- Category: HBC June 2016 Newsletter
- Published: Friday, 24 June 2016 17:03
- Written by Andrew Rayner
- Hits: 1077
The vacation rental bill is continuing its tortuous way through Maui Council. It could reach Hana Advisory Committee in August or September. A recent amendment put forward by Bob Carroll proposes a five-year ownership requirement for applicants applying for short-term rental permits. There are now three exceptions:
- Six-month grace period. Applications submitted within six months after the date of enactment of the ordinance are not subject to the five year ownership requirement.
- Previously permitted properties. Properties that already have had a short-term rental home permit where the new owner applies for a new permit within three years of purchasing the property are exempt from the ownership requirement. Currently the permits are non-transferable so the existing permits are no longer valid once a property is sold to a new owner. In this case, the new owner would have three years to apply for a new STRH permit. The reasoning behind this was to allow properties already vetted as appropriate short-term rentals and not in the long term housing rental market when sold to continue as a short-term rental.
- Houses with building values under $1.0 million. This month's amendment to restrict the 5-year ownership requirement to properties that have a building value of less than $1 million dollars was added to allow high end homes to be used for short-term rental. The introducer, Council member Victorino, stated that he believes that homes with valuations of over $1.0 million are not used as long term rentals.
The current draft of the bill is on the Council website.
There are at present 13 permitted vacation rentals in E Maui, with another four or so applications in the pipeline. There are 10 permitted B&Bs. The permit ceiling is to be reduced from 48 to 30 of each.