The End of the Minatoya List?

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Last week, Richard Bissen, the Mayor of Maui, proposed legislation that could significantly impact the island’s condo market. The legislation targets condos on the Minatoya List. If passed, the legislation would sunset short-term rentals in these condominiums. This post provides greater details on the Minatoya List, the condos potentially impacted, and the additional steps necessary before the legislation is enacted.

What is the Minatoya List?

The Minatoya List is the list of apartment-zoned condominiums (A-1 and A-2) on Maui currently allowed to offer short-term rentals. To be on the list, an apartment-zoned condominium development needs to meet a series of criteria, the most significant of which is that the building or structure received a building permit, SMA use permit, or planned development approval prior to April 20th, 1989. The list is named after the county attorney who provided the legal opinion that condos meeting the series of criteria could legally be used for vacation rentals. The legal opinion was later codified under chapter 19.12.020 of the Maui County Code.

What Legislation is Being Proposed and Why?

The Hawaiian Islands have struggled with affordability issues for some time. It worsened with the significant appreciation in the market during the COVID-19 real estate boom. The fires in Lahaina on August 8, 2023, significantly exacerbated the problem on Maui. The local government has previously looked at the Minatoya condos as a potential relief valve for the housing shortage. As recently as 2022, there was a county council planning committee meeting to discuss prohibiting short-term rentals in the apartment district. That effort was abandoned after strong public testimony against the proposal.

Late last year and earlier this year, the Governor discussed a two-year ban on vacation rentals in West Maui in order to generate long-term rentals for displaced fire victims. He backed off those plans as more people made long-term rentals available to FEMA.

The state legislature took up Bill SB2919 earlier. The bill grants “the counties authority to regulate the time, place, manner, and duration in which uses of land and structures may take place.” It specifically mentioned the right to phase out short-term rentals. The bill passed in both the State House and Senate.

The day before the governor officially signed the bill, Mayor Richard Bissen announced his plan to introduce legislation that would “phase out and repeal decades-old transient vacation rentals (TVRs) operating in the Apartment District, also known as the Minatoya list TVRs.” The proposed sunset date for short-term rentals at Minatoya List condos in West Maui is July 1, 2025. The proposed sunset date for vacation rentals at Minatoya list condos throughout the rest of the island is January 1, 2026.

What Condos Would be Impacted?

The Minatoya List comprises 7,069 properties including 6,823 units on Maui and 246 on Molokai. Condos on the list are spread throughout Maui, with condos on the list located in West Maui, South Maui, the North Shore, and East Maui.

Kihei Condos on the List

Over 60% of the vacation rental condos in Kihei are on the Minatoya List. The table below lists the ten largest Kihei condo developments this legislation could impact.

Project NameNumber of Units
Kamaole Sands428
Maui Kamaole 316
Maui Vista280
Maui Sunset225
Hale Kamaole188
Pacific Shores 136
Kauhale Makai133
Kihei Bay Surf118
Luana Kai113
Kihei Garden Estates74
The ten largest Kihei Condo developments and the number of units in the development

Wailea Minatoya Condos

As with its neighbor to the north, the new legislation could impact the majority of the condos in Wailea that currently allow vacation rentals. All of the lowest-priced developments in Wailea are on the Minatoya List.

Project NameNumber of Units
Wailea Ekahi296
Grand Champions Villas188
The Palms at Wailea150
Wailea Ekolu148
All Wailea Minatoya Condo developments and the number of units in each complex.

Wailea has always been an expensive place to vacation and purchase a condo, but the remaining condo options with legal rentals will be particularly expensive. The remaining hotel/resort-zoned condos include Wailea Beach Villas, Ho’olei, and Wailea Elua.

Ma’alaea Condos on the Minatoya List

All of condos that vacation rent legally in Ma’alaea are Minatoya List condos. This new legislation would prohibit any short-term rentals in Ma’alaea after January 1, 2026.

Kapalua Condos on the List

Kapalua is another resort community where the proposed legislation could impact the majority of the vacation rental condos.

Project NameNumber of Units
Kapalua Golf Villas186
The Ridge161
Kapalua Bay Villas141
All Kapalua Condo Projects on the list and the number of units in the development.

Much like Wailea, Kapalua is an expensive place to own or visit. The three condos above are the three lowest-priced options in Kapalua. If this legislation is passed, the two hotel/resort condos that would allow short-term rentals are the Montage Residences and the Ritz Carlton Residences.

Condos Potentially Impacted in Napili

At this point, Napili is the one area where condos are unlikely to be affected by restrictions on short-term rentals in apartment zoning. The condos in this area are part of the Napili Bay Civil Improvement District. Short-term rentals are allowed in the NBCID.

Kahana Area Condos Impacted

The bulk of the condos in the Kahana area have Hotel zoning. There are a handful of Minatoya List condos. They include Kahana Reef, Kahana Outrigger and Kahana Village.

Honokowai Condos on the List

The Honokowai area would feel some of the strongest impact if short-term rentals were prohibited in apartment-zoned developments. There are 22 apartment-zoned condo developments that currently allow vacation rentals in Honokowai. Depending on where you draw the line between Ka’anapali and Honokowai, all of the short-term rental condos in Honokowai could be impacted.

Project PropertyNumber of Units
Papakea364
Kuleana118
Paki Maui108
Hale Ono Loa67
Kaleialoha64
The five largest Honokowai condo developments potentially impacted by the new legislation

Ka’anapali Minatoya Condos

Ka’anapali has three condo projects with apartment-zoning currently allowed to provide short-term rentals.

Project PropertyNumber of Units
Maui Ka’anapali Villas258
Maui Eldorado205
Ka’anapali Royal105
The condos in Ka’anapali on the Minatoya List and the total number of units in each development.

Lahaina Condos on the List

There are three condos in Lahaina that are apartment-zoned that could be impacted. Pu’unoa Beach Estates, Lahaina Roads, and The Spinnaker. The Spinnaker was destroyed in the August 8th fire.

North Shore and East Maui Condos on the List

Kuau Plaza, next to Mama’s Fish House, is on the Minatoya List. It has 30 units. Hana’s only condo development, Hana Kai, is apartment-zoned. This oceanfront condo development has 19 units.

The Full List

The condos listed in the sections above do not constitute the entire Minatoya List. These are just some of the largest and most notable condominiums. Clicking this link will take you to the full list of Minatoya Condos.

Next Steps in the Legislative Process

At this point, the Mayor’s legislation is proposed but still needs approval. The proposed bill will go before the planning commission next. After the planning commission comments, it will go in front of the planning committee of the Maui County Council. From the planning committee, it will go in front of the full county council. The council will, in turn, vote on the bill. Of course, there could be changes and amendments to the bill along the way.

If the bill passes, lawsuits are anticipated. As a former Judge, Mayor Bissen already stated he expects litigation. How long all of this will take to play out is unknown. The results of these efforts will have significant ramifications on the real estate market and the local economy. We will continue to provide updates on the process and its implications on The Maui Real Estate Blog.

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