In a decisive and contentious move aimed at reshaping its future, Maui County has enacted a sweeping law designed to phase out approximately 7,000 short-term vacation rentals, effectively severing about half of the island’s transient rental units from the market. This landmark legislation, signed into law by Mayor Richard Bissen, represents a direct and forceful response to a long-simmering housing crisis that has seen local families and workers increasingly displaced by a tourism-driven real estate boom. The culmination of a nearly two-year, community-led campaign, Bill 9 is framed as a pivotal effort to reclaim residential housing for the people who call Maui home, placing the principle of “people over profits” at the forefront of a high-stakes battle for the island’s soul. The law’s passage marks a critical juncture, forcing a community heavily reliant on tourism to confront fundamental questions about its identity, economy, and the sustainability of its way of life.
Reclaiming a Community’s Housing Stock
The central objective of Bill 9 is to directly address the critical shortage of affordable, long-term housing available to Maui’s residents by converting transient vacation rentals back into residential units. The legislation specifically targets properties operating as short-term rentals within apartment-zoned districts, a practice that originated from a zoning exemption established decades ago, long before the advent of online rental platforms supercharged the industry. Supporters of the bill argue that this antiquated loophole has been systematically exploited by outside investors, transforming vital workforce housing into lucrative tourist accommodations and hollowing out local neighborhoods. Mayor Richard Bissen underscored the magnitude of the issue, stating that transient vacation rentals constitute a staggering 21% of Maui County’s total housing stock, the highest proportion of any county in Hawaiʻi. He championed the bill as the “most immediate way to bring thousands of units back online” for the local population, offering a tangible, albeit controversial, solution to a crisis that has reached a breaking point. The law represents a fundamental reassertion of local control over community planning and development.
Fueling the legislative push is a compelling set of data revealing the extent to which the short-term rental market is controlled by non-local interests. County analysis shows that over 90% of the owners of the targeted vacation rentals do not reside in Maui County, with the vast majority living out of state. This statistic has become a cornerstone of the argument for Bill 9, galvanizing support among residents who feel that decisions about their communities are being dictated by the financial ambitions of “offshore investors and private interests.” The narrative that emerged was one of a community fighting to regain agency over its own housing market. Proponents contended that the proliferation of these rentals not only inflates housing costs beyond the reach of the local workforce but also erodes the social fabric of neighborhoods, replacing long-term residents with a transient population. By prioritizing the housing needs of its people, the county government is making a clear statement about its values and its vision for a more sustainable and equitable future for the island.
The Groundswell of Community Activism
The momentum behind Bill 9 was powerfully driven by a surge of grassroots activism, most notably from the community organization Lahaina Strong, which was forged in the aftermath of the devastating 2023 wildfires. The catastrophe catastrophically exacerbated the island’s already severe housing shortage, displacing thousands of residents and elevating the issue to an urgent, non-negotiable priority for the community and its elected officials. The legislative journey of the bill was characterized by an unprecedented level of public engagement, involving hundreds of hours of impassioned testimony before the Maui Planning Commission, the council’s Housing and Land Use Committee, and a special Temporary Investigative Group (TIG). Paʻele Kiakona, a leader of Lahaina Strong, celebrated the community’s “fierceness, diligence, [and] persistence” as a testament to the collective will to enact meaningful change. This was not a top-down policy decision but a movement that grew from the very neighborhoods it seeks to protect, reflecting a deep-seated desire to reclaim Maui for its residents.
The personal stories shared during public hearings painted a vivid and poignant picture of the social erosion caused by the unchecked growth of the vacation rental industry. Long-time residents like Richard Prata provided compelling testimony, recounting his experience of living in his West Maui condominium for over 35 years. He described a past where his building was a vibrant community of resident owners, a stark contrast to today, where only 10 of more than 100 units are owner-occupied. His account highlighted a broader trend of community displacement and the loss of social cohesion. Further supporting this perspective, realtor Edward Codella testified that the real estate market has been completely transformed by “platforms, institutional investors, and global capital chasing returns on Maui housing,” a modern reality that could not have been foreseen when the original zoning exceptions were granted. These testimonies provided the human context for the stark statistics, illustrating the tangible impact of market forces on the daily lives and long-term stability of the island’s generational communities.
