Hawaii Real Estate Experts

Maui Short Term Rentals for Sale: Major Update on Bill 9 and TIG Recommendations

If you are researching Maui Short Term Rentals for Sale, this update is important. The County Council's Temporary Investigative Group or TIG has released recommendations that clarify which apartment zoned properties the council is considering rezoning to hotel status and which properties may still face a phase out under Bill 9. These are recommendations only and do not yet change any law, but they significantly narrow the scope of the original proposal.

Quick summary

The TIG report includes an exhibit listing apartment zoned properties they suggest be rezoned to allow continued short term rental use as hotel properties. If the exhibit 2 list stands, the number of units proposed for phase out would drop from about 7,167 to roughly 2,588, a reduction of about 64 percent. That is a big change, but it is not final. The county council still needs to consider and vote on any zoning or bill changes.

What the TIG recommendations actually do

The TIG provided a spreadsheet (exhibit 2) that names individual apartment zoned properties that could be rezoned to a new hotel zoning category, referred to in the report as H3 or H4. Properties rezoned to hotel would be allowed to continue operating as short term rentals into the future. Properties not included on exhibit 2 would be the ones most likely to have their ability to short term rent phased out under the current Bill 9 proposal.

Exhibit 2: Properties TIG suggested for rezoning to hotel

These are the apartment zoned properties the TIG report lists as candidates to be rezoned to hotel so they can keep operating as short term rentals.

• 1178 Uluniu Rd
• 1194 Uluniu Rd
• 1440 Halama St
• 1444 Halama St
• 1470 Halama St
• 2131 Iliili Rd
• Grnd Champ Villas
• Hale Kaanapali
• Hale Kai I
• Hale Kamaole
• Hale Mahina Beach
• Hale Ono Loa
• Hana Kai-Maui
• Hono Kai
• Hono Koa
• Indo Lotus Beach Hse
• Island Sands
• Kaanapali Royal
• Kahana Outrigger
• Kamaole Sands
• Kapalua Bay Villas
• Kapu Townhouse
• Kihei Bay Surf
• Kihei Bay Vista
• Kuleana (listed twice in the TIG sheet)
• Lahaina Beach Club
• Lauloa Maalaea
• Lokelani
• Maalaea Kai
• Maui Eldorado
• Maui Hill
• Maui Kamaole
• Maui Kamaole II
• Maui Kamaole III
• Maui Sands I
• Maui Sands II
• Maui Schooner
• Maui Sunset
• Maui Vista
• Milowai-Maalaea
• Moana Villa
• My Waii Beach Cottage
• Paki Maui I & II
• Paki Maui III
• Palms at Wailea I
• Papakea
• Pikake
• Wailea Ekahi I
• Wailea Ekahi II
• Wailea Ekahi III
• Wailea Ekolu
• Waiohuli Bch Duplex

Properties not on exhibit 2 and therefore still at risk

These apartment zoned properties were not included on exhibit 2 and could still be impacted by a phase out under the current Bill 9 framework.

• Aloha Villas
• Hale Iliili
• Hale Kai O'Kihei
• Hale Mahialani
• Haleakala Shores
• Honokowai Palms
• Hoyochi Nikko
• Kahana Reef
• Kahana Village
• Kalama Terrace
• Kaleialoha
• Kamaole One
• Kanai A Nalu
• Kanoe Apts
• Kapalua Golf Villas
• Kauhale Makai
• Keawakapu
• Kenani Kai
• Kihei Cove
• Kihei Garden Estates
• Kihei Parkshore
• Kihei Resort
• Kihei Villa
• Koa Resort II
• Kuau Plaza
• Lahaina Roads
• Leilani Kai
• Leinaala
• Lihikai Apts
• Luana Kai
• Maalaea Banyans
• Mahina Surf
• Mahinahina Beach
• Makani A Kai
• Makani Sands
• Maui Parkshore
• Noelani
• Nohonani
• Pacific Shores
• Polynesian Shores
• Punahoa Beach Apts
• Puunoa Beach Estates
• Shores of Maui
• The Ridge
• The Spinnaker
• Wailea Inn
• Waiohuli Beach Hale
• Waipuilani
• Wavecrest

What this does and does not mean

It is important to emphasize the TIG exhibit and recommendations are not final. They are a step toward clarifying Bill 9, but the county council must still review and approve any zoning changes. The exhibit gives buyers and owners a clearer picture of which apartment zoned properties may be preserved as hotel zoned units and which remain at risk, but it leaves several key questions unanswered, including:

• What is the exact rezoning process and timeline? Rezoning takes time and requires council approval.
• Who pays for the rezoning and related costs? The TIG report does not spell out cost allocation.
• Will the list change before any final vote? The council could add or remove properties.

How this is likely to affect the market for Maui Short Term Rentals for Sale

Even though nothing is official, the TIG report and exhibit 2 will likely influence buyer and seller behavior immediately. Listings that appear on the exhibit 2 list may retain more market value because they are candidates to remain legal short term rentals under a hotel zoning. Properties not on the list face more uncertainty and could be devalued if a phase out is enacted without rezoning options.

Next steps for owners and buyers

If you own or want to buy a property on Maui and are focused on Maui Short Term Rentals for Sale, here are practical next steps:

1. Review the TIG exhibit list and compare it to your property to see whether it was included.
2. Recognize the recommendations are not final. Monitor county council agendas and meeting dates for Bill 9 discussions.
3. Ask questions about rezoning costs, timelines, and any grandfathering protections that may apply.
4. Contact a local real estate professional who can help interpret zoning status and market implications for Maui Short Term Rentals for Sale.

Final thoughts and how I can help

This exhibit is a meaningful step because it trims the number of apartment zoned units that would be phased out from over 7,000 to around 2,588 if those recommendations hold. That said, many resort style properties that clearly function as hotels are not all included and may need advocacy to be properly rezoned.

If you have questions about how any specific property is affected or need help navigating listings for Maui Short Term Rentals for Sale, reach out and I will walk you through the lists and implications so you can make an informed decision.

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