A bill that makes it illegal to advertise entire unoccupied apartments for short-term rentals on Airbnb and the like passed the New York Senate on Friday and was sent to New York Governor Andrew Cuomo to sign or veto.
The bill prohibits online apartment listings that last under 30 days and run up against the city’s multiple dwelling law, which is designed to stop apartment buyers from renting out the entire space and basically turning their units into Airbnb-style hotels. First-time offenders would be fined US$1,000, but a third infraction would be much costlier at US$7,500.
In response to the news, the Hotel Association of New York City and its Chairman Vijay Dandapani released a statement: “Airbnb facilitates the creation of a black market for illegal and unsafe commercial rental properties that don’t follow any of the same regulations as legitimate hotels and negatively impact the residential real estate market by driving up rent and diminishing housing supply. This smart and innovative legislation will allow law enforcement agencies to better target, track, and penalize lawbreakers, while also protecting one of New York’s most vital economic contributors – the hotel and hospitality industry. We commend the bill sponsors, Assemblywoman Linda Rosenthal and Senator Andrew Lanza for championing this vital legislation, and thank Senate Leader Flanagan and Speaker Heastie for their leadership in getting it passed.”
Hotel association president Joseph Spinnato, added, “The passage of this bill strengthens New York City’s hotel industry, and the city, as well. Our industry is an economic engine and a premier creator of jobs. We applaud those in the state legislature who took action for their leadership on this crucial issue.”
In response, an Airbnb spokesman told TechCrunch, “Let’s be clear: this is a bad proposal that will make it harder for thousands of New Yorkers to pay the bills.”
Airbnb added that the bill’s supporters are exaggerating facts and are merely backing the interests of the hotel industry.