The city Planning Commission yesterday rejected a proposal to lift a ban on new bed-and-breakfast operations, and supported a provision to impose new restrictions on the establishments.

"We're breathing a sigh of relief," said Kailua Neighborhood Board chairwoman Kathy Bryant-Hunter, whose community has come out in force to oppose expansion of the bed-and-breakfast business on O'ahu. "We're really looking at what's in the best interests of our residential neighborhoods."

The planning commission is advisory, which means both measures can still go before the City Council. Still, the views of the commission can make or break a proposal. It's unclear when the City Council will take up the amendments.

About 80 people turned out for the commission hearing yesterday.

Commission members voted 7-0 against repealing a 1989 ban on bed-and-breakfast homes. The measure would have allowed bed-and-breakfast operations, while also setting up ways for neighbors to block them.

The second proposal, on which the commission voted 7-0 to support, requires transient vacation units, including bed-and-breakfasts, to include the permit number and addresses for units in advertisements.

It also establishes a fee schedule for noncompliance.

Angie Larson, coordinator for Homes of Hospitality of Hawai'i, said the votes are disappointing. "We know we provide a benefit to the community," said Larson, whose group represents about 400 vacation rental operators.

"We're not going away. As far as going forward, bring it on," she added.

She said the amendment that was passed by the commission raises security questions for vacation rental operators. Requiring addresses of vacation rentals to be published in advertisements will open the door to thieves, she said.

The amendments were meant to dramatically overhaul the city ordinance on short-term rentals passed in 1989, which banned new bed-and-breakfasts.

The amendments went before the city Planning Commission in November.

Opponents of allowing more bed-and-breakfasts say the businesses chip away at the sense of place in neighborhoods and disrupt residents. Supporters argue the businesses thrive around the world and give tourists a unique experience.

Fewer than 100 legal bed-and-breakfasts, all of which were in business before the 1989 ban, operate under nonconforming use permits from the city, permit officials have said. Bed-and-breakfast operations can take in renters for less than 30 days. Many other vacation rentals are operating without permits.

Henry Eng, director of the Department of Planning and Permitting, yesterday said people on both sides of the discussion will get a chance to sound off on the issue again when the measures go before the City Council.

The measures could also be amended and again go before the commission.

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.