Bill 88 as the Response to Bill 9: What Maui Property Owners Need to Know

Over the past two years, few issues have created more uncertainty for Maui property owners than Bill 9 and the ongoing debate surrounding vacation rentals. With the recent advancement of Bill 88 through the County Council’s Land Use Committee, many property owners are asking a simple question:

What does this actually mean?

The answer is more complicated than many headlines suggest.

The Backstory

When Bill 9 was introduced, it proposed removing legal vacation rental rights from thousands of condominium units that have operated as vacation rentals for decades. The resulting uncertainty impacted property values, owner confidence, buyer activity, and Maui’s overall economic outlook.

Now, Bill 88 has emerged as a potential solution. The Land Use Committee recently approved the bill on its first reading by a 6-1 vote, despite similar proposals previously being rejected by planning commissions across Maui County.

At first glance, this may seem like a victory for property owners. However, there are still significant hurdles ahead.

What Bill 88 Really Does

One of the most misunderstood aspects of Bill 88 is that it does not automatically restore vacation rental rights to affected properties.

Instead, individual condominium associations would need to apply for placement into proposed Hotel-3 (H-3) or Hotel-4 (H-4) zoning classifications. Only after completing that process would they be allowed to continue operating legally as vacation rentals.

In other words, many associations that have legally operated vacation rentals for 30 to 40 years could now be required to navigate a new approval process simply to continue doing what they’ve always done.

The Cost and Complexity

This is where many questions remain.

Condominium associations will likely need to hire attorneys, consultants, planners, and other professionals to complete the application process. Those costs could easily amount to thousands—or potentially tens of thousands—of dollars per association.

Who ultimately pays those costs?

The homeowners.

Associations may need to consider special assessments or other funding mechanisms to complete the process. While larger resort-oriented communities with a strong vacation rental presence may have little difficulty moving forward, smaller associations could face more complicated decisions.

Not Every Property Faces the Same Risk

Large vacation rental communities such as Kamaole Sands, Maui Kamaole, and similar resort properties will likely have strong support for pursuing hotel zoning.

However, smaller condominium projects with a higher percentage of second home owners (that do not rent short term) and owner-occupants may face different challenges.

If obtaining approval becomes expensive or complicated, some associations may be less motivated to pursue the process. That creates another layer of uncertainty for owners and buyers evaluating those properties.

For anyone considering buying or selling, it’s important to understand not only where a property stands today but also what steps its association may need to take in the future.

Why This Matters

For many property owners, the frustration isn’t simply about vacation rentals.

It’s about being asked to spend additional time and money to preserve rights that have existed for decades.

Many owners feel as though they’re being forced to navigate a new layer of bureaucracy to maintain a legal use that was already recognized under previous zoning and land-use policies.

Whether you support or oppose vacation rentals, it’s difficult to argue that uncertainty and prolonged regulatory processes benefit homeowners, or the broader community.

The Bigger Picture: Maui’s Economy and Housing Challenges

Maui faces two realities that must be addressed simultaneously.

First, we need more affordable housing for local residents.

Second, tourism remains the lifeblood of Maui’s economy.

Tourism supports local jobs, restaurants, activity companies, retail businesses, transportation providers, hotels, and countless small businesses across the island. The dollars visitors bring to Maui ripple throughout our entire economy.

The challenge isn’t choosing one or the other.

The challenge is finding balance.

We need policies that encourage affordable housing development while also recognizing the vital role tourism plays in supporting local families and businesses.

Fixing the Root Problem

One of the most common arguments made in support of Bill 9 was the need for more housing.

Yet many local housing projects continue to face years-long delays in Maui’s permitting and approval process.

I’ve recently heard of affordable housing projects spending years waiting for permits and approvals before construction can even begin. If we are serious about addressing Maui’s housing shortage, streamlining permitting and accelerating housing development should be a major part of the conversation.

Creating new housing is a far more sustainable long-term solution than redistributing existing housing inventory through regulatory changes.

Where Do We Go From Here?

Bill 88 represents progress compared to the uncertainty created by Bill 9, but property owners should understand that the process is far from over.

There will likely be additional hearings, discussions, revisions, and implementation challenges before any final outcome is reached.

For buyers, sellers, and owners of Maui condominium properties, staying informed has never been more important.

As always, I’ll continue monitoring the situation and sharing updates as they become available.

If you have questions about Bill 88, Bill 9, the Minatoya List, or how these issues may impact your property value or investment decisions, feel free to reach out.

Maui remains one of the most beautiful places in the world. My hope is that we can find solutions that support local families, strengthen our economy, and preserve the spirit of aloha that has always made this island so special.

Although this is challenging for the current owners and the community, it does present an opportunity for buyers in the current market.

If you’d like to learn more, give me a call at 808-280-2055.

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