Maui Condo Developments Seeking H3/H4 Zoning

The Maui County Council passed Bill 88 in June 2026. Bill 88 created two new zoning classifications: H3 and H4. H3 and H4 Zoning mirror A1 and A2, respectively, with one key difference. The two new zoning classifications allow short-term rentals. Bill 88 complements Bill 9, a law passed in December 2025 that sunsets short-term rentals in A1/A2 zoning on January 1, 2029, in West Maui and January 1, 2031, on the rest of the island.

While Bill 88 created a pathway for rezoning, it did not automatically rezone condos. In the immediate aftermath of the Bill, there was some uncertainty about what the rezoning process would look like. After a couple of weeks, we are gaining clarity on the process, as condos have two potential paths to rezoning.

This post will track the H3/H4 rezoning process for Maui Condos. We plan to update this post as we learn more about the process, the condos seeking rezoning, and the outcome of their efforts.

H3/H4 Zoning by Maui County Council Resolution

Shortly after Bill 88 passed, we started hearing scuttlebutt that Maui County Council members would forward resolutions recommending rezoning for selected condos. Rumors suggested the recommended condos would primarily be those the Council’s Temporary Investigative Group had previously identified, which convened before Bill 9 passed. The four-council-member panel identified apartment-zoned condos that would be better suited to remain short-term rentals because of their hotel functionality, affordability challenges, sea-level-rise exposure, and higher percentages of leasehold and timeshare units. The rumors had substance, as Council Member Nohe U’u-Hodgins presented two resolutions to the Council’s Maui Land Use and Planning Committee.

The resolutions proposed amending the community plan designation for certain apartment-zoned condos and rezoning those same condos from A1 or A2 to H3 and H4, respectively. After a few meetings, planning department feedback, revisions, and amendments, the Land Use and Planning Committee passed Resolutions 26-110 and 26-111 by a 6-2 margin.

On July 24th, the full county council considered Resolutions 26-110 and 26-111. The two resolutions also drew additional testimony and debate, including calls to add new condos and calls to remove some condos. The only real change the council could agree upon was removing Ma’alaea Kai from Resolution 26-110, with the note that it could be included in a future resolution.

In August 5th, the Land Use and Planning Committee began discussions on Resolutions 26-129 and 26-130. These resolutions addressed properties likely to face significant impacts from sea level rise. Resolution 26-190 focused on apartment-zoned vacation-rental condos likely to face sea-level impacts, while Resolution 26-130 addressed two apartment-zoned homes that offered short-term rentals, including one destroyed by the Lahaina Fire.

The debate over Resolution 26-129 and the condos included was drawn out and contentious. Part of the debate focused on eligibility parameters. The council ultimately set a threshold requiring that 50% or more of the condos in the development be located in a sea-level rise exposure area or a hazardous flood zone. The council also expanded the bill’s definition to include properties subject to frequent storm flooding. The number of condos included grew from eight when it was first proposed to thirty-two. The number of condos included was one reason for the tighter 5-4 margin when the resolution passed.

After approval, the resolutions go to the Maui Planning Commission. They have 120 days to provide comments and suggestions and to recommend which condos included in the resolutions, if any, should be rezoned.

The ordinances would then return to the Land Use and Planning Committee for potential amendments and another vote. As with Bill 9 and Bill 88, the necessary margins for passage would depend on the Planning Commission’s support. If they support the ordinances, the vote would need a simple majority. If not, it would need a 6-3 margin. If it advances out of the Land Use and Planning Committee, it goes back to a full council vote. If it passes, it would need the Mayor’s signature.

This is what I have been able to piece together about how the rest of the County Council-sponsored rezoning process will work, but I have to admit, I am not 100% confident in my understanding of Maui Civics. I know that I am dating myself by saying this, but I need the Maui Version of Schoolhouse Rock to explain the legislative process better. I will update this post if I need to correct the order of the legislative process.

Condos Recommended for H3/H4 Zoning Under Resolution 26-110

Resolution 26-110 targeted condos that had a significant number of leasehold units, timeshare units, or were operating under a variance allowing continued use as short-term rentals. The table below does not include all properties covered by the resolution. It just includes condo developments. Properties with a single unit, duplexes, or buildings that are exclusively timeshares are excluded.

Here is a link to the original draft of Resolution 26-110 and the amendments advanced by Councilmember Tom Cook and Tamara Paltin. Please note that the Kauhale Makai condos in Kihei, included in Tom Cook’s amendment, did not make it into the final version of the resolution.

Condos Recommended for H3/H4 Zoning under Resolution 26-111

Resolution 26-111 targeted A1- and A2-zoned condo developments that operate like hotels for H3-H4 zoning. The original resolution included condominiums in five developments. Amendments by Council Members Tom Cook and Shane Sinenci added four more condo developments.

Condos Recommended for Rezoning Under Resolution 26-129

The Land Use and Planning Committee passed Resolution 26-129, which would convert condo developments to H3/H4 zoning in areas with higher exposure to sea level rise. According to the Hawaii Sea Level Rise Viewer, these condos would face significant impacts if sea levels rise 3.2 feet. In some cases, those impacts would occur at lower sea-level rise increases.

