Latest news with #Bissen
Yahoo
8 hours ago
- Business
- Yahoo
Maui County Council to hear response to vacation rentals conversion today
A key Maui County Council committee will hear testimony today on Mayor Richard Bissen's proposal to convert less than half of Maui's short-term vacation rentals into long-term housing for local residents that's expected to trigger a loss of $60 million in tax revenue while lowering sales and rental prices. The trade-off will be worth it and lead to stable, more affordable housing for Maui residents, Bissen told the Honolulu Star-Advertiser on the eve of today's hearing by the Council's Housing and Land Use committee. The Aug. 8, 2023, wildfires killed 102 people, destroyed more than 5, 400 households and sent 12, 000 survivors into emergency housing, exacerbating Maui's housing shortage. 'We've taken a stand we believe in, ' Bissen said. 'It's not anti-visitor. It's pro-local, pro-resident. … It's not meant to divide our community, but to preserve our community.' Visitors remain welcomed on Maui and there still would be hotel rooms and other short-term vacation rentals available in other parts of Maui if Bill 9 passes, requiring 6, 100 rental units to convert to long-term housing for residents, he said. Another 8, 000 vacation rentals in Maui County would be unaffected, with most of them on the island of Maui, Bissen said. Instead of a constant turnover of guests, condominium buildings would turn into new neighborhood communities of full-time, local residents and families, he said. Owners of vacation rentals have urged Bissen and his administration to look for alternatives to developing more affordable housing, which Bissen said he continues to do. But finding appropriate land, getting permits approved and construction costs and time can take years compared to converting existing condos into long-term housing, he said. 'The bottom line is we need to create more inventory, ' Bissen said. 'It's an immediate problem.' Bissen has amended Bill 9 to now call for a three-year phaseout of the 6, 100 vacation rentals to give owners time to either sell to local residents or rent to them long term. He called sales to local residents 'ideal ' and long-term rental agreements 'also a good idea.' The wildfires exacerbated Maui's housing shortage and led many landlords to increase rental prices. Some landlords who had long-term rental agreements with residents evicted them in order to take advantage of higher rates they could charge by taking in fire survivors and, in some cases, nearly double their income, Bissen said. 'It's almost like looting when somebody jacks up prices when there's a need, ' Bissen said. 'I don't know how we punish all those landlords.' Most—94 %—of the people who own the 6, 100 short-term vacation units that would be converted live outside Maui, meaning the units represent second or third homes for them, Bissen said. Only 6 % are Maui County residents, said Bissen's executive assistant, Matt Jachowski. Bissen's proposal has the support of many residents and received unanimous approvals by planning commissions on Maui, Molokai and Lanai. It's drawn opposition from property owners like Loretta Ross, a 68-year-old retiree from San Diego who has owned her ocean-view, studio apartment in the three-story, 67-unit Hale Ono Loa condo complex along Lower Honoapiilani Highway for 20 years. The short-term rental market was first hurt by the COVID-19 pandemic, then again in the aftermath of the wildfires and has continued falling ever since Bissen proposed outlawing vacation rentals last year for owners like Ross, she told the Star-Advertiser. 'Property values have dropped 30 %, ' she said. And her business has fallen, too. Ross used to charge $259 a night but cannot get bookings even after dropping her rate to $159. The potential passage of Bill 9 has scared away potential buyers who also would want to use her condo as a rental business, Ross said. 'I've had it listed for over a year, but my agent said no one's buying anything, ' Ross said. 'I'm on Social Security and I'm running out of savings.' Her monthly costs, including mortgage, taxes and association fees add up to $4, 000 a month that Ross doubts a local family could afford for a studio apartment. 'No one's going to pay that, ' she said. So if Bill 9 passes, 'it would probably have go into foreclosure as much as I love it and I've been blessed to have it. It would be like the nail in the coffin.' Bissen expects the Housing and Land Use Committee to hold two or three sessions of all-day hearings to listen to testimony in support for and opposition to Bill 9. The committee's made up of all nine Council members and its vote could foreshadow how the full Council decides the fate of Bill 9. In April, the University of Hawaii Economic Research Organization estimated that banning 6, 127 short-term vacation rentals could have profound economic implications for Maui County, including the loss of 1, 900 jobs, $900 million in annual visitor spending and $60 million in property tax revenue by 2029. General excise tax and hotel room tax revenues also could fall, adding up to $15 million annually, according to UHERO. But Bissen said Maui still needs workers and the county's $1.5 billion budget could be adjusted to absorb 'some losses.' Overall, he said, 'the benefits outweigh the negatives.'
