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Maui Paradise Properties

Bill 88 and Maui's New Hotel Zoning Districts: What Property Owners Need to Know Next

By Jeremy Stice, Compass Real Estate, Owner at Maui Paradise Properties, and President of the Board of the Hawaii Mid and Short-Term Rental Alliance (HIMAST)

Over the past several years, few issues have generated more uncertainty and concern among Maui's transient vacation property owners than the future of visitor accommodations and the legal framework surrounding vacation rental properties. The recent passage of Bill 88 and the release of the first Council-Initiated Zoning resolutions represent another significant chapter in that ongoing conversation, but they are far from the final chapter.

Understanding How We Got Here

To fully appreciate the significance of Bill 88, it is important to understand the events that led to this point and why so many property owners have remained deeply engaged in this process.

Following the introduction of Bill 9 by Mayor Richard Bissen, which proposed eliminating thousands of lawful vacation rentals operating in apartment-zoned districts, the County formed a Temporary Investigative Group (TIG) to study the issue and explore potential alternatives. Bill 9 created an extraordinary amount of uncertainty for property owners, residents, and the broader visitor industry, while also raising significant questions regarding property rights, economic impacts, and the future of Maui's visitor accommodations.

Bill 88 ultimately emerged from the work of the Temporary Investigative Group following the passage of Bill 9, which was approved by the Maui County Council and signed into law by Mayor Richard Bissen on December 15, 2025. Bill 9 set in motion the phase-out of thousands of apartment-zoned vacation rentals and created unprecedented uncertainty for property owners throughout Maui County. Bill 88 was subsequently developed as an effort to create a more thoughtful and structured framework that may provide certain properties with a pathway into the newly established H-3 and H-4 Hotel zoning districts.

Throughout this process, one consistent theme has been uncertainty. While Bill 88 does not answer every question, it does provide a more structured framework than previously existed, and that is an important step toward greater clarity.

More importantly, this issue did not begin with Bill 9, and it will not end with Bill 88. The questions surrounding lawful visitor accommodations, zoning, property rights, and housing policy have been debated for more than twenty years and will likely continue to evolve in the years ahead. That is precisely why continued engagement, education, and thoughtful advocacy remain so important.

Bill 88 Is a Framework, Not an Automatic Rezoning

One of the biggest misconceptions surrounding Bill 88 is the belief that the legislation itself automatically rezoned properties throughout Maui County. That is simply not the case.

Bill 88 creates the new H-3 and H-4 Hotel zoning districts and establishes a legal pathway for visitor accommodation properties to potentially move into those districts in the future. It provides the framework and the tools necessary for additional zoning actions to occur, but it does not, by itself, change the zoning designation of any individual property.

That distinction matters because the process now unfolding through the Council-Initiated Zoning resolutions is the mechanism through which individual properties and condominium complexes may ultimately be considered for inclusion.

For owners, investors, and prospective buyers, understanding this distinction is critical. The passage of Bill 88 should not be viewed as the end of the process but rather the beginning of a new chapter that provides additional clarity and establishes a framework for future action.

The First Resolutions Are Not the Entire Package

The Maui County Council has released the first round of Council-Initiated Zoning resolutions. However, it is extremely important to understand that these initial resolutions do not represent the complete package.

Additional Council-initiated zoning resolutions are still expected, and amendments may also occur as the legislative process moves forward. Drawing conclusions based solely on the first resolutions could create unnecessary anxiety and confusion for owners whose properties may be addressed in future legislation.

Patience and perspective are essential right now. We are still in the early stages of what will likely be a lengthy and evolving process.

Every Maui Condominium Association Is Different

There is no universal strategy that applies equally to every condominium complex in Maui County.

Every association has its own governing documents, ownership structure, historical use patterns, legal considerations, and supporting evidence. The strategy that makes perfect sense for one property may not be appropriate for another.

For that reason, each complex should organize, identify representatives, and work collaboratively with legal counsel and professional advisors to determine the most appropriate path forward based on individual circumstances.

