3 years after Lahaina fire, condo owners search for money to rebuild

News admin August 5, 2026 0 Comments

3 years after Lahaina fire, condo owners search for money to rebuild

HONOLULU (HawaiiNewsNow) – Three years after the Aug. 8, 2023, Maui wildfires, condo owners at two Lahaina properties are still working to rebuild — facing significant insurance shortfalls and no government support.

Condo complex reduced to ash

The Aina Nalu condominium complex, a hotel-zoned property with 189 units across two buildings, was destroyed in the fire. The burning building produced one of the most widely seen scenes from that day, as tourists sheltered in the pool to escape the flames.

Lahaina realtor Lee Potts owned two units at the property, including a short-term vacation rental. He said owners initially believed a rebuild was within reach.

“We just had that confidence we are going to be different and we are gonna get it built back and it’s gonna be done in three years or four years — something a lot faster,” Potts said.

Insurance fell far short

Like many buildings in Lahaina, Aina Nalu’s fire insurance coverage was not adequate for a total loss. The owners association’s coverage was structured around partial damage scenarios, not a complete destruction of the project.

Soon after the fire, Jim Blaha, president of the Aina Nalu HOA, said the association had been in the process of improving its coverage when the fire struck.

“We were in discussions with our insurance agent to improve our insurance coverages. Unfortunately, our timing was really bad,” Blaha said.

Aina Nalu had approximately 20 percent of the coverage needed for rebuilding costs estimated at more than $200 million.

With no government assistance available to the condo owners, the empty pool at the property has become a symbol of the funding gap. Insurance proceeds filled only a fraction of what is needed, with the global settlement expected to add more, but owners themselves would need to contribute significantly to complete a rebuild.

“Whatever the shortfall, we have to make it up somehow,” Potts said.

Spinnaker owners push forward

A block away, the Spinnaker condominium — home to many long-term owners — was somewhat better insured. HOA President Sne Patel said the desire to return home has remained strong among owners.

“But initially right after fires and majority of our owners even today is like, we want to get back home. We want to rebuild and we want to make sure we can make that happen,” Patel said.

Spinnaker’s owners plan to rebuild on the same footprint with upgrades and more modern features. Patel said cost clarity is expected as design work progresses.

“As the design gets further along, we’ll get firmer construction pricing. And I think we’ll have a much cleaner picture of the total project costs and where and how much that gap in funding will be exactly,” Patel said.

Signs of hope amid the weeds

Insurance shortfalls, permitting delays, and rebuilding decisions have created friction among owners at both properties. But Potts said he found a reason for optimism while walking the overgrown Aina Nalu site — a wooden totem that survived the fire.

“To see something like this — that’s wood that made it through the fire. It just, to me, that’s a symbol that this whole place could come back,” Potts said.