Bill 9 Advances on First Reading — A Turning Point for Maui, But at What Cost?

Bill 9 Advances on First Reading — A Turning Point for Maui, But at What Cost?

WAILUKU, MAUI, July 25, 2025 — In a 6‑3 vote, Maui County’s Housing & Land Use Committee, comprised of all nine councilmembers, advanced Bill 9 out of committee. This pivotal step targets a loophole that has allowed condos in apartment‑zoned districts—including West and South Maui—to operate as short‑term vacation rentals without a minimum 180‑day occupancy requirement AP News+10CBS News+10hapahi.org+10.

Though not yet final, this recommendation is a strong signal of momentum. If enacted, Bill 9 would phase out existing short‑term rentals first in West Maui by July 1, 2028, and countywide by 2030 CBS News+3Beat of Hawaii+3AP News+3.

Our Concerns — Shared Values in Ostensibly Healthy Housing

While we recognize the intent behind Bill 9—to reclaim housing stock for long‑term residents in the aftermath of the devastating 2023 Lahaina wildfire—we also believe the current approach raises several legitimate and serious concerns:

1. Economic Ripple Effects

• A University of Hawaiʻi study projects an addition of over 6,100 long‑term housing units (a 13% increase in supply) if the bill passes Beat of Hawaii+6AP News+6CBS News+6.
• Simultaneously, it forecasts a 15% drop in tourism spending and a 4% reduction in Maui’s GDP, with potential loss of 1,900 jobs and $60M in annual tax revenue Honolulu Civil Beat+2AP News+2AP News+2.

2. Affordability Isn’t Guaranteed

Many affected units carry high purchase prices and HOA/maintenance fees, making them inaccessible to most local residents. Long-term conversion doesn’t inherently equal affordability AP News+9CBS News+9Beat of Hawaii+9.

3. Uncertain Transition Path

There remains limited clarity on whether property owners will convert units, sell them, apply for new zoning, or let them sit vacant. Legal challenges may further delay or alter implementation Beat of Hawaii+2Beat of Hawaii+2Honolulu Civil Beat+2.

4. Broader Community Impact

The hospitality ecosystem—cleaning services, property managers, plumbers, housekeepers, tour operators—stands to lose business. These micro‑enterprises, which support the visitor economy, risk disappearing AP News+4Beat of Hawaii+4AP News+4.

What This Means for Our Clients

At Hawaii Elite Real Estate, our clients—renters, owners, investors—value transparency and informed choice. While Bill 9 is not yet law, the recent committee vote creates real uncertainty:

• Future bookings at Minatoya‑List properties are causing concern among guests who wonder whether their reservations will be honored.
• Current owners face ambiguity around timelines, conversion feasibility, and resale potential.
• Prospective investors may hesitate until zoning outcomes and legal challenges are resolved.

We are proactively tracking legislative progress and can advise clients on:

• Whether a property falls under the Minatoya‑List classification;
• Long‑term rental conversion prospects and zoning options;
• Potential market slow-downs or opportunities in hotel‑zoned versus apartment‑zoned sectors.

A Constructive Path Forward

While support for addressing housing inequity is understandable—and long overdue—we believe that bold action should be paired with fiscal and social responsibility.

Suggested enhancements to Bill 9’s approach:

• Introduce exemptions for owner‑occupied local residents to mitigate unintended displacement.
• Include streamlined zoning appeals or conditional-use pathways for conversions that sustain livelihoods.
• Fund complementary initiatives—vacation‑rental fees, housing lotteries, infrastructure upgrades—to soften economic disruption CBS News+10hapahi.org+10Beat of Hawaii+10Beat of Hawaii+4Beat of Hawaii+4Maui County Council+4.

These amendments could strike a better balance between supporting Hawaii’s keiki and sustaining a healthy visitor economy.

Staying Engaged — What Comes Next

Bill 9 must still pass through full Council readings and receive the mayor’s signature. Legal challenges are anticipated, and final implementation will unfold over several years (2028–2030). For real estate stakeholders, nothing is final yet.

Hawaii Elite Real Estate remains committed to keeping clients informed at every step—with updates, timelines, and personalized guidance.

Mahalo for trusting us with your Maui real estate journey. We stand ready to navigate evolving regulations and opportunities together.