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, no condos were automatically rezoned. 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 starting to gain 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. It was rumored that the recommended condos would primarily consist of those previously identified by the Council’s Temporary Investigative Group, which convened prior to the passage of Bill 9. The four-council-member panel identified apartment-zoned condos that would be better suited to remain short-term rentals due to their hotel functionality, affordability challenges, sea-level-rise exposure, and higher percentages of leasehold and timeshare units. The rumors had substance, as two resolutions were presented to the Maui Land Use and Planning Committee of the Council by Council Member Nohe U’u-Hodgins.

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 from the land use and planning committee. The resolutions will go before the full county council sometime in the next few weeks.

If it passes a full council vote, the ordinances proposed in the resolutions will then move to the Maui Planning Commission. The Planning Commission would hold meetings and public hearings, then make non-binding recommendations to the county council.

We believe the ordinances would then return to the Land Use and Planning Committee for potential amendments and another vote. If it is like 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 to be by 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 better explain the legislative process. 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.

More Rezoning Resolutions Forthcoming

Based on some comments from Maui County Council Members, additional resolutions will be forthcoming at future meetings of the Land Use and Planning Committee. There is expected to be a resolution that includes condos facing higher sea-level-rise exposure and another that includes condos that pose affordability challenges for local residents. Condos mentioned in the TIG report but not included in resolutions 26-110 and 26-111 may be addressed in one of the future resolutions. The table below lists the TIG condos not included in the first two resolutions.

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 an 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 if it might make it in a future resolution. There are currently eleven other TIG condos that have not been included in the first two resolutions. It is believed that many of those will 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 would then need 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 enough support for rezoning to pass, but if the rezoning process drags on much past November, the composition of the council may 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 the Bill. 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 track of what your association may or may not be doing 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.