Bill 88: What Maui Condo Owners Need to Know

The Maui County Council recently approved Bill 88, creating two new hotel zoning districts: H-3 and H-4. While the passage of Bill 88 is an important development, it is equally important to understand what the bill does—and what it does not do.

Bill 88 creates the H-3 and H-4 hotel zoning districts. It does not automatically rezone any property.

The bill was introduced as part of the ongoing discussion surrounding the future of short-term rental use in Maui County and the implementation of Bill 9. For owners of Minatoya List properties and other condominium complexes that have historically operated as short-term rentals, the passage of Bill 88 does not mean those properties are automatically protected or permanently approved for short-term rental use. Individual properties would still need to pursue a separate rezoning process if they wish to be considered for one of the new zoning classifications. It is also important to note that Bill 88 does not replace Bill 9. Bill 9 remains in effect, and Bill 88 establishes new zoning classifications that may be available to certain properties through a future rezoning process. Any future rezoning requests would be reviewed individually.

As a result, a number of questions remain, including whether individual condominium associations will choose to pursue rezoning, whether owners will support moving forward with the process, what requirements will need to be met, how long the process could take, and what costs may be associated with applications, studies, consultants, legal services, or other requirements. At this stage, many of those answers are still unknown.

Potential Market Impact

One of the biggest questions owners, buyers, and investors are asking is how Bill 88 may impact property values. At this point, the long-term market impact remains uncertain. For some buyers, the creation of the H-3 and H-4 districts may be viewed as a positive step because it establishes a potential pathway for properties seeking to preserve short-term rental use. For others, the fact that additional approvals and rezoning efforts may still be required means uncertainty remains.

The impact will likely vary from property to property. Factors such as HOA support, owner participation, rezoning costs, application timelines, and the outcome of future rezoning requests could all influence buyer demand and property values.

As more information becomes available and individual condominium associations begin discussing their options, buyers and sellers should have a clearer picture of how Bill 88 may affect specific complexes and the broader market. Buyers and sellers should continue to perform careful due diligence regarding the status of individual properties, as circumstances may differ significantly from one complex to another.

For now, the key takeaway is simple: Bill 88 creates new zoning options, but it does not automatically change the zoning of any existing property. The next steps—and their impact—will likely be determined on a property-by-property basis.