Maui’s Historic Vacation Rental Control Measure Becomes Law

On December 15, 2025, Mayor Richard Bissen signed Maui County’s comprehensive vacation rental control measure, colloquially known as Bill Nine, into law, concluding a protracted and deeply contested legislative journey that began with the administration’s proposal nearly two years prior. This enactment marks a pivotal, historic moment for the island, explicitly prioritizing the restoration of residential housing stock over the preservation of a specific segment of the transient vacation rental (TVR) market. The new law mandates the phase-out of thousands of apartment-zoned TVRs, an aggressive intervention designed to recalibrate the island’s housing equilibrium in the wake of the devastating 2023 wildfires.

Enactment of Comprehensive Control Measure Bill Nine

The Final Legislative Path to Official Stature

The measure transitioned from a Mayor’s proposal to a formally enacted piece of county law through a rigorous, albeit contested, legislative process in the County Council during the latter half of the year. Initially introduced by the Planning Director on behalf of the Mayor in December of 2024, the bill was referred to the Housing and Land Use Committee, which conducted extensive hearings starting in June 2025. The committee’s work culminated in a critical vote on July twenty-fourth, two thousand twenty-five, where the proposal advanced with a six to three majority, signaling strong support anchored in the housing mandate. This committee approval was a significant turning point, but it was not the final hurdle. The bill subsequently required two full readings by the entire Maui County Council. The first reading, which occurred on December 2, 2025, saw a five to three passage, affirming the measure’s general direction while highlighting the division among the council members. The final step before the Mayor’s signature involved the second, decisive reading, which the public interest tracked closely, culminating in the 5-3 vote on December 15, 2025, as it was the moment the regulatory phase-out formally became the island’s governing policy for these specific rentals. The legislative journey itself mirrored the island’s internal debate over the balance between tourism reliance and residential needs.

Defining the Scope of the Regulatory Intervention

The legal mechanism is fundamentally designed to discontinue the use of specific properties for transient vacation rental purposes, focusing the scope narrowly on units previously categorized under the purview of the Minatoya List within the apartment zoning districts. This distinction is vital: it means the measure primarily targets apartment-zoned condominiums that had been legally operating as short-term rentals under pre-existing exemptions, rather than all short-term rentals across the island, which are regulated under different zoning classifications or permitting schemes. The law impacts properties situated across various geographic areas, including but not limited to West Maui, South Maui, Moloka‘i, and Hāna. The official definition of a transient vacation rental, or TVR, which the law seeks to eliminate in these specific zones, is any lodging or dwelling unit occupied by a person for less than one hundred eighty days whose permanent legal address is not that occupied unit. By concentrating its authority on the Minatoya-listed properties, the legislation targets an estimated segment of six thousand to seven thousand individual units, aiming to convert this segment of the housing stock back to its intended long-term residential function.

Core Tenets of the New Vacation Rental Framework

The Specific Targeting of Apartment Zoned Properties

The focused nature of the legislation on apartment zones is a deliberate strategic choice, separating these properties from others that may fall under different regulatory oversight or possess different zoning designations like hotel or resort status. Properties on the Minatoya List, often older condominium complexes built before nineteen ninety-one, were permitted to operate as short-term rentals without needing the more stringent special permits required elsewhere, provided they met the initial criteria. The new law essentially revokes this specific type of non-conforming status for TVR use within these apartment zones. This focus allows the county to concentrate its administrative and enforcement resources on a defined set of properties whose original architectural design was indeed geared toward residential living, thus bolstering the argument that their conversion to long-term housing directly addresses the current residential shortage. The legislation acknowledges that other forms of short-term accommodations, such as bed and breakfast homes or short-term rental homes in other designated districts, may remain permissible if they adhere to their specific permitting requirements, thereby avoiding a blanket ban across the entire visitor accommodation sector.

The Precise Definition of Transient Accommodation

To avoid ambiguity in the enforcement and application of the new law, the legislative text relies heavily on a clear, quantifiable standard for what constitutes a transient stay, contrasting it with a long-term lease agreement. A transient accommodation is legally established as any arrangement where an individual occupies a lodging or dwelling unit for fewer than one hundred eighty days within a calendar year, provided that unit is not their established permanent residence for legal purposes. This threshold of one hundred eighty days serves as the definitive line separating a visitor stay from a resident tenancy under the terms of the measure. Conversely, the long-term standard, which the bill seeks to enforce in these apartment districts, requires continuous occupancy by the primary resident for a period of six months or more annually. This clear demarcation is intended to provide property owners, managers, and potential long-term renters with a concrete metric for compliance or transition, minimizing the grey areas that have often complicated enforcement in the past. The clarity in definition is crucial for the subsequent creation of enforcement protocols and for any future legal review of the ordinance’s application to specific units.

