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Bill caps short-term rentals, prohibits camper van vacation rentals on public property

The Maui News

A new measure will lower transient accommodations caps in Maui County as part of an effort by officials to curb overtourism.

The Maui County Council last week passed a bill on second and final reading that amends the comprehensive zoning ordinance to establish the lower caps. It establishes a point-in-time freeze on all existing short-term rental uses and creates much-needed regulation prohibiting camper-van vacation rentals on public property, said Council Vice Chairwoman Keani Rawlins-Fernandez, who introduced the legislation.

She said the bill is the culmination of well-considered solutions that resulted from the council’s Tourism Management and Economic Development Temporary Investigative Group last year.

Areas that permitted transient accommodations were identified to create a “cap” for each zoning district, including Lahaina historic districts 1 and 2, the apartment districts, the B-CT country town district, the B-2 and B-3 business districts, the B-R resort commercial district, the hotel districts, planned developments and time share plans.

“The caps bill is one in a series of legislative proposals that this Council has passed,” Rawlins-Fernandez said in a news release Monday. “This includes appropriately taxing transient accommodations to mitigate tourist impacts, reducing short-term rental homes (“STRH“) and bed and breakfast caps in residential zoning, establishing a zero STRH cap on Molokai, requiring vacation rentals to display their tax map key number while advertising on online platforms, such as Airbnb and VRBO, and creating a cultural overlay.”

Mayor Michael Victorino applauded the council for working with residents, industry partners and other stakeholders on the legislation. He added that he looked forward to officially receiving the bill from the council for his signature.

“I support this positive step toward curbing the growth of vacation rentals, especially in residential areas, and preventing rented camper vans from being parked and used as visitor accommodations,” he said in a news release Monday.

A union official also expressed support for the measure.

“Our organization is happy that this bill has passed,” ILWU Business Agent and Political Action Coordinator Stephen West said in the mayor’s news release. “It’s the first of many steps that need to be taken to get vacation rentals out of our neighborhoods and back into resort areas. These transient vacation rentals have been driving up the cost of rentals because of the lack of rental housing for most people.”

The legislation was transmitted to the planning commissions and advisory committees on April 22 for their findings and recommendations. The Molokai Planning Commission, Lanai Planning Commission, Hana Advisory Committee, Paia-Haiku Advisory Committee and South Maui Advisory Committee all voted to recommend passage of the bill with the Planning Department’s recommended nonsubstantive amendments, according to a news release.

Although the Maui Planning Commission scheduled the item, their recommendation was not transmitted within the charter-mandated time frame due to a technical matter. Therefore, the council was able to move forward with its decision-making but required a two-thirds vote to advance the legislation.

An approved amendment was to cap the increased number of units below the 3.2-foot sea level rise line and add an extra layer of public review for hotel expansion projects proposed in culturally sensitive areas, now requiring Cultural Resources Commission review.

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