintenance fees/lease rents that would exceed affordable housing guidelines. The County Council needs to assess whether or not a property is truly affordable both in terms of the maintenance fees and price ranges (i.e. mortgages) and if it was originally workforce housing.

    The Mayor has indicated in a Wailea Community Meeting that those properties that operate as hotels/resorts should apply for a zoning change. If the County were to exclude the resorts of Wailea, Kaanapali and Kapalua, they should streamline the process for these properties zoned Apartment to update their zoning. From what I understand, this process is incredibly expensive and takes years. This should be an automatic rezoning to Hotel.

    I was born here, grew up in Makawao, and have lived and worked in West Maui since returning home from college more than thirty years ago. The fires destroyed the homes and businesses of many friends, as well as the homes where my parents, cousins, uncle and grandma lived many years ago. My heart aches for our community, and I hope we can find a solution that allows us to heal and rebuild.

    I do not own a short-term rental. I do work in real estate, and I mention it because it gives me a background on the fees involved in owning some of these properties, which I do believe need to be considered if attempting to create truly affordable housing.

    I have heard the argument that these properties aren’t suited to long-term living and I do disagree with that point. I have lived in some of these resort condominiums, including Lahaina Shores and Kahana Reef, both for several years. It worked for me as a single person without a pet, but I had only one car. There would have been no way to accommodate a second or third car and there was no reliable extended on-street parking.

    We do need to create truly affordable options for our community with on-street parking, sidewalks and parks for our children to play in, like Kahoma Residential https://www.habitat-maui.org/kahoma/

    I’ve watched with concern as the County Council and Planning Commission has turned down affordable housing projects. Most recently, Pulelehua, has not moved forward due to concerns about water, while at the same time the County Council & Planning Commission are considering large scale luxury developments in Wailea and Makena.

    Perhaps one part of the solution is a moratorium on any new luxury resort subdivisions until there is enough affordable housing built for our local residents.

    I also firmly believe that should Pulelehua move forward, it should not be 100% rental. Owning our own home is how many of us, myself included, build equity. Creating an island with only rentals will deny our residents the opportunity to build security and allow them to pass along homes to future generations.

    Another would be to provide greater tax incentives to owners within the STR Rate Properties to lower their taxes, either by providing a greater credit or reducing the Long Term Rental Rate further.

    Yet another option is in the rebuild of the commercial aeras of Lahaina. It would be wise to incentivize businesses to rebuild their commercial areas on the first floor, with residential units above.

    All people who live here on Maui should be able to afford housing and be paid a living wage. If we, as a community, want to move away from tourism, then we need to identify businesses that could replace that sector of our economy and provide education, services and economic opportunity to support that growth.

    Mahalo,
    Courtney Brown