Maui Condo Ban: Understanding the Proposed Short-Term Rental Phase-Out
Overview
Maui County is proposing significant changes to the island’s short-term rental rules in an effort to address the housing crisis. The proposal, introduced by Mayor Richard Bissen, aims to phase out and repeal short-term vacation rentals operating in apartment-zoned areas (known as the “Minatoya List”). This would affect approximately 7,000 properties across Maui and Molokai.
What is the Minatoya List?
The Minatoya List includes apartment-zoned condominiums (A-1 and A-2) on Maui that are currently allowed to offer short-term rentals. To qualify for this list, a condominium development must meet specific criteria, most importantly that the building received a building permit, SMA use permit, or planned development approval prior to April 20, 1989. The list is named after the county attorney who provided the legal opinion that these condos could legally be used for vacation rentals, which was later codified under chapter 19.12.020 of the Maui County Code.
Proposed Timeline
- West Maui units (approximately 2,200 units): Phase-out by July 1, 2025
- All other Maui units: Phase-out by January 1, 2026
Areas Affected
The ban would impact short-term rental condos across multiple regions of Maui:
South Maui
- Kihei: Over 60% of vacation rental condos including Kamaole Sands, Maui Kamaole, Maui Vista, and Hale Kamaole
- Wailea: Majority of vacation rental condos including Wailea Ekahi, Grand Champions Villas, The Palms at Wailea, and Wailea Ekolu
West Maui
- Kapalua: Kapalua Golf Villas, The Ridge, Kapalua Bay Villas
- Kahana: Kahana Reef, Kahana Outrigger, Kahana Village
- Honokowai: 22 apartment-zoned condo developments
- Ka’anapali: Three condo projects with apartment-zoning
- Lahaina: Pu’unoa Beach Estates, Lahaina Roads (The Spinnaker was destroyed in the August 8th fire)
Other Areas
- Ma’alaea: All legally vacation-renting condos
- North Shore: Kuau Plaza (30 units)
- East Maui: Hana Kai (19 units)
- Molokai: 246 units
Reasoning Behind the Proposal
The proposal aims to address:
- Maui’s severe housing shortage, exacerbated by the COVID-19 real estate boom
- The displacement of approximately 13,000 people from the August 8, 2023 Lahaina wildfire
- The need for more long-term housing for residents and fire survivors
Economic Concerns
Critics of the proposal cite potential negative impacts:
- Loss of an estimated 14,126 jobs
- Annual reductions of $1.67 billion in tourism revenue
- Decrease of $747.7 million in employee earnings
- Reduction of $137.6 million in tax revenue
- Concerns that many units would not convert to affordable long-term rentals due to high HOA fees and maintenance costs
Legislative Process
The proposal has already received approval from:
- The Maui Planning Commission (unanimous 5-0 vote with recommendations)
- The Molokai Planning Commission
Next steps include:
Modifications Recommended by Planning Commission
- Consider extending the phase-out timeline up to three years longer for properties outside West Maui
- Exclude 931 units that are designated for hotel use under community plans or are already partially zoned for hotel use
- Consider economic, social, cultural, and environmental impacts using studies including one by the University of Hawaii Economic Research Organization
Community Response
The community is deeply divided on this issue:
- Supporters argue it will create much-needed long-term housing for residents
- Opponents worry about economic impacts, job losses, and whether the units will actually become affordable housing
- The debate has become increasingly contentious, with reports of threats and divisive rhetoric on both sides
Resources for Further Information
Latest Updates
As of March 2025, the proposal is still moving through the legislative process. The County Council is expected to make a final decision after reviewing economic impact studies. Legal challenges are anticipated regardless of the outcome.
This situation continues to evolve, and this summary may not reflect the most current developments. For the latest information, please check official Maui County resources or local news outlets.
