🏝️ Bill 9 (2025): Maui’s Plan to Phase Out Apartment-Zoned Vacation Rentals

🏝️ Bill 9 (2025): Maui’s Plan to Phase Out Apartment-Zoned Vacation Rentals

A Clear Guide — Pros, Cons & What It Means for Buyers, Owners & the Community

In previous blogs REALTOR® Benjamin Finnerty has written extensively about vacation rentals on Maui.  We have had several questions about Maui’s Plan to Phase Out Apartment-Zoned Vacation Rentals Bill 9, and this is an informative article helping to clarify some of these questions.

✅ Bill Overview & Background

• Introduced by Maui Mayor Richard Bissen in late 2024 following the devastating Lahaina wildfires and a worsening island-wide housing crisis AP News+15Honolulu Civil Beat+15Maui Now+15.

• Bill 9 amends Maui County Code to end short-term vacation rental (TVR) use in all apartment-zoned districts over a specified phase-out period Maui Now+2Maui County Council+2Maui County Council+2.

• Housing committee passed the bill 6–3 on July 24, 2025; a final council vote and mayoral signature are expected soon Beat of Hawaii.

🕒 Phase-Out Timeline

• West Maui (e.g. Lahaina): coverage begins July 1, 2028.

• Rest of county (e.g. Kihei, Central Maui): deadline by 2030 (per amendment under consideration) mauinews.com+6Maui County Council+6Maui County Council+6.

🎯 Who Is Affected?

• Affects apartment-zoned condos, especially those on the “Minatoya list”—units legally grandfathered since before 1989 mauinews.com+9Maui County Council+9Beat of Hawaii+9.

• Does not affect hotel- or resort-zoned properties, bed & breakfasts, STRH-permitted homes, or time-share units Beat of Hawaii+2Maui County Council+2Maui County Council+2.

✅ Arguments For Bill 9

1. Expands Long-Term Housing Supply

• UHERO projects conversion of up to 6,127 units to long-term rentals—an increase equivalent to ten years of new housing builds AP News+3CBS News+3mauinews.com+3.

2. Addresses Post-Wildfire Housing Crisis

• Replaces lost housing stock after 2023 wildfires; aims to stop displacement of residents and teachers, healthcare workers, and essential service providers AP News+5Honolulu Civil Beat+5mauinews.com+5.

3. Preserves Local Communities

• Advocates emphasize restoring neighborhood character and preventing overtourism from “hollowing out” Maui’s communities Maui County Legistar+12Honolulu Civil Beat+12AP News+12.

❌ Arguments Against Bill 9

1. Economic Consequences

• UHERO and AP analysis forecast ~3,800 jobs lost, 15% drop in visitor spending, and 4% GDP decline; county tax revenue may decline by ~$60M/year Beat of Hawaii+2AP News+2AP News+2.

2. Buyer Affordability Concerns

• Many of the affected units exceed $500,000 in price and carry high HOA and insurance costs—beyond reach for many local buyers AP News+5Beat of Hawaii+5Beat of Hawaii+5.

3. Lack of Exemptions or Transition Plan

• No streamlined process or compensation path. Critics argue there is no fair mechanism for owners who may not convert or sell easily Beat of Hawaii.

🧭 What Happens Next?

• Final vote by the full County Council expected later in 2025.

• If passed, no automatic exemptions—though zoning change or conversion paths may remain available mauinews.com+6Maui County Council+6Beat of Hawaii+6.

• Owners with legacy TVRs get a window until the phase-out date but must comply afterward or lose rental legal status.

📊 Quick Impact Summary

🏠 What Owners & Buyers Should Know

• Hotel-zoned condos are unaffected and may become more valuable over time.

• STR-eligible owners should assess phase-out timelines and conversion or resale options.

• Investors must plan early and evaluate risk carefully.

• Potential buyers should consult a local REALTOR® like Benjamin Finnerty for legal and zoning viability upfront.

✅ Final Takeaway

Bill 9 marks a major shift in Maui’s real estate and rental landscape. While it promises relief to locals and long-term renters, it also creates uncertainty for property owners, investors, and the tourism economy.

📌 For More Mānā and Updates

• Visit the Maui County Council Bill 9 overview page Maui County Legistar+10Maui County Council+10Maui Now+10mauinews.com+4AP News+4Maui County Council+4AP News+3mauinews.com+3CBS News+3AP News+1Honolulu Civil Beat+1Beat of Hawaii

• Follow Maui Now and Civil Beat for continuing coverage.

• Submit written testimony to the County Housing & Land Use Committee via eComments if you wish to express your view on the policy.