Maui Short Term Rental Laws - Update

Major TVR Phase-Out Update

For approximately 9 months now, RAM has been actively working to oppose two TVR phase out proposals that would have stripped thousands of property owners of their vested rights and caused major economic turmoil for the county. I am pleased to share that our policy arguments and hard work have finally paid off, and the Maui County Council has decided to take their TVR “phase out” in a much different direction. Instead of the legislative proposals we were opposed to, the Planning and Sustainable Land Use Committee of the Maui County Council opted to pursue an alternative model that would allow condominiums to voluntarily eliminate TVR use if a majority of unit owners agree. The current proposal would require 100% of unit owners to agree in order to eliminate the TVR use, but there is discussion of changing that to 67% of unit owners. Regardless, this policy of voluntary conversions will not diminish or remove any property rights from owners, and it will likely have minimal impact on our economy. This is a major change, and a huge win for property rights! The RAM community should be proud of this success, and I am so thankful for all your support throughout these many months. 

 

Transient Accommodation Caps

As you are all likely aware, earlier this year the Maui County Council passed a 2 year moratorium on new visitor accommodations. The Maui County Council’s Planning and Sustainable Land Use Committee recently advanced legislation that would essentially codify the moratorium, and function to cap the number of visitor accommodations at existing levels. I have received a lot of calls and emails about this legislation, so I want to address a couple of the most common questions here:

• Question: I have a condominium unit that has the right to conduct transient accommodations based on its zoning, but the unit is currently being used by a long term renter or owner occupant, will I still have the ability to conduct transient vacation rentals in the future if this legislation passes?

• Yes, this legislation should not impact any units that are allowed to conduct transient accommodations, even if those units aren’t actually conducting transient accommodations now. This specific point was discussed at the PSLU Committee’s March 23, 2022 meeting, and the original bill was amended to ensure that this right would be preserved, even if vacation rentals aren’t being conducted. For details on these changes, and a clearer understanding of the legislative intent on this matter, I encourage you to look at the meeting minutes from March 23rd beginning around page 34. 

• Question: I see that Resolution changes Section 19.32.040 of the Maui County Code to say that “transient vacation rentals are not permitted in planned developments.” Does this mean that transient vacation rentals will become unlawful in planned developments?

• No. According to Section 20 of the proposed legislation, these changes will only apply “to new transient accommodation applications that have not received final discretionary approval prior to January 7, 2022.” Therefore, existing planned developments that currently allow transient accommodations will continue to be allowed to conduct transient accommodations. Notwithstanding, TVR use will likely be considered a “lawful non-conforming use,” which means it is allowed but it may potentially be susceptible to elimination through legislation down the line. 
  
• Call or text Eric West at 808-298-2030 for all your real estate needs on Maui!