Yahoo
06-02-2025
- Business
- Yahoo
Waivers aim to streamline Lahaina rebuilding
Maui Mayor Richard Bissen announced Wednesday that the county will temporarily suspend Special Management Area rules for properties mauka of Front Street or outside of the erosion hazard line—a move that is expected to accelerate reconstruction efforts and support Lahaina's wildfire recovery. The decision, which was rolled out at the County of Maui's Lahaina Community Meeting, was made in collaboration with Gov. Josh Green, who included supportive provisions in the latest wildfire-related emergency proclamation that he signed Tuesday. 'This is a crucial step to help survivors, including both residential and commercial property owners, move forward faster and rebuild their future, ' Bissen said in a statement. 'By streamlining the process, property owners within the SMA impact zone will be able to rebuild within their structure's pre-fire footprint.' Bissen said accelerating recovery efforts will drive economic growth, create jobs in construction and local services, and revitalize Maui's economy. 'As businesses reopen and homes are restored, the positive ripple effects will support local economies, boost consumer confidence, and promote long-term resilience for our community, ' he said. Ana Lillis, deputy director of the County of Maui Department of Planning, told the Honolulu Star-Advertiser that the decision temporally exempts some 103 commercial properties and some 533 residential properties within the burn zone from SMA rules, which typically add six months to a year to the review period. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. 'I know that we have all these special cases that will take longer because of environmental and other factors, but this will benefit 636 properties and that's massive, ' Lillis said. She said the changes allow the county to refocus on 'planning and not just the process, and building back this community in a really creative way.' Lillis said mauka owners who are eligible for the SMA permit waiver still must adhere to the West Maui Community Plan, Historical District permits, Cultural Resource Commission review, coastal zone management act program objectives and county building permit processes. Lillis said the county hopes to meet with the Cultural Resource Commission to discuss streamlining the historical district assessment, required for properties in the historic district zone, which may take three to six months. 'We want to engage with (the commission ) before exploring certain options, but it has been difficult to even get on their agenda due to quorum issues that we are dedicated to resolving, ' she said. 'We hope to have the discussion next month.' Lillis said there are roughly 106 parcels in the Lahaina impact zone's historic districts, and all but about 10 or 11 are commercial. The county estimated about 22 commercial properties and 64 residential properties will not qualify for the SMA waiver because they are on the shoreline itself. Meeting attendees on Wednesday mostly reacted positively to the news, although one man sought some clarity about the anticipated timeline for business on the makai side of Front Street. Office of Recovery Administrator John Smith clarified that 'the properties on the makai side are going to have a very hard time with the permitting process to become approved. It's a multi-phased permitting approach, which actually primarily starts with the state Department of Land and Natural Resources because they have jurisdiction over the water.' He added, 'what we are saying is that we are making it easier for Front Street to come back, but not all the rules are gone.' Smith said the boundaries for the temporary SMA waivers were the result of extensive community outreach and feedback, and of recovery precedent set by other fire-ravaged locations. 'Finding the balance is the key term. We were very careful and very thoughtful in where these lines were drawn so we didn't just let go, that's very clear, we just eliminated one of the kinks in the process to speed this up and we did not even let go at all near the ocean, ' he said. 'We are focusing in on the most critical, the most hazardous, and the most environmentally sensitive areas.' An area of intense focus for the county is preserving Lahaina's cultural and historic legacy, including the Royal Complex, which includes Mokuula, Mokuhinia and other significant sites through extensive planning and public-private partnerships. Lahaina Harbor is another area requiring greater sensitivity. Smith discussed the steps that the county is taking to protect infrastructure, especially along Front Street. He said efforts have begun to repair the seawall and that the county is working with the U.S. Army Corps of Engineers and Federal Emergency Management Agency to remove debris and stabilize and protect the shoreline. He said that the county said it is also prioritizing safety improvements with plans to extend Luakini Street and create additional access routes in the event of an emergency. Erin Wade, deputy managing director for Maui County, said the county is seeking to acquire shoreline properties that are high-risk along Front Street for public access and open space, and has sent letters to the owners of 23 properties. Wade said some of the shoreline properties are on state leases. 'Based on the types of funding we are looking at using, we would be required to have it be open space and publicly accessible, ' she said. Smith said the county wants to acquire the properties quickly, but that the availability of multiple federal grants will determine the timeline. Wade said some of the county's $1.6 billion in federal Community Development Block Grant Disaster Recovery funding potentially could pay for acquisitions after an action plan is created. She said the properties that are acquired will be discussed this summer as part of the process for the Rebuild Lahaina Plan, a long-term, community-driven strategy for Lahaina's future. Wade said the Office of Recovery will lead the broad-based community engagement process, which will engage all county departments and stakeholders. 'We want folks to think about the inner relationships of this space, the collective assets that need to be planned and how they want to see Lahaina rebuilt, ' she said.
