As of late July 2025, Bill 9—the proposed legislation to phase out short-term rentals (STRs) in apartment-zoned districts—has taken a major step forward. While the future of the bill is still uncertain, this guide outlines where things stand now, what exemptions may be coming, and what property owners, buyers, and investors need to know moving forward.

Current Status of Bill 9

1. Bill Passed by HLU Committee

The Housing and Land Use (HLU) Committee voted 6–3 to pass Bill 9, with amendments still being finalized. One confirmed change is a revised phase-out timeline:

  • West Maui: STRs must cease by December 31, 2028
  • South Maui and other districts: STRs must cease by December 31, 2030

2. Other Potential Exemptions (Still Pending)

The committee is also considering several important exemptions, which have not yet been confirmed:

  • Exclusion of resort areas like Kapalua, Wailea, and Kaanapali
  • Exemption for dually zoned properties
  • Option to apply for a zoning change
  • Removal of properties in shoreline retreat/ocean rise areas

We expect more clarity on which of these will be included once the committee publishes its final report.

3. Final HLU Report Coming Soon

It will take an estimated 1 to 3 weeks for the HLU to finalize and publish the full approval and list of amendments.

4. Next Step: Full County Council Review

Once the HLU report is released, Bill 9 will go to the full Maui County Council for three public hearings. During this process, Council members can:

  • Add or remove exemptions
  • Adjust phase-out dates
  • Propose entirely new amendments

Only after this process will a final version go to the Mayor for signature.

Legal Action Expected

Legal challenges are expected should Bill 9 become law. Here’s what’s already happening:

  • Multiple property owners are preparing lawsuits against the County
  • The Maui Vacation Rental Association (MVRA) is actively building a legal fund to challenge the bill in court
  • The Realtors Association of Maui (RAM) continues to oppose Bill 9 and is engaged in advocacy efforts

Legal Representation Highlights

  • Gregory Kugle, the Honolulu attorney who successfully argued the Honolulu STR case that led to a permanent injunction, is expected to lead the legal challenge.
  • David Louie, former Hawai‘i Attorney General, is confirmed to represent Airbnb, which is expected to be a named party in the suit.
  • Other possible participants include VRBO/Expedia Group, property management firms, Minatoya list HOAs, and individual owners with longstanding STR activity.

Note: While no injunction or lawsuit can be filed until the bill is signed into law, preparations are well underway.

Is This Really About Housing?

Many residents and industry experts argue the core issue on Maui is affordability, not availability. As of this writing, Craigslist lists over 400 available long-term rentals on the island.

Critics have called the bill political theater, noting that it doesn’t directly create affordable housing or offer meaningful alternatives for displaced STR owners and workers. Others see this as part of a larger strategy tied to Maui’s long-term land use and development plans.

 

What Property Owners and Buyers Should Know

  • Current STR Owners may face rental restrictions or income loss depending on zoning and final provisions
  • Buyers & Investors should evaluate rental potential and consider hotel-zoned properties for long-term stability
  • Sellers should be prepared for increased buyer due diligence and changing market expectations

How to Stay Informed and Take Action

If you own or manage an STR in Maui—or are simply trying to understand how this may impact your real estate plans—here’s how to stay engaged:

The Maui Vacation Rental Association is on the front lines of advocacy and legal strategy.

Attend the Next MVRA Update

MVRA’s next public update meeting is scheduled for Tuesday, where they will provide the latest legal and legislative developments.

Have Questions? Let’s Talk.

Whether you’re buying, selling, or simply weighing your options, I’m here to help. I can also provide a current list of hotel-zoned condos that are unaffected by Bill 9 and remain a strong investment option.