Gov. Josh Green is calling for owners of 3,000 short-term rental units (STRs) on Maui to convert to long-term housing for the fire-displaced. If this doesn’t happen, and quickly, his next move is likely to be what he has called “the nuclear hammer”: a ban on short-term rentals until the need for housing is filled.
His current emergency proclamation following the Aug. 8 wildfires expires on Jan. 4. A “hard position” on STRs could follow sometime in mid-January, if openings to house those in need haven’t begun to materialize, Green said.
In the context of this disaster-imposed emergency, a temporary moratorium on STRs while Lahaina fire victims remain homeless is justified, and should survive a likely court challenge. It would serve a clear public purpose, and unit owners will be generously compensated for the use of their property.
Further, making these units available is simply the right thing to do. Owners should come forward now to house islanders in need, bypassing the need for the governor’s “hammer.” But sadly so far, fewer than 200 STRs have been made available.
That’s despite an estimated 12,000-14,000 STRs in Maui County, in addition to 2,500-3,000 timeshare units and 12,000-14,000 nonowner-occupied homes — some of which sit empty. If fewer than 1 in 4 STRs were made available by owners, along with even a fraction of these other units, this crisis would have a resolution.
Much is at stake for about 6,500 people displaced by the wildfires — under 3,000 households — still living in Hawaii hotels. Already traumatized by losing their homes in the deadly Aug. 8 inferno, which took 100 lives and decimated historic Lahaina, many have been forced to move from room to room, location to location.
“It’s my job to take the hard position if our people aren’t being taken care of,” the governor said. “At the end of the day, housing our local people is more important.”
Fire survivors will need housing for up to two years while permanent replacement units, and a new Lahaina, are built. Other interim housing types are being encouraged and planned, including additional dwelling units on residential properties and tiny home communities. But these fixes can’t provide adequate housing as quickly as STR conversion can.
Hotel rooms are currently being paid for by the federal government and donors at approximately $500 daily — an eye-popping $15,000 or more per month. The American Red Cross program to house survivors in hotels expires on Feb. 10, and while it can be renewed, that should no longer be a preferred option. Not when more-stable, long-term rentals should be the goal.
In addition to direct rental assistance for those able to find their own housing, the Federal Emergency Management Agency (FEMA) offers a direct-lease program, working directly with property owners to house the fire-displaced for up to 24 months. Letters went out Monday to 13,000 owners of short-term rental units, offering and explaining the financial incentives.
Further, the Maui County Council passed Bill 131 on its final reading Friday, exempting short-term rental units, timeshare units and nonowner-occupied dwellings from all property tax through fiscal year 2025 if rented to households displaced by the Maui wildfires for at least 12 months. That’s a significant incentive to STR owners to help fire evacuees, with an estimated average of $10,000 in taxes per unit waived. The program launches on Jan. 1.
Some current renters fear being evicted so that landlords can sign up for the emergency property tax incentives, but Bill 131 was amended to bar landlords from doing this. The county must strictly enforce this provision to avoid imposing harm on other Maui tenants in the island’s inadequate, costly rental market.
Maui’s STR operators profit from the island’s appeal, which includes aloha — care — for its full-time residents. They must now extend this aloha to those who lost everything, including their homes, in the West Maui fires.