🎯 STRisker: Bulletin - Maui County, HI

Council Approves New Hotel Zoning Districts for Vacation Rentals

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The Maui County Council voted 7‑2 to approve Bill 88, creating two new hotel zoning districts — H‑3 and H‑4 — intended to provide a path forward for thousands of vacation rentals being phased out of apartment‑zoned districts.

The new districts are modeled on existing A‑1 and A‑2 apartment standards and apply to properties that have operated with transient vacation rentals as a grandfathered permitted use.

Housing and Land Use Committee Chair Nohelani Uʻu‑Hodgins, who introduced the motion, emphasized: “This bill only establishes the district and it does not rezone any properties. Rezoning will have to happen separately.”

The measure follows Bill 9, the vacation rental phase‑out law signed by Mayor Richard Bissen in December 2024. Bill 88 is described as the “intentional next step” in implementing that phase‑out.

Mayor Bissen signs Bill 9 into law, shortly after 5-3 final passage by Maui Council | Maui Now

The Maui County Council members passed Bill 9 on second and final reading Monday by the same 5-3 vote that advanced the controversial measure earlier this month. Later Monday, Mayor Richard Bissen signed the bill into law. Bissen introduced the measure to phase out transient vacation rentals in apartment-zoned districts in May 2024. While the […]

Maui NowBrian Perry

🎤 Community Feedback

Opponents, including the Office of Hawaiian Affairs (OHA), argued the bill creates hotel zoning districts before parcel‑specific findings on housing suitability, sea‑level‑rise exposure, and infrastructure capacity. OHA’s McKenna Woodward cited research showing that 85% of affected apartment‑zone vacation rental owners have out‑of‑state mailing addresses, with only about 450 Maui resident owners directly impacted. All three county planning commissions — Maui, Molokaʻi, and Lānaʻi — recommended denial.

Council Member Keani Rawlins‑Fernandez, who dissented, said: “I will continue to vote no. And we’ll continue to fight alongside our residents that are fighting for housing, to provide shelter for our residents, and making this place our home and not just somewhere to exploit and make business profits off of.”

Supporters, including the Maui Vacation Rental Association and the Realtors Association of Maui, urged passage as a way to modernize zoning without expanding STR inventory. Property owner TJ Victorine said his condominium association unanimously supports the bill but warned that rezoning costs — quoted at $200,000 to $500,000 per property — are prohibitive. “This effectively nullifies the intent of Bill 88,” he said.

🏠 Housing & Enforcement

Bill 88 is designed to create a pathway for roughly 4,500 grandfathered vacation rentals at 104 properties on the so‑called Minatoya List to eventually seek hotel zoning.

The ordinance itself does not rezone properties; that process will require separate applications and studies. Supporters argue the measure provides clarity for property owners, while opponents worry it entrenches vacation rentals at the expense of residential housing.

Mayor Bissen testified in favor of the bill during committee hearings, calling it a necessary step to implement Bill 9.

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🏨 Board & Leadership Response

Council Member Tamara Paltin supported the bill but raised shoreline concerns, citing recent king tides and ocean swells that disrupted events and damaged infrastructure. “There are changes to the shoreline, and it’s happening in real time, like right before our eyes,” she said, adding she intends to revisit whether shoreline‑adjacent properties should be eligible for the new hotel zones.

Council Members Rawlins‑Fernandez and Gabe Johnson dissented, maintaining opposition rooted in housing affordability and community skepticism.

➡️ Looking Ahead

Bill 88 now heads to Mayor Bissen’s desk for final action. If signed, the ordinance will establish the H‑3 and H‑4 districts but leave rezoning to future applications.

The next phase will involve determining which properties can move into the new zones, with debates likely to continue over shoreline eligibility, rezoning costs, and housing impacts.

For Maui, the ordinance represents a compromise: preserving a pathway for grandfathered STRs while maintaining the broader phase‑out enacted under Bill 9.

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