How Bill 159 Will Affect Short-Term Condo Owners on Maui

Bill 159 Maui County

Update May 2024: The County is now trying to ban short term rental condos in apartment districts.

With the primary objective of establishing a means to limit tourism on Maui, the Maui County Council recently passed Bill 159. The desire to limit tourism on the island comes from environmental groups seeking to reduce the impact that growing tourism is having on Maui as well as from local residents who are growingly concerned about overcrowding and an ongoing housing crisis. 

The bill was originally introduced for discussion in January 2022 and addresses the total number of legally allowed transient vacation accommodation units on the island. These accommodations include hotel rooms, short-term rentable condos, bed and breakfasts, as well as camper vans and recreational vehicles. 

Browse New Listings on Maui

Sort by:
Listing Image for 79 E Welakahao Rd 1 of 2 Listing Image for 79 E Welakahao Rd 2 of 2

$10,306,400

↓ $37,693,600

Kihei

79 E Welakahao Rd, Kihei

0 Beds 0 Baths 0 SqFt Commercial Sale MLS® # 408099

Days on Market: 280

Commercial Prop of Maui LLC

Listing Image for 1144 S Kihei Rd 1 of 2 Listing Image for 1144 S Kihei Rd 2 of 2

$2,767,300

↓ $45,232,700

Kihei

1144 S Kihei Rd, Kihei

0 Beds 0 Baths 0 SqFt Commercial Sale MLS® # 408098

Days on Market: 280

Commercial Prop of Maui LLC

Listing Image for 949 Malaihi Rd 1 of 2 Listing Image for 949 Malaihi Rd 2 of 2

$1,068,900

↓ $46,931,100

Wailuku

949 Malaihi Rd, Wailuku

0 Beds 0 Baths 0 SqFt Commercial Sale MLS® # 408092

Days on Market: 280

Commercial Prop of Maui LLC

Listing Image for 1598 Halama St 1 of 12 Listing Image for 1598 Halama St 2 of 12 Listing Image for 1598 Halama St 3 of 12 Listing Image for 1598 Halama St 4 of 12 Listing Image for 1598 Halama St 5 of 12 Listing Image for 1598 Halama St 6 of 12 Listing Image for 1598 Halama St 7 of 12 Listing Image for 1598 Halama St 8 of 12 Listing Image for 1598 Halama St 9 of 12 Listing Image for 1598 Halama St 10 of 12 Listing Image for 1598 Halama St 11 of 12 Listing Image for 1598 Halama St 12 of 12

$4,950,000

Kihei

1598 Halama St, Kihei

3 Beds 3 Baths 1,374 SqFt Residential MLS® # 408090

Days on Market: 280

Coldwell Banker Island Prop-KP Cell: 808-250-1583

Buying Real Estate on Maui

Buying Real Estate on Maui

Read Evan's complete guide to buying a home or condo on Maui.

Read the Guide
Listing Image for 1606 Halama St 1 of 12 Listing Image for 1606 Halama St 2 of 12 Listing Image for 1606 Halama St 3 of 12 Listing Image for 1606 Halama St 4 of 12 Listing Image for 1606 Halama St 5 of 12 Listing Image for 1606 Halama St 6 of 12 Listing Image for 1606 Halama St 7 of 12 Listing Image for 1606 Halama St 8 of 12 Listing Image for 1606 Halama St 9 of 12 Listing Image for 1606 Halama St 10 of 12 Listing Image for 1606 Halama St 11 of 12 Listing Image for 1606 Halama St 12 of 12

$4,950,000

Kihei

1606 Halama St, Kihei

4 Beds 2 Baths 1,724 SqFt Residential MLS® # 408089

Days on Market: 280

Coldwell Banker Island Prop-KP Cell: 808-250-1583

Listing Image for 4000 Wailea Alanui Dr 2904 1 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 2 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 3 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 4 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 5 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 6 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 7 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 8 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 9 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 10 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 11 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 12 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 13 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 14 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 15 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 16 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 17 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 18 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 19 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 20 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 21 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 22 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 23 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 24 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 25 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 26 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 27 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 28 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 29 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 30 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 31 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 32 of 33 Listing Image for 4000 Wailea Alanui Dr 2904 33 of 33

