The contentious debate over the future of thousands of short-term vacation rentals in Maui County is heading to a much-anticipated public hearing Monday, June 9, before the Maui County Council’s Housing and Land Use Committee.
The committee posted an agenda for a meeting beginning at 10 a.m. Monday in the Council Chambers on the eighth floor of the Kalana O Maui Building in Wailuku. If past attendance at Maui Planning Commission meetings on the same issue are any indication, then overflow crowds can be expected.
Mayor Richard Bissen, who introduced Bill 9 more than a year ago, is scheduled to provide opening remarks before the Housing and Land Use Committee on Monday.
As introduced the vacation rental phase-out bill would eliminate about 7,000 such visitor accommodations in apartment-zoned districts. The measure aims to reclaim much needed resident housing in apartment areas where thousands of units provide vacation accommodations to visitors – most often at prices higher than long-term rentals.
Adding new wrinkles to the already heated debate are Committee Chair Tasha Kama’s proposed bill amendments. One would delay the implementation of the phase-out until July 1, 2030. Another would exempt validly existing time-share units or time-share plans from being phased out. And a third would require the director of the Department of Finance, with the assistance of the Department of Planning director, to provide notice to appropriate real property owners of the uses being phased out and other relevant information.
Regarding the proposed amendment for time-share units, Mayor Bissen’s bill and Kama’s version treat timeshares the same, according to Laksmi Abraham, Maui County director of Communications and Government Affairs.
“Chair Kama’s draft explicitly excludes timeshares, while the Mayor’s version does so implicitly by leaving existing timeshare provisions unchanged,” she said. “Our administration is open to incorporating clarifying language similar to Chair Kama’s, should the Council find it appropriate.”
She pointed out that the proposed amendments to Bill 9 include a three-year amortization period. “This also provides ample time for properties that with to continue operating as transient vacation rentals to pursue rezoning as a hotel,” Abraham said.
Mayor Bissen said there are costs to Maui’s community for failing to take action to address the housing needs of local residents.
“We often talk about the economic impact of change, but we rarely talk about the cost of doing nothing,” Bissen said. “The real loss isn’t measured in dollars — it’s in the families forced to leave, the cultural ties we weaken, and the future we risk for our keiki.”
“As mayor, my responsibility is to put the greater good of our people first,” he said. “Housing is not a speculative asset — it’s a basic human need. When our residents become outsiders in their own neighborhoods, we have a moral obligation to act.”
If passed as originally proposed by the mayor, Bill 9 would mean that thousands of vacation rental units in Maui County – many operating for years under grandfathered legal status – would no longer be permitted to operate as short-term accommodations. These units predominantly operate in apartment-zoned areas in South and West Maui. Bill proponents argue that the apartment-zoned housing is needed for residents, especially after the August 2023 wildfires wiped out 2,200 structures, many of which provided long-term rental housing.
Abraham underscored the Bissen administration’s strong support for the bill.
“Maui County is facing the most severe housing crisis in its history, and Bill 9 represents a meaningful step toward rebalancing our neighborhoods and reclaiming homes for local families,” she said. “This bill does not replace existing efforts — it strengthens them by addressing a root cause of the crisis using tools already in place.”
The proposed short-term rental phase-out has sparked intense debate on both sides of the issue. Residents, struggling with a severe housing shortage and soaring costs, see the bill as a step toward quickly gaining much-needed long-term housing without the time, expense and infrastructure impacts of building new housing developments. They contend that the proliferation of vacation rentals in apartment districts has exacerbated the housing crisis, pushing kamaʻāina out of their own communities.
On the other hand, many vacation rental owners view the measure as a threat to their investments and, for some, vital retirement income. (About 85% of Maui vacation rental owners have out-of-state mailing addresses, according to a June 2024 University of Hawaiʻi Economic Research Organization blog.) They argue that these units, often in decades-old complexes with smaller studios or one-bedrooms, are not well-suited for long-term residential living. They also say vacation rentals provide significant economic benefits, such as nearly 2,000 jobs for Maui residents. Owners also highlight their long-standing legal right to operate and raise the possibility of drawn out legal battles.
At the end of March, UHERO released a long-awaited study forecasting mixed results and widespread impacts from the phase-out bill if it were enacted as originally proposed. The report projected an increase in long-term housing stock equivalent to a decades’ worth of development and a potential decrease in condominium prices by 20 to 40% because of downward economic pressure. But the report also warned of a significant reduction in visitor spending, job losses, and decreased tax revenue. UHERO’s analysis estimated a possible $900 million annual drop in visitor spending and the loss of approximately 1,900 jobs.
Abraham said the Bissen administration understands economic concerns and is prepared to introduce tax policy adjustments to help offset any potential impacts.
“At the same time, the County is working to rebalance our economic dependence on tourism by diversifying the workforce into sectors such as healthcare, education, agriculture and technology,” she said. “Bill 9 is a key part of Mayor Bissen’s broader housing strategy — from expanding unsheltered services to increasing affordable and market-rate housing — the bill is aimed at restoring fairness, protecting residents and preserving the integrity of our communities.”
The Realtors Association of Maui has formally opposed Bill 9, urging a more “balanced approach” to the housing crisis. The association expressed concerns about property rights and the potential negative repercussions on Maui’s economy, advocating for alternative solutions.
Recent market data indicates that the uncertainty surrounding the proposed legislation may already be impacting the real estate market, particularly for condominium units. Reports show that condominium sales prices in Maui County have shown a significant drop over the past year as owners and potential buyers await the Council’s decision.
For instance, the median price for Maui condos reportedly fell nearly 25% from April 2024 to April 2025, from $962,500 to $727,000, with a nearly 70% increase in the number of condos listed for sale during the same period.
A more updated report by the Realtors Association of Maui for the month of May shows the median sales price for condos dropped 10.3% from $850,000 to $782,500. New condo listings went down 33.9% from 221 to 146 units. However, pending sales increased 14.8% from 54 to 62 for the month.
The agenda for the upcoming Housing and Land Use Committee meeting can be found here. It includes a hyperlink to a report from the Department of Planning.
How to participate:
