Thousands of Maui Vacation Rentals Stuck in Limbo as Council Faces Gridlock

In a significant move, the Maui County Council has voted to phase out approximately 7,000 vacation rentals over the next five years. This decision aims to address the pressing need for long-term housing for local residents.

The council’s 5-3 vote on Bill 9 was accompanied by plans to advance a second bill that could exempt around 4,500 of these units by rezoning them for hotel use. This exemption is based on the belief that many of these properties are too costly for local residents, vulnerable to sea level rise, or better suited for short-term rental operations. The intention behind this approach is to mitigate potential lawsuits.

However, during a recent council meeting, discussions on the rezoning bill were postponed, further extending an already protracted process. The review of the rezoning bill was supposed to involve the county’s three volunteer regional planning commissions before returning to the council for final amendments and approval.

Unable to reach a consensus, the council decided to defer the discussion until January 5. “We’ve hit a wall,” stated Council Chair Alice Lee. “You can talk for the next three hours and probably wouldn’t change the minds of some people. Given that situation, we need to take a step back and figure this out another way.”

As the council paused its discussions, it faced another challenge: the first lawsuit related to Bill 9. A group of property owners from the 105-unit Kāanapali Royal condo complex, which is on the list for rezoning to hotel use, is suing the county for what they describe as “wrongful, oppressive, and unreasonable” conduct.

The lawsuit, filed on Friday, claims that Bill 9 has effectively denied them the “viable economic use of their property,” escalating to a regulatory taking. This indicates that the debate surrounding the plan is far from over, and its implementation, if it survives legal and political hurdles, will not be immediate.

Related: Hawaii Building Fires Are on the Rise and Safety Inspections Aren’t Keeping Up

Under Bill 9, signed by Mayor Richard Bissen on December 16, the exemptions allowing the roughly 7,000 apartment-zoned units across the county to operate as short-term rentals will expire on January 1, 2029, in West Maui and January 1, 2031, in the rest of the county.

Council member Tom Cook of South Maui, who was part of the temporary group that crafted recommendations for Bill 9, introduced a resolution to forward the rezoning bill to the planning commissions. This move aimed to reassure concerned property owners that officials were taking steps to allow many of them to continue operating vacation rentals in the future.

“We’re simply creating a new zoning category,” Cook explained. “I’d like to move this forward before the holidays, and it’s just one step in many for us to be addressing the solidification of Bill 9 and how it works.”

The group collaborated with the county’s planning department and legal counsel to develop the proposed legislation. The two new hotel zoning districts would permit both residential and hotel uses, ensuring a smooth transition as Bill 9 is implemented.

While some council members agreed on the urgency of forwarding the proposed legislation to the planning commissions, others insisted on discussing potential amendments and allowing public feedback before seeking input from the commissions.

Council members plan to revisit the proposed bill at a January 5 meeting of the Disaster Recovery, International Affairs, and Planning Committee, chaired by West Maui Council member Tamara Paltin, before the full council reconvenes two days later.

“I don’t support sending half-baked ideas to the commissions,” remarked Council member Keani Rawlins-Fernandez. “We are the ones who are paid. The planning commissioners are not paid. It’s our responsibility to ensure that there has been time that we’ve fleshed out the ideas so that they can consider fully completed, thoughtful language.”

After extensive discussions among the eight council members, it became evident that they would not reach an agreement on whether to forward the legislation. The council’s ninth member, Kauanoe Batangan, will take office on January 1.

‘The Most Immediate Way’

Bissen introduced Bill 9 in May 2024, following the devastating August 2023 wildfires that displaced over 12,000 residents and intensified Maui’s ongoing housing crisis. “Bill 9 has consistently stood out as the most immediate way to bring thousands of units back online and expand housing inventory,” Bissen stated.

Throughout the past year and a half, council members have heard emotional testimonies from fire survivors, hotel workers, property owners, and real estate agents, all acknowledging the housing crisis but differing on whether Bill 9 is a suitable solution.