$4,495,000

Wailea Point 2904

4000 Wailea Alanui Dr 2904, Wailea/Makena

2 Beds 2 Baths 1,558 SqFt Residential MLS® # 408086

Days on Market: 280

Coldwell Banker Island Prop(P) Cell: 808-344-7208

In Escrow
Listing Image for 2760 Umeke Cir Unit 94 1 of 50 Listing Image for 2760 Umeke Cir Unit 94 2 of 50 Listing Image for 2760 Umeke Cir Unit 94 3 of 50 Listing Image for 2760 Umeke Cir Unit 94 4 of 50 Listing Image for 2760 Umeke Cir Unit 94 5 of 50 Listing Image for 2760 Umeke Cir Unit 94 6 of 50 Listing Image for 2760 Umeke Cir Unit 94 7 of 50 Listing Image for 2760 Umeke Cir Unit 94 8 of 50 Listing Image for 2760 Umeke Cir Unit 94 9 of 50 Listing Image for 2760 Umeke Cir Unit 94 10 of 50 Listing Image for 2760 Umeke Cir Unit 94 11 of 50 Listing Image for 2760 Umeke Cir Unit 94 12 of 50 Listing Image for 2760 Umeke Cir Unit 94 13 of 50 Listing Image for 2760 Umeke Cir Unit 94 14 of 50 Listing Image for 2760 Umeke Cir Unit 94 15 of 50 Listing Image for 2760 Umeke Cir Unit 94 16 of 50 Listing Image for 2760 Umeke Cir Unit 94 17 of 50 Listing Image for 2760 Umeke Cir Unit 94 18 of 50 Listing Image for 2760 Umeke Cir Unit 94 19 of 50 Listing Image for 2760 Umeke Cir Unit 94 20 of 50 Listing Image for 2760 Umeke Cir Unit 94 21 of 50 Listing Image for 2760 Umeke Cir Unit 94 22 of 50 Listing Image for 2760 Umeke Cir Unit 94 23 of 50 Listing Image for 2760 Umeke Cir Unit 94 24 of 50 Listing Image for 2760 Umeke Cir Unit 94 25 of 50 Listing Image for 2760 Umeke Cir Unit 94 26 of 50 Listing Image for 2760 Umeke Cir Unit 94 27 of 50 Listing Image for 2760 Umeke Cir Unit 94 28 of 50 Listing Image for 2760 Umeke Cir Unit 94 29 of 50 Listing Image for 2760 Umeke Cir Unit 94 30 of 50 Listing Image for 2760 Umeke Cir Unit 94 31 of 50 Listing Image for 2760 Umeke Cir Unit 94 32 of 50 Listing Image for 2760 Umeke Cir Unit 94 33 of 50 Listing Image for 2760 Umeke Cir Unit 94 34 of 50 Listing Image for 2760 Umeke Cir Unit 94 35 of 50 Listing Image for 2760 Umeke Cir Unit 94 36 of 50 Listing Image for 2760 Umeke Cir Unit 94 37 of 50 Listing Image for 2760 Umeke Cir Unit 94 38 of 50 Listing Image for 2760 Umeke Cir Unit 94 39 of 50 Listing Image for 2760 Umeke Cir Unit 94 40 of 50 Listing Image for 2760 Umeke Cir Unit 94 41 of 50 Listing Image for 2760 Umeke Cir Unit 94 42 of 50 Listing Image for 2760 Umeke Cir Unit 94 43 of 50 Listing Image for 2760 Umeke Cir Unit 94 44 of 50 Listing Image for 2760 Umeke Cir Unit 94 45 of 50 Listing Image for 2760 Umeke Cir Unit 94 46 of 50 Listing Image for 2760 Umeke Cir Unit 94 47 of 50 Listing Image for 2760 Umeke Cir Unit 94 48 of 50 Listing Image for 2760 Umeke Cir Unit 94 49 of 50 Listing Image for 2760 Umeke Cir Unit 94 50 of 50

