Update: Council panel recesses vacation rental deliberations until July 23

Update: The Maui County Council’s Housing and Land Use Committee reconvened its deliberations on Bill 9 at 3:43 p.m. Wednesday after a closed executive session that went on for more than six hours. Later, the panel recessed until 9 a.m. July 23.

The committee, chaired by Council Member Tasha Kama, began its much anticipated review and deliberations on Bill 9 at 9:04 Wednesday morning and went into a closed executive session to confer with County attorneys at 9:22.

After returning to open session this afternoon, Kama said the committee would “more than likely” recess until July 23. And that decision became final when she gaveled the meeting recessed around 4:30 p.m.

Bill 9 aims to phase out thousands of transient vacation rentals in apartment-zoned districts mostly in South and West Maui. If passed, the measure is expected to face legal challenges based on private property rights and the Fifth Amendment’s takings clause. 

A recording of the meeting can be viewed on YouTube by clicking here.

At its last meeting on June 25, Kama officially closed public testimony after more than 300 people spoke both for and against the bill, over the course of five days.

Chair Kama gaveled Wednesday’s committee meeting into session at 9:04 a.m. The administration of Mayor Richard Bissen has assembled a team to confer with committee members, including representatives from the Office of the Mayor, directors of the departments of Planning and Housing and an attorney representing the Department of the Corporation Counsel.

Following the initial 18-minute open session, the panel entered a closed executive session at 9:22 a.m. to confer with County attorneys. This followed comments from Council Members Yuki Lei Sugimura and Nohelani Uʻu-Hodgins, who asked for input from County attorneys in a closed session to address legal questions raised during public testimony about Bill 9.

The committee’s session Wednesday marks a switching of gears – from public input to deliberations with administration officials and among council members themselves. After emerging from its executive session, committee members are expected to debate the bill in open session.

If enacted, Bill 9 would significantly alter the landscape of tourism and housing on the island, potentially freeing up a substantial number of units for long-term residential use while impacting a thriving vacation rental sector of the visitor industry.

Proponents of the bill argue that the proliferation of TVRs in apartment zones has aggravated Maui’s severe post-wildfire-disaster affordable housing crisis, making it increasingly difficult for local residents to find homes. They contend that these units were originally designated for residential living and that their conversion to tourist accommodations has driven up rental prices and displaced residents.

However, opponents of Bill 9, including many property owners, small business operators, and tourism industry stakeholders, maintain that the bill would not solve Maui’s affordable housing shortfall. They’ve expressed dire concerns about the bill’s impacts on the island’s tourism-based economy. They argue that phasing out vacation rentals from apartment districts would lead to significant financial losses for property owners, reduce tourism revenue, and potentially lead to job losses in visitor-related sectors. Many also highlight the contribution of vacation rentals to the local economy and the flexibility they offer to visitors.