Just days after Maui County’s Bill 9 was signed into law, the first legal challenge has been filed, marking the beginning of what many anticipated would be a series of court actions related to the bill.
According to public reporting, the lawsuit was filed on December 19, 2025, in Hawaii’s Second Circuit Court by owners of units at Kaʻanapali Royal, a property that has historically operated short-term rentals within apartment zoning. The case names Maui County as the defendant.
In summary, the complaint challenges Bill 9’s phase-out of short-term rental use in apartment-zoned properties and alleges that the new law establishes an unconstitutional taking of property rights without just compensation. The filing references decades of lawful operation, prior County land-use interpretations, and reliance on zoning and regulatory frameworks that permitted short-term rental use.
Vested Rights at the Center of the Challenge
The legal theory outlined in the lawsuit centers on vested rights, a concept in land-use law that protects existing lawful uses from being eliminated without due process or compensation. Many apartment-zoned short-term rentals affected by Bill 9 have operated for decades under County guidelines, approvals, and enforcement practices.
This issue has been raised repeatedly in prior discussions surrounding Bill 9 and reflects concerns voiced by legal experts that removing long-established property uses could expose the County to constitutional challenges.
Existing Legal Precedent in Hawaiʻi
There is also recent legal precedent in Hawaiʻi related to vested rights. In 2022, a federal judge in Honolulu blocked enforcement of a law that would have banned 30- to 89-day rentals in certain residential zones, ruling that forcing property owners to abandon long-standing lawful uses would likely violate constitutional protections.
That ruling cited state law protections for existing uses and reinforced the legal principle that government cannot retroactively eliminate lawful property rights without compensation.
What This Means Moving Forward
Bill 9, which was signed into law on December 15, 2025, establishes a staggered sunset for apartment-zoned short-term rentals, with enforcement beginning January 1, 2029, in West Maui, and January 1, 2031, in other affected districts. The law does not apply to hotel-resort zoned properties.
At this stage, the filing of the lawsuit does not change the law’s current status, and no court rulings or injunctions have been issued. However, the case confirms that legal challenges are no longer theoretical and may play a role in shaping how, when, or whether portions of Bill 9 are ultimately enforced.
As with most land-use and constitutional litigation, the legal process is expected to unfold over time. Additional lawsuits or motions may follow as implementation approaches.
We will continue to monitor developments and provide updates as more information becomes available.
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.
Interested in learning more about Maui Bill 9?
Follow our coverage of the major developments:
- Bill 9 Update: Timeline, Impact, and What Maui Property Owners Should Expect
July 2025: An overview of Bill 9, the proposed phaseout and what it could mean for Maui property owners. - Bill 9 Update: New Hotel Zones Proposed to Protect Vacation Rentals
October 2025: The Temporary Investigative Group recommends creating H-3 and H-4 Hotel Districts and identifies properties for potential rezoning. - Bill 9 Update: Bill 9 Passed, What Happens Next
December 2025: Bill 9 becomes law and the focus shifts to implementation. - Maui Bill 9 Update: All Three Planning Commissions Have Now Recommended Denial
April 2026: All three Planning Commissions recommend against the proposed H-3/H-4 zoning framework. - Maui Bill 9 Update: H-3/H-4 Hotel Zoning Framework Clears Council Committee
May 2026: The H-3/H-4 framework advances from the Housing and Land Use Committee to the full Council. - Bill 9 Update: The H-3/H-4 Zoning Bill 88 Passes First Reading
June 2026: Bill 88 passes its first Council reading and the potential H-3/H-4 property list comes into greater focus. - Bill 9 Implementation Update: Council-Initiated Rezoning Begins, First Properties Identified
June 2026: The first properties are identified for Council-initiated H-3/H-4 rezoning. - Bill 9 Implementation Update: Council Advances First Maui Vacation Rental Rezoning Resolutions
August 2026: Resolutions 26-110 and 26-111 advance to the Maui Planning Commission for property-specific rezoning review. - Maui Vacation Rental Rezoning Update: More Properties Considered for H-3 and H-4 Zoning
September 2026: Council considers additional properties and criteria for H-3/H-4 rezoning, including coastal-hazard properties. - Maui Planning Commission Recommends 5 of 48 Properties for H-3/H-4 Rezoning as 32 More Head to Planning Commission
October 2026: The Planning Commission recommends H-3/H-4 rezoning for 5 of 48 properties, while Council refers another 32 properties for Planning Commission review.
View all Maui Bill 9 updates Here