When the resolution was first introduced, it included eight condos. By the time it passed the full council vote, it included 34 condos.

Based on comments from Maui County Council Members, it sounds like one or more resolutions will still go before the Land Use and Planning Committee. The last resolution(s) would include condos that could pose affordability challenges because of maintenance fees. At this point, the three resolutions include the majority of the condos referenced in the TIG report. The table below includes the condos in the report that have not yet been included in a resolution.

We will update this post if the council submits a new resolution.

Planning Commission Review and Recommendations of Potential H3/H4 Condos

On September 22nd, the Planning Commission reviewed the condos recommended for H3/H4 zoning under Resolutions 26-111 and 26-110. They recommended rezoning only four developments under Resolution 26-110. They were Hono Koa and Maui Schooner, which are exclusively timeshares, and Maui Ka’anapali Villas and Kuau Plaza, which already have variances allowing continued vacation rental use. Hana Kai was the only condo they recommended for rezoning under 26-111. That development has no units used for long-term rentals or owner-occupied units.

The Planning Commission’s vote does not preclude rezoning condos it didn’t recommend. It only changes the voting thresholds when these condos return to the County Council. Condos recommended by the Planning Commission just need to pass a final vote from the County Council by a 5-4 margin. Developments without Planning Commission support must pass by a 6-3 margin.

The Planning Commission has not yet held a meeting on the condos included in Resolution 26-129. It may not occur until the end of the year since that just passed in late September. Based on the last commission meeting, it seems likely that few, if any, condos from this resolution will get recommended for rezoning.

Individual Condo Applications for H3/H4 Zoning

A county resolution is not the only path for H3/H4 zoning. Condos may also file individual rezoning applications. Based on what we have learned, the rezoning process will be more difficult, time-consuming, and expensive for individual condominium developments. For those reasons, most condos are either waiting to see whether they make it into a county resolution or are proactively providing relevant materials to the county council to justify their inclusion in a resolution.

If we learn of any condo developments applying for individual rezoning, we will include them in this post as information becomes available. We will also add any additional information we learn about how this process will work and how it will differ from the Council-sponsored rezoning.

H3/H4 Zoning FAQ

Is the county council including only condos on the TIG list in its resolutions?

No, two condo developments not on the TIG list made it into the final versions of Resolutions 26-110 and 26-111. Kuau Plaza has a variance that allows for continued short-term rentals and was included in an amendment to Resolution 26-110. Luana Kai was added to Resolution 26-111 because enough evidence was submitted to support that it operates like a hotel. Almost all of the condos in Resolution 26-119 were not in the TIG report.

Will all the condos identified in the TIG report be included in a resolution?

The three resolutions passed by the Maui County Council have not included five condos identified in the TIG report. The five remaining condos may still be included in a final resolution addressing condos that may not be affordable for Maui residents.

How long will the rezoning process take?

If the full council votes to advance the resolutions to the planning commission, the commission has 120 days to hold a meeting. They will make their recommendations. From there, the Land Use Committee will provide additional comments and revisions before returning the ordinances to the full council for a final vote. If the ordinances pass, the Mayor still needs to sign them into law. The first resolutions that include condos may make it through this process later this fall. For condos that apply for rezoning individually, the process is expected to take much longer, but we don’t have much precedent to draw on.

Does being included in a passed resolution mean that a condo development is likely to be rezoned?

At this point, there are no guarantees on rezoning. Condos that made it into the first two resolutions are in a better position, given the minimum of six council votes they received to advance the resolution. Now that they’ve passed the planning commission, we know the condos in these resolutions will need to keep all six council members’ support to ultimately be rezoned.

The pathway for condos included in the sea-level-rise resolution appears more difficult. That resolution only passed out of county council by a 5-4 vote. If the planning commission votes on these condos similarly to the first two resolutions, they will need a 6-3 vote when they return to council. It seems unlikely that a sixth council member will change their vote when it returns to council.

This is a hot-button issue in an election year for the council. There has been a lot of vocal testimony against rezoning, and it’s not entirely out of the realm of possibility that a council member could turn against it. If rezoning votes drag on past the November election, the council’s composition could change, making the math less favorable.

What This Means for Maui Condo Buyers and Sellers

Maui’s condo market has operated under a cloud of uncertainty since Bill 9 was first proposed in May 2024. With the future of short-term rentals in many developments up in the air, sales volumes declined, inventory increased, and prices fell. The passage of Bill 88 and the recent council-sponsored resolutions to facilitate H3/H4 zoning are two important steps towards resolving some of this uncertainty.

The markets responded over the last two months, with the two busiest months for new pending sales since right before the Mayor proposed Bill 9. While recent sales point to increased optimism, nothing in Maui politics is certain. If you absolutely, positively want to buy a vacation rental condo now, the safest option is a hotel-zoned condo. Condos undergoing conversion to H3/H4 zoning still carry some risk.

Sellers, while the market is improving, it is still a buyer’s market overall. If you are selling a condo affected by Bill 9, prepare thorough disclosures and keep a close eye on any rezoning efforts your AOAO makes.

Contact The Maui Real Estate Team if you have questions on the Maui condo market or need assistance buying or selling a Maui condo.