What are Maui short term rental laws, and how are they impacting property owners across the island? The Maui County Council has recently made a pivotal decision, moving to phase out approximately 7,000 vacation rentals over the next five years. This significant shift, primarily driven by the urgent need for long-term housing for residents, has set a new course for the island’s real estate landscape. The initial decision on Bill 9, approved by a 5-3 vote, was intended to be quickly followed by a second bill. This subsequent legislation aimed to exempt about 4,500 units by rezoning them for hotel use, recognizing their unsuitability for local housing, vulnerability to sea-level rise, or their inherent suitability as short-term accommodations. This complex regulatory environment underscores the ongoing debate surrounding Maui short term rental laws.
However, the path forward has proven to be anything but smooth. When the council attempted to advance the rezoning legislation, it encountered a gridlock, further prolonging an already intricate process. This delay means the rezoning bill, which would first require review by the county’s three volunteer regional planning commissions before returning to the council for final amendments and approval, remains in limbo. Council Chair Alice Lee articulated the frustration, stating, “We’ve hit a wall.” This impasse highlights the deep divisions and challenges in implementing comprehensive changes to Maui short term rental laws.
What is Maui Bill 9? Maui Bill 9 is a legislative measure approved by the Maui County Council to phase out approximately 7,000 apartment-zoned short-term vacation rentals over several years, with the goal of increasing the availability of long-term housing for local residents. This bill marks a significant regulatory change for the island’s property market.
Adding to the council’s internal struggle, the county has already been hit with the first lawsuit challenging Bill 9. A group of property owners from the Kāʻanapali Royal condo complex, identified for potential rezoning to continue operating as vacation rentals, has sued the county. The lawsuit alleges “wrongful, oppressive, and unreasonable” conduct, claiming Bill 9 has resulted in a “total denial of the viable economic use of their property,” constituting a regulatory taking. This legal challenge illustrates the contentious nature of the Maui housing crisis explained by these new regulations.
Under Bill 9, which Mayor Richard Bissen signed on December 16, the exemptions allowing approximately 7,000 apartment-zoned units to operate as short-term rentals are set to expire. These expirations will occur on January 1, 2029, in West Maui and January 1, 2031, in the rest of the county. Council member Tom Cook, who played a role in crafting Bill 9, introduced the resolution to forward the rezoning bill to the planning commissions. His intention was to reassure worried property owners that officials were actively working to ensure many could continue their vacation rental operations in the future, providing a vital Maui short term rental guide for those affected.
Cook emphasized that the proposed legislation was simply creating new zoning categories where both residential and hotel uses would be permitted, aiming for a smooth transition as Bill 9 takes effect. While some council members agreed on the urgency of forwarding the legislation, others argued the council should first discuss possible amendments and solicit public comment before involving the commissions. This internal debate underscores the complexities surrounding Maui vacation rental vs long term rental policies.
The council ultimately agreed to discuss the proposed bill further at a January 5 meeting of the Disaster Recovery, International Affairs, and Planning Committee, chaired by West Maui Council member Tamara Paltin, before the full council revisits the matter. Council member Keani Rawlins-Fernandez voiced concerns about sending “half-baked ideas” to unpaid planning commissioners, stressing the council’s responsibility to fully develop thoughtful language. This disagreement highlights how will Maui Bill 9 affect homeowners, with varied opinions on the best approach.
Mayor Bissen introduced Bill 9 in May 2024, less than a year after the devastating August 2023 wildfires displaced thousands and intensified Maui’s existing housing shortage. Bissen has consistently championed Bill 9 as “the most immediate way to bring thousands of units back online and expand housing inventory.” The Maui housing crisis explained by these events has made the need for solutions critically apparent, driving the urgency behind these legislative changes.
Over the past year and a half, council members have heard emotional testimony from fire survivors, hotel workers, property owners, and real estate agents. While there was universal agreement on the island’s housing crisis, opinions diverged sharply on whether Bill 9 was the appropriate solution. Opponents, including many who own or manage short-term rental properties, have maintained their legal right to operate vacation rentals, warning of inevitable lawsuits and legal troubles for the county. This ongoing debate frames the Maui Bill 9 pros and cons.
Conversely, supporters of Bill 9, citing the same University of Hawaii Economic Research Organization study, argue that while there might be some negative economic consequences, freeing up housing for residents is a paramount concern. The study also found that Bill 9 could lead to improved affordability and decreased housing costs. The proposed legislation currently under discussion would reduce the number of properties affected by Bill 9 from about 7,000 to approximately 1,700, primarily in West and South Maui, areas particularly vulnerable to sea level rise and where properties are often too expensive for most county residents. This Maui Bill 9 update remains critical for residents and investors alike.
Public testimony on Friday largely favored referring the legislation to the planning commissions for feedback. Residents like Tom Crowley expressed concerns about Bill 9’s economic impact but hoped commissions could offer solutions for implementing new hotel zones to mitigate the worst effects. Others, like Greg Rylsky, spoke of reclaiming neighborhoods for local residents, highlighting that many residents of affected properties saw Bill 9 as an opportunity to regain their lives, despite differing views from some homeowners associations. The future of Maui rental laws 2026 and beyond remains a complex and evolving situation, with significant implications for all stakeholders involved.
The debate over what are Maui short term rental laws is far from settled, with legal challenges and political discussions continuing to shape the island’s future. The eventual implementation of these policies, should they survive the ongoing scrutiny, will undoubtedly transform Maui’s real estate market and the daily lives of its residents.
