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What happened with Maui County Bill 9?

Maui County Bill 9 was approved on second and final reading by a 5–3 vote, establishing a framework to phase out certain short-term vacation rentals in apartment-zoned areas as part of the County’s effort to increase long-term housing availability.

In a significant policy shift that will reshape Maui’s short-term rental landscape, the Maui County Council has approved Bill 9, a measure aimed at discontinuing transient vacation rental use in apartment-zoned districts. The legislation reflects the County’s response to ongoing housing supply concerns and introduces long-term implications for condo owners, investors, buyers, and sellers across the island.

What Bill 9 Does

Bill 9, introduced by Mayor Richard Bissen, targets transient vacation rentals located in apartment zoning designations, particularly in parts of South and West Maui. These areas include numerous condo complexes that have historically operated as legal short-term rentals under zoning interpretations often referred to as the “Minatoya List.”

Under the new ordinance, those allowances are scheduled to be phased out over time, shifting the use of affected properties away from vacation rental activity and toward long-term residential housing.

Who Is Affected

Bill 9 primarily impacts condominium units that are currently operating as short-term rentals within apartment-zoned districts.

The ordinance does not apply to:

• Hotel-zoned resorts

• Legally permitted bed-and-breakfasts

• Short-term rental homes permitted outside apartment zoning

• Timeshare properties

Owners of non-exempt units should expect increased scrutiny around zoning status, use permissions, and future eligibility for vacation rental operations.

Why This Matters for Owners and Buyers

For current owners and prospective buyers, Bill 9 introduces material considerations that may affect:

• Property valuation and appraisal assumptions

• Financing and lender underwriting standards

• Income projections tied to short-term rental use

• Long-term resale positioning

Lenders and appraisers are already beginning to incorporate zoning and exemption status into their analyses, particularly for apartment-zoned condominiums that have historically relied on vacation rental income.

Market and Economic Considerations

While the County’s stated objective is to increase housing availability for full-time residents, the broader economic effects may extend beyond individual property owners. Property management services, cleaning vendors, and tourism-related businesses could experience downstream impacts as inventory shifts away from transient use.

County discussions have included recommendations for a gradual implementation to reduce sudden market disruption, though owners should continue monitoring final administrative rules and enforcement timelines as they are released.

What Happens Next

With Council approval completed, the ordinance moves into the implementation phase. Property owners should closely follow County guidance regarding compliance timelines, potential appeals, and administrative procedures tied to zoning enforcement.

Those with properties in apartment zones currently used as short-term rentals should begin evaluating long-term strategies, including use changes, holding plans, or future sale considerations, based on the evolving regulatory environment.