Independent TD Michael Healy-Rae has been refused permission to convert the ground floor of a pub in Tralee to rental apartments.
It is the second time the appeals board has overturned a decision by Kerry County Council to grant Mr Healy-Rae permission for a change of use for Nancy Myles Pub in Ballymullen.
The majority of the decision to refuse is on the grounds that the proposal would not meet satisfactory natural light or amenity standards for occupants.
The plan was for four apartments and had faced strong objection from locals.
The council's decision was appealed by a number of local residents and a conservation organisation.
An Bord Pleanála voted two-to-one to refuse permission when it met in early May.
On this occasion, it voted against its own inspector, who recommended granting permission with conditions.
