Bill 9 Update:  The H-3/H-4 Zoning Bill 88 Passes First Reading

Jun 9, 2026Maui News and Events

Bill 88 passed its first reading before the full Maui County Council on June 5, 2026, by a vote of 7-2. This is a significant procedural milestone in the implementation of Bill 9. One more vote remains before the bill becomes law.

How the Vote Broke Down

Voting in favor were Council Chair Alice Lee, Committee Chair Nohelani Uʻu-Hodgins, and Council Members Tom Cook, Yuki Lei Sugimura, Tamara Paltin, Shane Sinenci, and Kauanoe Batangan. Voting against were Council Members Keani Rawlins-Fernandez and Gabe Johnson.

The 7-2 vote clears the supermajority threshold of six votes required for passage, given the Planning Commissions’ unanimous denial recommendations. That is an important number to note heading into the second reading.

Amendments Introduced at First Reading

Council Member Nohelani Uʻu-Hodgins introduced additional amendments at the meeting on June 5th, intended to clarify eligibility for H-3 and H-4 zoning. The key change from the committee version: the original requirement for non-Minatoya properties to proactively notify the Department of Planning of their TVR use has been replaced with a requirement for the Department of Planning to maintain and publicly publish a list of all properties that may qualify. This shifts the administrative burden from individual property owners to the county and is designed to ensure eligibility criteria are applied consistently across all qualifying properties.

A minor language change related to square footage and floor area is also expected before the second reading.

Exhibit 1: The Property List That Now Matters

The bill now includes as a formal exhibit a list of 104 specific properties, totaling 7,167 apartment district vacation rental units, that may qualify for H-3/H-4 rezoning. The Department of Planning is required to maintain this list publicly. The list is not a zoning determination and does not guarantee eligibility, but it is the starting point for any property owner or buyer trying to understand whether a specific property could potentially seek H-3/H-4 designation.

Properties on the list from areas relevant to many of our clients include Wailea Ekahi, Wailea Ekolu, Palms at Wailea, Grand Champions Villas, Kamaole Sands, Maui Hill, Maui Kamaole, Papakea, Kāʻanapali Royal, Maui Eldorado, and Hale Kaanapali, among many others. Confirmation of eligibility for any specific property must come from the Department of Planning.

The full property list is attached below. Confirmation of eligibility for any specific property must still come from the Department of Planning, and inclusion on the list is not a zoning determination.

A note for those who have been following closely: Exhibit 1 is not the same as the TIG’s Exhibit 2. That earlier list was a curated rezoning recommendation covering approximately 53 properties. Exhibit 1 contains 104 properties, nearly double, because it is the Department of Planning’s broader historical record of apartment district properties allowed for short-term rental use, not a rezoning list. The larger number reflects a different question being answered, not an expansion of which properties will ultimately be rezoned.

The Four Eligibility Criteria Now Codified in the Bill

For a property to potentially conduct TVR use in the H-3 or H-4 districts, all four of the following criteria must be met as written in the bill:

  • The building or structure must have received a valid building permit, special management area use permit, or planned development approval on or before April 20, 1989.
  • TVR use must have been legally conducted in any dwelling unit within the building before September 24, 2020, as confirmed by real property tax classification or payment of GET and TAT.
  • The number of TVR units cannot increase beyond those allowed as of January 7, 2022. Reconstruction and renovation are permitted, but no new TVR units may be added.
  • The property owner or operator must hold current GET and TAT licenses and be current on all state and county taxes, fines, and penalties related to the TVR.

For anyone evaluating a condo purchase on the Minatoya List, these four criteria are the framework for due diligence. Meeting all four is what would allow a property to seek H-3/H-4 rezoning if and when the bill passes and the rezoning process begins. Not meeting any one of them would affect eligibility.

Where Things Stand

Bill 88 has cleared first reading. Second reading is anticipated within the next few weeks. If it passes second reading, it moves to the Mayor for signature and becomes law. Mayor Richard Bissen has already testified in strong support of the bill, describing it as “an intentional next step in implementing Bill 9,” so if the vote holds, the path to his signature appears to be a short one.

Passing Bill 88 does not automatically rezone any properties. Rezoning of specific properties is a separate process that would follow the bill’s adoption.

Bill 9 remains law. The enforcement timeline has not changed: January 1, 2029 in West Maui and January 1, 2031 in other affected districts.

Legal challenges remain active on separate timelines and have not changed the current status of Bill 9.

What This Means If You Own, Are Buying, or Are Selling a Condo on Maui

For owners of Minatoya List properties, the first reading vote is the clearest signal yet that Bill 88 is likely to pass. If it does, the next conversation becomes whether your specific property meets the four eligibility criteria and what the rezoning process will look like once it opens.

For buyers, the Exhibit 1 property list and the four eligibility criteria give you a concrete framework for evaluating any condo purchase. Whether a property is on the list, whether it meets the criteria, and what its HOA health and long-term ownership costs look like should all be part of your due diligence before making a decision.

For sellers, a 7-2 first reading vote is likely to be felt in the market. Minatoya List properties that have been held back by uncertainty may see renewed buyer interest as the path forward becomes clearer.

We will continue to track this closely and share updates as second reading is scheduled. If you want to talk through what any of this means for your specific situation, we are here.

This Bill 9 Maui Real Estate update represents our opinion based on available information and should not be considered financial or legal advice.

Frequently Asked Questions: Maui’s Bill 88 and H-3/H-4 Zoning

What is Bill 88 and how does it relate to Bill 9?

