Maui Short Term Rental Ban: Latest on Bill 9, the TIG Recommendations, and What Comes Next

Aloha. If you have been following the Maui Short Term Rental Ban discussion, this is a focused update that breaks down the Temporary Investigative Group recommendations, what the mayor had to say, and the practical steps being proposed to implement change. This article walks through the core recommendations, the proposed H3 and H4 zoning solution, how Exhibit 2 factors into the process, the timeline questions raised by the planning commission and council members, and what property owners should expect. I aim to give you straightforward clarity so you can understand the implications of the Maui Short Term Rental Ban and make informed decisions.

Quick outline: What this update covers

• What the Temporary Investigative Group recommended
• How the mayor framed the policy and its goals
• What Exhibit 2 means for property owners
• The proposed new H3 and H4 zoning districts and how they would work
• Timeline and process questions: Should H3 and H4 be created first?
• Legal strategy: Why pass Bill 9 “clean” and use companion legislation later
• Practical next steps for property owners and community members

Context: Why this matters

The Maui Short Term Rental Ban being debated through Bill 9 focuses on short-term vacation rental uses in apartment zoning districts. The underlying concern is that short-term rentals have been converting housing stock that was meant for long-term residents into tourist accommodations or hotel-like operations. This shift has an impact on local housing availability, tax bases, and community stability.

The Temporary Investigative Group, or TIG, convened to explore practical solutions. The TIG included four county council members who will later be voting on Bill 9. Their recommendations are intended to be thoughtful, pragmatic, and defensible in court. They emphasize protecting apartment districts for long-term housing while providing a pathway for properties that truly function as hotels to be properly zoned as hotel properties.

Key TIG recommendations summarized

The TIG voted unanimously on several recommendations that form the core of the implementation strategy for the Maui Short Term Rental Ban. These recommendations are procedural and zoning-focused rather than altering the substantive language of Bill 9. Here are the primary items the TIG put forward:

1. Introduce a resolution urging the Department of Planning to craft legislation establishing H3 and H4 zoning districts in section 19.4 of the Maui County Code. These would mirror A1 and A2 apartment district standards but would explicitly permit transient vacation rental uses as an outright permitted use.
2. Council-initiated changes in zoning for properties identified in Exhibit 2: Once H3 and H4 zones are established, move to change zoning from A1 or A2 to H3 or H4 for specific properties listed in Exhibit 2.
3. Change community plan designations for Exhibit 2 properties in South Maui as part of the South Maui community plan update; for other Exhibit 2 properties, undertake council-initiated changes in community plan designations as needed.
4. Work with Corporation Counsel and the Department of Planning to expedite the process and request metes and bounds from separate property owners so the council can effect the changes.

These recommendations emphasize process: create the hotel-like zoning categories, then reclassify the properties that meet the TIG criteria so those properties are aligned with their actual use.

Mayor Bissen’s remarks

"This is a zoning issue that has had a detrimental impact on our local housing inventory and it must be corrected." — Mayor Bissen

The mayor’s commentary is important because it frames Bill 9 and the TIG recommendations as both a housing preservation measure and a zoning correction. The key policy points he made were:

• Not all short-term rentals are inappropriate; some apartment-district short-term rentals are effectively operating as hotels and should be rezoned accordingly.
• Bill 9 is not an attempt to punish property owners or eliminate tourism. It targets transient vacation rental uses that have replaced housing intended for residents.
• The administration intends to mitigate expected real property tax impacts through well-planned adjustments.
• Passing Bill 9 clean and following with companion legislation to implement the TIG recommendations is seen as the most defensible and practical path forward.

He stressed that this approach is about preserving long-term housing for local families and ensuring future generations can remain on the island. In short, the mayor framed the Maui Short Term Rental Ban as a community-first policy with careful follow-up steps to avoid unintended harm to property owners or county revenues.

Exhibit 2: What it is and who it affects

Exhibit 2 is the TIG’s list of specific properties believed to be operating more like hotels than residential apartments. The TIG recommended those properties be considered for reclassification to new hotel-targeted zoning (H3 or H4).

Important clarifications about Exhibit 2:

• Once the TIG delivered the recommendations, Exhibit 2 is fixed; the TIG is disbanded and cannot add properties to the list.
• Properties not on Exhibit 2 are still able to apply for rezoning through the standard community plan amendment and zoning change processes.
• Some property types, like bona fide timeshare operations, are already exempted from Bill 9 and are generally not intended to be swept into the rezoning list, though they might be listed on Exhibit 2 for clarity in some cases.

This means property owners who did not make Exhibit 2 should not assume they are shielded from future rezoning efforts, but they do have the option to proactively apply if they want their property rezoned to reflect hotel-type operations.

