Resolutions 26-129 & 26-130: Maui Advances Wave 2 Hotel Rezoning for Coastal & SLR Properties

The legislative path for Maui’s vacation rental market has reached another major milestone. Following the passage of Ordinance 6008, which created the permanent H-3 and H-4 Hotel Districts to resolve short-term rental phase-outs under Ordinance 5909, the Maui County Council is officially rolling out its second wave of Council-Initiated Rezoning.

On Wednesday, August 5, 2026, the Housing and Land Use (HLU) Committee takes up Resolutions 26-129 and 26-130.

Unlike the initial wave of resolutions passed earlier this summer, which focused primarily on major resort-style operations and timeshares, this second legislative package targets 10 specific properties operating within designated 3.2-foot Sea Level Rise Exposure Areas (SLR-XA) or operating under single-owner and hotel-style setups across Kihei, Maalaea, and West Maui.

For owners, buyers, and HOA boards navigating Maui real estate, understanding these council-sponsored resolutions is essential for evaluating property values, avoiding six-figure private application fees, and securing long-term land-use rights.

Understanding the "Council-Initiated Rezoning" Waves

Rather than forcing hundreds of individual Association of Apartment Owners (AOAO) boards to navigate complex land-use amendments on their own, the County Council is systematically processing eligible Minatoya-list properties through structured, council-sponsored waves:

• Wave 1 (Passed Council in July 2026): Resolutions 26-110 and 26-111 covered major hotel-style operations, timeshares, leaseholds, and high-density developments such as Wailea Ekahi, Wailea Ekolu, Papakea, Maui Eldorado, and Maui Sunset. These properties advance to the Maui Planning Commission for formal public hearings.
• Wave 2 (August 5, 2026 Review): Resolutions 26-129 and 26-130 focus on oceanfront and near-shore properties located within coastal hazard zones, alongside select single-owner and hotel-style operations.
• Wave 3 (Late Summer/Fall 2026): Upcoming packages will address properties qualifying under specific affordability criteria and remaining eligible Minatoya-list complexes.

Full Property Breakdown: Resolutions 26-129 & 26-130

These new measures cover 10 targeted properties across South, Central, and West Maui, creating a formal administrative path to refer Community Plan Amendments and Changes in Zoning to the Planning Commission.

Resolution 26-129: Sea Level Rise Exposure Area Properties

Introduced by HLU Committee Chair Nohelani Uʻu-Hodgins, this resolution covers 8 specific condominium complexes located within the state's 3.2-foot Sea Level Rise Exposure Area on the Hawaii Sea Level Rise Viewer.

Proposed Transition from A-1 Apartment to H-3 Hotel District:

• Kihei Bay Surf | 715 South Kihei Road, Kīhei (2.84 acres)
• Kihei Bay Vista | 679 South Kihei Road, Kīhei (2.118 acres)

Proposed Transition from A-2 Apartment to H-4 Hotel District:

• Island Sands | 150 Hauoli Street, Maʻalaea (1.752 acres)
• Maalaea Kai | 70 Hauoli Street, Maʻalaea (2.288 acres)
• Lokelani | 3833 Lower Honoapiilani Road, Lahaina / Honokōwai (1.349 acres)
• Hale Ono Loa | 3823 Lower Honoapiilani Road, Lahaina / Honokōwai (1.766 acres)
• Pikake | 3701 Lower Honoapiʻilani Road, Lahaina / Honokōwai (0.545 acres)
• Hale Kai I | 3695 Lower Honoapiilani Road, Lahaina / Honokōwai (1.064 acres)

Resolution 26-130: Single-Owner & Hotel-Style Operations

Introduced by Council Member Thomas Cook, this resolution covers 2 specific properties transitioning from A-2 Apartment to H-4 Hotel District:

• 10 Walaka Street | 10 Walaka Street, Kīhei (0.246 acre) – Single-owner property transitioning to H-4 hotel zoning.
• Makai Sunset Inn | 1415 and 1411 Front Street, Lahaina (0.51 acre total) – Hotel-style operation located within the Sea Level Rise Exposure Area on historic Front Street.

