LEGAL VIEWPOINT
Professor David Callies – Professor of law specializing in land use & local government
Interview with Clint Hansen – https://www.mauirealestate.net/mauirealestateradio)
Minatoya Rule Overview
The Minatoya rule allows vacation rentals built before 1989 to operate legally. The proposed ban seeks to remove these rights, which could lead to several legal battles. (Minatoya List)
Ongoing Uses:
Properties currently operating as vacation rentals have established use rights. Eliminating these rights can lead to significant legal challenges based on the history of lawful use.
Vested Rights:
Property owners have investment-backed expectations that are protected under the law. Any sudden changes to their ability to use their property as vacation rentals could be seen as a violation of these rights.
Regulatory Takings:
The ban could be challenged as a regulatory taking under the Fifth and Fourteenth Amendments. This would require the government to show that the regulation substantially advances a legitimate public interest without disproportionately affecting property owners.
Potential Litigation:
If the ban is enacted, it is likely to face lawsuits from affected property owners and possibly class action suits. These legal proceedings could take years and create uncertainty for all involved.
Immediate Termination Issue:
The proposed six-month to one-year termination period for vacation rentals is extremely short and could be legally untenable.
Economic Impact:
The ban is unlikely to resolve the affordable housing crisis and may even worsen economic conditions by reducing jobs and income streams crucial for Maui’s economy.
Housing Crisis Solution:
Effective solutions require significant state involvement in infrastructure and housing development, not just regulatory changes.
Likelihood of Passing:
Given the current political climate and public sentiment, the chances of the Minatoya Ban passing are better than even. However, it will require a massive education effort and public opposition to prevent it.
stay informed, stay involved
While addressing Maui’s housing crisis by returning apartment units to long-term residential use is a laudable goal, Mayor Bissen’s proposed phase-out of vacation rentals in these properties raises legitimate constitutional concerns over regulatory takings and property rights that could prompt legal challenges.
The county must carefully craft reasonable amortization periods, transfer provisions, and clearly define the public purpose criteria to withstand judicial scrutiny that the law does not arbitrarily overreach government authority.
However, courts have given municipalities significant leeway with land use regulations in the public interest, so a thoughtfully constructed ordinance balancing private property rights with remedying the affordable housing shortage could pass constitutional muster – though a poorly constructed law risks being bogged down in lengthy litigation delaying relief for those most impacted.
Robust public input will be critical as the county walks this legal tightrope between regulatory necessity and constitutional property protections.
Take action now by preparing your testimony and keeping up on the current schedule of events and meetings.
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