The same principle applies to vacation rental ownership itself. Some owners prioritize personal enjoyment and lifestyle, while others focus primarily on maximizing revenue or long-term appreciation. The most effective strategy is rarely one-size-fits-all and should instead be tailored to the unique goals of each owner and property.

Guidance for the July 1 Maui Housing and Land Use Committee Meeting

Many owners are understandably eager to submit testimony now that the first resolutions have been released. However, a measured and strategic approach will likely be the most effective.

If your complex is included in one of the current resolutions, our recommendation is generally straightforward: support the resolution as written. Initial testimony should focus on expressing appreciation for your inclusion and support for moving the process forward. There is typically no need to overwhelm the Council with every document and piece of evidence available at the outset. Additional information can always be provided if requested later in the process.

One item the County intends to request is a legal description of the property's boundaries. If your complex has a metes and bounds description, now is the time to locate it. These descriptions are often found in deeds, title reports, escrow documents, or other recorded materials.

At the same time, not every property appears to have a traditional metes and bounds description. If that is the case for your complex, there is no reason to panic. Continue gathering maps, surveys, legal descriptions, and other recorded documents that may establish the property's boundaries while awaiting additional guidance from the County regarding acceptable alternatives.

If your complex has not been included in the first resolutions, it is equally important to remember that these are not the only resolutions expected to be introduced. Unless your property clearly falls within one of the categories specifically addressed by the current legislation, we do not recommend flooding the Council with testimony simply because your complex does not appear on the first lists.

As additional resolutions are released, we will have a much clearer picture of the County's overall approach and can provide more informed guidance regarding next steps.

Coordination Matters

Throughout this process, organization and coordination will matter.

A well-prepared and unified presentation from a small number of designated representatives will almost always be more effective than dozens of repetitive submissions that communicate the same message. The goal should be to present a thoughtful, organized, and credible case on behalf of each association rather than creating unnecessary noise that may dilute the effectiveness of your message.

Looking Beyond Bill 88

It is also important to recognize that this process extends far beyond the current round of zoning resolutions.

The passage of Bill 88 establishes H-3 and H-4 as new zoning districts within Maui County's code. Future County Councils will continue to possess the authority to initiate additional zoning changes using this framework.

As regulation becomes increasingly complex, the importance of professional management, operational systems, and experienced local guidance continues to grow. Today's vacation rental ownership requires far more than simply generating bookings. It requires regulatory awareness, proactive asset management, sophisticated revenue strategy, and disciplined operational execution.

That reality makes civic engagement more important than ever. Property owners should stay informed, understand where future candidates stand on issues impacting housing policy and property rights, and remain actively engaged in local government. The decisions made over the coming years will continue to shape Maui's visitor accommodation landscape and the future of our island's economy.

Thoughtful policy, clear communication, and continued engagement will ultimately lead to better outcomes for our community than reactionary decision-making or uncertainty.

What We Know

  • Bill 88 has been transmitted to the Mayor for signature
  • The first Council-Initiated Zoning resolutions have been released
  • Additional resolutions are expected
  • The first Housing and Land Use Committee hearing is scheduled for July 1
  • Planning Commission review will follow Council action
  • Condominium associations should continue organizing representatives and gathering documentation

What We Still Don't Know

Several important questions remain unanswered:

  • The complete package of Council-Initiated Zoning resolutions
  • Whether additional amendments will be proposed
  • What documentation may ultimately be required from individual complexes
  • Whether application fees or additional procedural requirements will be established
  • The final hearing schedule following the Planning Commission review

A Final Thought

This process continues to evolve, and our guidance will evolve alongside it as additional information becomes available.

Nothing in this discussion should be construed as legal advice or interpreted as a recommendation that applies equally to every property or association. Every complex is unique and should work closely with its own board of directors, legal counsel, and professional advisors to determine the most appropriate course of action.

Bill 88 represents an important milestone, but it is not the finish line. The work of advocacy, education, and engagement is far from over. I remain committed to helping property owners navigate these changes, understand the implications for their investments, and continue advocating for thoughtful policies that support both private property rights and the long-term health of our community.

Mahalo to everyone who has remained engaged throughout this process. Your participation continues to make a difference, and I look forward to working alongside all of you as we navigate this next chapter together.