HONOLULU -- After last-minute lobbying by Mayor Mufi Hannemann, Honolulu City Council members approved a bill they initially rejected to create a new tax category for homeowner occupants.

They said the bill helps protect homeowner occupants from expected higher property taxes next year.

Critics said the plan will hurt renters and businesses and raise the cost of living for everyone. They are mad it was revived Tuesday night when the public was not around to object.

"I was appalled by what happened last night. I was discouraged. I was angry. I apologize to the public that we would do a public discussion, a public vote, and then after the backroom discussion, the whole vote gets reversed," Councilwoman Ann Kobayashi said.

Council members voted unanimously to recommit the homeowner occupant bill but five changed their minds and revived it after the mayor lobbied council members Todd Apo, Nestor Garcia and Rod Tam.

"It just felt like a backroom deal," Kobayashi said.

"I don't think there were any strong arm tactics going on. It was my decision," Tam said. "This bill meant so much to me for those who are homeowners."

With homeowners-occupants getting a tax break, it is expected that homeowners who rent out their houses and apartments will be taxed higher and then pass on those higher costs to their tenants.

"They are going to increase their rents, which will mean more money coming out of the pockets of renters or they re will be fewer rentals on the market," Natalie Iwasa said.

Iwasa testified against the bill on Tuesday and went home thinking it had been shelved.

"I personally feel crushed because I put a lot of effort," she said. "Personally I feel I can't trust the council anymore. I don't know what they are going to do. if they can change this they can change anything after the fact."

Council members said Hannemann did not promised them anything to change their votes.