Yes, if by saying "illegal" means that the neighborhood is zoned residential but is being used for short term vacation rentals. Landlords skirt the prohibition by renting out thier properties for "30+" days even though guests only stay for a couple of weeks. For the most part, the vacation rentals are not an issue and it's hard to tell tourists are even around. The only down side is that by allowing Oahu to be a "sanctuary " for illegal short term rentals, it takes away housing for locals.....but with the way the Mayor and city council are hell bent on raising the cost of owning real estate, costs passed on to renters, locals won't be able to rent said properties anyway so might as well allow short term rentals and collect the TAT and GET from tourists.