Maui Resolution 25-230, H-3 and H-4 Zoning Update

What It Means for Vacation Rentals and Maui Real Estate

Maui’s evolving approach to vacation rentals continues with Resolution 25-230, a proposal that could introduce new H-3 and H-4 zoning districts designed specifically for longstanding visitor accommodations.

While not yet law, this resolution is an important step in shaping how certain condo properties may be used in the future, especially in the wake of Bill 9 and the broader push to rebalance housing across the island.

What Resolution 25-230 Is

Resolution 25-230 establishes a framework for potentially creating H-3 and H-4 hotel zoning districts.

These proposed designations are intended to:

• Provide a pathway for certain properties currently used as vacation rentals
• Align zoning more appropriately with how those properties have historically operated
• Help distinguish between true housing inventory and visitor accommodations

It’s important to understand that this resolution does not rezone properties on its own. It is part of a longer process that must go through multiple levels of review and approval.

Where Things Stand Now

As of now, the process has encountered an important development:

• All three Maui Planning Commissions have recommended denial of the zoning creation
• Because of this, the Maui County Council will now require a supermajority vote (6–3) to move forward
• The recommendations are being transmitted back to Council
• Council will determine when to schedule upcoming hearings

This does not mean the proposal is dead, but it does raise the bar for approval and signals that there are still significant concerns to work through.

What Happens Next

Resolution 25-230 will return to the Maui County Council for further review.

Expected next steps include:

• Additional Council hearings and public testimony
• Continued discussion around zoning structure and implementation
• Opportunities for community and stakeholder input

If it advances, this will likely be a highly watched process with meaningful implications for property owners and the broader market.

Council-Initiated Rezoning, A-1 and A-2 to H-3 and H-4

In addition to the zoning framework itself, there is ongoing discussion around council-initiated rezoning of specific properties, particularly those identified in “Exhibit 2.”

While timing has been delayed due to the Planning Commission process and the County budget cycle, this remains an area to watch closely in the coming months.

Potential Criteria Being Discussed

Although nothing is finalized, several criteria are being considered when evaluating which properties might qualify for H-3 or H-4 zoning:

• Timeshare units
• Short-term leasehold properties
• Higher-value units not considered part of attainable housing inventory
• Properties located in Sea Level Rise Exposure Areas (SLRXA)

These criteria suggest a targeted approach, focusing on properties that may not realistically serve as long-term housing.

Opportunity for Property Owners and Complexes

If the zoning framework moves forward, there may be opportunities for:

• Individual property owners
• Condo associations and complexes

to request inclusion, provided they meet the established criteria.

This could become an important pathway for certain properties to maintain or regain short-term rental use, depending on how the final policy is structured.

What This Means for Buyers and Sellers

This is a complex and evolving situation, and it’s already influencing how buyers and sellers approach the Maui market.

For buyers:

• Understanding zoning is more important than ever
• Not all properties will have the same future use potential
• Due diligence goes beyond the listing details

For sellers:

• Positioning and pricing strategy matter in a shifting regulatory environment
• Clear communication about zoning, use, and potential pathways is critical
• Market conditions are being shaped not just by inventory, but by policy

The Bottom Line

Resolution 25-230 represents a potential next phase in Maui’s effort to redefine how housing and vacation rentals coexist.

While the outcome is still uncertain, one thing is clear, zoning, regulation, and policy are now key drivers of real estate value on Maui.

Staying informed and working with someone who understands both the market and the legislation is essential in this environment.

Stay Informed

As this continues to evolve, I’ll be closely monitoring updates, Council decisions, and how this impacts both current property owners and future opportunities.

If you’d like help understanding how this could affect a specific property, investment strategy, or sale, I’m always here to have that conversation.