Timeshares, partial exemptions, and Exhibit 2

During the committee discussion, council members clarified how timeshares are treated. The bottom line is that timeshares are exempt from Bill 9. The TIG sometimes included timeshare properties on Exhibit 2 for the sake of having a clear, comprehensive list of properties and exceptions. This created confusion for some property owners, so the council made clear that:

• Timeshare operations, even if they represent only a portion of a property’s units, are treated as exempt under Bill 9.
• In some cases, properties were included on Exhibit 2 not as an indication they are targeted for rezoning, but rather to note their exemption status for administrative clarity.

Property owners should verify their classification with Corporation Counsel or the Department of Planning if they are unsure how their property was listed or whether partial timeshare operations affect their status.

The H3 and H4 zoning proposal explained

The core technical recommendation from the TIG is straightforward: create hotel-specific zones that reflect the same basic development standards as A1 and A2 apartment districts but that allow transient vacation rentals outright. These are the proposed H3 and H4 zoning districts.

Why H3 and H4?

• Create a clear, legal path for properties functioning as hotels to be aligned with their real use.
• Preserve the integrity of A1 and A2 apartment districts for long-term housing.
• Reduce future legal ambiguity by zoning properties to match actual operations instead of relying on enforcement and regulatory shifts.

The planning department described the H3 and H4 creation process as relatively straightforward because the new districts would largely replicate existing H1, A1, and A2 standards in terms of development standards and allowable uses, with the key difference being that transient vacation rental uses would be outright permitted.

Timing and process: should the H3/H4 zoning be created before Bill 9?

This is one of the most important procedural debates in the council discussion. There are two broad approaches under consideration:

1. Pass Bill 9 first and then implement the H3 and H4 zoning and Exhibit 2 rezoning through companion legislation and council-initiated zoning changes.
2. Create the H3 and H4 zoning categories first, then pass Bill 9, ensuring the mechanism to rezone Exhibit 2 properties is in place before any regulatory changes take effect.

Council members asked the planning commission and Corporation Counsel for their input. The planning department’s practical answer was that the H3 and H4 zoning creation would likely take about four to six months to get through the three planning commissions and then to council, including public noticing requirements. The planning department also said it could initiate the ordinance, which would be a quicker route than having the council originate it.

Corporation Counsel and other participants noted that the TIG’s recommendations could stand independently of Bill 9. From their perspective, the council has flexibility on sequencing. However, several council members raised genuine concerns about the risk of passing Bill 9 without the new zoning in place. The worry is a simple practical one: Bill 9 would potentially make property classifications in apartment districts more rigid without an immediate mechanism for affected properties to be rezoned to hotel designations. If the council passes Bill 9 first and companion zoning is delayed, certain properties could be in regulatory limbo for an extended period.

Why the strategy to pass Bill 9 clean is being discussed

The TIG and administration signaled a legal strategy: pass Bill 9 in a clean form, without adding the complex companion zoning language into the main bill. The reasoning is strategic. Here are the main points driving that approach:

• A clean Bill 9 is easier to defend in court and less likely to be tied up by procedural challenges that could derail the intended housing protections.
• Companion legislation (to create the H3 and H4 zones and to enact council-initiated rezoning for Exhibit 2 properties) can and should follow Bill 9 once the legal framework is set.
• The TIG believes this sequence provides the strongest legal footing while allowing for the practical work of rezoning to be done deliberately.

In other words, Bill 9 would establish the broad prohibition or limitation on transient vacation rental uses in apartment districts. The subsequent H3 and H4 rezoning process would be the remedial mechanism for properties that meet the TIG’s criteria to align their zoning with their usage.

Concerns raised by council members and property owners

Several concerns surfaced during testimony and committee discussion. These concerns are practical and political, and they include the following:

• Timing risk: Passing Bill 9 without a guaranteed, immediate path to rezoning for Exhibit 2 properties might leave owners in uncertainty for months or years.
• Political turnover: Councils and administrations change, and future bodies might not pursue companion legislation with the same vigor, leaving rezoning incomplete.
• Tax revenue impacts: The mayor acknowledged that some property tax adjustments may be needed and the administration is planning offsets, but property owners worry about short-term tax consequences.
• Legal challenges: Property owners may pursue litigation, which could delay implementation and increase costs for all parties involved.
• Equity and fairness: Owners who were not included in Exhibit 2 argued the TIG missed properties and asked for clarification and opportunities to be considered.

These are real concerns that the council must balance with the policy goal of preserving housing stock for local residents.

