What Maui Property Owners Need to Know
The Housing and Land Use Committee met on October 14, 2025, to review the findings of the Temporary Investigative Group (TIG) formed earlier this year to study potential paths forward for Bill 9, the proposed law phasing out short-term rentals (STRs) in apartment-zoned areas.
The TIG’s report introduces an important new direction: the creation of H-3 and H-4 Hotel Districts that could allow certain properties to continue operating as short-term rentals even if Bill 9 becomes law.
Purpose of the TIG Report
The group’s task was to identify which Apartment-zoned properties may be appropriate to keep their existing transient vacation rental (TVR) uses and to recommend next steps for the County Council.
Their job was to answer: If Bill 9 passes, which properties should still be allowed to operate short-term rentals, and how?
Summary of the TIG Findings
According to the report, properties were evaluated using several criteria:
- Market value: Complexes priced beyond what most Maui residents could afford may be suitable for continued short-term use.
- Sea-level-rise exposure: Properties located fully or partly in SLR-XA zones (areas at risk of sea-level rise) would not be practical for long-term housing and could remain short-term rental eligible.
- Timeshare properties: Complexes that are primarily or entirely timeshares would be classified within hotel or resort-related zones and not subject to the phase-out.
- Moloka‘i: Apartment-zoned STRs on Moloka‘i were not recommended for phase-out regardless of county-wide changes.
- Flexibility for owners: Property owners not listed in Bill 9’s Exhibit 2 may still apply individually for land-use designation changes to continue TVR operations.
Key Recommendations from the TIG
The committee unanimously supported several actions:
- Creating new H-3 and H-4 Hotel Districts zones that mirror A-1 and A-2 Apartment Districts but officially allow short-term rentals.
- Rezone certain complexes: (listed in Exhibit 2 below) from apartment to hotel districts so they can legally continue vacation rentals.
- Update community plans across Maui to align with these changes.
With these recommendations finalized, the TIG has completed its work and officially dissolved as of October 14, 2025.
Maui’s Bill 9’s Exhibit 2:
Which Properties Could Continue Short-Term Rentals?
The TIG’s Exhibit 2 identifies dozens of properties island-wide that may qualify for continued STR operations through rezoning.
South Maui:
1178 Uluniu Rd — Kihei
1194 Uluniu Rd — Kihei
1440 Halama St — Kihei
1444 Halama St — Kihei
1470 Halama St — Kihei
2131 Iliili Rd — Kihei
Hale Kamaole — Kihei
Indo Lotus Beach House — Kihei
Kamaole Sands — Kihei
Kapu Townhouse — Kihei
Kihei Bay Surf — Kihei
Kihei Bay Vista — Kihei
Maui Hill — Kihei
Maui Kamaole — Kihei
Maui Kamaole II — Kihei
Maui Kamaole III — Kihei
Maui Schooner — Kihei
Maui Sunset — Kihei
Maui Vista — Kihei
Moana Villa — Kihei
My Waili Beach Cottage — Kihei
Waiohuli Beach Duplex — Kihei
Grand Champions Villas — Wailea
Palms at Wailea I — Wailea
Wailea Ekahi I — Wailea
Wailea Ekahi II — Wailea
Wailea Ekahi III — Wailea
Wailea Ekolu — Wailea
Hono Kai — Ma’alaea
Island Sands — Ma’alaea
Lauloa Maalaea — Ma’alaea
Maalaea Kai — Ma’alaea
Milowai Maalaea — Ma’alaea
West Maui:
Hale Kai I — Lahaina
Hale Mahina Beach — Lahaina
Hale Ono Loa — Lahaina
Hono Koa — Lahaina
Kahana Outrigger — Lahaina
Kuleana — Lahaina
Lahaina Beach Club — Lahaina
Lokelani — Lahaina
Maui Sands II — Lahaina
Paki Maui I & II — Lahaina
Paki Maui III — Lahaina
Papakea — Lahaina
Pikake — Lahaina
Hale Kaanapali — Ka’anapali
Kaanapali Royal — Ka’anapali
Maui Eldorado — Ka’anapali
Kapalua Bay Villas — Kapalua
East Maui:
Hana Kai Maui — Hana
Notes
- Properties listed above are drawn directly from Exhibit 2 of the Temporary Investigative Group’s report (October 14, 2025)
- These complexes are considered appropriate for continued short-term rental use under the TIG’s October 14, 2025 recommendation.
- Other properties not listed can still apply individually for land-use designation changes if they wish to maintain transient vacation rental operations.
While this list includes several well-known properties already operating under the Minatoya List, giving them a clearer regulatory path forward, it represents only a small portion of Maui’s apartment-zoned complexes. Many others were not included and may need to pursue individual zoning or land-use changes.
What This Means for Property Owners
If your property appears in Bill 9’s Exhibit 2, the TIG’s recommendation could mean an eventual automatic rezoning to H-3 or H-4, preserving your ability to rent short-term.
If your property is not listed, you may still be able to apply individually for a zoning or community plan amendment to maintain TVR eligibility.
That process will likely involve additional applications, public hearings, and timing considerations, especially as the County works through the South Maui Community Plan update.
What Buyers Should Know
For buyers considering Maui condos, this development is significant. While Bill 9 is still not final, the introduction of the H-3/H-4 districts suggests that some complexes may retain short-term rental potential, creating new long-term investment clarity.
However, it also means due diligence is more critical than ever, verifying current zoning, community-plan designation, and pending legislative changes before purchasing.
Our Take
While the TIG’s recommendations provide a potential path forward, this proposal is far from final. Many apartment-zoned complexes were not included in Exhibit 2, meaning their ability to continue short-term rental use remains uncertain.
According to the report, owners of properties not listed can still apply individually for land-use designation changes if they wish to maintain transient vacation rental (TVR) operations. That process, however, will likely involve additional applications, legal review, and County hearings meaning there’s still an uphill legal and procedural road ahead.
It’s also important to note that Bill 9 has not yet been enacted. The proposal must still go through two full County Council readings before the Mayor can sign it into law.
In short, while the TIG’s findings mark a major step toward compromise: introducing a structured rezoning option through the new H-3 and H-4 Hotel Districts, the outcome is not yet settled. Property owners and potential buyers should stay informed, verify their zoning, and continue to follow the Council’s next moves closely.
What Happens Next
With the TIG’s recommendations now complete, Bill 9 will move into its next phase of review.
- First Reading: Occurred on October 14, 2025
- Second Reading: Scheduled for January 2026.
- Beyond That: The process may extend further into 2026 depending on the complexity of rezoning applications, public feedback, and political discussions that emerge as the new H-3 and H-4 Hotel District legislation takes shape.
In short, while progress is being made, nothing is final. Property owners and buyers should view this as a developing process, one that’s moving forward, but still subject to change as the County Council works through the legislative details.
We’ll continue to keep you updated.
With Warm Aloha,
