Bill 9 — Where Things Stand in May 2026

▸  Bill 9 is law (Ordinance 5909). West Maui phase-out: Jan. 1, 2029. Everywhere else: Jan. 1, 2031.

▸  H3/H4 hotel zoning is politically stalled. All three planning commissions recommended denial. Council needs 6-3 supermajority.

▸  Multiple lawsuits filed. No injunction issued. The deadlines are in effect.

▸  Hotel-zoned properties — Honua Kai, Ka'anapali Alii, Kapalua Bay Villas — are not affected by Bill 9.

▸  Apartment-zoned condos on the Minatoya List face phase-out. Run your numbers without STR income.

▸  This piece covers Bill 9 only. Lahaina recovery and tourism update is a separate piece — link at AlohaGroupMaui.com.

 

Aloha, this is Lahaina Lee with the May 2026 edition of the Maui Real Estate Advisor.

This is a stand-alone deep-dive on Bill 9 – the short-term rental phase-out law that is now affecting thousands of apartment-zoned condo owners on Maui. My Lahaina recovery and tourism update is a separate piece this month. This one is specifically for anyone who owns, is considering buying, or is advising clients on Maui condo-tels and vacation rental properties.

I'm going to give you the full picture – what's law, what's still contested, and what you should actually do with this information.

 

Bill 9 – The Law as Written

Bill 9 was signed into law by Mayor Bissen on December 15, 2025, and codified as Ordinance 5909. It phases out short-term vacation rental use in apartment-zoned (A-1 and A-2) districts on Maui,  specifically targeting the roughly 6,200 properties on the Minatoya List, which have been operating as short-term rentals under a grandfathered exemption dating back to 1989.

The phase-out deadlines: January 1, 2029 for West Maui properties. January 1, 2031 for South Maui and everywhere else. After those dates, Minatoya-listed properties in apartment-zoned districts may no longer be rented to visitors for stays under 180 days.

What Bill 9 does not do: it does not eliminate tourism or short-term rentals on Maui. Approximately 6,500 hotel-zoned and resort-zoned TVR parcels, along with thousands of hotel units, timeshares, and B&Bs, continue operating without restriction. Hotel-zoned properties are not affected. Period.

 

The H3/H4 Zoning Pathway — What It Is, Where It Stands

When Bill 9 passed, it came with an implicit companion promise: the county would quickly create new H-3 and H-4 hotel zoning districts that would give qualifying apartment-zoned properties a path to continue legal STR operations by converting their zoning. The TIG (Temporary Investigative Group) identified roughly 4,519 units as candidates for this conversion.

Here's what's happened since:

 

The Timeline

December 19, 2025 - Four days after Bill 9 was signed, the Council attempted to advance Resolution 25-230 to create H-3 and H-4 districts. Couldn't muster enough votes. One council seat still unfilled.

January 7, 2026 - Council takes up Resolution 25-230 again. Passes 8-1 to refer it to the three County Planning Commissions for review.

February 24, 2026 - Maui Planning Commission votes to recommend denial of H-3/H-4. By the time Molokai and Lanai commissions weigh in, all three have recommended against.

May 2026 - No new Council action. The proposal sits in political limbo.

 

What the Planning Commissions' Denial Means

When all three commissions recommend denial, the County Council can still advance the proposal - but it now needs a supermajority: 6 of 9 members. That's a meaningfully higher bar than the 8-1 vote that sent it to the commissions in January.

The political math has shifted. West Maui Council member Tamara Paltin, a TIG member who voted to refer the proposal, has since indicated she won't support it without additional requirements. That matters, because without her vote the Council may not reach six.

The commissions' core objections were substantive: existing county policies consistently emphasize capping and phasing out short-term rentals, not accommodating them. Environmental concerns about shoreline erosion and aging structures were also cited. As one commissioner put it: "If the Council's goal is to protect the County's long-term revenue stream, we must evaluate H3/H4 holistically, with climate risk front and center."

H3/H4 is not dead. But it is not the likely outcome it may have appeared to be when Bill 9 was signed. Treat it as a possible upside scenario - not a base case for investment decisions.

 

The Lawsuits - What You Need to Know

Multiple lawsuits have been filed challenging Bill 9 on constitutional and property-rights grounds. The first was filed December 19, 2025 - four days after the law was signed - by Ka'anapali Royal condominium owners in 2nd Circuit Court (Malter v. Maui County, Case No. 2CCV-25-0003778).

The core constitutional argument: that allowing these units to operate as short-term rentals for nearly 45 years, then eliminating that use without compensation, constitutes a regulatory taking under Article 1, Section 20 of the Hawaii Constitution. The county disputes this, arguing that the law's amortization framework - which gives property owners years to wind down, not an immediate ban - makes it legally defensible.

As of May 2026: no court has issued an injunction or stay. The law remains fully in effect. The deadlines have not changed.

Mayor Bissen, a former judge, anticipated this litigation from the beginning. The county says the law was drafted specifically to withstand these challenges. That doesn't mean the lawsuits will fail - land use litigation in Hawaii is unpredictable and slow. But it does mean you should not make investment decisions based on the assumption that the courts will overturn Bill 9. That may happen. It may not. And it will take years to find out.

 

What This Means — A Plain-Language Guide for Condo Owners

 

Bill 9 Reality Check for Condo Owners

▸  Bill 9 is law. Phase-out dates (Jan. 1, 2029 West Maui; Jan. 1, 2031 elsewhere) are in effect.

▸  No court injunction has been issued. Assume the law will be enforced unless a court says otherwise.

