I’m Alex, a 35-year-old architect from Denver, Colorado. My wife and I have two energetic kids, aged 7 and 9, who keep us on our toes. We love exploring national parks, planning family road trips, and are always looking for ways to make our home more sustainable. I’m passionate about clear communication, well-structured plans, and finding practical solutions to complex problems. *** Maui’s Short-Term Rental Showdown: Bill 9, Legal Battles, and What It Means for Property Owners Maui, a paradise known for its stunning beaches and vibrant culture, is currently at the center of a significant legislative storm. As of August 26, 2025, a proposed bill, known as Bill 9, is making waves across the island, aiming to reshape its short-term rental (STR) landscape. This isn’t just about vacation homes; it’s about addressing a critical housing shortage, preserving community character, and navigating the complex intersection of property rights and public need. For property owners, potential investors, and anyone with a stake in Maui’s future, understanding Bill 9 is crucial. The Heart of the Matter: Reclaiming Housing with Bill 9 Maui County is facing a severe housing crisis, a situation made even more dire by the devastating wildfires of 2023 that displaced thousands of residents. In response, Mayor Richard Bissen has championed Bill 9, a piece of legislation designed to phase out thousands of short-term rentals currently operating in apartment-zoned districts. The core idea is simple yet impactful: convert these properties into much-needed long-term housing for local families, essential workers, and those still recovering from the wildfires. Proponents argue that the proliferation of STRs has significantly contributed to the island’s housing shortage, pushing local residents out of the market. By reclaiming these units, the county aims to increase the long-term housing supply, making it more feasible for kamaʻāina (native-born Hawaiians) and long-term residents to find stable housing. Council member Shane Sinenci has emphasized that this approach is more cost-effective and faster than relying solely on new construction to meet housing demands. A Look Back: The “Minatoya List” and Vested Rights A key element in this debate is the “Minatoya List.” This list, stemming from a 2001 legal opinion by Deputy Corporation Counsel Richard Minatoya, essentially grandfathered in STRs in apartment zones that were already operating as vacation rentals before March 1991. These properties, often condo complexes, have been legally operating as STRs for decades, creating a sense of established rights for their owners. Bill 9 specifically targets these “Minatoya List” units, proposing their phase-out. Critics argue that this move could be seen as a “taking” of vested property rights, potentially leading to legal challenges. The Maui Vacation Rental Association has voiced concerns, noting that hundreds of millions in tax revenue and thousands of jobs are tied to these properties. Property Owners on Edge: Reactions and Legal Considerations The potential impact of Bill 9 has property owners and condo associations on high alert. Many are consulting with legal counsel to understand their options. Cindy Bulger, president of the board at Hale Kamaole, stated that her association would “review its options with legal counsel before making a decision.” Similarly, Lynn Peabody, Board President at Wailea Ekahi, indicated that owners would “certainly evaluate the potential impacts of Bill 9 and explore our courses of action, legal and otherwise.” The prospect of legal battles is a significant concern. While Maui County attorneys express confidence in the bill’s legal soundness, they acknowledge that lawsuits are likely. Arguments against the bill are expected to center on constitutional protections against the taking of private property and the elimination of existing lawful uses. Property owners may claim economic loss and a breach of their expectations when purchasing their units. Legal experts also point to the importance of the “amortization period”—the time allowed for phasing out an existing use—questioning whether the proposed timelines are sufficient. Maui County’s Legal Defense and Precedents Maui County’s legal team has reviewed Bill 9 and believes it aligns with state and federal laws, asserting it falls within the County Council’s authority. Their strategy focuses on ensuring the bill’s defensibility, drawing lessons from past regulatory efforts in other counties. For instance, Honolulu County’s attempt to regulate STRs in 2022 was blocked by a federal judge who ruled that state law prevented the city from prohibiting continuing lawful uses. This precedent highlights the need for clear authorization for counties to alter or phase out existing property uses. However, Hawaii Governor Josh Green signed Senate Bill 2919 in May 2024, which clarifies the authority of counties to regulate short-term rentals, providing a stronger legal foundation for local governments like Maui. This state-level support could bolster Maui County’s position in any legal challenges. Economic Ripples and Community Impact The economic ramifications of Bill 9 are substantial and hotly debated. A University of Hawaiʻi Economic Research Organization (UHERO) report projects that phasing out these STRs could add over 6,000 units to the long-term housing stock, a 13% increase. However, the same report also predicts a significant decrease in property and business tax revenues, estimated at $75 million annually. Some analyses suggest a potential contraction of Maui’s GDP by 4% and the elimination of around 1,900 jobs. Opponents warn of a severe blow to Maui’s tourism-dependent economy, predicting job losses in the hospitality sector and a decline in visitor spending. Alicia Humiston, president of the Rentals by Owner Awareness Association, expressed concern that the measure would negatively impact small businesses reliant on the vacation rental industry. Conversely, supporters argue the bill is essential for addressing the housing crisis. Council member Shane Sinenci noted the displacement of local families and essential workers, arguing that Bill 9 is a more practical and immediate solution than new construction. The Legislative Journey and Future Outlook Bill 9 has already advanced through the Maui County Council’s Housing and Land Use Committee, passing with a 6-3 vote on July 24, 2025. This committee vote is a strong indicator, but the bill still requires two full council votes before it can be sent to Mayor Richard Bissen for his signature. If enacted, the bill proposes a phased approach to phasing out STRs. Current proposals set compliance deadlines: 2028 for West Maui properties (including Lahaina) and 2030 for the rest of the county. An amendment on July 24, 2025, pushed these enforcement dates to 2029 for West Maui and 2031 for the rest of the island. The legislative process has included extensive public testimony, reflecting a wide range of passionate viewpoints. As deliberations continue, the focus remains on finding a balance that addresses the urgent need for housing while mitigating potential economic disruptions. Actionable Takeaways for Property Owners and Stakeholders: * **Stay Informed:** Keep a close eye on the Maui County Council’s proceedings and any further amendments to Bill 9. * **Consult Legal Counsel:** If you own property affected by Bill 9, consult with an attorney specializing in real estate and land use law in Hawaii. * **Understand the Timelines:** Be aware of the proposed phase-out dates and how they might impact your property. * **Explore Options:** Consider potential conversions to long-term rentals or other legal uses for your property. * **Engage in the Process:** Participate in public hearings and provide your input to the County Council. Conclusion: Navigating Uncertainty in a Changing Landscape Maui’s Bill 9 represents a significant effort to tackle a deep-seated housing crisis, but it also introduces a complex web of legal and economic considerations. The island’s journey toward balancing tourism, housing needs, and property rights is ongoing. As the bill moves through the final stages of the legislative process, the outcome will undoubtedly shape Maui’s future, impacting its economy, its communities, and the lives of its residents and property owners for years to come. The ability of the county to withstand legal challenges will be key, and the situation underscores the delicate balance between regulatory authority and the rights of property owners in popular tourist destinations. *** **Want to stay updated on Maui’s evolving real estate and legislative landscape?** [Subscribe to our newsletter](link-to-your-newsletter-signup) for regular insights and analysis.