Maui County Takes a Major Step on Bill 88: Are the Tides Beginning to Turn?

Today’s Maui County Council meeting may go down as one of the most important moments in the ongoing Bill 9 discussion.

For the past year, uncertainty surrounding the future of legally operating short-term rentals has weighed heavily on Maui’s condominium market. Buyers have hesitated, sellers have adjusted expectations, and many property owners have been left wondering what comes next.

Today, the Council took a meaningful step toward answering that question.

In a strong 6-1 vote, the Council approved Bill 88 on first reading, advancing a proposal that would create new H-3 and H-4 Hotel Districts specifically for properties that were legally operating as short-term rentals prior to the passage of Bill 9.

Just as noteworthy, Mayor Bissen voiced support for the measure, as did the ILWU, representing thousands of hotel workers across Maui. Whether you agree with Bill 9 or not, today’s vote showed growing alignment between County leadership, organized labor, and council members that there may be a better path forward than simply eliminating long-established visitor accommodations.

What Is Bill 88?

At its core, Bill 88 creates a new zoning category for properties that have historically operated as legal transient vacation rentals in Maui’s apartment-zoned districts.

The proposed H-3 and H-4 districts would be reserved exclusively for properties that were legally operating as short-term rentals before Bill 9 was adopted. These properties would retain the ability to operate as visitor accommodations while also allowing the residential and apartment uses already permitted under current zoning.

One of the themes repeatedly voiced by council members was the need to create a designated place for this type of use. Rather than leaving these properties in a zoning category that no longer reflects how they have operated for decades, Bill 88 seeks to establish a clear and transparent framework moving forward.

This Is Not Upzoning

A point that was emphasized throughout today’s discussion was that Bill 88 is not an upzoning proposal.

The H-3 and H-4 districts would not create new short-term rentals. They would not allow additional apartment-zoned properties to suddenly enter the vacation rental market. Eligibility is limited to properties that were already legally operating as transient vacation rentals before Bill 9 passed.

In other words, this proposal is not an expansion of vacation rental inventory. It is an attempt to create an appropriate zoning designation for uses that have existed lawfully for decades.

That distinction appears to be resonating with more council members as the conversation evolves.

The TIG Report Continues to Gain Traction

Another notable takeaway from today’s meeting was the continued positive reference to the Temporary Investigative Group (TIG) Report.

The TIG Report has consistently been cited as a thoughtful roadmap for addressing the complex issues surrounding Bill 9 and includes recommendations for specific properties that could potentially be transitioned into the proposed H-3 and H-4 districts.

For property owners and market watchers, that matters.

The more frequently the TIG recommendations are discussed as a viable framework, the more it suggests that policymakers are looking for practical solutions rather than broad one-size-fits-all outcomes.

What This Means for Maui Real Estate

From a real estate perspective, today’s vote may represent the first meaningful reduction in uncertainty that we’ve seen since Bill 9 was introduced.

Markets dislike uncertainty. Buyers dislike uncertainty. Lenders dislike uncertainty.

Over the past year, many affected condominium communities have experienced exactly that.

While Bill 88 is far from the finish line, today’s vote suggests the County is recognizing the practical challenges of removing thousands of legally operating vacation rentals from the market and is actively exploring a framework that balances housing concerns, property rights, economic realities, and longstanding land-use patterns.

The dark cloud that has hovered over many of these properties feels like it may finally be starting to shift.

My Take

There is still work ahead, and Bill 88 is not the final chapter. Additional readings, votes, and implementation details remain before any changes become reality.

However, today’s action signals something important: the conversation has changed.

For buyers on Maui, some of the best opportunities I’ve seen in years still exist because uncertainty remains priced into many affected properties. But if the County continues moving toward a more defined path forward, that uncertainty — and the discounts it has created — may not last forever.

As always, I’ll continue following these developments closely and sharing updates as they unfold. If you own property in one of the affected communities, are considering a purchase, or simply want to understand how these changes may impact values and future use rights, I’d love to talk story.

Aloha,

Erica Haleakala
Maui Realtor®
Broker Associate | Maui Real Estate Advisor