Political Divisions and Economic Anxieties
Despite the robust community backing, the passage of Bill 9 was far from unanimous, as evidenced by the Maui County Council’s narrow 5-3 vote. The debate exposed deep divisions among lawmakers regarding the bill’s potential efficacy and consequences. Supporters on the council framed their vote as a moral imperative to safeguard the local population from the pressures of an extractive tourism economy. Molokaʻi councilmember Keani Rawlins-Fernandez powerfully articulated this stance, declaring, “Profits are replaceable. Generational communities are not. We need to prioritize the people that love our home.” This sentiment was echoed by Lanaʻi councilmember Gabe Johnson, who made a direct appeal to values over financial considerations: “It’s for the community over your checkbook. It’s for the workers over your LLC.” For these councilmembers, the decision represented a fundamental choice to prioritize the long-term well-being of the community over the short-term financial gains of property investors, many of whom have no direct ties to the island.
Conversely, opponents of the bill raised significant concerns about its practical implementation and the potential for unintended negative impacts on the local economy. Council Chair Alice Lee, who voted against the measure, described it as one of the most challenging proposals she had ever faced, citing a lack of a clear “mechanism of implementation” as her primary reason for opposition. “I don’t think this is going to work,” she stated, expressing deep reservations about the bill’s feasibility. South Maui councilmember Tom Cook shared similar fears, arguing that the legislation would “not meet its objectives” and would instead inflict significant “collateral damage.” The Realtors Association of Maui, represented by its president Lynette Pendergast, formally opposed the bill, asserting that while they support the goal of creating more long-term housing, the legislation introduces a dangerous level of “procedural uncertainty.” Pendergast warned that passing Bill 9 before establishing the new zoning policies recommended by the TIG creates a “significant policy gap that exposes the county to economic risk and legal liability,” highlighting a deep-seated fear that this bold move could backfire.
A Complex and Uncertain Path Forward
The implementation of Bill 9 was structured to be gradual, providing a multi-year phase-out period for affected property owners. Vacation rentals located in West Maui were mandated to cease operations by January 1, 2029, while those in other parts of the county were given a deadline of January 1, 2031. Owners of the nearly 7,000 affected units were left with several choices: convert their properties into long-term rentals for local residents, sell them on the open market, retain them for personal use, or navigate the complex process of applying for a change in zoning. However, the future of the law was further clouded by the high probability of legal challenges. Leslie Brown, a seasoned condo complex manager, testified that the law would likely entangle many properties in protracted lawsuits. She warned of an unintended consequence, explaining that “banks will not loan money on a property involved in a lawsuit. That means only cash buyers can purchase,” a scenario that could paradoxically increase, rather than decrease, acquisitions driven by outside investment capital. This legal uncertainty added another layer of complexity to an already contentious situation.
In an effort to mitigate the concerns about economic disruption and provide a transitional pathway, the County Council simultaneously pursued a companion measure. This separate legislative process aimed to create new hotel zoning districts, designated as H-3 and H-4, based on the recommendations of the TIG. This proposal held the potential to allow approximately 4,500 of the nearly 7,000 affected units to be reclassified and continue operating as vacation rentals under a new, more appropriate hotel designation. Councilmember Nohelani Uʻu-Hodgins, who chaired the TIG and supported Bill 9, viewed this parallel effort as a crucial step to “ensure a smoother transition.” County officials affirmed that the bill was just one component of a “broader, multi-pronged housing strategy” and committed to working with the council to implement the TIG’s recommendations. The ultimate impact of this historic legislation remained to be seen, as its success would hinge on navigating the expected legal battles, mitigating economic fallout, and effectively implementing complementary zoning changes designed to balance the urgent needs of the resident community with the economic realities of the island.
