A bill to empower counties to regulate short-term rentals (STRs) as their home-island residents see fit, and to eliminate outdated state law that blocks such county efforts, is now close to the legislative finish line, having been assigned Senate and House committee conferees.

Senate Bill 2919 wouldn’t itself make illegal any Hawaii STRs — but as the bill’s opponents recognize, would open the door for counties to reappraise STR regulation, up to and including a phase-out of STRs in residential zones.

Counties certainly should have that power, and responsibility. SB 2919 must be passed, and enacted with the governor’s signature.

Counties now control zoning and permitting for STRs, and can alter those processes within areas zoned for transient, tourist-oriented rentals such as hotels, time-shares and STRs, and in commercial or mixed-use areas. But they’ve been boxed in by legal uncertainty over their power to restrict or phase out STRs in residential zones. That home-rule ability to control STR proliferation, and to favor long-term housing for the benefit of local communities, is absolutely essential. It should not be barred by the state, and passing SB 2919 will remedy this.

The devastating Lahaina fire in August, which left more than 3,000 households in need of shelter, exposed the stark fact that STRs have usurped an unacceptably high proportion of housing units on Maui, raising overall rents and leaving local working-class families desperate for long-term homes. Eight months after the fire, about 1,100 households remain in hotel units, unable to find an affordable option. Few to no “low-income” rental units, defined at about $1,500 a month, exist anywhere on the island, a Star-Advertiser story reported this month.

STRs are now pretty much the only housing units available to place Lahaina’s fire-displaced households on Maui, and that’s driven the cost of housing them sky high — higher than the Federal Emergency Management Agency pays, which is about $4,500 for a one-bedroom and $5,500 for a two-bedroom unit. The Council for Native Hawaiian Advancement (CNHA) has been making additional contributions just to get families placed. And Maui County, which has waived property tax for STR owners who rent to fire survivors, expects to lose more than $1 billion in tax revenue as a result. “It’s not sustainable,” CNHA CEO Kuhio Lewis said, stating the obvious.

Maui clearly needs an unimpeded runway to reevaluate its policies on STRs. On other islands, the impact of STRs may, or may not, be as severe. But that’s why county discretion is best, and why SB 2919 makes so much sense, as it allows this.

SB 2919 also rewrites a portion of state law that was interpreted to prevent county restrictions on STRs that have been operating legally, specifically in residential areas. A U.S. District Court ruling prevented the City and County of Honolulu from shutting down registered STRs that rent for at least 30 days at a time; the judge found that 30-day rentals had been standard, and legal, in Honolulu before the city enacted tighter rules.

STR owners and lobbying interests warn that if SB 2919 passes, subsequent new restrictions will cause a lack of short-term rental options for visiting nurses and academics, family visits, medical care and even disasters. However, that argument needs to be made to county governments. Again, nothing in SB 2919 requires shutting down even one STR.

The bill “gives home rule back to the counties,” said state Rep. Elle Cochran, who represents Lahaina, Lahainaluna and Waihee. That’s a desirable outcome.

SB 2919 allows counties to address their own local needs, whether that be for long-term housing at affordable prices or lucrative STRs that attract visitors. The state should put this needed legislation in play — then leave it to the counties to call the shots.