KAHULUI, Hawaii — Mayor Richard Bissen’s proposal to provide temporary property tax exemptions for long-term housing units leased to those displaced by the August wildfires made it through its initial consideration by the Maui County Council on Wednesday.

What You Need To Know

  • During a special meeting convened specifically to take up the proposal, the council passed Bill 131 on first reading

  • About 65 people testified in person and nearly 700 written testimonies were also submitted

  • Under the bill, housing units occupied as a long-term rental under lease for at least one year to one or more people directly displaced by the fires would be eligible for a fully real property tax exemption

  • A few testifiers, both in support and in opposition to the bill, warned of the unintended consequences of incentivizing landlords to offer long-term leases to those displaced by the fires

 

During a special meeting convened specifically to take up the proposal, the council passed Bill 131 on the first reading. The measure received broad public support, with many testifiers calling for further measures to assure housing security for those affected by the fires. 

“I appreciate the council’s diligence in the consideration of this bill and the time that more than 60 people, including survivors and owners, took to provide testimony, both written and in person for this important proposal,” he said. “We are extremely hopeful that the outcome of this bill will help those in dire need and create immediate solutions for housing as we continue to address this complex housing crisis.”

About 65 people testified in person and nearly 700 written testimonies were also submitted.  

Under Bill 131 (2023), housing units occupied as a long-term rental under lease for at least one year to one or more people directly displaced by the fires would be eligible for a full real property tax exemption during the applicable period.

The exemption could be claimed for more than one dwelling for an owner if the dwellings are located on different parcels. It would not be applied to portions of properties that are not used as long-term rentals for those displaced by the fires.

The exemption could not be claimed if the lessee has any ownership interest in the property, either personally or through a corporation, partnership or other entity. Units leased to those who have permanent housing elsewhere would also be excluded.

The bill restricts lessee eligibility to those whose permanent home was destroyed by the wildfires and had no other permanent housing alternative and those who lived within the red or yellow reentry zones in Lahaina.

The bill includes safeguards for fraud and changes in property status.

If approved, on its second and final reading on Dec. 15, the proposed program will begin accepting 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.

Mayor Bissen said Bill 131 is one of several strategies his administration is considering to address long-term housing needs, including additional dwelling units, module housing options and potential housing projects that can be expedited. 

“We are all navigating uncharted circumstances through an unprecedented disaster,” he said. “One thing is certain: we all share a profound kuleana in caring for our people. With that responsibility comes a shared sacrifice to ensure our people are returned to a place to call home.”

A group of Lahaina residents spoke to the timeliness of the measure in boilerplate written testimony submitted to the council.

“With the scheduled conclusion of non-congregate sheltering on February 10, 2024, the urgency of this matter cannot be overstated,” the residents testified. “The shortage of available rentals and alternative housing options poses a severe challenge for displaced fire survivors, particularly here in West Maui and across the entire island. While we acknowledge that this proposal may not be a comprehensive solution, it can provide substantial relief to some individuals grappling with the aftermath of the fires.

“Aligning with Mayor Bissen’s vision to encourage property owners to contribute voluntarily, this initiative serves as a litmus test to identify those willing to assist in times of crisis,” they continued. “By fostering a community-driven response, we can discern who is prepared to step forward and offer support when it is needed the most.”

A few testifiers, both in support and in opposition to the bill, warned of the unintended consequences of incentivizing landlords to offer long-term leases to those displaced by the fires.

“The incentives to owners to rent to fire survivors could very well trigger random evictions of current tenants,” wrote testifier Kaeley Glasco.

“To avoid current renters trading places with the survivors, it is imperative that protections are firmly in place to safeguard housing for all residents in the form of … concurrent 18-month moratorium protections on rent increases and baseless evictions,” Glasco wrote.

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.