Maui's new hotel zoning districts could grandfather in 4,500 vacation rentals

The Maui County Council approved a bill that creates two new hotel zoning districts that could provide a path forward for thousands of short-term rentals as the city attempts to phase out may of its vacation rentals, reports Brian Perry in Maui Now.

According to Perry, "The bill establishes the H-3 and H-4 hotel zoning districts, modeled on the existing A-1 and A-2 apartment standards, for properties that have operated with transient vacation rentals as a grandfathered permitted use. The measure follows the passage of Bill 9, the vacation rental phase-out measure that Mayor Richard Bissen proposed in May 2024 and then signed into law shortly after council members passed it on second and final reading on Dec. 15."

The bill does not itself rezone any properties, a step that will have to take place separately. It was supported by representatives of the vacation rental industry and realtors, and opposed by council member Keani Rawlins-Fernandez, who raised concerns about housing costs for resident renters. It now heads to the mayor's desk for final approval.