The Maui County Council is evaluating a proposal to introduce new hotel zoning districts, H-3 and H-4, as recommended by the Temporary Investigative Group (TIG) studying Bill 9. This move aims to allow certain properties currently operating as short-term rentals (STRs) in apartment-zoned districts to continue doing so, even if Bill 9, which seeks to phase out STRs, becomes law. The initiative has ignited considerable public debate, reflecting the challenges of balancing the economic benefits of tourism with the critical need for affordable housing for Maui residents.
The TIG, formed earlier in 2025, was tasked with examining potential pathways for Bill 9. Their findings suggest that these new hotel districts could provide a compromise, allowing specific apartment-zoned properties to maintain their transient vacation rental (TVR) status. The Housing & Land Use Committee met on October 14, 2025, to discuss the TIG's recommendations, marking a significant step in this ongoing process. The County Council is currently considering whether to rezone properties from apartment to hotel/resort zoning, prompting discussion on the impact on property owners and the local economy. Maui Real Estate Advisors provided an update on this proposal.
This proposal comes at a time when Maui grapples with a severe housing crisis. Bill 9, which aims to convert approximately 6,100-7,000+ STR units to long-term housing, is a central piece of the county's strategy. The bill has already passed the Housing & Land Use Committee and must go through two County Council votes before the Mayor can sign it into law. Maui Now's recent report highlights the public concerns regarding the potential economic impact of the STR phase-out. Kathy Kim, during the meeting, expressed skepticism about the TIG's ability to revitalize Maui's economy, highlighting the ongoing challenges discussed over the last 14 months. CitizenPortal.ai also reported the community's concerns about the new zoning proposals.
The implications of these zoning changes are significant for Maui’s business landscape. Entrepreneurs and investors in the tourism and real estate sectors face uncertainty, while homeowners with STRs must adapt. The final decisions will directly influence investment opportunities and the future of the tourism sector on the island. The creation of new hotel zones could allow for specific apartments to become hotel/resort zoned, as detailed by Maui Real Estate Advisors. It is crucial for businesses, professionals, and investors to carefully monitor the County Council's upcoming votes and any subsequent legal actions related to the issue.
