Maui committee forwards amended Bill 40 on workforce housing after removing credit phase-out and adding new deed restrictions

The Maui County Housing and Land Use Committee on Sept. 24 recommended first reading of Bill 40 (2025), an omnibus update to Maui County Code chapters addressing residential workforce housing. Committee members voted to advance a revised CD1 version of the bill after adopting multiple amendments that change how workforce-housing credits, deed restrictions and resale rules will be administered.

The committee’s action sends the bill to full Council for first reading. The measure as amended removes language that would have barred issuance or use of residential workforce-housing credits after Jan. 1, 2050, sets specific income splits for ownership and rental units, requires perpetuity restrictions for ownership units on county land and adds administrative steps such as a 90‑day county purchase option when deed‑restricted homes are offered for sale after foreclosure.

Why it matters: Bill 40 would alter how the county prioritizes and protects limited affordable housing inventory. Committee members and housing staff said the changes are intended to preserve long-term affordability while giving the Department of Housing time to develop implementing procedures and to coordinate with federal guidance from HUD.

Key votes and changes

- Removal of a 2050 phase-out for residential workforce-housing credits: Committee members voted to remove the clause that would have prohibited issuing or using credits after Jan. 1, 2050. The department of housing asked that credit policy be handled in a separate, stakeholder-driven process; the committee agreed and deleted the phase-out language.

- Ownership-unit splits (amendment adopted): The committee adopted an amendment to specify ownership unit targets at 30% for below‑moderate income households (80–100% AMI), 50% for moderate income (100–120% AMI) and 20% for above‑moderate income (120–140% AMI). For rental units the committee adopted a split that generally allocates roughly one‑third to very low income (≤50% AMI), one‑third to low income and one‑third to moderate/below‑moderate tiers, as reflected in the amended language.

- Deed restrictions on county-owned land (adopted): Ownership units located on county‑owned land will remain subject to deed restrictions in perpetuity. For other ownership units the committee left in the multi-tier deed‑restriction periods described in the bill but discussed options (99 years vs. perpetuity) during staff Q&A.

- Resale/restriction restart (defeated): An amendment that would have required deed‑restriction periods to restart in full when a restricted unit is resold failed on a roll-call vote. Members raised administrative and fairness questions about applying the same term to a used home that may require substantial repairs.

- Foreclosure and county option (adopted, 90 days): The committee added that, in foreclosure situations, the county will have the first option to purchase the unit from the mortgage holder for a 90‑day period after written notice. If the county does not exercise the option the bill clarifies certain deed‑restriction exceptions apply in foreclosure cases.

- Director discretion and reporting (adopted): The committee added language allowing the director of housing limited discretion for hardship or special circumstances (examples discussed included domestic‑violence relocation), and required an annual report to the Council on discretionary exemptions to preserve oversight while protecting sensitive personal information.

Discussion and administration

Samalu Mata'afa, deputy director of the Department of Housing, told the committee the department supports a 99‑year deed‑restriction period for county-owned land but is “open to discussions on perpetuity as well.” Mata'afa said the department had sent a May 30, 2025 letter identifying three credit-policy questions the administration believes require a separate stakeholder process: whether credits must be used for units at the same AMI as they were generated, whether credits can satisfy requirements for any unit type, and whether credits must be used in the community plan area where they were generated.

Mata'afa said the department is working on a public project tracker and expects to show a sample in the weeks after the meeting, but that administrative guidelines and some implementation procedures still need work. She told the committee the department planned meetings with HUD to clarify federal guidance on residential preferences.

Deputy Corporation Counsel Justina Toshikyo and legislative attorney Carla Nakata clarified the legal status of earlier ordinance work: the committee was told that Ordinance 53‑15 (derived from Bill 111, 2021) never took effect because required departmental guidelines were not submitted to the Council for approval by resolution. Toshikyo said the ordinance remains “alive” but the implementation steps (guidelines and then a council resolution) must happen for it to take effect.

Votes at a glance (selected recorded votes)

- Amendment specifying ownership and rental unit splits (Tamara Paulton motion): Adopted. Roll call: 8 ayes, 1 no.

- Amendment to restart deed-restriction term on resale: Failed. Roll call: 4 ayes, 5 no.

- Removal of the 2050 housing-credit phase-out (member motion, committee agreed to remove): Adopted (voice/hand count recorded by committee; conforming edits applied elsewhere in draft).

- County first‑option on foreclosure changed to 90 days (member motion): Adopted (voice/hand count recorded by committee).

- Final: Motion to recommend passage on first reading of Bill 40 CD1 as amended: Adopted. The committee reported the recommendation to Council as an 8–0 vote with one member excused.

What’s next

The committee directed staff and the Department of Housing to continue stakeholder outreach and to return with administrative guidance and any follow‑up drafts needed to complete the credit‑policy work. The bill proceeds to full Council for first reading with the committee’s recommended CD1 changes.

Attributions

Quotes in this article come from the public meeting transcript of the Maui County Housing and Land Use Committee, Sept. 24, 2025. Direct quotes used in the article are attributed to speakers listed below.

Ending

The committee recessed and reconvened during the meeting to clarify legal and administrative points before voting. After finishing its business, the committee adjourned at about 12:06 p.m.; written testimony remains part of the permanent record and the Council will review the amended CD1 version at first reading.