Bill 9 is Maui County law that phases out short-term rentals in apartment-zoned districts, with enforcement beginning January 1, 2029 in West Maui and January 1, 2031 elsewhere. Bill 88 is the next step in the Bill 9 implementation process. It would create two new hotel zoning designations, H-3 and H-4, that give certain qualifying properties a potential path to continue short-term rental use legally. Bill 88 does not undo or reverse Bill 9.

Did Maui's Bill 88 pass?

Bill 88 passed its first reading before the full Maui County Council on June 5, 2026, by a vote of 7-2. One vote remains. Second reading is anticipated within the next few weeks. If it passes second reading, it moves to the Mayor for signature and becomes law.

What is Exhibit 1 in Bill 88?

Exhibit 1 is a list of 104 apartment district properties, totaling 7,167 units, that the Department of Planning has on record as having been historically allowed to operate as short-term rentals. It is attached to Bill 88 as a starting point for determining which properties may qualify for H-3/H-4 rezoning. Inclusion on the list is not a zoning determination and does not guarantee eligibility. Confirmation must come from the Department of Planning.

What is the difference between Exhibit 1 in Bill 88 and Exhibit 2 from the TIG recommendations?

Exhibit 2 was the Temporary Investigative Group’s curated recommendation of approximately 53 properties they believed were appropriate candidates for rezoning. Exhibit 1 is the Department of Planning’s broader historical record of apartment district properties allowed for short-term rental use, which is why it contains 104 properties. The two lists were built for different purposes using different criteria and are not directly comparable.

What are the eligibility criteria for H-3/H-4 zoning under Bill 88?

To potentially qualify for H-3 or H-4 zoning, a property must meet all four of the following criteria as written in the bill: the building must have received a valid permit on or before April 20, 1989; TVR use must have been legally conducted before September 24, 2020, confirmed by real property tax classification or GET and TAT payment; the number of TVR units cannot increase beyond those allowed as of January 7, 2022; and the owner must hold current GET and TAT licenses and be current on all related taxes and penalties.

Does Bill 88 passing mean my property will be automatically rezoned to H-3 or H-4?

No. Bill 88 creates the zoning framework. The actual rezoning of specific properties is a separate process that would follow the bill’s adoption. Passing Bill 88 does not automatically rezone any property.

Which Maui condo complexes are on the Exhibit 1 list?

The full list includes 104 properties across Maui. Properties relevant to South Maui and West Maui markets include Wailea Ekahi, Wailea Ekolu, Palms at Wailea, Grand Champions Villas, Kamaole Sands, Maui Hill, Maui Kamaole, Papakea, Kāʻanapali Royal, Maui Eldorado, Hale Kaanapali, and many others. The complete Exhibit 1 list is attached to this post. Inclusion does not confirm eligibility and the Department of Planning should be consulted for any property-specific determination.

What does Bill 88 mean if I am buying a condo on Maui right now?

If you are considering a condo purchase on the Minatoya List, the four eligibility criteria in Bill 88 give you a concrete due diligence framework. Whether the property is on Exhibit 1, whether it meets all four criteria, its HOA health, and its long-term ownership costs should all be part of your evaluation before making a decision. These are the first conversations to have with your agent and attorney.

What does Bill 88 mean for sellers of Minatoya List properties?

The 7-2 first reading vote is the clearest signal yet that Bill 88 is likely to pass. Minatoya List properties that have been held back by uncertainty may see renewed buyer interest as the path forward becomes clearer. Whether that translates to measurable price movement will depend on how quickly second reading occurs and what the final vote looks like.

Are the Bill 9 lawsuits affected by Bill 88?

No. The legal challenges to Bill 9 remain active on their own separate timelines and have not been altered by Bill 88’s advancement. None of the ongoing cases has changed the current status of Bill 9.

Interested in learning more about Bill 9? You can read our other updates here:

Bill 9 Update: H-3/H-4 Hotel Zoning Framework Clears Council Committee (May 2026; Maui County Council’s Housing and Land Use (HLU) Committee voted 6-1 to advance Bill 88 to the full County Council)

All Three Planning Commissions Have Now Recommended Denial (April 2026; All three Planning Commissions recommend denial of H-3/H-4 zoning, legal challenges advance on three tracks, and the 2026 election emerges as a factor in what happens next.)

 Maui Bill 9 Update: Planning Commission Denies Proposed Hotel Zoning Framework (February 2026; Planning Commission denies proposed H-3 and H-4 hotel zoning, triggering a supermajority vote at Council)

Bill 9 Update: Timeline, Impact, and What Maui Property Owners Should Expect (July 2025; General explanation of Bill 9 and FAQs)

Bill 9 Update: Possible Path to Re-zoning from Apartment to Hotel/Resort (September 2025; Expected Timeline of Bill 9 and formation of the Temporary Investigative Group (TIG), and what they’re looking at)

Bill 9 Update: New Hotel Zones Proposed to Protect Vacation Rentals (October 2025; TIG Recommendations including new Hotel Zones H3 & H4 and which properties they recommend to be rezoned to H3 & H4)

Bill 9 Update: Bill 9 Passed, What Happens Next (December 2025; Bill 9 Signed into Law, FAQs for Buyers & Sellers)

Bill 9 Legal Update: First Lawsuit Filed (December 2025; Details about the first lawsuit filed on Bill 9)

Bill 9 Update: New Hotel Zoning Advances to Planning Commissions (January 2026; The first significant implementation step tied to Bill 9: H3 & H4 Hotel Zones Advance to Planning Commission)

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