Maui’s Bill 88, the legislation establishing the H-3 and H-4 hotel zoning districts, passed its final vote before the full Maui County Council on June 19 by a vote of 7-2. The bill now heads to Mayor Richard Bissen’s desk. This is the clearest signal yet of where Bill 9’s implementation is headed.
How the Final Vote Broke Down
Council Members Keani Rawlins-Fernandez and Gabe Johnson cast the only dissenting votes, the same two who voted against the bill at first reading and in committee. The 7-2 result comfortably clears the supermajority of six votes required, given the unanimous denial recommendations from all three Planning Commissions earlier in the process.
Housing and Land Use Committee Chair Nohelani Uʻu-Hodgins, who introduced the motion for final passage, was direct about the scope of what the bill does. “This bill only establishes the district and it does not rezone any properties,” she said. “Rezoning will have to happen separately.” That distinction matters and has been consistent throughout this process: Bill 88 creates a zoning category. It does not, on its own, move any specific property into that category.
What Maui’s Bill 88 Means for the Minatoya List
The legislation is designed to create a path for roughly 4,500 grandfathered vacation rental units across 104 properties on the Minatoya List to eventually seek hotel zoning. That figure aligns with the Exhibit 1 property list we covered in our previous update.
A Note of Continued Opposition
Council Member Rawlins-Fernandez maintained her opposition on final reading, citing testimony submitted that day by the Office of Hawaiian Affairs. OHA’s testimony, delivered by McKenna Woodward, urged the Council to defer the bill, arguing that it creates new hotel zoning districts before the county has made parcel-specific findings on housing suitability, sea-level-rise exposure, and infrastructure capacity. Woodward also cited a University of Hawaiʻi Economic Research Organization finding that 85 percent of affected apartment-zone vacation rental owners have out-of-state mailing addresses, with the direct impact on Maui resident owners estimated at approximately 450 people.
Council Member Tamara Paltin, who voted in support, noted that her thinking on shoreline-related zoning has evolved since Bill 9 passed, citing recent ocean swells and king tides that have affected Honoapiʻilani Highway and Hanakaoʻo Beach Park. She indicated she intends to revisit whether shoreline-adjacent properties should remain eligible for the new hotel zones, a question that may surface again as the rezoning process develops.
Supporters at the hearing included representatives of the Maui Vacation Rental Association and the Realtors Association of Maui, who framed the bill as a tool for modernizing the zoning code without expanding short-term rental inventory beyond what already exists.
A Cost Concern Worth Watching
One piece of testimony is particularly relevant for any owner thinking ahead to the rezoning stage. Property owner TJ Victorine, whose 26-unit condominium association unanimously supports the bill, told the Council that land-use planners have quoted him between $200,000 and $500,000 per property to prepare the studies currently required for rezoning applications. He described this cost as prohibitive for most properties, including his own, and urged the Council to streamline the application process.
This is worth flagging clearly: passage of Bill 88 does not mean the rezoning process will be simple or inexpensive for individual properties or HOAs. The cost of preparing a rezoning application is a real consideration that property owners and HOA boards should be factoring into their planning now, regardless of how the broader legislative process unfolds.
Not Every Property Is Positioned the Same Way
The cost concern raised in testimony points to a broader reality worth understanding: the rezoning process is likely to look very different depending on the type of property and ownership structure involved.
Larger resort-oriented complexes with a high concentration of vacation rental units, properties like Kamaole Sands or Maui Kamaole, are likely to have stronger owner support and financial capacity to pursue a rezoning application as a unified association decision. Smaller condominium projects with a higher percentage of owner-occupants and second-home owners who do not currently rent short-term may face a more complicated path. For those associations, the cost and complexity of a rezoning application could prompt real disagreement among owners about whether pursuing H-3/H-4 designation makes sense.
There is also a practical capacity question worth watching. The county processes a limited number of rezoning applications each year. With 104 properties now on the Exhibit 1 list, even partial interest from a fraction of those complexes could create a meaningful backlog. How quickly and fairly the county manages that volume will likely shape the pace of this next phase as much as the legal framework itself.
For HOA boards beginning this conversation, that means two questions matter immediately: does our ownership base support taking on this cost, and if we decide to apply, how does timing affect our position in a process that may move slower than the legislative timeline suggests.
What Comes Next
Maui’s Bill 88 now goes to Mayor Bissen for final action. He testified in favor of the bill during the Housing and Land Use Committee hearing in May, calling it “an intentional next step in implementing Bill 9.” Given his public support throughout this process, his signature is widely expected, though it has not yet occurred as of this writing.
Once signed, Bill 88 becomes law, but that still does not rezone any properties. The next phase, the actual rezoning applications for specific properties and complexes, is a separate process that has not yet begun. Based on testimony from this final hearing, that process may also involve significant cost, complexity, and timing considerations for individual HOAs.
Bill 9 remains law. The enforcement timeline has not changed: January 1, 2029 in West Maui and January 1, 2031 in other affected districts.
What This Means If You Own, Are Buying, or Are Selling a Condo on Maui
For owners of Minatoya List properties, Maui’s Bill 88 final passage is a meaningful milestone, but it is the beginning of the next phase rather than the end of the process. If your HOA board has not yet discussed the cost, feasibility, and timing of a rezoning application, this is the moment to start that conversation. Whether your complex is the kind likely to move quickly, or the kind that may need more deliberation among owners, is worth assessing honestly now.
For buyers, the same due diligence framework we outlined in our previous update still applies. Confirming whether a property is on the Exhibit 1 list, whether it meets the four eligibility criteria, and now also asking what your HOA’s plan, budget, and ownership composition look like for a potential rezoning application are all part of a complete picture.
For sellers, a final 7-2 vote removes one layer of legislative uncertainty that has weighed on Minatoya List properties. Whether that translates into measurable market movement will likely depend on how the rezoning process unfolds in the months ahead, including how individual HOAs navigate cost and timing, and how the county manages application volume across more than 100 eligible properties.
We will continue to track this process, including the Mayor’s signature and the start of the rezoning phase, and share updates as they happen. If you want to talk through what any of this means for your specific property or situation, we are here.
With Aloha,
This Bill 9 Maui Real Estate update represents our opinion based on available information and should not be considered financial or legal advice.