$1,895,000

↓ $100,000

Hokulani Golf Villas

2760 Umeke Cir Unit 94, Kihei

2 Beds 2 Baths 1,902 SqFt Residential MLS® # 408083

Days on Market: 280

Coldwell Banker Island Prop(S) Cell: 808-283-6262

In Escrow
Listing Image for 2760 Umeke Cir 94 1 of 49 Listing Image for 2760 Umeke Cir 94 2 of 49 Listing Image for 2760 Umeke Cir 94 3 of 49 Listing Image for 2760 Umeke Cir 94 4 of 49 Listing Image for 2760 Umeke Cir 94 5 of 49 Listing Image for 2760 Umeke Cir 94 6 of 49 Listing Image for 2760 Umeke Cir 94 7 of 49 Listing Image for 2760 Umeke Cir 94 8 of 49 Listing Image for 2760 Umeke Cir 94 9 of 49 Listing Image for 2760 Umeke Cir 94 10 of 49 Listing Image for 2760 Umeke Cir 94 11 of 49 Listing Image for 2760 Umeke Cir 94 12 of 49 Listing Image for 2760 Umeke Cir 94 13 of 49 Listing Image for 2760 Umeke Cir 94 14 of 49 Listing Image for 2760 Umeke Cir 94 15 of 49 Listing Image for 2760 Umeke Cir 94 16 of 49 Listing Image for 2760 Umeke Cir 94 17 of 49 Listing Image for 2760 Umeke Cir 94 18 of 49 Listing Image for 2760 Umeke Cir 94 19 of 49 Listing Image for 2760 Umeke Cir 94 20 of 49 Listing Image for 2760 Umeke Cir 94 21 of 49 Listing Image for 2760 Umeke Cir 94 22 of 49 Listing Image for 2760 Umeke Cir 94 23 of 49 Listing Image for 2760 Umeke Cir 94 24 of 49 Listing Image for 2760 Umeke Cir 94 25 of 49 Listing Image for 2760 Umeke Cir 94 26 of 49 Listing Image for 2760 Umeke Cir 94 27 of 49 Listing Image for 2760 Umeke Cir 94 28 of 49 Listing Image for 2760 Umeke Cir 94 29 of 49 Listing Image for 2760 Umeke Cir 94 30 of 49 Listing Image for 2760 Umeke Cir 94 31 of 49 Listing Image for 2760 Umeke Cir 94 32 of 49 Listing Image for 2760 Umeke Cir 94 33 of 49 Listing Image for 2760 Umeke Cir 94 34 of 49 Listing Image for 2760 Umeke Cir 94 35 of 49 Listing Image for 2760 Umeke Cir 94 36 of 49 Listing Image for 2760 Umeke Cir 94 37 of 49 Listing Image for 2760 Umeke Cir 94 38 of 49 Listing Image for 2760 Umeke Cir 94 39 of 49 Listing Image for 2760 Umeke Cir 94 40 of 49 Listing Image for 2760 Umeke Cir 94 41 of 49 Listing Image for 2760 Umeke Cir 94 42 of 49 Listing Image for 2760 Umeke Cir 94 43 of 49 Listing Image for 2760 Umeke Cir 94 44 of 49 Listing Image for 2760 Umeke Cir 94 45 of 49 Listing Image for 2760 Umeke Cir 94 46 of 49 Listing Image for 2760 Umeke Cir 94 47 of 49 Listing Image for 2760 Umeke Cir 94 48 of 49 Listing Image for 2760 Umeke Cir 94 49 of 49

$1,895,000

↓ $100,000

Hokulani Golf Villas 94

2760 Umeke Cir 94, Kihei

2 Beds 2 Baths 1,902 SqFt Residential MLS® # 408082

Days on Market: 280

Coldwell Banker Island Prop(S) Cell: 808-283-6262

View 8 More Listings

The Number of Transient Vacation Rentals on Maui Is Now Legally Capped

Maui County Adopts Bill 159

Effectively, Bill 159 caps the number of transient vacation rentals (TVRs) on Maui at the number that were existing prior to January 7th, 2022. We also call these short-term rentable units, of which approximately 16,000 currently exist on Maui. A TVR is defined as any rental of a housing unit for less than 180 days. 

While TVR use is already prohibited outside of hotel districts by Maui County Code Chapter 19.37, there exists a permitting process to operate outside of the hotel districts. The Minatoya opinion, originally adopted in 2001, established which condo associations on Maui can legally operate short-term rentals in apartment-zoned properties.