What the planning commission said about timeframes

The planning commission explained that creating the H3 and H4 zoning categories was a fairly straightforward drafting exercise because the categories would largely replicate existing zoning standards, but would require review by the three island planning commissions and public notices. The expected timeline to get the zoning created once initiated is roughly four to six months under typical circumstances.

For property owners seeking individual rezoning, the process is longer. Applicants not on Exhibit 2 would need to submit an application for change in zoning and possibly community plan amendments, followed by planning department review, planning commission hearings, and finally council action. Each stage can take time and invites public input and potential appeals.

Why I believe H3 and H4 zoning should be created before Bill 9 passes

From a risk-management perspective, creating H3 and H4 first reduces uncertainty. If the hotel zoning categories exist before Bill 9 becomes law, affected owners know the path that will be available to them. It stops the problem from repeating years later because the properties will be legally aligned with their actual operations.

There are thoughtful counterarguments. The planning department believes H3/H4 may not be necessary unless Bill 9 passes. Corporation Counsel and others note that the TIG’s recommendations could be pursued independently. However, relying on the goodwill and continuity of future administrations and councils is risky. The safer path for property owners and for the community is to ensure the rezoning mechanism is in place prior to or concurrently with the roll-out of the Maui Short Term Rental Ban restrictions.

Practical next steps for property owners and stakeholders

If you own property that might be affected or if you care about housing policy, here are practical steps you can take now:

1. Confirm your property status. Check if your property is listed in Exhibit 2 and whether timeshare exemptions apply.
2. Gather documentation that demonstrates how the property is being used. Operators that genuinely function as hotels should prepare to show evidence of hotel-like operations if they seek rezoning to H3 or H4.
3. Engage with planning staff early. If you plan to apply for rezoning, start the conversation with the Department of Planning to understand timelines, costs, and required documentation.
4. Consider coordinated legal counsel. For properties that represent significant investment, coordinate with counsel experienced in land use and zoning to prepare for potential litigation or complex hearings.
5. Participate in community discussions and public testimony. The council heard a lot of testimony from property owners who were not included in Exhibit 2. Well-prepared, factual testimony matters.
6. Watch for companion legislation. If Bill 9 passes, expect council-initiated rezoning actions and planning department-initiated ordinances to follow. Stay informed about meetings and deadlines.

How this fits into a broader housing strategy for Maui

The Maui Short Term Rental Ban, as proposed, is one tool among many needed to address the housing crisis. The TIG and the mayor both emphasized that the solution must be multi-faceted. That includes building new homes, incentivizing long-term rentals, and restoring existing housing to residents. The H3 and H4 zoning approach is narrowly tailored to address the problem of hotel-like operations in apartment districts, while broader housing policy work continues in parallel.

Possible outcomes and what to expect next

There are several plausible outcomes as this moves forward:

• Bill 9 could pass in a clean form and companion legislation could follow to create H3 and H4 and implement Exhibit 2 rezoning. That is the path favored by the TIG and the mayor.
• Bill 9 could pass but companion zoning could be delayed, creating temporary uncertainty for affected property owners. This raises the risk of litigation and political pushback.
• Opposition or litigation could alter timelines or outcomes, potentially leading to negotiated settlements or different zoning outcomes for some properties.
• The planning department may proactively initiate H3 and H4 zoning and accelerate the process, reducing the risk of prolonged uncertainty.

In every case, property owners, tenants, and the community will need to monitor the council and planning commission agendas closely.

Final thoughts and a call to action

The Maui Short Term Rental Ban debate is a complex blend of policy, zoning technicalities, legal strategy, and real human impacts. The TIG took a pragmatic route: keep Bill 9 clean to maintain legal strength, then use companion legislation and council-initiated rezoning to carve out a path for properties that function as hotels. The mayor supported that approach and emphasized balancing short-term impacts with long-term housing benefits for local families.

That said, I remain convinced that creating H3 and H4 zoning before or at minimum concurrently with passing Bill 9 offers the clearest path to avoid prolonged uncertainty and to ensure that properties currently operating as hotels can secure the proper zoning designation without waiting through political turnover or administrative delays.

If you are affected by this process, verify your property’s status now, prepare documentation if you plan to seek rezoning, and engage with planning staff. If you are a community member concerned about housing, stay involved in public testimony and hold your elected representatives accountable for timely implementation.

If you found this update useful, consider sharing it with neighbors, property owners, and other community members who will be impacted by the Maui Short Term Rental Ban. Stay vigilant, get informed, and participate in the process. Aloha.

Where to follow developments

Watch county council and planning commission agendas, follow the Department of Planning notices, and monitor council committee updates for the housing and land use committee. Public testimony windows are the primary avenue for input, so prepare concise, factual statements if you plan to participate.

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