A bill aimed at cracking down on illegal vacation rentals on Oahu picked up a preliminary approval from the Honolulu City Council on Wednesday as did two other bills that would open up the number of residential properties that may include a second dwelling unit.

But Bill 22, the measure that would make it tougher for illegal bed-and-breakfast establishments and other vacation rentals to operate, is likely to be stalled, at least temporarily, because of concerns raised by Council members and the public.

What’s triggering the introduction of all three bills is the push by both Mayor Kirk Caldwell and Council members to increase the island’s affordable housing stock by allowing a greater number of second dwellings either within or next to primary residential units. Known on the mainland as "granny units," a limited number of accessory dwelling units are now allowed under the city’s ohana dwelling program, which specifies they’re for family members only.

Bill 20 is Caldwell’s ADU plan. It would allow second dwellings in residential zones only on lots 3,500 to 20,000 square feet in size. The size of the ADUs would be limited to between 400 and 800 feet, depending on lot size. One off-street parking stall would be required for each ADU, although that could be waived if the property is near the city’s rail line.

Bill 21 allows ADUs on residential lots 5,000 square feet or greater, as well as agricultural lots. There is no unit size limit and it requires one or two off-street parking stalls, depending on the number of bedrooms.

Also, the Caldwell plan allows the city to continue issuing ohana dwelling permits while the Council bill does not.

Both measures were given first reading approval with little commentary from Council members or the public. They now go to the Zoning and Planning Committee for more work and debate.

There was a lot more discussion at Wednesday’s Council meeting on the bill concerning vacation units, formally known as transient vacation units. About a dozen people testified on the measure, only one of whom supported the bill.

Under the proposal, TVUs in operation since 1986 could continue to operate if they renew a nonconforming use permit annually. They would also need to place in any written or broadcast advertisements their nonconforming use certificate number and the street address or tax map key number of the properties. Failure to adhere to the rules could result in hefty fines. The stringent advertising requirements are aimed at weeding out those operating illegally. Administration officials said they introduced the bill in conjunction with the ADU bills in case the relaxing of ADU requirements results in more TVUs.

Most of those testifying on the bill noted that no new TVU permits have been allowed in three decades and that the bill cracks down on illegal TVUs without allowing their operators any means to become legitimate. Doing so could kill an entire industry that feeds the economy by bringing in tourists accustomed to staying in residential settings, they said.

The bill, however, does include a new provision that allows TVUs to operate without a nonconforming use certificate if they are in resort areas.

Darla Devera said requiring TVU operators to post their addresses would "put our property owners at risk for vandalism, theft and harassment by those who despise visitors in their neighborhoods." Many vacation rental owners "want to comply with safety and tax laws that are fair and protective to those who live here and those who visit us here in our great state," she said, noting that TVU operators provide many jobs in the community.

As for the hefty fines of $10,000 or more, "these vacation rental owners are not drug dealers, sex traffickers or common criminals," she said. "They’re small business owners."

Abraham Aiona was among those who urged Council members to create a real permitting system for TVU operators. "You can’t make it illegal if you don’t allow us to have a permit," he said. He noted that other U.S. municipalities have been able to reach "a happy medium."

Joli Tokusato, a spokeswoman for Unite HERE Local 5, which represents hotel workers and other employees, said she supports the TVU crackdown bill. Tokusato said the union is concerned that many of the new units coming up in Kakaako will be used as illegal vacation rentals instead of affordable rentals for Hawaii residents.

"People working in the hotel industry are also trying to make ends meet, and we need good jobs that hotels provide that allow us to get by, and we need rental housing that we can afford to live in," she said. "Illegal vacation rentals make both of these things more difficult."

After the public speakers, Council Zoning Chairman Ikaika Anderson said he intends to hold Bill 22 in his committee until the administration can present to the Council a measure allowing a permitting system for a "very limited number" of new vacation rentals. Anderson on Wednesday introduced Resolution 15-72, which calls on the Department of Planning and Permitting to process a more "holistic" bill he is authoring that would permit some new vacation rentals on properties that are owner-occupied and have home exemptions. The proposed bill also would include strict enforcement provisions.

"This is not an issue that can be addressed piecemeal," he said. "What we’re going to end up doing is satisfying one half of the issue while ignoring and angering the other half."

Bill 22 moved out 5-3, with Anderson, Trevor Ozawa and Ernie Martin opposed, and Carol Fukunaga voting yes along with Brandon Elefante, Ann Kobayashi, Joey Manahan and Ron Menor voting yes with reservations. Martin and Ozawa said that they, like Anderson, intend to introduce their own TVU bills.

City Zoning Director George Atta told the Hono­lulu Star-Advertiser that the administration introduced the TVU bill only because of concerns that allowing more ADUs could spur additional vacation rentals. Atta said the administration’s priority is to create more affordable housing.

"We would want (the ADU bills) to move forward with or without the enforcement bill," he said.