Phase out transient vacation rentals to phase in new opportunities
By Gabe Johnson
On Tuesday, the Maui Planning Commission discussed a bill to phase out transient-vacation rental use in apartment zoning districts.
So, it might seem like I’m copying and pasting from their agenda if I said, “the purpose of the bill was to clarify the intent of the Apartment District for long-term residential use.” But that language isn’t from a meeting held this week—it’s from a 35-year-old council committee report.
In 1989, the council passed a bill to remove transient vacation rentals from the apartment districts, enacted as Ordinance 1797. In recommending the bill’s passage, Planning and Land Use Committee Report 89-56 cited concerns with “attempts in the West Maui and Kīhei areas to convert long-term residential units to transient accommodations.”
At the time, the Maui County Council voted to “ensure the intent of the Apartment District for long-term residential uses,” as recommended by the Maui County Planning Commission, prohibiting motels and transient vacation rental use in A-1 and A-2 zoning districts. The decision clarified that the designated locations were meant to be prioritized for residential multifamily dwellings.
Our leaders were wise to consider the pitfalls of allowing appointed residential-housing locations to be used for investment commodities that serve the rapidly growing tourism market. Today, as they feared, our county needs 10,404 residential units by next year to meet the housing demand.
Meanwhile, 7,167 dwelling units in the apartment districts—originally zoned for long-term residential use—are used as transient vacation rentals.
The 7,167 units are allowed to operate as TVRs because of an exception granted and justified as a legal necessity. The dwellings were constructed before the 1989 ordinance, which clarified the purpose of the apartment districts for long-term residential use.
This year, the state’s passage of Act 17 explicitly grants Maui County the power to control land use, including the authority to phase out transient accommodations in various zoning districts. Community leaders like those of Lahaina Strong, myself and my colleagues continue to advocate for housing solutions. We now have a legal framework that better reflects the response needed for the crisis we are living in today.
Maui County’s transient accommodation policies have for too long benefited vested interests while negatively impacting working people and kamaʻāina.. After the Aug. 8 fires, which destroyed more than 5,400 dwelling units and displaced more than 12,000 residents overnight, the necessity of prioritizing housing as a human right over a luxury or investment has become even more apparent.
By requiring that the apartment districts follow the policy established by our county leadership decades ago, we can build on the efforts of those who came before us to ensure properties zoned for residential use will remain dedicated for residential use. By phasing out the Minatoya List we have the opportunity to create residential housing fast with preestablished infrastructure, but more importantly allocated water
I encourage the administration, if this bill passes, to compile an inventory and start buying up suitable complexes with the county Affordable Housing Fund and state housing funds.
I hear the cries that some units may not be suitable for residential housing, and I agree that all units need to be assessed with some possibly being rezoned. This policy solution is complex with many nuances, but we need to address long-standing community concerns about lack of housing supply, lack of water for new housing projects and over-reliance on tourism. The dependency on tourism not only impacts our residents’ quality of life but also relies on an industry that is not resilient to economic downturns.
With proper planning, this bill presents many opportunities. Revenue losses can be offset by property taxes on the highest tiered expensive luxury and second homes in our county, discouraging further investment buying and impelling us to finally introduce a vacant-property tax.
We can stimulate jobs and jumpstart a diversified, sustainable economy with possibilities beyond the realm of tourism and the service industry, a topic I have been discussing in the Agriculture, Diversification, Environment and Public Transportation Committee.
We need to empower public housing options, first-time home buyer program and explore rent stabilization. Additionally, we need to implement the policies I created in my first term that make housing truly affordable and give long-term residents preference and the support needed to be buyer ready.
Our community is in a housing emergency that exponentially increased after the worst natural disaster in the history of our state. Should our policies prioritize the interests of investors who own multiple homes, many of whom live on other shores? Or will we pass legislation that prioritizes local residents who need our help the most?
*Gabe Johnson is the chair of the Agriculture, Diversification, Environment and Public Transportation Committee. He holds the county council seat for the Lānaʻi residency area. “Council’s 3 Minutes” is a column to explain the latest news on county legislative and community matters. Go to mauicounty.us for more information.
