Maui Bill 9 Update: Planning Commission Denies Proposed Hotel Zoning Framework

On February 24, 2026, the Maui Planning Commission voted to deny the proposed creation of new hotel zoning districts commonly referred to as H-3 and H-4. These districts were advanced through Resolution 25-230 following recommendations made by the Temporary Investigative Group during the Bill 9 review process.

To understand why this vote matters, it is important to understand what the proposal was and what it was not.

What Resolution 25-230 Was Designed to Do

Resolution 25-230 was not a mass rezoning effort. It did not reclassify any individual properties. It was designed to establish a zoning framework, a structural land-use category, that future legislation could rely upon.

Bill 9 phases out short-term rental use in apartment-zoned properties over a staggered timeline. At the same time, the ordinance preserves the ability for property owners to apply individually for land-use designation changes. That mechanism is written into the law.

For that pathway to function in practice, however, there must be a defined zoning category into which properties could transition. The proposed H-3 and H-4 districts were intended to provide that structural designation.

In practical terms, the resolution was about creating a legally recognized landing zone for properties that may seek to continue short-term rental use through a formal rezoning process.

The Planning Commission’s Decision

The Planning Commission voted to deny the proposal.

The reasoning reflected broader land-use policy concerns, including the long-term direction of housing supply and the expansion of hotel classifications. From a planning perspective, that is a policy judgment.

From a structural standpoint, however, the denial leaves an unresolved question: if owners are permitted to seek land-use designation changes under Bill 9, what zoning category would they apply into?

The Temporary Investigative Group, which consulted with members of the Maui Planning Commission, recommended establishing additional hotel districts precisely to address that question. The Commission’s vote therefore represents a departure from that earlier implementation framework.

Why This Matters

Bill 9 is now law. Its practical impact, however, depends on how its implementation mechanisms function.

The creation of new hotel districts was not about expanding visitor inventory indiscriminately. It was about defining how certain long-standing short-term rental properties, particularly those historically operating under County approvals, could be evaluated within a formal  land-use structure.

Without that framework, the process for property-specific designation changes becomes less clear and potentially more discretionary.

What Happens Next

It is important to remember that Planning Commission decisions are advisory. The Maui County Council holds final legislative authority. The Council may:

• Accept the Commission’s recommendation
  
• Reject it
  
• Modify the proposal
  
• Advance revised zoning language
  

The resolution will now proceed through the remaining planning commissions on Lānaʻi and Molokaʻi, which are anticipated to hear the matter in mid-March. Following those hearings, the measure will return to the Maui County Council for discussion and a final vote on whether to proceed with creation of the proposed H-3 and H-4 hotel zoning districts.

As we have consistently stated, Bill 9’s passage marked the beginning of a multi-year implementation process. Zoning structure, Council action, planning review, and court rulings will all influence how the law ultimately functions in practice.

How the Denial Affects the Council Vote

Under Maui County Council rules, when a planning commission issues a recommendation of denial, the Council must now secure a supermajority vote to advance the measure.

Practically speaking, that means at least six Councilmembers must vote in favor for the resolution to pass.

This raises the threshold. It does not end the process.

The Broader Perspective

Land-use policy is rarely resolved in a single vote. Particularly when long-established property uses are involved, the path forward tends to move through multiple stages of refinement.

The Planning Commission’s decision does not conclude the discussion. It shifts it back to the Council, where the structural question remains: how will the land-use code accommodate the mechanisms written into Bill 9 itself?

We will continue to monitor how the Council responds and how the zoning framework evolves. If you would like to discuss how these developments may affect a specific property or investment strategy, we are always available to provide informed guidance.

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.

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