Volume 2, Number 3
FREE
July/August, 2025
Longtime Vacation Rentals Face Jeopardy By Taryn Kama
“This legislation is hugely problematic. It violates fundamental constitutional rights.” — David Louie, Attorney
M
aui County is at a crossroads in the debate over short-term vacation rentals (STRs), as proposed legislation threatens to revoke vested property rights for thousands of legal operators across the island. At the heart of the controversy is Mayor Richard Bissen’s proposed Bill 9, which would phase out short-term rentals in apartmentzoned districts—many of which are known as “Minatoya List” properties, named after a 2001 legal memo by then-Deputy Corporation Counsel Richard Minatoya that affirmed their legality. The list was later codified in the Maui County Code. The goal of Mayor Bissen and the bill is to increase the number of affordable housing units on Maui by converting current, legal short-term rental units into long-term or residential-only use. Supporters of the bill, including the Bissen administration, argue that STRs are exacerbating Maui’s housing crisis by shrinking the available long-term rental pool and pricing out local families. “Every day we wait for change to happen, more and more of our people move away. Hawaii is becoming less Hawaii because of this situation,” said Brandon Makaawaawa, a supporter of the measure. (quoted from the June 18 news coverage of the meeting by Hawaii News Now). While the bill aims to increase long-term rental housing for local residents, critics warn that phasing out these rentals would not only harm the economy but also violate constitutional property rights. Opponents argue the proposal overreaches legally, threatens livelihoods, and creates deep uncertainty for property owners and small business operators.
Vehicles and congested parking in Lahainaluna neighborhood similiar to what it was like in the Lahaina burn zone below, before the fire.
Many longtime condos, including several of these in Maalaea, may lose their grandfathered-in ability to rent to tourists.
Legal Questions and Constitutional Concerns Many opponents of the bill testified (at the June 18 hearing) but attorney David Louie was particularly critical. Speaking on behalf of his client Airbnb and as a constitutional law expert, Louie called the legislation “gigantically problematic” and requested that the council hold the bill. He said it violates fundamental constitutional rights under both the U.S. and Hawai’i State Constitutions. “It’s a matter of constitutional dimension,” Louie stated. He emphasized that vested property rights cannot be taken away through a zoning ordinance without providing just compensation, warning that doing so would create enormous problems for Maui County. Louie cited precedents from three different Hawaii courts—dating back to 1997—that reaffirm the legal standing of these units. He stated that removing owners’ rights without compensation could lead to significant financial liability for the county—tens of millions of dollars, perhaps more. Budget, taxes and liabilities to the county will be huge. There are constitutional implications of retroactively revoking lawful property use. Louie served as Attorney General of the State of Hawai’i from January 2011 to December 2014. He was appointed by Governor Neil Abercrombie and confirmed by the Hawai’i State Senate. Impact on Property Owners Eve Hogan, a longtime Maui resident and vacation rental owner, says the bill unfairly
targets individuals who have operated within the law and made responsible, informed business decisions. “Before buying, we checked with the Planning Department to ensure short-term rental use was legal,” Hogan said. “We followed the rules. We pay huge taxes. We’re not corporations—many of us are self-employed, just trying to make a living and support our families after already losing our businesses during COVID.” Hogan pushed back on the narrative that STR owners have done something wrong. “We’re being vilified, but none of us purchased condos with the intent of hurting anyone else. We all want everyone to have affordable housing. This just isn’t the way to get it," she said, “These condos aren’t affordable units to begin with. Many cost $6,000 (or more) a month just to break even. That’s not realistic for most local families. Meanwhile, we provide jobs for local small businesses. We contribute to the economy, and the community.” She also pointed to a broader concern over trust in government. “People feel betrayed,” Hogan said. “Time and time again, the county (or state) grants permits or rights—and then takes them back. Look at the Superferry. Look at the food trucks on ag land. If they want to replace tourism with another economy, government needs to be trustworthy or no industry will want to invest in starting a business here.” Hogan added that even worse, the bill has pitted citizens against citizens fueling a different kind of fire: prejudice, assumptions, ridicule, racism, shaming, fear, and threats. “In Council Chambers it looks like an issue divided by race, but there are many
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What's Inside:
Building Skills and Mindsets for Growth.....3 Thai Mee Up Hits the Spot.............................6 Bryant Neal Named Maui Arts VP................7 Events Calendar ..........................................8-9 Can AI Benefit Your Life?............................10 Growing Fruit Trees on Maui......................11