The Escape Hatch Opens

A refresher, because Maui’s condo/vacation rental zoning fight has more sequels than the Fast & Furious franchise. Bill 9 (now Ordinance 5909) phases out more than 6,000 apartment-zoned short-term rentals on the theory that they should return to local housing. In June, the Council created two new hotel zoning categories, H-3 and H-4, that let properties rezoned into them keep renting to visitors (our coverage). That carve-out was originally drawn to spare about 4,500 units. On July 24, the Council nominated 2,056, including a batch it says already operates like hotels, which the bill defines as providing front-desk or similar services, or employing groundskeepers and other staff (Resolution 26-111).

Note what the test actually is. Not zoning. If a front desk and a groundskeeper make it a hotel now, what was it in 2024?

We checked Kalshi for an over/under on how many of the original 6,000+ ever become local housing. Nothing yet.

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