Opponents of Bill 9, including short-term rental property owners, argue that affected property owners have a legal right to operate vacation rentals and warn that revoking this right could lead to lawsuits and other legal complications for the county.

Kāanapali Royal, located near Kāanapali Golf Courses, is among several properties in high-tourism areas recommended for rezoning to allow both residential and short-term rental uses. The mayor supports this rezoning effort.

Critics of Bill 9 reference a University of Hawaii Economic Research Organization study indicating that eliminating about half of the county’s vacation rentals could lead to significant job losses, reduced tax revenue, and a weakened local economy. Conversely, supporters argue that the same study suggests that implementing Bill 9 could enhance affordability and lower housing costs, asserting that some negative economic impacts are justified to free up housing for residents.

The proposed legislation discussed by council members would reduce the number of properties affected by Bill 9 from around 7,000 to approximately 1,700, as per the Department of Finance. Most of the units falling within the new hotel zones are located in West and South Maui, areas more susceptible to sea level rise and unaffordable for many county residents.

During public testimony on Friday, community members largely supported referring the legislation to the planning commissions for feedback, though opinions on rezoning thousands of units varied. Tom Crowley expressed concerns about the potential economic impact of Bill 9 but hoped the planning commissions could suggest ways to implement new hotel zones that would mitigate adverse effects.

“I hope that when this legislation returns to this body for adoption, the planning department will have cleared the pathway for rezoning without the need for expensive and sometimes impractical property improvements or public right-of-way upgrades,” he stated.

Greg Rylsky, a resident of an affected property, expressed optimism that Bill 9 would help reclaim neighborhoods for local residents. “There are residents in these properties that saw Bill 9 as an opportunity to regain their life,” he noted, adding that some residents felt pressured to remain silent due to opposition from homeowners associations.

“A lot of the residents are concerned about speaking out,” he said. “I’ve already been ostracized.”

___

This story was originally published by Honolulu Civil Beat and distributed through a partnership with The Associated Press.

Copyright 2026 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

In a significant move, the Maui County Council has voted to phase out approximately 7,000 vacation rentals over the next five years. This decision aims to address the pressing need for long-term housing for local residents.

The council’s 5-3 vote on Bill 9 was accompanied by plans to advance a second bill that could exempt around 4,500 of these units by rezoning them for hotel use. This exemption is based on the belief that many of these properties are too costly for local residents, vulnerable to sea level rise, or better suited for short-term rental operations. The intention behind this approach is to mitigate potential lawsuits.

However, during a recent council meeting, discussions on the rezoning bill were postponed, further extending an already protracted process. The review of the rezoning bill was supposed to involve the county’s three volunteer regional planning commissions before returning to the council for final amendments and approval.

Unable to reach a consensus, the council decided to defer the discussion until January 5. “We’ve hit a wall,” stated Council Chair Alice Lee. “You can talk for the next three hours and probably wouldn’t change the minds of some people. Given that situation, we need to take a step back and figure this out another way.”

As the council paused its discussions, it faced another challenge: the first lawsuit related to Bill 9. A group of property owners from the 105-unit Kāanapali Royal condo complex, which is on the list for rezoning to hotel use, is suing the county for what they describe as “wrongful, oppressive, and unreasonable” conduct.

The lawsuit, filed on Friday, claims that Bill 9 has effectively denied them the “viable economic use of their property,” escalating to a regulatory taking. This indicates that the debate surrounding the plan is far from over, and its implementation, if it survives legal and political hurdles, will not be immediate.

Related: Hawaii Building Fires Are on the Rise and Safety Inspections Aren’t Keeping Up

Under Bill 9, signed by Mayor Richard Bissen on December 16, the exemptions allowing the roughly 7,000 apartment-zoned units across the county to operate as short-term rentals will expire on January 1, 2029, in West Maui and January 1, 2031, in the rest of the county.

