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The Maui News
A bill to incentivize short-term rental owners to provide long-term housing for displaced wildfire families is set to be heard again Dec. 15 for a second and final reading before the Maui County Council.
Proposed by Mayor Richard Bissen to try to get more fire victims into housing, Bill 131 would provide those that rent long term to fire victims a 100 percent real property tax exemption.
The full council Tuesday at a special council meeting approved an amended version of the bill by a 6-0 vote, with three members absent and excused.
The amended version includes protections for long term renters from being displaced by landlords wanting to take advantage of the tax exemption, along with allowing landlords participating in direct-lease programs, such as the Host Housing Support Program to also participate and receive a tax exemption.
If the bill gains final approval, the program will launch to accept enrollment applications on Jan. 1 through Jan. 31, 2024, and can provide long-term housing options for families to be housed as early as Feb. 1, 2024, according to a news release.
At the meeting, Bissen acknowledged the concerns he has heard from short-term rental owners over his bill, one of which "they will be losing money."
"And the answer to that is, 'that's right,' they will be losing money. But what they will be gaining is much more and what the whole community gains," he told the council. "So that's part of the shared sacrifice I talked about."
But short-term rental owners said in person and written testimony that not all of them are rich and rely on their short-term rental income to pay mortgages and other expenses. Some said they have made many donations to fire relief funds and asked not to be vilified for being a short-term rental owner who many not be able to participate in the county proposal.
Some also expressed worry about the possibility of having their property taxes increased if they do not participate as noted by Bissen in a news release last month. Bissen said Tuesday that will not be done immediately as property tax rates have been set for this fiscal year.
In written testimony, Bob Beaudry wrote that it is a "fine idea" to offer tax incentives to people who rent their vacation rentals to those affected by the fires.
But he added, "This one vacation rental is our retirement, and we have lived in Hawaii for over 30 years. We have owned our condo for 23 years. We currently have 28 reservations for next year. In order to convert to long term rental, we would have to refund thousands of dollars in deposits and destroy our standing with our guests. How could we afford that?"
Beaudry also wrote: "We would not make it financially without the vacation rental income and might end up losing our condo and home."
Others, including fire victims who have moved multiple times from hotel room to hotel room, urged the council to pass the bill.
Laurie Robertson, a Wahikuli resident and survivor of the August fires, said she was moved four times in the first two months with her fiancé and their dogs.
She was most recently given five hours notice that she would be relocating as the Red Cross' contract was ending at the hotel she was staying at.
"I have shed the tears and felt the frustration and powerlessness of not being able to secure long term housing in West Maui," she said, especially with the family pets.
"I believe Bill 131 is an important step in the right direction to address the housing crisis by incentivizing short-term vacation rental owners who may be on the fence to do the right thing," she said. "It will help ensure that more housing is becoming immediately available for local residents and community members who lost so much already."
Also on Tuesday, Maui County Council Chairwoman Alice Lee announced that the council will consider a bill Dec. 15 to establish criteria for the 'Ohana Assistance Pilot Program, which offers grants of up to $100,000 to build an accessory dwelling or second farm dwelling for residents' long-term occupancy.