Current Status and Implications for Maui Property Owners

The Minatoya List refers to a collection of apartment-zoned condominium complexes on Maui that have historically been permitted to operate as short-term rentals (STRs) based on a 2001 legal opinion by then-Deputy Corporation Counsel Richard Minatoya. This opinion allowed certain apartment-zoned properties, primarily built before 1992, to continue STR operations despite zoning restrictions.(View The Complete List)

Proposed Changes and Timeline

In response to Maui's ongoing housing crisis, exacerbated by the August 2023 wildfires, Mayor Richard Bissen proposed legislation in May 2024 to phase out STRs in apartment-zoned districts, targeting over 7,000 units on the Minatoya List. The proposed timeline for this phase-out is:

• West Maui: Effective July 1, 2025
• Rest of Maui County: Effective January 1, 2026

However, implementation of this proposal requires approval from the Maui County Council. As of May 2025, the Council has not yet scheduled a vote on the matter. Council Chair Alice Lee has indicated that members are seeking comprehensive studies on the potential economic and housing impacts before proceeding. We expect to have a ruling from the Maui County Council in June 2025 

Economic Considerations

The proposed phase-out has significant economic implications. A 2025 Study by The Economic Research Organization of the University of Hawaii estimated that eliminating these STRs could result in:

• Loss of approximately 14,000 jobs
• Reduction of $137 million in annual tax revenue
• A decrease of $1.67 billion in tourism-related spending
• Link to the UHERO Report

Since STRs contribute to 42% of Maui's property tax revenue, the potential financial impact on the county's budget is substantial.

Legal and Community Response

The proposal has elicited diverse reactions from the community. While some advocate for the phase-out to address housing shortages, others express concern over the economic fallout and question the suitability of these units for long-term residency due to factors like high HOA fees and limited amenities.

If the legislation passes, legal challenges are anticipated, with opponents arguing that it infringes on vested property rights. Mayor Bissen has acknowledged the likelihood of litigation, and the outcome of such legal proceedings could significantly influence the implementation timeline.

Next Steps

The Maui County Council is expected to review the proposal in June 2025. Property owners and stakeholders are encouraged to stay informed and participate in public discussions.

What Condos Would be Impacted?

The Minatoya List comprises a total of 7,069 properties, with 6,823 units located on Maui and 246 on Molokai. These condos are spread across various regions including West Maui, South Maui, the North Shore, and East Maui.

Kihei Condos on the List

Over 60% of vacation rental condos in Kihei are part of the Minatoya List. Below is a table listing the ten largest Kihei condo developments that could be affected by the proposed legislation.

Building	Number of Units
Kamaole Sands	428
Maui Kamaole	316
Maui Vista	280
Maui Sunset	225
Hale Kamaole	188
Pacific Shores	136
Kauhale Makai	133
Kihei Bay Surf	118
Luana Kai	113
Kihei Garden Estates	74

Wailea Minatoya Condos

Similar to its neighboring areas, Wailea faces potential impacts on most of its vacation rental condos due to the new legislation. The table below lists all Wailea Minatoya Condo developments and their respective unit counts.

Building	Number of Units
Wailea Ekahi	296
Grand Champions Villas	188
The Palms at Wailea	150
Wailea Ekolu	148

Wailea has always been known for its high costs of vacationing and condo ownership, and the remaining options with legal rentals will become even more expensive. The few remaining hotel/resort-zoned condos include Wailea Beach Villas, Ho’olei, and Wailea Elua.

Ma’alaea Condos on the Minatoya List

All vacation rental condos in Ma’alaea are listed on the Minatoya List. However, this new legislation proposes to prohibit short-term rentals in Ma’alaea starting January 1, 2026.

Kapalua Condos on the List

Kapalua, another resort community, may also see significant impacts on its vacation rental condos.

Building	Number of Units
Kapalua Golf Villas	186
The Ridge	161
Kapalua Bay Villas	141

Similar to Wailea, Kapalua is an expensive destination for ownership and vacationing. The three listed condos are the most affordable options in Kapalua. If the legislation passes, only the Montage Residences and the Ritz Carlton Residences would retain short-term rental permissions.

Condos Potentially Impacted in Napili

Napili is currently projected to be unaffected by restrictions on short-term rentals in apartment-zoned areas. Condos in this region fall under the Napili Bay Civil Improvement District (NBCID), where short-term rentals are permitted.

Kahana Area Condos Impacted

The majority of condos in Kahana are zoned for hotel use. However, several properties on the Minatoya List, such as Kahana Reef, Kahana Outrigger, and Kahana Village, could be impacted.

Honokowai Condos on the List

Honokowai, known for its apartment-zoned condo developments, could experience significant impacts. Currently, 22 apartment-zoned developments allow vacation rentals, potentially affecting all short-term rental condos between Ka’anapali and Honokowai.

Building	Number of Units
Papakea	364
Kuleana	118
Paki Maui	108
Hale Ono Loa	67
Kaleialoha	64

 

The five largest Honokowai condo developments potentially impacted by the new legislation

Ka’anapali Minatoya Condos

Ka’anapali currently features three condo projects with apartment zoning that allow short-term rentals.

Building	Number of Units
Maui Ka’anapali Villas	258
Maui Eldorado	205
Ka’anapali Royal	105

Lahaina Condos on the List

Three apartment-zoned condos in Lahaina may be impacted: Pu’unoa Beach Estates, Lahaina Roads, and The Spinnaker (destroyed in the August 8th fire).

North Shore and East Maui Condos on the List

Kuau Plaza, located next to Mama’s Fish House, and Hana Kai, East Maui’s sole condo development, are also on the Minatoya List.

The condos listed above represent a portion of the Minatoya List and include some of the largest and most noteworthy condominiums. Clicking this link will direct you to the complete Minatoya Condos list.

Next Steps in the Legislative Process

At this juncture, the Mayor’s proposed legislation requires approval. The bill will proceed to the planning commission for initial review and subsequently to the planning committee of the Maui County Council. Following committee deliberations, the full council will vote on the bill, potentially incorporating amendments along the way.

If the bill is ratified, legal challenges are anticipated. Mayor Bissen, a former Judge, has expressed expectation of litigation. The timeline for these proceedings remains uncertain.