December 22, 2025 Legal Update: Since Bill 9 was signed into law, the first lawsuit challenging the measure has been filed. The case raises constitutional questions around vested property rights and long-established short-term rental use in apartment-zoned properties.
On December 15, 2025, Maui County’s Bill 9, a law that phases out short-term rental use in apartment-zoned properties, passed its second and final reading and moved to the Mayor’s desk, where he signed it into law. The bill passed by a 5–3 vote, marking a major legislative milestone in Maui’s ongoing effort to address housing availability and affordability.
Bill 9 has been one of the most closely watched and debated proposals in recent Maui County history, particularly for condo owners, buyers, and investors in apartment-zoned properties affected by short-term rental regulations. Even before final passage, uncertainty surrounding the bill has already influenced pricing, negotiations, and buyer behavior across large segments of Maui’s condo market.
Clarifying the Scope of Bill 9
It is important to clarify that Bill 9 does not impact all vacation rentals on Maui. The measure is targeted specifically at a subset of short-term rental properties operating in apartment-zoned districts, often associated with the Minatoya List, and does not apply to vacation rentals located within hotel or resort-zoned districts where transient use is already permitted.
The Council Vote
The Maui County Council approved Bill 9 with five votes in favor and three opposed. Voting in favor of Bill 9 were Council Members Tamara Paltin, Gabe Johnson, Keani Rawlins-Fernandez, Shane Sinenci, and Nohelani Uʻu-Hodgins. Voting against the measure were Council Chair Alice Lee, Vice Chair Yuki Lei Sugimura, and Council Member Tom Cook.
The Kahului residency seat remains vacant following the passing of Council Member Tasha Kama. The Council did not appoint a successor within the required 30-day period and is now awaiting an appointment by Mayor Richard Bissen.
Council members who voted against the bill raised concerns about its structure and implementation, pointing to unresolved questions around execution, economic impact, and potential unintended consequences.
Concerns Raised During Deliberations
Council Chair Alice C. Lee emphasized that the Temporary Investigative Group’s implementation recommendations were not incorporated into the final version of the bill. She expressed concern that without a clearly defined execution framework, Bill 9 remains one of the most challenging and complex proposals she has encountered during her time on the Council.
In an op-ed published on December 15, 2025, Council Member Tom Cook explained his “no” vote on Bill 9. Cook said his opposition was not against addressing Maui’s housing challenges but stemmed from concerns that the bill, as written, could weaken the economy, undermine employment and tax revenue, and lacked sufficient economic safeguards, worker protections, or incentives for responsible long-term housing conversion.
Council Member Keani Rawlins-Fernandez cited multiple data points during final remarks, including a UHERO housing affordability analysis projecting that condo prices could only decline by approximately 25% as a result of Bill 9.
A closer review of the UHERO report shows that its findings outline a broader projected decline of 20–40% in condo prices, depending on market conditions and how the policy is ultimately implemented.
Market Data Prior to Passage
Importantly, Condo Prices already dropped significantly since Bill 9 was introduced in May 2024, although some of that is due a market change overall.
According to December 1, 2025 data from the REALTORS® Association of Maui, Inc., the median condo sales price on Maui declined 22.8% year over year. This decline occurred ahead of final legislative approval and reflects how policy uncertainty alone can influence market behavior.
Inventory levels, buyer caution, and pricing strategy have all been adjusting in real time as market participants attempt to price in regulatory risk.
Our Market Interpretation
While UHERO’s analysis models potential outcomes following enactment, current market data suggests that the effects of Bill 9 have already begun to materialize. Uncertainty surrounding short-term rental rules, zoning classifications, and future enforcement reshaped buyer demand and seller expectations.
In practice, this has resulted in:
- Increased inventory in affected condo segments
- Longer decision timelines for buyers
- More frequent and deeper price reductions
The gap between economic modeling and real-world transaction data will be critical to monitor as Bill 9 transitions from proposed legislation to implementation.
What Happens Next
Bill 9 established a staggered sunset, with West Maui impacted by January 1, 2029, and all other affected districts by January 1, 2031, while implementation and enforcement remain subject to administrative action and potential legal challenges.
Given the scope of Bill 9 and its impact on long-established property uses, legal challenges were widely anticipated following Bill 9’s passage, and the first lawsuit has now been filed, reinforcing that litigation may play a role in shaping how and when the law is ultimately implemented.. Any litigation could influence enforcement timelines, regulatory clarity, and how the law is ultimately applied in practice.
With Bill 9 now signed, the focus shifts from legislation to execution. That includes implementation, enforcement, and whether additional bills are introduced to address issues that were raised during Council deliberations but not resolved within Bill 9 itself. Much of that attention is centered on the Temporary Investigative Group’s recommendations, which were expected to advance through separate legislative actions.
As an early indication of that next phase, December 19, 2025’s Maui County Council agenda includes the introduction of new legislation related to H-3 and H-4 zoning under Resolution 25-230. This initial reading reflects legislation introduced by Councilmember Tom Cook, consistent with his publicly stated intent following the TIG’s work. As with Bill 9, continued community engagement will be an important part of this process as the proposal moves forward.
This action represents one of two follow-up measures anticipated from the TIG’s recommendations. A second piece of legislation is reportedly expected to be introduced in January, involving a Council-initiated rezoning tied to the TIG’s Exhibit 2, a list of properties proposed for rezoning into new H-3 and H-4 Hotel Districts that would formally allow short-term rentals.
Together, these parallel efforts could play a significant role in shaping how Bill 9 is implemented and how affected properties are ultimately treated, though there is no defined timeline for how quickly these measures may advance or whether they will ultimately be adopted.
