Maui Bill 88 & H-3/H-4 Hotel Zoning Update: What Condo Owners, Buyers, and Investors Need to Know

If you own a Maui condominium, vacation rental, or investment property, or you're considering buying one, chances are you've been following the recent discussions around Bill 9, Bill 88, the Minatoya List, and the proposed H-3 and H-4 hotel zoning districts.

These changes have created plenty of questions, and understandably so. They could affect short-term rental opportunities, future property values, and investment decisions across Maui.

The good news is that we're starting to get more clarity. The important thing to remember, however, is that the process is still unfolding. Here's what we know today, what we don't know yet, and what it means for property owners, buyers, and investors.

A Quick Timeline

Understanding how we got here helps make sense of where things stand today.

• 2001: The Minatoya Opinion allowed many apartment-zoned condominium complexes to legally continue operating as short-term vacation rentals.

• December 2025: Bill 9 became law, creating a timeline to phase out short-term rentals in many apartment-zoned complexes.

• June 2026: Bill 88 passed the Maui County Council and was sent to the Mayor for signature, creating the new H-3 and H-4 hotel zoning districts.

• Now: Maui County has begun releasing the first Council-initiated zoning resolutions identifying properties that may be considered for rezoning under this new framework.

• Next: Additional resolutions, committee hearings, Planning Commission review, and further Council action are still expected.

What Is Bill 88?

Bill 88 creates two new hotel zoning districts, H-3 and H-4, within Maui County's zoning code.

One of the biggest misconceptions is that Bill 88 automatically changes a property's zoning.

It doesn't.

Instead, it creates a legal pathway for qualifying visitor accommodation properties to be considered for rezoning. Individual condominium complexes must still go through a separate review process before any zoning changes take effect.

This distinction is important because many properties have not been rezoned simply because Bill 88 passed.

What Are H-3 and H-4 Hotel Zoning Districts?

The newly created H-3 and H-4 zoning districts are designed for qualifying visitor accommodation properties that have historically operated as short-term rentals.

While these new districts create an opportunity for eligible properties to continue operating as vacation rentals, they do not guarantee approval. Each property must still move through the County's review process before any zoning changes become official.

Maui County Has Released the First Zoning Resolutions

The County has begun releasing the first Council-initiated zoning resolutions following Bill 88.

It's important to understand that these are only the first resolutions.

Additional resolutions are expected, and amendments may still be made as the legislative process continues.

If your condominium complex isn't included in this first round, it does not necessarily mean it has been excluded. More information is expected in the coming weeks.

What This Means for Maui Condo Owners

If your condominium complex appears in one of the current resolutions, that's generally a positive step.

At this stage, many associations are focusing on supporting their inclusion while gathering important documentation that may be requested later, such as legal property descriptions, surveys, deeds, or other recorded documents.

If your complex isn't included yet, patience is important. The County has indicated that additional resolutions are expected, and the first group appears to focus on specific categories of properties rather than every eligible condominium.

Every condominium association is unique, with its own governing documents, ownership structure, and operating history. Because of that, there isn't a one-size-fits-all strategy for every complex.

What This Means for Buyers and Real Estate Investors

For buyers, this is an important reminder that purchasing a Maui condominium involves much more than evaluating the asking price.

Whether you're looking for a primary residence, second home, vacation rental, or investment property, understanding the property's zoning, permitted uses, homeowners association rules, and potential legislative changes is an essential part of your due diligence.

As someone who regularly works with investment property buyers and clients completing 1031 exchanges, I always encourage looking at the full picture, not just today's rental income, but also long-term zoning, insurance costs, operating expenses, and overall investment potential.

What We Know Today

At this point, here's what has been confirmed:

• Bill 88 has been transmitted to the Mayor for signature.

• H-3 and H-4 hotel zoning districts will become part of Maui County's zoning code once signed.

• The first Council-initiated zoning resolutions have been released.

• Additional zoning resolutions are expected.

• The Housing and Land Use Committee will continue reviewing these proposals before Planning Commission review.

What We Still Don't Know

Several important questions remain:

• Which additional condominium complexes may be included in future resolutions.

• Whether amendments will be made during the legislative process.

• What documentation individual properties will ultimately be required to provide.

• Whether additional application fees or procedural requirements will be added.

• The final timeline for approvals.

As the County releases additional information, property owners and buyers will have a much clearer understanding of how these proposed changes could affect individual properties.

Frequently Asked Questions

Does Bill 88 automatically rezone my condo?

No. Bill 88 creates the H-3 and H-4 hotel zoning districts, but individual properties must still complete the County's rezoning process.

What if my condominium isn't included in the first zoning resolutions?

Don't assume your property has been left out. Additional Council-initiated zoning resolutions are expected, so it's important to wait until the full package has been released.

Can I still buy a Maui vacation rental?

Yes, but buyers should carefully review the property's zoning, permitted uses, HOA rules, and any pending legislative changes before purchasing.

Should I be worried if I own a Maui condo?

Every property is different. The best approach is to stay informed, work with your condominium association, and evaluate your property's unique circumstances rather than assuming every complex will be affected the same way.

Where Short-Term Rental Condos Are Located on Maui

Short-term rental (vacation rental) condominiums on Maui are not spread evenly across the island. They are concentrated in specific resort and visitor-oriented areas where zoning and historic use have allowed them to operate.

The primary areas where short-term rental condos are located include:

• Kihei (South Maui) – One of the largest concentrations of vacation rental condos on the island, with communities like Maui Vista, Kamaole Sands, Maui Kamaole, Hale Kamaole, and others.
• Wailea (South Maui) – A luxury resort area with limited but high-end condominium inventory, including properties such as Wailea Ekahi, Wailea Ekolu, and Wailea Grand Champions.
• Ma‘alaea (Central Maui) – A smaller but established oceanfront area with a mix of commercial, residential and vacation rental buildings.
• Greater Lahaina (West Maui) – Includes resort communities such as Kaanapali, Napili, and Kapalua, which are among the most established vacation rental markets in Hawaii.
• Paia (North Shore) – Very limited short-term rental availability, with only select properties permitted under specific zoning or use conditions.

If you're exploring Maui short-term rental opportunities, these areas represent the core of the island’s vacation rental condo market.

My Perspective

One thing I've learned after helping clients buy and sell real estate across Maui is that zoning can have a significant impact on property value and long-term investment potential.

While these proposed changes are important, we're still in the middle of the process. My advice is to stay informed, avoid making assumptions based on the first round of resolutions, and continue watching how the legislation develops.

I'll continue monitoring these updates closely and sharing information as it becomes available so my clients can make informed decisions, whether they're buying, selling, investing, or simply trying to understand how these changes may affect their property.

If you'd like to discuss how Bill 88, H-3 and H-4 zoning, or Maui's evolving short-term rental regulations may affect a specific property, I'm always happy to help.

This blog is intended for informational purposes only and should not be considered legal advice. Every property and condominium association is unique, and owners should consult their association, legal counsel, or other qualified professionals regarding decisions specific to their property.

Looking for a Maui short-term rental or investment property?
If you're considering purchasing a vacation rental, it's important to understand each property's zoning, permitted uses, HOA rules, and investment potential. Browse our current fee simple Maui short-term rental properties to see available opportunities across the island.

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