UPDATE 6:25 P.M.

The Honolulu City Council has passed both bills that will restrict and regulate vacation rentals on O'ahu.

Under one bill, the number of legal vacation rentals, could soon more than double, but at the same time it would put out of business another 6-8,000 currently illegal whole home vacation rentals.

Advertising, registration and allowable locations are all spelled out in the bills that were passed.

They would put more restrictions on vacation rental owners but the measures would also bring in much more money to the county.

Both bills now go to the Mayor who has the option of signing none, one or both.

Mayor Kirk Caldwell issued the following statement in response to City Council's passing of the bills:

“I want to thank the City Council for their willingness to tackle the very contentious issue of short-term vacation rentals. It takes great political courage to pass a bill that will help balance the impact tourism is having on our residential neighborhoods. Subject to legal review, I will sign Bill 89 into law. It is time we take meaningful action on an issue that previous mayors and city councils have been unable or unwilling to address. The proliferation of short-term vacation rentals is an issue that has divided our community for far too long, and it’s time to bring closure and healing to our island home through fair and effective regulation. Bill 89 may not be perfect, as no legislation ever is, but it’s a first step that can be improved upon in the future.”

Expedia Group issued the following statement as well in regards to Monday's decision:

“The Council had a clear choice between fair and enforceable compromise and a dangerous and onerous ban. Unfortunately, with tonight’s vote, Council puts in jeopardy nearly 7,000 local jobs, $336 million in local household income, and $77 million in state taxes.

“Bills 85 and 89—if signed by the Mayor—will not only harm local homeowners and managers, but thousands of local small businesses, employees, and the travelers they serve.

“Expedia Group proudly stands with the small businesses and community partners that believe in a better path forward. A path that’s built on collaboration and a framework that limits vacation rentals in a responsible way. We are hopeful that Mayor Caldwell will help find that better way.” 

Residents had a last chance to make their voices heard before the Honolulu City Council votes on a pair of vacation rental bills.

The bills would restrict and closely regulate the industry, something many frustrated neighbors of illegal vacation rentals say has been needed for a very long time.

However, dozens of residents made final pleas asking to be allowed to rent out their homes, or even just rooms in their homes, as a way to afford Hawaii’s high cost of living.