Gov. Josh Green on Friday made good on his promise and signed a bill into law that gives counties the ability to better regulate short-term vacation rentals in the hope of freeing up affordable, long-term housing for island residents.

Senate Bill 2919, Green said, represents a “pivotal tool” to address Hawaii’s housing crisis by giving counties the clear authority to regulate vacation rentals as they see fit.

Even before Green signed SB 2919 into law, Maui Mayor Richard Bissen on Thursday announced a proposed bill to phase out 2,200 vacation rentals in West Maui apartment districts by July 1, 2025, with plans to expand to all 7,000 units in apartment districts across Maui.

If Bissen’s plan gets approved, Maui apartment districts would have no legal vacation rentals as of Jan. 1, 2026.

Green had pledged to sign SB 2919 into law as soon as it got to him and said Friday, “It is very rare that within one session a movement takes on like this and then becomes legislation and then cascades into activity.”

On the same day, Green also signed six “good governance bills” into law designed to promote public trust and citizen participation and enhance openness in decision-making processes across the state.

House Bills 1598, 1599 and 1600 aim to improve Hawaii’s open-meetings law through timely distribution of testimony, remote audio and video participation, and clear meeting schedules.

Other bills Green signed include HB 1879, which ensures fair access to digital voter information guides and prevents selective access before public release; HB 1881, which updates fines for conduct and lobbying law violations to discourage unethical behavior; and HB 2072, which enhances transparency in disaster relief fund solicitations by requiring disclosures designed to protect donors and build trust in relief efforts.

“The Legislature has stepped up and passed quite a lot of legislation in two years,” Green said.

He said the passing of SB 2919, specifically, will change the lives of financially struggling residents.

Among 89,000 short-term rentals across the state, Green said about 75,000 of them are believed to be illegal.

SB 2919 gives counties the authority over regulating short-term rentals through zoning, including the possibility of banning them.

Across Hawaii, Green said, 25% of residents struggle to cover housing expenses. Hawaii faces an estimated shortage of 50,000 affordable units while home prices in Hawaii average $832,000.

“Nobody can really afford that unless they’re extremely wealthy,” Green said. “So we’re going to address the 75,000 illegal short-term rentals. This bill can single-handedly push lots of housing back into, essentially, local families’ hands.”

In two or three years, if all the County Councils take action to return the 75,000 illegal units of housing back to local families, Green said, the state will see a housing surplus instead of a shortage.

“Imagine what that would look like,” Green said. “It would also immediately bring prices down to earth.”

During Friday’s bill signing, Green also provided a summary of the administration’s recent work to increase affordable housing choices.

Efforts are on track to build more than 13,000 housing units by 2026, and over 60,000 units are in the pipeline across more than 235 projects, he said.

“By like six months a lot of housing on the West Maui side would immediately come back into the market, and then — with just a little bit longer runway — all across Maui,” he said.

Shannon I‘i, a Lahaina Strong member who lost her house in the Aug. 8 wildfires, flew into Oahu to witness Green’s signing.

“For us this is big. This is really big,” I‘i told the Honolulu Star-Advertiser after Green signed SB 2919 into law.

There are still 708 families like hers living in hotels.

I‘i has been living with three other family members at the Kaanapali Shores for eight months.

Unlike some other families, I‘i feels blessed because she has a kitchen and laundry facilities in her hotel. Her eldest daughter and her grandson live in a hotel that does not have a kitchen, which makes it difficult.

“Finding a place in Maui was really tough; there was already a housing crisis,” I‘i said. “I think this, with phasing out short-term rentals — even though it’s going to be a little bit of time — is a huge win.”