The Staggered Sunset Implementation Schedule

The Accelerated Phase-Out for West Maui Zones

Recognizing the unique vulnerability of West Maui, which bore the brunt of the devastating wildfires, the enacted legislation incorporates a differentiated and geographically sensitive timeline for phasing out the subject vacation rentals. The sunset provision for properties located in the West Maui districts is scheduled to take effect at the earliest date compared to the rest of the island. This accelerated schedule is a direct response to the acute, localized housing emergency in areas like Lahaina and Kaanapali, where the immediate need for housing for displaced residents is most pressing. While earlier proposals suggested a July first, two thousand twenty-five, deadline, the final approved amendment, established during the legislative process, set this date to January first, two thousand twenty-nine. This extension from the initial proposal acknowledges the need for an amortization period, allowing property owners a window to adjust business models or prepare for sale, though it remains the most aggressive timeline within the final law. The urgency tied to West Maui’s recovery underpins this initial cut-off.

Island-Wide Amortization Timelines for Remaining Areas

For the apartment-zoned vacation rentals situated outside of the West Maui region—covering areas such as South Maui, Moloka‘i, and other parts of the island—the law provides a longer, more extended amortization period before the conversion to long-term residency becomes mandatory. This extended allowance is intended to provide broader flexibility for owners in less immediately impacted zones, recognizing that the economic ripple effects and operational adjustments required for conversion take considerable time and capital. Although initial drafts suggested a January first, two thousand twenty-six deadline for these areas, the legislative consensus settled on a later date to ensure a more comprehensive and manageable transition for all stakeholders. The final, codified sunset date for all remaining Minatoya-listed TVRs across the rest of the county is slated for January first, two thousand thirty-one. This staggered approach allows the county to manage the influx of newly available long-term housing units gradually, potentially stabilizing the market impacts over a multi-year horizon spanning from two thousand twenty-five through the end of two thousand thirty.

Anticipated Socio-Economic Transformations

Projected Increase in Available Residential Units

One of the primary, measurable goals of phasing out the approximately seven thousand targeted short-term rentals is the substantial increase in the long-term housing supply available to the resident population. Economic analyses conducted during the legislative review process, notably by the University of Hawaii Economic Research Organization (UHERO) in early 2025, suggested that this conversion, if fully realized, could inject a significant volume of housing stock into the market, estimated to be equivalent to roughly a decade’s worth of traditional new housing development on the island. More specifically, experts suggested the policy could increase the overall long-term housing availability by approximately thirteen percent, adding over six thousand one hundred units to the stock. This influx is projected to have a direct mitigating effect on the severe housing shortage that has forced many long-time residents to relocate off-island or into unstable living situations. By converting units originally designed for residential use back to that purpose, the measure attempts to recalibrate the housing market equilibrium in favor of local families and essential workers, which is seen as foundational to the island’s economic and cultural future, independent of its reliance on tourism revenue.

Analysis of Visitor Economy Adjustments

While the legislative focus is heavily weighted toward housing equity, the economic counterbalance involves significant projections for the island’s vital tourism sector. Projections made by economic research organizations indicated that the elimination of several thousand visitor accommodations from the active rental pool would inevitably lead to a considerable reduction in visitor spending specifically attributable to the short-term rental segment. The aggregate annual decline in visitor expenditure was estimated to reach nearly nine hundred million dollars, with a projected 15% decrease in overall visitor spending. This financial contraction is directly correlated with anticipated job losses within the local economy that is heavily supported by the visitor industry. Forecasts projected the elimination of approximately one thousand nine hundred jobs across various sectors linked to the short-term rental ecosystem, including property management, cleaning services, maintenance, and related local commerce. This projection highlights the core dilemma facing Maui: balancing the immediate, critical need for resident housing against the systemic economic reliance on the industry that these very units service.

Financial Ramifications for Property Owners and County Revenue

Modeling the Trajectory of Condominium Asset Valuations

The looming threat of mandated conversion from a high-yield short-term rental to a lower-yield long-term rental has introduced substantial uncertainty into the real estate market, particularly for the owners of the affected apartment-zoned condominiums. Financial modeling from the UHERO analysis suggested that the market value of these specific condominium units could experience a significant deflationary correction. Some analyses projected potential declines in these asset valuations by as much as forty percent from their peak short-term rental investment values. This predicted drop creates a distinct buyer’s market environment for savvy investors looking to acquire discounted properties, while simultaneously representing a significant loss of perceived equity for long-term owners who purchased with the expectation of continued short-term rental income potential. This price adjustment reflects the market’s repricing of the income-generating capacity of these properties under the new legal framework, moving from premium visitor rates toward standard residential rent expectations.

