The Bill 9 implementation process moved forward in a significant way this week. On May 27, the Maui County Council’s Housing and Land Use (HLU) Committee voted 6-1 to advance Bill 88 to the full County Council. Here is what happened, what it means, and what comes next.
What Bill 88 Does
Bill 88 would create two new hotel zoning designations, H-3 and H-4, intended to match the existing use of properties currently operating as short-term rentals in apartment-zoned districts. Mayor Richard Bissen, who testified in strong support of the measure, described it as “an intentional next step in implementing Bill 9” that would create a clear zoning framework for considering whether certain properties are appropriate for hotel district classification in the future, while continuing to prioritize apartment districts for local housing.
The Mayor was direct about what the bill does not do. It does not unilaterally reclassify any properties, does not undo Bill 9, and does not reverse the Council’s policy direction on the phase-out of short-term rentals in apartment zoning. Instead, as he described it, it creates a transparent process for the community, the planning commissions, and the Council to consider whether certain properties may be appropriate for hotel district classification in the future.
He also acknowledged the planning commissions’ unanimous recommendation for denial, noting that those recommendations reflect how strongly the community supports the intent behind Bill 9.
How the Vote Broke Down
The HLU Committee voted 6-1 in favor of advancing Bill 88. Voting yes were Committee Chair Nohelani Uʻu-Hodgins, Council Chair Alice Lee, Vice Chair Yuki Lei Sugimura, and Council Members Tom Cook, Shane Sinenci, and Tamara Paltin. Council Member Keani Rawlins-Fernandez cast the lone dissenting vote. Council Members Kauanoe Batangan and Gabe Johnson were excused from the meeting.
The Department of Planning also presented in support of the measure at the outset of the meeting.
Two Amendments Were Adopted
Before the final vote, the committee adopted two amendments worth understanding.
The first exempts Molokaʻi from eligibility for future H-3/H-4 rezoning consideration. All three Planning Commissions had recommended denial of the zoning framework, and Molokaʻi’s commission had specifically requested this exclusion if the bill advanced.
The second amendment addresses which properties would be eligible to seek H-3/H-4 rezoning in the future. Properties in the Apartment District (A-1/A-2) that are not currently on the Minatoya List must notify the Department of Planning of their existing short-term rental use prior to adoption of Bill 88 in order to remain eligible for future rezoning consideration. This amendment is designed to ensure the bill does not create or expand new short-term rental inventory, but rather allows for a like-for-like transfer of existing STR-eligible units currently operating in apartment districts into the new hotel zoning framework. It was also specifically designed to prevent approximately 1,700 properties not currently on the Minatoya List from using Bill 88 as a backdoor to continue vacation rental use.
Where Things Stand in the Broader Process
To understand what this week’s vote means, it helps to see it in the context of the full multi-stage process.
Bill 9 is already law. It phases out short-term rentals in apartment-zoned districts, with enforcement beginning January 1, 2029, in West Maui and January 1, 2031, in other affected districts. That has not changed.
Bill 88 is the next step in implementation. It creates the H-3/H-4 zoning categories that would give qualifying properties a potential path to continue operating legally. This week’s committee vote advances it to the full Council for the first of two readings. The full Council will now hold hearings, take testimony, and vote. Because all three Planning Commissions recommended denial of the underlying zoning framework, the Council will need a supermajority of six votes to adopt the measure. Tuesday’s committee vote showed six yes votes, but two Council members were excused and the full Council vote is a separate proceeding.
If and when Bill 88 is adopted by the full Council, the actual rezoning of specific properties would follow as a separate second step. Passing Bill 88 does not automatically rezone anything.
The Legal Challenges
The three previously reported cases continue to move forward on their own timelines. The Lynam constitutional challenge, the Malter case, and a pending federal filing remain active. None has changed the current status of Bill 9.
One additional development worth noting: a group of owners is currently organizing a potential new lawsuit related to Bill 9 and is in the process of identifying plaintiffs who may wish to participate. A group consultation with an attorney is being planned so that interested owners can ask questions and evaluate whether participation is appropriate for their individual circumstances. We do not have further details on the timeline or scope of that effort at this time.
What This Means If You Own, Are Buying, or Are Selling a Condo on Maui
For owners of properties on the Minatoya List, this week’s vote is a meaningful procedural step forward. The zoning framework that would give those properties a potential path to continued short-term rental use is advancing. But it has not passed yet, the rezoning of individual properties has not begun, and the timeline for that process remains subject to further Council action.
For buyers considering a condo purchase, the procedural distinction between Bill 88 and the actual rezoning process matters. Even if Bill 88 passes, a property on the Minatoya List would still need to go through a separate rezoning application to move into H-3/H-4 zoning. Understanding the specific zoning status of any property you are considering, its position on or off the Minatoya List, its HOA health, and its long-term use flexibility remains the first and most important conversation to have before making a decision.
For sellers, the advancement of Bill 88 may shift sentiment in the condo market, particularly for Minatoya List properties that have been subject to uncertainty since Bill 9 passed. Whether that translates to measurable price or demand movement will depend on how quickly the full Council acts and what the final vote looks like.
The legal challenges to Bill 9 remain active and on their own separate timelines. None of the ongoing cases has changed the current status of Bill 9, and Bill 88’s advancement does not resolve or affect those proceedings.
What Comes Next
Bill 88 moves to the full Maui County Council for the first of two readings. Public testimony will be heard. Council members will discuss and vote. If the bill passes on first reading, a second reading and final vote will follow. The process could move relatively quickly, so anyone with an interest in the outcome should watch for hearing announcements and testimony opportunities.
Once Bill 88 completes its path through the full Council, discussions around Council-initiated rezoning for specific properties and complexes are expected to follow as the next stage of implementation.
We will continue to track this process and share updates as material developments occur. 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.
