Maui County Adopts New Accessory Dwelling Rules to Expand Housing Opportunities

To combat the island's housing shortage and support local workforce stability, Maui County has officially adopted a new ordinance amending its accessory dwelling rules. The updated municipal policy allows qualifying residentially zoned properties across Maui, Molokai, and Lanai to build up to two accessory dwellings, commonly known as ʻohana units, in addition to a primary residence.

This legislative update represents a significant policy move for local real estate development. Under prior county regulations, the number of permissible accessory units was restricted based on rigid lot sizes and island location. By standardizing these rules, the county has created the potential for up to three residential units on a single qualifying lot.

For homeowners, local families, and long-term investors navigating Maui real estate, this policy alignment introduces unique opportunities to expand rental portfolios, build multigenerational family compounds, and access county financial assistance programs.

The Core Changes Under the 2026 Ordinance

The new ordinance was adopted in direct response to Act 39, a state mandate requiring Hawaii counties to allow up to two accessory dwelling units, or a reasonable equivalent, on qualifying residential lots.

By updating Maui County Code Title 19, the county has established several key changes to expand infill housing:

• Up to Two Units Countywide: Qualifying residentially zoned lots across Maui, Molokaʻi, and Lanaʻi are now eligible for up to two accessory dwellings.
• Project District Expansion: Eligibility has been extended to certain residentially zoned properties within project districts where accessory dwellings were previously barred, including parts of Kapalua, Kihei, Makena, Wailuku, and Kahului.
• Infill Development Focus: Rather than expanding suburban sprawl into pristine, undeveloped areas, the ordinance concentrates housing production inside existing neighborhoods to better utilize established infrastructure.

Infrastructure Gates and Development Standards

While the ordinance expands housing allowances, it does not remove underlying building and health codes. County officials have emphasized that all proposed accessory dwellings must strictly comply with existing development criteria and infrastructure requirements:

• Zoning Alignment: Permitted mainly in Residential and Rural zones; typically excluded in Agricultural, Commercial, and Industrial districts under Title 19 guidelines.
• Tenancy Mandate: Strictly restricted to long-term housing, requiring a minimum lease term of 180 consecutive days.
• Utility Limits: Approval depends on adequate water availability, plumbing fixture counts, and wastewater capacity enforced by the Department of Water Supply and Environmental Management.
• Building Code: Must satisfy all standard setback limits, maximum height boundaries, parking standards, and emergency fire access enforced by the Department of Public Works and Fire Department.

Because water availability and wastewater infrastructure serve as primary development bottlenecks on Maui, property owners must verify utility limits before starting architectural plans. If a parcel lacks sufficient utility capacity, the county will deny permit applications regardless of baseline zoning rights.

Financial Support: The $100,000 ʻOhana Assistance Program

To help homeowners manage high construction costs, the county is supporting accessory dwelling construction with targeted financial aid through the Department of Housing’s ʻOhana Assistance Program.

This local initiative offers grants of up to $100,000 specifically for constructing accessory dwelling units. Key program details include:

• Residency Mandate: Applicants must be owner-occupants and full-time residents of Maui County.
• Permit Priority: Grant funding prioritizes project proposals that already possess an approved building permit.
• Long-Term Requirement: The constructed unit must be used in perpetuity for long-term residential housing and cannot be converted into a short-term rental.

Rental Restrictions: Preserving Housing for Local Residents

The primary goal of the ordinance is to increase the supply of long-term housing for local families, workforce residents, and multigenerational households. Consequently, the county has integrated clear prohibitions on commercial rental uses.

Accessory dwellings built under these rules may not be used as transient vacation rentals, short-term rentals, or bed-and-breakfast operations. These structures are separated from the transient investment models seen in hotel-zoned Maui condos. Any property owner renting an accessory dwelling for a period of less than 180 days faces zoning violation fines and administrative enforcement.

To analyze how neighborhood density rules and multi-unit allowances are shaping localized property values across residential zones this month, explore our comprehensive market updates or browse active Maui Homes with Ohana.

Frequently Asked Questions (FAQ)

Are accessory dwellings allowed in agricultural zoning districts under this rule?

No. The new rules apply primarily to Residential and Rural zoning districts. Agricultural-zoned properties operate under separate Title 19 provisions, which govern farm dwellings linked directly to agricultural uses.

Can an accessory dwelling be attached to the primary home?

Yes. Accessory dwellings can be attached or detached from the main dwelling. However, they must feature an independent entrance and have no interior connection linking them directly to the main home.

How do I apply for the $100,000 grant program?

Homeowners interested in the ʻOhana Assistance Program can submit their application packet directly to the Maui County Department of Housing, prioritizing projects that already possess approved building permits.

Does this county ordinance override private HOA covenants?

No. State law provides that private covenants recorded before May 28, 2024, may continue to limit accessory dwellings. Property owners are responsible for reviewing their neighborhood's private CC&Rs to determine if private restrictions apply.