Consequences for Transient Accommodations Tax Collections

A secondary, yet important, financial implication for the county government revolves around the revenue streams generated by the visitor economy. The reduction in visitor nights and associated spending directly impacts the tax base that supports local government services and infrastructure projects. Specifically, revenues collected under the General Excise Tax, or GET, and the Transient Accommodations Tax, or TAT, are projected to fall substantially as a direct result of the phase-out of thousands of rental units, with economists forecasting a hit to state and county tax revenue in the tens of millions annually. While the government prioritizes housing, a decline in these dedicated tax funds necessitates careful fiscal planning to ensure that essential public services are not compromised or that other revenue sources must be aggressively pursued to fill the gap created by the reduction in visitor-based levies. The expectation is a dramatic recalculation of projected future tax receipts tied to the island’s visitor accommodations sector.

Stakeholder Reactions and Community Division

Perspectives from Housing Advocates and Displaced Residents

For the advocates for long-term housing solutions and the thousands of residents still grappling with displacement following the recent disaster, the passage of Bill Nine, even in its amended form, is viewed as a monumental, if imperfect, victory. Supporters emphasize that securing housing for the local workforce is paramount to the social and cultural survival of the island, echoing the sentiment that the properties were initially intended for the people who live and work there year-round. The feeling among many community members who testified in support was one of validation—that their collective efforts and sustained pressure resulted in meaningful governmental action. De Andre Makakoa, for instance, represented the viewpoint prioritizing the immediate needs of community rebuilding over the financial comfort of investors, seeing the measure as a vital step toward securing Lahaina’s future and the well-being of its long-term populace, framing the decision as “people over profits”.

Concerns Voiced by Property Rights Groups and Industry Representatives

Conversely, the reaction from many property owners, particularly those who purchased their units with the explicit business model of short-term rentals, has been characterized by significant apprehension, fear of financial ruin, and warnings of negative economic consequences. Opponents argued that the sudden regulatory shift would destabilize the local economy by gutting a vital segment of its commercial base and potentially inviting a wave of costly legal challenges against the county government. Brian Whittman, speaking on behalf of some property interests, voiced concern that the devaluation of these assets could lead to a situation where out-of-state buyers acquire discounted properties, thereby eroding local control and tax revenue in the long run, rather than solving the housing crisis for current residents. This group contends that the elimination of these rentals will simply shift the problem, not solve it, by causing unemployment and potentially stifling future investment in the island’s tourism infrastructure, which remains a dominant economic driver.

Future Pathways and Potential for Further Modification

Exploration of Transitional Relief through Rezoning Initiatives

Despite the law’s passage through its final reading, the legislative and administrative path forward includes critical, unresolved opportunities for select properties to potentially retain their short-term rental capabilities through alternative zoning classifications. The Temporary Investigative Group (TIG), established to examine the fallout, has put forth a proposal suggesting the creation of entirely new zoning categories, specifically H-3 and H-4 hotel districts. These newly designated zones could provide a mechanism to legally protect a significant portion of the targeted units—perhaps up to four thousand five hundred of the estimated seven thousand—by reclassifying them as quasi-hotel accommodations rather than standard apartment rentals. The ultimate success and inclusion of these rezoning provisions remain contingent on future County Council action, as they represent a planned compromise to mitigate the severe economic impact predicted by industry analysts while still achieving a substantial portion of the housing conversion goal.

The Likelihood of Subsequent Legal Challenges and Appeals

Given the high financial stakes involved for thousands of property owners and the fundamental change in regulatory structure, the enacted legislation is widely expected to face a protracted period of legal scrutiny and potential appeals following the Mayor’s signature. The very foundation of the phase-out, while supported by recent state statute, will likely be tested in court regarding the “reasonableness” of the amortization period granted to owners. Property owners and associations are expected to utilize every available avenue, including appeals through newly established investigative groups or direct litigation, to challenge the timeline, the definition of affected properties, or the scope of the county’s authority to mandate such a significant shift in use. This ongoing legal uncertainty suggests that even with the measure officially becoming law on December 15, 2025, the final operational landscape for vacation rentals on Maui may remain fluid and subject to judicial interpretation for several years to come, adding a layer of complexity for property management and investment decisions throughout two thousand twenty-six and beyond.