Critical Legal Insights & Policy Fine Print

1. Significant Financial Relief for Included HOAs

For owners in complexes listed in Resolution 26-129 or 26-130, inclusion in a Council-initiated package provides major financial relief. A private, owner-funded Change in Zoning (CIZ) and Community Plan Amendment routinely costs an association $200,000 to $500,000 or more in legal fees, land-use planning consultants, environmental studies, and administrative overhead. Under these resolutions, the County Council initiates and funds the procedural groundwork directly.

2. Shoreline & Special Management Area (SMA) Rules Remain Active

It is vital for property owners to understand what H-3/H-4 zoning accomplishes and what it does not:

• What it does: Securing H-3 or H-4 hotel zoning protects underlying transient vacation rental land-use rights, eliminating the threat of Ordinance 5909 phase-out deadlines.
• What it does not do: Resolution 26-129 explicitly establishes that properties located within the Shoreline Setback Area and Special Management Area (SMA) remain fully subject to the Maui Planning Commission’s Shoreline Rules and SMA Rules. Rezoning does not grant immunity for coastal erosion issues, seawall maintenance disputes, or future shoreline setback updates.

3. Action Steps for Excluded Coastal HOAs

Dozens of oceanfront Maui condos along Lower Honoapiʻilani Road and South Kihei Road sit within the 3.2-foot Sea Level Rise Exposure Area but are omitted from this initial draft of Resolution 26-129.

If your oceanfront complex is inside the Sea Level Rise Exposure Area but missing from this list, your HOA board or owner representative should immediately submit written testimony to the Housing and Land Use Committee to request an amendment adding your Tax Map Key (TMK) to Resolution 26-129.

Action Plan for Property Owners

• Verify Your Complex's Zoning Pathway: Confirm whether your property is included in Wave 1 or Wave 2 resolutions, or awaiting Wave 3 (Affordability Criteria).
• Submit Official Testimony: If your complex is named in Resolution 26-129 or 26-130, submit written testimony in support of your inclusion prior to the HLU Committee meeting.
• Prepare for Wave 3: HOAs not yet named in Waves 1 or 2 should begin gathering historical rental rate data, unit valuations, and organizational records to prepare for upcoming affordability-based resolutions.

If you are evaluating properties that feature expanded residential build potential or existing legal cottage structures, explore our active listings of Maui homes with an ohana directly on MauiProperty.com.

Frequently Asked Questions (FAQ)

Does inclusion in Resolution 26-129 or 26-130 grant immediate hotel zoning?

No. Inclusion in these resolutions means the County Council is formally initiating the land-use process. The measures must be referred to the Maui Planning Commission for public hearings before returning to the County Council for final reading votes and official zoning map amendments.

What happens if an oceanfront complex in a Sea Level Rise area is left off Wave 2?

Complexes omitted from Wave 2 remain under their current zoning status. HOA boards should actively engage with their district Council Members and submit committee testimony to request inclusion in future resolution drafts or prepare for subsequent legislative waves.

How does H-3 or H-4 hotel zoning impact property taxes?

Properties successfully converted to H-3 or H-4 Hotel Districts will be classified under county tax structures corresponding to hotel and resort usage. Owners should consult with local real estate tax professionals to evaluate specific holding cost updates.

Can lenders underwrite mortgages on properties named in Wave 2?

Lending environments continue to stabilize for named complexes, as national underwriters recognize the reduced regulatory risk profile of properties moving through an active, council-sponsored rezoning pipeline.

Legal Disclaimer

This real estate market and legislative update is provided purely for informational and educational purposes. The Maui Property Team consists of licensed real estate professionals, not land-use attorneys, certified municipal planners, or tax consultants. Nothing contained herein should be construed as formal legal counsel, zoning representation, or tax advice. Buyers and owners must consult independently with qualified legal counsel and professional land-use engineers to evaluate the specific compliance status, risk exposure, and legal options of any individual real estate asset.