▸  H3/H4 is not law. It's a proposal facing serious political opposition. Don't invest based on it passing.

▸  Hotel-zoned properties (Honua Kai, Ka'anapali Alii, Kapalua Bay Villas, etc.) are Bill 9-proof. That distinction matters.

▸  If your condo doesn't pencil out without STR income, the risk is real and it isn't going away.

▸  Buyers seeing value in apartment-zoned STRs may be betting on H3/H4, on litigation, or on long-term value as a second home. All are legitimate - as long as eyes are open.

 

If You Currently Own an Apartment-Zoned STR

You have time - but not unlimited time. West Maui owners have until January 1, 2029. That's roughly three years of rental income remaining under current law. The questions to answer now: Does the property make sense as a long-term rental or second home after that date? Does it make sense to sell while STR value is still priced in? Are you betting on H3/H4 or litigation? If so, have you stress-tested what happens if neither comes through?

I'm not telling you to sell. I'm telling you to run the real numbers and make a decision with eyes open.

 

If You're Considering Buying an Apartment-Zoned STR

The key question: does the property make sense without STR income after 2028 or 2030? If yes — as a second home, a long-term rental, or a hold for eventual H3/H4 conversion - the math may still work. If no — if the purchase price only makes sense assuming full STR rights in perpetuity - then you're taking on regulatory risk that is very real and not going away on its own.

Verify the zoning before you make any offer. Hotel-zoned is hotel-zoned. Apartment-zoned is apartment-zoned. There is no ambiguity in the law.

 

If You're Looking for a Bill 9-Proof Investment

Hotel-zoned properties. Full stop. Honua Kai, Ka'anapali Alii, Kapalua Bay Villas, Wailea Point, the Westin Nanea, and others in hotel or resort zoning are not subject to Bill 9 and will not be subject to it without a new legislative action. These properties carry a premium - but that premium is, in part, regulatory certainty. In a market where regulatory risk is the dominant story, certainty has value.

 

Our Take

Bill 9 is the most significant regulatory shift in Maui real estate in decades. It will reshape the condo market, compress the value of apartment-zoned STRs that don't find a path to H3/H4, and accelerate demand for hotel-zoned properties with clear STR rights.

The people who navigate this well are the ones who understand exactly what they own, exactly what the law says, and exactly what they're betting on if they're counting on H3/H4 or litigation to change the outcome.

The people who get hurt are the ones who bought based on a best-case scenario and didn't run the downside.

I'm here to help you understand both. Reach out anytime.

 

Questions? Reach out directly: Lee@AlohaPotts.com - I answer every one.

 

From the greatest island on earth - this is Lahaina Lee saying aloha.

 

Frequently Asked Questions — Bill 9 & Maui Condo Investors

The questions condo owners and investors are asking most right now. Here are the straight answers.

 

What is Bill 9 and what does it mean for Maui condo owners?

Bill 9 (Ordinance 5909) phases out short-term vacation rentals in apartment-zoned districts on Maui. Properties on the Minatoya List — roughly 6,200 apartment-zoned units - must cease short-term rental operations by January 1, 2029 in West Maui and January 1, 2031 elsewhere. Hotel-zoned and resort-zoned properties are not affected. The law is being challenged in court, but no injunction has been issued and the deadlines remain in effect.

 

What is the H3/H4 hotel zoning proposal and where does it stand?

The H-3/H-4 proposal would create two new hotel zoning districts allowing qualifying apartment-zoned properties to continue operating as short-term rentals by converting their zoning. All three Maui County Planning Commissions have recommended denial. The County Council now needs a 6-3 supermajority to advance it. The TIG identified roughly 4,519 units as candidates for H3/H4 if the districts are established. That is not a guarantee - it's a possibility.

 

Have the Bill 9 lawsuits succeeded in blocking the law?

No. As of May 2026, multiple lawsuits have been filed challenging Bill 9 on constitutional and property-rights grounds, but no court has issued an injunction or stay. The law remains fully in effect. The county believes the amortization framework - which gives property owners years to wind down rather than an immediate ban - will withstand legal challenge.

 

Which Maui condos are affected by Bill 9?

Bill 9 applies specifically to apartment-zoned condos on the Minatoya List. These are primarily concentrated in South Maui and West Maui. Hotel-zoned and resort-zoned properties - including Honua Kai, Ka'anapali Alii, Kapalua Bay Villas, and others - are not affected. Buyers should always verify the zoning of any specific property before assuming STR rights.

 

Should I buy a Maui condo with vacation rental rights in 2026?

It depends on the zoning. Hotel-zoned properties are Bill 9-proof and represent the clearest long-term STR investment. Apartment-zoned Minatoya properties face phase-out unless H3/H4 passes — which is politically uncertain. Run your numbers assuming no STR rights after the phase-out date. If the investment doesn't pencil out without rental income, the risk is real.

 

Is H3/H4 still possible?

It's not dead, but it faces serious headwinds. The Council would need 6 of 9 votes, and at least one TIG member who previously supported referral has shifted her position. Industry groups continue lobbying. A compromise proposal could still emerge. But treating H3/H4 as a likely outcome is a mistake. Treat it as a possible upside scenario, not a base case.

 

About Lahaina Lee & The Maui Real Estate Advisor

Lahaina Lee is a licensed real estate broker on Maui, Hawaii, and the publisher of the Maui Real Estate Advisor — a monthly market report covering Maui condo and single-family home trends, luxury real estate, short-term rental regulations, the Lahaina rebuild, and Maui's broader economic picture.

Contact: Lee@AlohaPotts.com  |  AlohaGroupMaui.com