Attorney Forrest's Locals 1st Bill 9 Plan Promotes Local Ownership of STRs and Keeps Tourism Profits in Local Residents' Hands.

Maui faces a housing crisis that demands more than just Bill 9. While Bill 9 aims to regulate short-term rentals (STRs), it falls short of protecting local residents, workers, and the island’s economy. The real challenge is not tourism itself but the way absentee ownership and luxury properties drain resources and profits from the community. Attorney Forrest’s Locals 1st Bill 9 Plan offers a smarter approach that keeps housing affordable, supports local workers, and ensures tourism benefits stay on Maui.

The Problem with Bill 9 Alone

Bill 9 restricts short-term rentals but does not address who benefits from them. Many STRs are owned by investors outside Maui, and profits often leave the island. This creates a cycle where locals struggle to find affordable housing, and local workers see little benefit from the booming tourism industry. Luxury homes sit empty much of the year, driving up property values and pushing residents out.

Without additional measures, Bill 9 risks becoming a windfall for hotels and mainland investors rather than a solution for Maui’s housing and economic challenges.

The Forrest Plan’s Core Principles

Attorney Forrest’s plan centers on three key ideas:

• Local Housing: Protect homes for Maui residents and prevent displacement.

• Local Ownership: Encourage local people and nonprofits to own and manage properties.

• Local Economy: Keep tourism profits circulating within Maui through local jobs, vendors, and taxes.

  
  

This approach balances the benefits of tourism with the needs of the community.

Local Reinvestment TVR Tax Credit

The first part of the plan creates a tax credit for lawful short-term rentals that meet strict local criteria. To qualify, properties must be:

• Locally owned and managed

• Employ Maui workers and use local vendors

• Follow all laws and regulations

• Demonstrate that revenue stays within Maui’s economy

  
  

This tax credit rewards responsible owners who contribute to the community, encouraging more locals to participate in the STR market and reducing absentee ownership.

H-3 and H-4 Community Benefit Requirements

For properties seeking new hotel zoning under H-3 or H-4 classifications, the plan requires proof of community benefits. These include:

• Contributions to affordable housing projects

• Local workforce hiring standards

• Local management of the property

• Reviews for sea-level rise risks and infrastructure impact

• Annual compliance reporting

  
  

This ensures new developments support Maui’s long-term sustainability and protect residents from displacement.

Maui Circular Economy Receipt

Transparency is key to keeping tourism profits local. Larger STR operators must disclose how much money stays on Maui through:

• Local wages paid to workers

• Purchases from local vendors

• Local taxes paid

• Contributions to housing programs

  
  

Properties that demonstrate strong local economic impact receive recognition and incentives. This encourages operators to invest in the community rather than funnel profits elsewhere.

Local Buyer Transition Fund

If Bill 9 leads to property sales, the plan prioritizes local residents and nonprofit housing providers as buyers. The county would provide funds to help:

• Local families purchase homes

• Workers secure affordable housing

• Community land trusts acquire properties for long-term affordability

  
  

This fund prevents properties from falling into the hands of outside investors and supports community ownership.

Luxury Underutilized Residential Property Tax

Many multimillion-dollar homes sit empty or are not rented long-term, reducing housing availability. The plan proposes a higher tax rate for these luxury properties if they are:

• Not owner-occupied

• Not rented as long-term housing

  
  

Revenue from this tax would fund affordable housing and programs for local residents, turning underused luxury homes into community assets.

Why This Plan Matters for Maui

Tourism is vital to Maui’s economy, but it must work for the people who live here. The Forrest Plan addresses the root causes of housing shortages and economic leakage by:

• Encouraging local ownership and management of STRs

• Ensuring tourism profits support local workers and vendors

• Protecting affordable housing for residents

• Holding new developments accountable to community needs

  
  

This plan offers a balanced path forward that respects Maui’s unique culture and environment.

Taking Action for Maui’s Future

Maui’s housing and economic challenges require bold, thoughtful solutions. Attorney Forrest’s Locals 1st Bill 9 Plan provides a clear framework to protect residents, support local workers, and keep tourism benefits on the island. It is a call to prioritize people over profits and build a sustainable future for Maui.

Residents, policymakers, and community leaders should consider this plan as a foundation for meaningful change. Homes belong to local families, and tourism profits should help build a stronger Maui for everyone.