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. 

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$1,599,000

↓ $101,000

Hana

41049 Hana Hwy, Hana

2 Beds 2 Baths 1,453 SqFt Residential MLS® # 406335

Days on Market: 452

Island Sotheby's International Realty(W) Cell: 808-446-5198

Short Term Rental
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$1,625,000

Maalaea Surf E2

12 S Kihei Rd E2, Kihei

1 Bed 1 Bath 759 SqFt Residential MLS® # 406300

Days on Market: 456

Coldwell Banker Island Prop-Ku 808-281-8083

Listing Image for 15 Apali Way 1 of 10 Listing Image for 15 Apali Way 2 of 10 Listing Image for 15 Apali Way 3 of 10 Listing Image for 15 Apali Way 4 of 10 Listing Image for 15 Apali Way 5 of 10 Listing Image for 15 Apali Way 6 of 10 Listing Image for 15 Apali Way 7 of 10 Listing Image for 15 Apali Way 8 of 10 Listing Image for 15 Apali Way 9 of 10 Listing Image for 15 Apali Way 10 of 10

$795,000

↓ $50,000

Kula/Ulupalakua/Kanaio

15 Apali Way, Kula/Ulupalakua/Kanaio

0 Beds 0 Baths 0 SqFt Land MLS® # 405661

Days on Market: 520

Papazian Properties LLC

Short Term Rental
Listing Image for 5255 Lower Honoapiilani Rd 119 1 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 2 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 3 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 4 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 5 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 6 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 7 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 8 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 9 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 10 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 11 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 12 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 13 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 14 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 15 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 16 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 17 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 18 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 19 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 20 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 21 of 22 Listing Image for 5255 Lower Honoapiilani Rd 119 22 of 22

$1,450,000

↓ $50,000

Honokeana Cove 119

5255 Lower Honoapiilani Rd 119, Napili/Kahana/Honokowai

1 Bed 1 Bath 517 SqFt Residential MLS® # 405496

Days on Market: 534

Hawaii Life (L) Cell: 808-357-2998

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Listing Image for 4000 Wailea Alanui Dr 2502 1 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 2 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 3 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 4 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 5 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 6 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 7 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 8 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 9 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 10 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 11 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 12 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 13 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 14 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 15 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 16 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 17 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 18 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 19 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 20 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 21 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 22 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 23 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 24 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 25 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 26 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 27 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 28 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 29 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 30 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 31 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 32 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 33 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 34 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 35 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 36 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 37 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 38 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 39 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 40 of 41 Listing Image for 4000 Wailea Alanui Dr 2502 41 of 41

$4,300,000

↓ $400,000

Wailea Point 2502

4000 Wailea Alanui Dr 2502, Wailea/Makena

3 Beds 4 Baths 2,419 SqFt Residential MLS® # 401515

Days on Market: 919

Wailea Point Realty, Inc. realty@waileapoint.com

Listing Image for Kula Hwy 1 of 8 Listing Image for Kula Hwy 2 of 8 Listing Image for Kula Hwy 3 of 8 Listing Image for Kula Hwy 4 of 8 Listing Image for Kula Hwy 5 of 8 Listing Image for Kula Hwy 6 of 8 Listing Image for Kula Hwy 7 of 8 Listing Image for Kula Hwy 8 of 8

$795,000

Kula/Ulupalakua/Kanaio

Kula Hwy, Kula/Ulupalakua/Kanaio

0 Beds 0 Baths 0 SqFt Land MLS® # 399216

Days on Market: 1183

Classic Maui Properties Inc Parkers007@hawaii.rr.com

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

$11,998,000

The Ridge at Wailea

14 Halapa Pl, Wailea/Makena

4 Beds 4.5 Baths 5,126 SqFt Residential MLS® # 406282

Days on Market: 458

Hawaii Life (W) Cell: 808-276-2004

Listing Image for 101 Unahe Pl Lot 127-b 1 of 18 Listing Image for 101 Unahe Pl Lot 127-b 2 of 18 Listing Image for 101 Unahe Pl Lot 127-b 3 of 18 Listing Image for 101 Unahe Pl Lot 127-b 4 of 18 Listing Image for 101 Unahe Pl Lot 127-b 5 of 18 Listing Image for 101 Unahe Pl Lot 127-b 6 of 18 Listing Image for 101 Unahe Pl Lot 127-b 7 of 18 Listing Image for 101 Unahe Pl Lot 127-b 8 of 18 Listing Image for 101 Unahe Pl Lot 127-b 9 of 18 Listing Image for 101 Unahe Pl Lot 127-b 10 of 18 Listing Image for 101 Unahe Pl Lot 127-b 11 of 18 Listing Image for 101 Unahe Pl Lot 127-b 12 of 18 Listing Image for 101 Unahe Pl Lot 127-b 13 of 18 Listing Image for 101 Unahe Pl Lot 127-b 14 of 18 Listing Image for 101 Unahe Pl Lot 127-b 15 of 18 Listing Image for 101 Unahe Pl Lot 127-b 16 of 18 Listing Image for 101 Unahe Pl Lot 127-b 17 of 18 Listing Image for 101 Unahe Pl Lot 127-b 18 of 18

$1,239,910

↓ $53,000

The Parkways at Maui Lani

101 Unahe Pl Lot 127-b, Kahului

3 Beds 2 Baths 1,596 SqFt Residential MLS® # 406015

Days on Market: 487

Towne Island Homes, Ltd

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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. 

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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.

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