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 was created to complement 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 members of the Maui County Council would forward resolutions recommending that selected condos be rezoned. Rumors suggested the recommended condos would primarily be those previously identified by the Council’s Temporary Investigative Group, 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 Maui Land Use and Planning Committee of the Council.

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

On July 24th, Resolutions 26-110 and 26-111 went before the full county council. There was additional testimony and debate on the two resolutions, including calls to include 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.

The Resolutions will now go to the Maui Planning Commission. They have 120 days to provide comments and suggestions on the two resolutions.

We believe 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 MayorMayor’sature.

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.

Resolutions being Considered by the Land Use and Planning Committee

The Land Use and Planning Committee is currently reviewing Resolution 26-190, 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 be felt at lower sea level rise increases.

One meeting was held to discuss the resolution, with another scheduled for August 19th. Since the first meeting, three amendments were proposed to the resolution. Council Member U’u-Hodgins proposed a general revision by adding “or Special Flood Hazard Area” to the title of the Bill. This likely stems from the inclusion of Kihei Bay Surf and Kihei Bay Vista, both included more due to flood risk than sea level rise exposure.

Council Member Cook and Council Member Lee both proposed amendments to the resolution that would add additional condos. Both Council members included Kamaole One in Kihei, Ma’alaea Banyans and Makani A Kai in Ma’alaea, and Kahana Reef and Makani Sands in the Napili, Kahana, and Honokowai area. Cook’s amendment also includes Kihei Resort, Polynesian Shores, Shores of Maui, Waiohuli Beach Hale, and Lahaina Roads. Lee included Hiyochi Nikko, Pu’unoa Beach Estates, Noelani, and Noholani.

We will update the final list of condos included and the status of the resolution after the meeting on the 19th. In addition to this resolution, the county will also review Resolution 26-130. This would also rezone two properties to H3/H4 zoning, but both properties are single-owner vacation rentals rather than 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 would pose affordability challenges due to maintenance fees. At this point, the majority of the condos referenced in the TIG report are included in a resolution. The table below includes the condos in the report that have not yet been included in a resolution.

We will update this post with any new resolutions as they become available.

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. From what we have learned, the rezoning process will be more difficult, time-consuming, and more expensive for individual condominium developments. For those reasons, it appears that most condos are either waiting to see whether they make it into a county resolution or are being proactive by providing relevant materials to the county council that might justify their inclusion in a resolution.

If we learn of any condo developments applying to be rezoned individually, 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 only including condos on the TIG list in their resolutions?

No, thus far, two condo developments that were 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. Additional condos not mentioned in the TIG report could be included in future resolutions.

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

At this point, that remains unknown. Hale Ono Loa is a development included in the TIG report and was included in the initial draft of resolution 26-110. It was subsequently removed from the final version of the resolution when it was determined that it no longer had leasehold listings. It’s unclear whether it might be included in a future resolution. Eleven other TIG condos have not been included in the first two resolutions. Many of those are expected to be included in future resolutions.

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 ordinances will receive additional comments and revisions from the Land Use Committee before returning to the full council for a final vote. If the ordinances pass, the Mayor still needs to sign them into law. It is thought that condos included in the first resolutions may make it through this process later this fall. For condos that apply for rezoning individually, it’s assumed the process will 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 have made it into the first two resolutions are in a better position, but they still need to go through the rest of the process. While Bill 88 saw limited opposition before it passed, there has been more testimony against the two resolutions. Additional public testimony will be heard at the planning commission and future council meetings.

This is a hot-button issue in an election year for the council. Initial votes on the resolution and Bill 88 suggest there is support for rezoning to pass, but if the rezoning process drags on much past November, 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 the recent sales point to increased optimism, there are no sure things in Maui politics. If you are a buyer who absolutely, positively wants 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 we are seeing some improvement in the market, it is still a buyer’s market overall. If you are selling a condo affected by Bill 9, make sure you prepare thorough disclosures and keep a close eye on any efforts your AOAO makes regarding rezoning.

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