By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: On August 27, 2026, the Maui County Council’s Housing and Land Use Committee voted 5-4 to adopt hotel-rezoning criteria for apartment-zoned condos. A property qualifies for consideration if at least 51% sits in the 3.2-foot Sea Level Rise Exposure Area, it’s subject to shoreline regulations, or it’s in a federal special flood hazard area.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and I focus on South Maui condos and the Minatoya List. If you own, or are thinking about buying, a coastal condo in West or South Maui, late August brought one of the clearest signals yet about which properties might be pulled out of Maui’s vacation rental phase-out and which won’t. If you’re trying to figure out what your unit is actually worth, this is the development to understand.

What Is the Maui Vacation Rental Phase-Out?

It’s Bill 9, signed into law in December 2025 as Ordinance No. 5909. It targets roughly 7,167 units on the county’s Minatoya List, apartment-zoned condos that have operated as short-term rentals under a legal gray area for years.

Bill 9 detail	What it says
West Maui deadline	January 1, 2029
South Maui and the rest of the county	January 1, 2031
Penalty for noncompliance	$20,000 initial fine, plus $10,000 for every additional day

The stated goal is to convert some of those units into long-term housing, three years after the 2023 Lahaina wildfire. The ordinance has been controversial from the start. Two lawsuits, Malter v. Maui County and Lynam v. County of Maui, both filed in December 2025, argue the phase-out is an unconstitutional taking of property rights. Neither has resulted in an injunction so far, and the county has continued moving forward with implementation. For the broader market picture, see how Bill 9 is reshaping Maui’s condo market.

How Does Bill 88 Let Some Condos Keep Vacation Rentals?

Through hotel rezoning. Bill 88, which passed its final vote 7-2 in June 2026, established new “H-3” and “H-4” hotel zoning classifications. Apartment-zoned buildings rezoned as hotel districts would be exempt from the residential-conversion mandate.

Earlier in 2026, the county’s planning commissions recommended against a broader version of this exemption covering roughly 4,500 units, so the Council spent the summer building narrower, property-by-property resolutions instead.

What Are the New Sea-Level-Rise Criteria for Hotel Rezoning?

Under Resolutions 26-129 and 26-130, adopted in committee on August 27, 2026, a property qualifies for hotel-district rezoning consideration if it meets any one of three conditions:

• At least 51% of the property sits within the county’s 3.2-foot Sea Level Rise Exposure Area.
• The property is subject to Planning Commission shoreline regulations.
• The property is in a federally designated special flood hazard area.

Buildings originally constructed as affordable workforce housing are excluded regardless of location.

The logic, as county officials have framed it, is practical: if a coastal building is realistically going to be lost to erosion or chronic flooding within a few decades, converting it to long-term housing may not be a meaningful long-term solution. Critics see it differently. Council Member Keani Rawlins-Fernandez, who voted against the criteria, argued the approach effectively locks in continued tourist use of buildings the county itself recognizes as at-risk. Community advocates have made a similar point: sea-level rise affects a unit the same way whether a visitor or a resident is staying in it, so exempting flood-prone buildings undercuts the ordinance’s core purpose.

Because flood zones are now part of the test, it’s worth reading my guide to Maui flood insurance and the NFIP deadline too.

Which Maui Condos Are on the Hotel-Rezoning List?

No list is final yet. Under these criteria, up to 16 additional apartment-zoned vacation rental properties are in play through amendments proposed by Council Chair Alice Lee, Council Member Tom Cook and Vice-Chair Yuki Lei Sugimura, including coastal buildings such as Kamaole One, Kahana Reef, Nohonani, Makani Sands, Maalaea Banyans, Kīhei Resort, Polynesian Shores and Kīhei Parkshore.

That’s separate from the earlier Resolutions 26-110 and 26-111, which covered properties such as Wailea Ekahi, Wailea Ekolu, Papakea, Maui Eldorado, Kahana Outrigger and Kāʻanapali Royal.

The committee met again September 9 to work through additional conditions and apply the criteria property by property before forwarding recommendations to the Maui Planning Commission. Separately, on September 22 the Planning Commission recommended denying hotel-zoning exemptions for 43 of 48 properties it reviewed from the earlier referrals, a sign that approval at the commission level is far from automatic. I break that vote down in what the Planning Commission’s Bill 9 exemption vote means for your condo plans.

My Take: What I’m Telling Condo Owners and Buyers

If your building, or one you’re considering, sits directly on the coastline in West or South Maui, the first thing I’d find out is whether at least 51% of it falls within the 3.2-foot Sea Level Rise Exposure Area. That’s now the clearest single indicator of whether it could land on the hotel-rezoning shortlist.

A successful rezoning would preserve short-term rental income potential, which materially affects resale value, financing options and how the unit performs as an investment. A building that doesn’t qualify is on a fixed timeline toward long-term residential use only, which changes its rental economics and its resale market. Those are two very different assets, even if they share a beach.

Given the 43-of-48 denial recommendation, I wouldn’t price any unit as though rezoning were a sure thing. If you’re buying, I’d structure your offer around the phase-out scenario and treat a successful rezoning as upside. If you’re selling, it’s worth deciding whether to list now or wait for a clearer answer on your building.

This is general information, not legal advice. Please confirm your situation with a Hawaiʻi attorney.

Frequently Asked Questions

Is my Maui condo on the Minatoya List?

The Minatoya List covers roughly 7,167 apartment-zoned condo units that have operated as short-term rentals. Check your building’s zoning and listing status with the county or your agent.

What are the sea-level-rise criteria for hotel rezoning?

Under Resolutions 26-129 and 26-130, a property qualifies for consideration if at least 51% sits within the 3.2-foot Sea Level Rise Exposure Area, it’s subject to Planning Commission shoreline regulations, or it’s in a federal special flood hazard area.

When do Maui condo vacation rentals have to stop?

January 1, 2029 for West Maui and January 1, 2031 for South Maui and the rest of the county, unless a property is rezoned for hotel use.

What is the fine for violating Bill 9?

A $20,000 initial fine plus $10,000 for every additional day of noncompliance.

Ask Benjamin

If you own a Minatoya List condo, or you’re weighing whether to buy one in this environment, I’m following these changes building by building and happy to talk through what they could mean for your property or your search. I’m Benjamin Finnerty, and you can call or text me at 808-481-9748 or email benjamin@the808team.com. No pressure, just a straight answer about where things stand.