Bill 9 Update: New Hotel Zones Proposed to Protect Vacation Rentals

Oct 14, 2025Maui News and Events

Bill 9 Update New Hotel Zones Proposed to Protect Vacation Rentals

December 15, 2025 Update: Bill 9 Passed its second reading, please read the details here.

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.

Maui Bill 9 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. If this passes, it would be a 64% reduction from the roughly 7,000 units originally targeted by Bill 9.

Purpose of the Maui 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 Bill 9 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 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 Maui Bill 9 TIG recommendations provide a potential path forward, this proposal is far from final; it’s a 64% reduction from the roughly 7,000 units originally targeted by Bill 9. 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 of Bill 9: Scheduled for on November 12, 2025 (postponed until December 2025)
  • Second Reading of Bill 9: 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.

Recent Updates (Last Updated October 31, 2025):


October 22, 2025: The Housing & Land Use Committee had a meeting, Mayor Bissen offered opening comments, supporting TIG’s recommendations and emphasizing that the goal was not to ban all STRs, but to create a fair path forward. He noted that while passing a “clean bill” is important, it will require “commitment in legislation to follow”.

The committee then heard 39 public testifiers, revealing a sharp divide between those demanding urgent action to restore local housing and others warning of economic fallout and property rights violations. 

According to comments from the Planning Commission, the H3/H4 zoning process could be completed in 4-6 months if initiated. Bill 9 would likely have to be passed first, but they felt like it would be a pretty straightforward process.

After about 30 minutes of deliberation, Chair Uʻu-Hodgins recessed the meeting a little before noon until October 23 for further discussion. You can watch the Full Video here.



October 23, 2025: Focus shifted to the draft framework for the proposed H-3 and H-4 zones. Importantly, TIG did not propose amendments to Bill 9 itself. Instead, the current direction appears to be passing Bill 9 as-is, then introducing companion legislation to establish the new hotel zones and apply them to Exhibit 2 properties. This strategy may help defend against legal challenges by keeping the main bill clean.

The committee agreed not to take immediate final action, instead deferring legislation and tasking the Planning Department and Corporation Counsel with drafting the required zoning change resolution.

October 27, 2025: With deep appreciation for her life and service, we share that Maui County Councilmember Tasha Kama passed away. Kama served as the Kahului district representative and chaired the influential Housing & Land Use Committee. She was a steadying voice in some of Maui’s most pivotal housing debates, including the controversial Bill 9, the proposal to phase out short-term rentals (STRs) in apartment-zoned properties. Just months ago, she was one of only three committee members who voted against advancing the bill.

With the Council now evenly split 4–4, Kama’s replacement could become a swing vote, making the next appointee a major factor in the future of STR rules, zoning policy, and real estate investment. Her replacement and future Council decisions are an important watch.

Under the Maui County Charter, because less than 15 months remain in her term, the Council has 30 days to appoint a qualified Kahului resident. If they fail to do so, the Mayor will appoint. In her final request to the Council, Kama asked that they consider Kauanoe Batangan to be her successor. The Maui County Council is holding a special meeting on November 3, 2025 at 9 a.m. to take public testimony and establish a process to fill Kama’s vacant seat.

November 4, 2025: Bill 9’s First Public Reading has been delayed until December 2025 to allow for the council to appoint someone to Kama’s seat and then allow the new council member time to adjust to their new role before taking up major actions.


Where Things Stand Now:

While many details remain in flux, the general direction is becoming clearer:

  • Thousands of properties remain in limbo, and the upcoming Council votes will shape the future of STR policy, enforcement, and real estate strategy on Maui.
  • Bill 9 may advance without amendment, since the Council aiming to pass it as a clean, standalone bill, possibly to minimize legal exposure.
  • Companion legislation may follow, establishing the new H-3 and H-4 hotel zones and applying them to the 4,519 units listed in Exhibit 2.
  • If the Council passes Exhibit 2 as a separate bill after Bill 9, it would represent a significant leap of faith relying on future zoning changes to preserve short-term rental use rather than directly embedding protections into Bill 9 itself.

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,

best maui realtors

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 Bill 9? You can read our other updates here:

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