When Bill 9 passed its first reading on December 1, 2025, it sent shockwaves across Maui’s real estate community. The bill proposes the eventual phase-out of apartment-zoned short-term rentals (STRs) island-wide — a major shift from the long-standing Minatoya interpretation.

But here's the essential update most people don’t know:

👉 Bill 9 phases out STRs only in A-1 and A-2 apartment districts — NOT in hotel/resort zoning.
👉 A second, separate process is coming that may preserve many existing STR complexes through new hotel zoning (H-3/H-4).
👉 The TIG Exhibit 2 list — while not adopted as part of Bill 9 — will be revisited by the Council after Bill 9 passes.

This blog gives you exactly where STRs will still be allowed, the future zones likely to protect STRs, and the full list of complexes recommended by the County’s TIG (Exhibit 2).

Let’s break this down clearly.

✅ What Bill 9 Actually Changes

Bill 9 targets apartment-zoned (A-1/A-2) short-term rentals.
If nothing else changes, these STRs will be phased out over a multi-year schedule.

Unaffected by Bill 9:
✔ Hotel-zoned properties
✔ Resort-zoned properties
✔ STRHs & B&Bs permitted under separate rules
✔ Timeshares
✔ Properly hotel-entitled properties

Affected by Bill 9:
❌ Apartment-zoned STRs, most of which are Minatoya-based

This is where the TIG comes in.

⭐ What Happened to Exhibit 2?

The Temporary Investigative Group (TIG) submitted a major report recommending that dozens of apartment-zoned STR complexes be rezoned into new hotel districts (H-3 / H-4) so they could continue operating STRs permanently.

However:

❌ Exhibit 2 was NOT adopted or voted on during Bill 9.

✔ But multiple councilmembers stated publicly that they WILL revisit the TIG findings and Exhibit 2 after Bill 9 passes.

✔ The rezoning process will occur in future hearings and separate legislation.

So while Exhibit 2 is not law, it remains the County’s official starting point for possible future STR-preserving rezoning.

This makes Exhibit 2 extremely important for owners and investors.

🏨 Where STRs Will Still Be Allowed After Bill 9

1️⃣ Hotel-Zoned Properties (H-1, H-2 & existing hotel districts)

These remain 100% STR-legal — no impact from Bill 9.

2️⃣ Resort-Zoned Properties

Also fully allowed — these zones were never at risk.

3️⃣ Buildings That May Be Rezoned Into H-3 / H-4

These properties appear on Exhibit 2 because TIG determined they should continue operating like hotel-use STR properties.

If rezoned in 2026:
They will permanently remain STR-legal.

This is your most important long-term “STR safe zone” list.

🧭 FULL TIG EXHIBIT 2 LIST

Properties Recommended for Future STR-Preserving H-3/H-4 Rezoning

Below is the complete County TIG Exhibit 2 list, alphabetized and organized by region for clarity.

🌺 WEST MAUI (Lahaina • Kaanapali • Kahana • Napili • Kapalua)

• Hale Kaanapali (Maui Kaanapali Villas)
  
  
• Honokai
  
  
• Honokoa
  
  
• Kahana Outrigger (two TMKs)
  
  
• Kuleana (two TMKs)
  
  
• Lahaina Beach Club
  
  
• Lokelani
  
  
• Maui Eldorado
  
  
• Maui Sands II
  
  
• Papakea
  
  
• Pikake
  
  
• Paki Maui I & II
  
  
• Paki Maui III
  
  
• Hale Kai I
  
  
• Hale Mahina Beach
  
  
• Hale Ono Loa
  
  
• Hono Koa
  
  
• Kapalua Bay Villas
  
  

🌴 SOUTH MAUI (Kihei • Wailea)

• Grand Champions Villas
  
  
• Hale Kamaole
  
  
• Kamaole Sands
  
  
• Kihei Bay Surf
  
  
• Kihei Bay Vista
  
  
• Maui Hill
  
  
• Maui Kamaole
  
  
• Maui Kamaole II
  
  
• Maui Kamaole III
  
  
• Maui Schooner
  
  
• Maui Sunset
  
  
• Maui Vista
  
  
• Palms at Wailea I
  
  
• Wailea Ekahi I
  
  
• Wailea Ekahi II
  
  
• Wailea Ekahi III
  
  
• Wailea Ekolu
  
  
• Kapu Townhouse
  
  
• Waiohuli Beach Duplex
  
  

🌊 MA‘ALAEA

• Island Sands
  
  
• Lauloa Maalaea
  
  
• Maalaea Kai
  
  
• Milowai-Maalaea
  
  

🌿 EAST MAUI (Hāna)

• Hana Kai-Maui
  
  

🏘️ INDIVIDUAL SMALL-PARCEL PROPERTIES (Included by TIG)

These are smaller multi-family or duplex parcels TIG recommended for future hotel zoning:

• 1178 Uluniu Rd
  
  
• 1194 Uluniu Rd
  
  
• 1440 Halama St
  
  
• 1444 Halama St
  
  
• 1470 Halama St
  
  
• 2131 Iliili Rd
  
  
• Indo Lotus Beach House
  
  
• Moana Villa
  
  
• My Waii Beach Cottage
  
  

🔍 What Being on Exhibit 2 Means

✔ Possible likelihood of STR preservation

✔ Eligibility for automatic rezoning once H-3/H-4 districts are created

✔ Highest long-term STR value retention

✔ Most investor-friendly positions under Bill 9 reforms

But:
Rezoning is NOT approved yet.
It will occur in a separate bill, after Bill 9’s second reading.

Being on the list = top priority for future STR protection
Not being on the list = STR phase-out unless petitioned separately

❌ If Your Building Is NOT on This List

You should prepare for:

• STR phase-out
  
  
• Shift to long-term rental projections
  
  
• Potential softening in investor demand
  
  
• Repricing over the next 12–24 months
  
  
• Need for alternative rezoning or hardship appeals (not yet defined)
  
  

I can prepare a “Phase-Out Risk Report” for any building.

📈 Investor Strategy Takeaways (2025–2026)

1. STR investments now hinge on ZONING, not location

Apartment zoning = risk
Hotel zoning = safe
Exhibit 2 = likely safe soon

2. Expect 2026 market distortions

Some complexes on Exhibit 2 are already seeing buyer hesitation — which means buying opportunities.

3. Underwrite every purchase two ways

• STR allowed
  
  
• STR eliminated
  
  

I can help run these dual projections.

🟩 Need a Breakdown for Your Property?

I track:

• Bill 9 impacts
  
  
• TIG Exhibit 2 eligibility
  
  
• Hotel vs apartment zoning
  
  
• Projected valuation differences
  
  
• STR vs LTR cashflow outcomes
  
  
• Likelihood of rezoning once H-3/H-4 passes
  
  

If you own, plan to buy, or want clarity on your complex:

📲 808-344-3584
📧 Todd@The808Team.com


🌐 The808Team.com

I’ll create a custom STR Zone Assessment for your exact building.