Council member Tom Cook of South Maui, who was part of the temporary group that crafted recommendations for Bill 9, introduced a resolution to forward the rezoning bill to the planning commissions. This move aimed to reassure concerned property owners that officials were taking steps to allow many of them to continue operating vacation rentals in the future.

“We’re simply creating a new zoning category,” Cook explained. “I’d like to move this forward before the holidays, and it’s just one step in many for us to be addressing the solidification of Bill 9 and how it works.”

The group collaborated with the county’s planning department and legal counsel to develop the proposed legislation. The two new hotel zoning districts would permit both residential and hotel uses, ensuring a smooth transition as Bill 9 is implemented.

While some council members agreed on the urgency of forwarding the proposed legislation to the planning commissions, others insisted on discussing potential amendments and allowing public feedback before seeking input from the commissions.

Council members plan to revisit the proposed bill at a January 5 meeting of the Disaster Recovery, International Affairs, and Planning Committee, chaired by West Maui Council member Tamara Paltin, before the full council reconvenes two days later.

“I don’t support sending half-baked ideas to the commissions,” remarked Council member Keani Rawlins-Fernandez. “We are the ones who are paid. The planning commissioners are not paid. It’s our responsibility to ensure that there has been time that we’ve fleshed out the ideas so that they can consider fully completed, thoughtful language.”

After extensive discussions among the eight council members, it became evident that they would not reach an agreement on whether to forward the legislation. The council’s ninth member, Kauanoe Batangan, will take office on January 1.

‘The Most Immediate Way’

Bissen introduced Bill 9 in May 2024, following the devastating August 2023 wildfires that displaced over 12,000 residents and intensified Maui’s ongoing housing crisis. “Bill 9 has consistently stood out as the most immediate way to bring thousands of units back online and expand housing inventory,” Bissen stated.

Throughout the past year and a half, council members have heard emotional testimonies from fire survivors, hotel workers, property owners, and real estate agents, all acknowledging the housing crisis but differing on whether Bill 9 is a suitable solution.

Opponents of Bill 9, including short-term rental property owners, argue that affected property owners have a legal right to operate vacation rentals and warn that revoking this right could lead to lawsuits and other legal complications for the county.

Kāanapali Royal, located near Kāanapali Golf Courses, is among several properties in high-tourism areas recommended for rezoning to allow both residential and short-term rental uses. The mayor supports this rezoning effort.

Critics of Bill 9 reference a University of Hawaii Economic Research Organization study indicating that eliminating about half of the county’s vacation rentals could lead to significant job losses, reduced tax revenue, and a weakened local economy. Conversely, supporters argue that the same study suggests that implementing Bill 9 could enhance affordability and lower housing costs, asserting that some negative economic impacts are justified to free up housing for residents.

The proposed legislation discussed by council members would reduce the number of properties affected by Bill 9 from around 7,000 to approximately 1,700, as per the Department of Finance. Most of the units falling within the new hotel zones are located in West and South Maui, areas more susceptible to sea level rise and unaffordable for many county residents.

During public testimony on Friday, community members largely supported referring the legislation to the planning commissions for feedback, though opinions on rezoning thousands of units varied. Tom Crowley expressed concerns about the potential economic impact of Bill 9 but hoped the planning commissions could suggest ways to implement new hotel zones that would mitigate adverse effects.

“I hope that when this legislation returns to this body for adoption, the planning department will have cleared the pathway for rezoning without the need for expensive and sometimes impractical property improvements or public right-of-way upgrades,” he stated.

Greg Rylsky, a resident of an affected property, expressed optimism that Bill 9 would help reclaim neighborhoods for local residents. “There are residents in these properties that saw Bill 9 as an opportunity to regain their life,” he noted, adding that some residents felt pressured to remain silent due to opposition from homeowners associations.

“A lot of the residents are concerned about speaking out,” he said. “I’ve already been ostracized.”

___

This story was originally published by Honolulu Civil Beat and distributed through a partnership with The Associated Press.

Copyright 2026 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.