What is Bill 9?
Bill 9 is a new Maui County law that phases out transient vacation rentals (TVRs) in apartment-zoned condo buildings, ending the decades-old Minatoya exemption.

Does it shut down all STRs?
No. Hotel-zoned units, timeshares, legally permitted STR homes, and B&Bs remain unaffected.

When do STR rights end for Minatoya buildings?
West Maui: January 1, 2029
Rest of Maui County: January 1, 2031
(Subject to litigation and potential rezoning actions.)

Can buildings be rezoned to stay STR-legal?
Possibly — the County is studying new H-3 and H-4 hotel zoning districts.

Why does this matter to homeowners?
Values, rental income, and financing assumptions may change depending on each building’s zoning status.

Bill 9 Is Now Law: A Straightforward Breakdown of What Actually Changed

After years of debate, Maui County officially passed Bill 9, and the Mayor signed it into law on December 15, 2025. The vote was 5–3 on second and final reading. This bill creates one of the biggest structural changes to Maui real estate in decades, particularly for owners and buyers of apartment-zoned condominiums.

Here is a clear, non-political, homeowner-friendly explanation of what the bill does and what the next few years look like.

What Bill 9 Actually Addresses

For more than 30 years, Maui operated under a unique quirk known as the Minatoya list — a set of apartment-zoned condominiums that were allowed to operate as transient vacation rentals even though apartment zoning was likely originally intended for long-term housing.  Times have changed significantly, and when these zones were created, there was not really a consideration of what a housing shortage may look like on our beautiful island.

Bill 9 ends that exemption.

More specifically, Bill 9:

• Amends the Maui County Code (Chapters 19.12, 19.32, and 19.37)
  
  
• Reclassifies transient vacation rental use in apartment zones as nonconforming
  
  
• Establishes legally defined amortization periods to phase out that use
  
  
• Supports County efforts to redirect housing back to long-term residents, especially post-wildfire
  
  

This is zoning reform, not a ban on tourism. It clarifies which properties can operate as STRs and which cannot moving forward.

Who Is and Isn’t Affected

Affected: Apartment-Zoned Condos That Relied on Minatoya Exemption

These buildings could operate short-term rentals because of a historical legal interpretation. Bill 9 formally sunsets that interpretation.

Buildings affected include many well-known Kihei, Kāʻanapali, and Lahaina complexes built before the 1990s.

Not Affected

Bill 9 does not change the status of:

• Hotel-zoned condos
  
  
• Resort-zoned condos
  
  
• Timeshares
  
  
• Legal STR homes (Chapter 19.65)
  
  
• Bed and breakfast homes (Chapter 19.64)
  
  
• Any property already appropriately zoned for transient accommodations
  
  

This distinction matters. Roughly 6,500+ visitor units remain fully operational under hotel or resort zoning.

Phase-Out Timeline: The Most Important Dates

Bill 9 does not immediately stop STR operations. Instead, it provides a phase-out window considered “reasonable” under Hawaiʻi Revised Statutes §46-4(a).

West Maui Deadline

January 1, 2029
Owners may continue operating until this date.

All Other Apartment-Zoned Maui Areas

January 1, 2031

This two-tier system recognizes West Maui’s unique post-Lahaina recovery needs.

The County has stated that enforcement and timelines may adjust based on litigation outcomes or subsequent zoning decisions.

Can Owners Keep STR Rights Through Rezoning?

Possibly.

Alongside Bill 9, the County’s Temporary Investigative Group (the TIG) recommended creating:

• H-3 Hotel District
  
  
• H-4 Hotel District
  
  

These new zones could give affected apartment buildings a pathway to preserve STR use — but only through separate zoning applications and approvals, none of which are finalized.

Owners should understand:

• Bill 9 does not rezone anything automatically.
  
  
• Rezoning is a separate legal process requiring Council action, hearings, and community review.
  
  
• Some buildings may qualify; others may not.
  
  

This is the next major storyline to watch.

Why Bill 9 Passed

The County’s stated motivations include:

• Returning more housing to the long-term market
  
  
• Stabilizing community demographics
  
  
• Addressing post-fire displacement
  
  
• Eliminating decades of inconsistent interpretation and enforcement
  
  
• Aligning apartment zoning with original legislative intent
  
  

The County emphasized that it is not shutting down Maui’s visitor economy; instead, it is clarifying the boundaries of where short-term rentals legally belong.

Impact on Property Values and Market Behavior

1. Affected Apartment-Zoned STR Buildings

Values may shift depending on:

• Rental income loss
  
  
• HOA decisions
  
  
• Buyer sentiment
  
  
• Financing guideline adjustments
  
  

Some investors may divest early, while others may wait for rezoning outcomes.

2. Hotel-Zoned STR Inventory

Demand may increase for hotel-zoned condos because their STR rights are secure and supply is limited.

3. Long-Term Residential Buyers

This may create opportunities:

• More inventory entering the market
  
  
• Negotiating leverage with sellers recalibrating expectations
  
  
• New chances to buy into buildings formerly priced for STR cash flow
  
  

4. The Lending Landscape

Appraisers and lenders will adjust underwriting assumptions based on:

• Loss of STR income
  
  
• Revised comparables
  
  
• Updated building classifications
  
  

Buyers should expect more scrutiny and updated financial modeling during this transition period.

Legal Challenges and Uncertainty

Bill 9 is now law, but several dynamics remain fluid:

• Lawsuits from owners and associations are expected
  
  
• The County’s implementation plan may evolve
  
  
• Rezoning pathways could dramatically alter outcomes
  
  
• State-level review or legal interpretation may affect timelines
  
  

For owners, this means it’s essential to track:

• County Council agendas
  
  
• Maui Planning Commission hearings
  
  
• HOA communications
  
  
• Court rulings
  
  
• Official enforcement guidance
  
  

Staying informed will matter more than ever.

What Owners Should Do Now

If you’re currently renting short-term in an affected building:

• Confirm your zoning classification
  
  
• Review the amortization end date
  
  
• Model your future revenue after STR loss
  
  
• Evaluate whether selling, holding, or pursuing rezoning makes the most sense
  
  

If you’re unsure whether your building is affected:

This is the time to request a zoning confirmation letter or reach out to me to verify status.

If you’re considering selling:

Positioning, timing, and pricing will matter significantly over the next 24 months as the market digests Bill 9.

If you’re a buyer:

Verify zoning before you look at income projections. Maui is now moving into a far more black-and-white STR regulatory environment, which ultimately offers more clarity for serious investors.

My Take as a Local Professional

Bill 9 is a major shift, but it’s also an opportunity for clarity and stability. Buyers and sellers have a more defined framework. Investors can make decisions with fewer gray areas. And long-term housing availability may improve as units transition away from STR use.

Navigating this new landscape requires accurate information, realistic financial modeling, and context on how each building fits into Maui’s zoning framework.

This is where working with someone who lives and breathes the Maui market becomes especially valuable — and where Maui’s top REALTOR® Benjamin Finnerty brings real clarity for clients who want to move confidently in a changing environment.

Thinking about selling, buying, or understanding how Bill 9 impacts your property?
Reach out anytime — I’m here to help you navigate the shift with clarity and confidence.

📱 Call: 808-481-9748


📧 Email: benjamin@the808team.com


🌐 Website: https://benjamin.the808team.com



Benjamin Finnerty REALTOR® RS-83812 · Keller Williams Realty Maui RB-21851