How the County navigates implementation, potential litigation, and these subsequent legislative steps will be a key determinant of Bill 9’s long-term impact on Maui’s housing market.
Final Thoughts
Bill 9 represents a structural shift in Maui’s housing landscape. While its stated goal is to increase long-term housing availability, early market data indicates that the transition period is already reshaping pricing, negotiations, and buyer sentiment.
Whether buying or selling, navigating a policy shift of this magnitude requires careful analysis and experienced guidance. As Bill 9 moves from legislation into implementation, working with a knowledgeable local team can help ensure decisions are informed, strategic, and aligned with your long-term interests.
As more information becomes available, including potential legal actions and follow-up legislation, we will continue to provide timely updates and practical insight. If you have questions about how Bill 9 may affect your property or buying plans, we encourage you to reach out.
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.
Bill 9 Frequently Asked Questions
Below are answers to some of the most common questions we’re hearing from condo owners and buyers following the passage of Bill 9.
What types of properties does Bill 9 affect?
Bill 9 applies only to short-term rentals operating in apartment zoning districts, not condos in hotel or resort zones.
When will enforcement begin?
Staggered sunset enforcement begins January 1, 2029 for West Maui, and January 1, 2031 for other districts.
Is legal action expected?
Yes. The first lawsuit has now been filed, reinforcing that litigation may play a role in shaping how and when the law is ultimately implemented.
Are short-term rentals still allowed in hotel and resort zoning?
Yes. Bill 9 does not prohibit short-term rentals in hotel- or resort-zoned districts where transient accommodations are expressly permitted. The bill is targeted at a subset of short-term rentals operating in apartment-zoned districts, not properties located in zoning categories designed for visitor accommodations.
How do I know if my condo is affected by Bill 9?
Whether a condo is affected depends primarily on its zoning designation. Condos located in apartment-zoned districts that have operated as short-term rentals are the primary focus of Bill 9. Properties in hotel or resort zoning are not directly impacted by Bill 9. Because zoning, use history, and proposed rezoning can vary by property, owners and buyers should review zoning maps and speak to a professional.
Is there a 'Maui Bill 9 map' showing affected properties?
There is no single published “Bill 9 map,” because the law does not create a new geographic overlay. Bill 9 applies to apartment-zoned properties (A-1 and A-2 zoning) that have been operating as short-term rentals, many of which are associated with the Minatoya List.
Instead of a Bill-specific map, owners and buyers should review Maui County’s official zoning maps to confirm whether a property is in Apartment zoning.
Because Bill 9 phases out short-term rental use by 2029 in West Maui and 2031 in other districts, and may be affected by legal challenges or follow-up legislation, any mapping or visual inventory will continue to evolve as implementation proceeds.
What is the Minatoya List and why does it matter under Bill 9?
The Minatoya List refers to a group of apartment-zoned properties that have historically been allowed to operate as short-term rentals based on prior zoning interpretations and court decisions. Bill 9 directly addresses these uses by proposing a phase-out of short-term rentals in apartment districts, making the Minatoya List central to determining which properties may be affected by the bill’s staggered sunset provisions.
What is the Temporary Investigative Group (TIG)?
The Temporary Investigative Group (TIG) was formed by the Maui County Council to study short-term rentals in apartment-zoned districts and evaluate potential policy options. The TIG reviewed data, legal considerations, and housing impacts, and ultimately issued a set of recommendations that informed Bill 9 and are now driving additional, related legislative efforts. The results of their work is covered in this blog post.
What is Exhibit 2 and how does it relate to Bill 9?
Exhibit 2 is a TIG document that identifies a subset of apartment-zoned properties proposed for potential rezoning into new H-3 and H-4 Hotel Districts. The intent is to formally allow short-term rental use at certain properties while aligning zoning with long-standing use. Exhibit 2 is not part of Bill 9 itself, but it is expected to be addressed through separate follow-up legislation. You can see the list of all Exhibit 2 properties here.
How is Bill 9 affecting Maui condo prices?
Market data suggests that Bill 9 has already influenced pricing behavior, even prior to enforcement. According to December 1, 2025 data from the REALTORS® Association of Maui, Inc., the median Maui condo sales price declined 22.8% year over year. Increased inventory, buyer caution, and pricing adjustments in affected segments indicate that regulatory uncertainty is being priced into the market ahead of formal implementation.
I'm planning to visit Maui and like to stay in Airbnb or VRBO. How will Bill 9 impact me?
Nothing changes immediately for travelers. The earliest phase-out dates begin January 1, 2029 in West Maui and January 1, 2031 in other districts. It’s important to note: Bill 9 does not eliminate all short-term rentals on the island. The new law targets a specific group of short-term rentals operating in apartment-zoned properties. Vacation rentals that are in Hotel and Resort zoned complexes are not impacted, and there are many of them.
What this means for visitors:
1. You will still be able to book short-term rentals
Hotel and resort-zoned properties remain active in the short-term marketplace, and these buildings are not affected by Bill 9.
2. The phase-out of affected units takes years
The earliest sunset is January 1, 2029 for West Maui, and January 1, 2031 for other districts, so nothing changes immediately for travelers.
3. The marketplace will adjust gradually
Owners, operators, and platforms will adapt inventory over time as zoning clarity and legal challenges play out. Visitors will still have options.
Has Bill 9 been challenged in court?
Yes. The first lawsuit challenging Bill 9 was filed shortly after the law was signed. The case focuses on constitutional issues related to vested property rights and does not change the law at this stage. Additional legal actions may follow as Bill 9 moves toward implementation.
Interested in learning more about Bill 9? You can read our other updates here:
- 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)
- THIS POST: 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)