These complexes will continue to be allowed to offer transient accommodations and be legally rented as TVRs. The bill also specifically allows for existing TVRs built before the January 7th, 2022 date to renovate as long no new TVR units are added in the complex. Relating to hotel development, new construction will be allowed as long as they are built landward of what would be 3.2 feet of sea level rise expected to happen in the next 50 years. 

 

 

Clearing The Confusion For Short Term Condo Owners

Bill 159 Maui County Planning Meeting

The Planning and Sustainable Land Use Committee took testimony from the public and discussed Bill 159 on October 20th, 2022. During the testimony, it was obvious that the impacts on owners of short-term rentable condos were unclear to many. It’s unfortunate that the council does not use the testimony time to answer the serious questions raised by the bill and several council members seem to be arrogantly dismissive of legitimate concerns by property owners. I can see where that could consume a lot of extra time, but I think many of the testifiers wouldn’t have needed to make a statement had the council addressed their concerns earlier in the meeting. 

Several property owners on Maui and even clients of mine gave testimony during the meeting. The main concern we have is that Bill 159 could have prohibited the future use of a condo as a transient vacation rental in a previously approved short-term rentable condo complex that had not been actively used as a vacation rental prior to the January 7, 2022 date.  

Fortunately, Maui County Planning Director Michele McLean was able to address this concern specifically around the 2 hour 39 minute mark of the meeting when she said “

“The way that the bill reads now, you have the existing language that allows vacation rental use, under the “Minoytoya ordinances” the new language says the number of units allowed for TVR use may not increase beyond those allowed for such use as of January 7th, 2022…So, if you have an apartment or condo complex that has 100 units and 75 of those units are doing TVR use, we consider the other 25 units also allowed to do TVR use even if they are not exercising it. And this language says the number of units and rooms allowed may not increase, so you can’t add more units (to the complex), but the 25 units could start if they wanted to.”

Whew. That’s a relief. While I am personally in support of Maui managing its tourism industry with consideration given to the environment and the local population, the County needs to carefully consider its economic impact on the community and its property owners. Bill 159 was heavily debated between the public and the council and was heavily amended since its introduction by Vice Chair Keani Rawlins-Fernandez. 

What Does Bill 159 Mean For the Island and Investors?

Short Term Rental Condos Affected By Bill 159

I think the debate was productive and the final result is a net positive for Maui, it’s also great for short-term rentable property owners who have the reassurance of limited supply for these units in the future which will certainly help property values rise. Bill 159 could have had a bigger impact against the development of new hotel rooms, but it ultimately succeeded by enforcing a ban against the development of new TVRs while establishing slightly stricter guidelines for hotel development.

After some revision, Bill 159 also provided guidance on the allowed usage of recreational vehicles and camper vans and limited their use to designated areas such as the Haleakala National Park in Kipahulu and Olowalu Campground. 

Maui Is a Place For Balance

Royal Mauian Condo in South Maui

Maui is a place that attracts visitors from all over the world and many of our visitors end up purchasing property on the island, in the form of moving here to buy a primary residence, buying a second home, or buying TVR as an investment. What they love about the island are the same things local residents love about it.

The beauty, the beaches, and the island life. These transient vacation rentals generate significant tax income for the County to use for infrastructure improvements along with environmental protection initiatives. Balancing the economic needs of locals needing jobs provided by tourism with how we care for the land is extremely important. If you have any questions about Bill 159 or other related Maui County Planning Department questions, I would be happy to do my best to answer them or to connect you with the right person to speak with. 

Get In Touch With Evan!

Evan Harlow Maui

Evan Harlow ranks among the best real estate agents on Maui annually and is in the top 1% of Coldwell Banker agents worldwide in production. Evan has the expertise, experience, and work ethic to help you achieve your real estate buying and selling goals. We promise exceptional service and support from the beginning of the process through closing and beyond. See what Evan's clients are saying on Google.

Provide a valid email address.
Newsletter consent

Posted by Evan Harlow R(S) on

Enjoy this blog post? Click here to subscribe for updates

Tags

Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.