New York State Cracks Down on Illegal Hotels, Airbnb

Governor signs Assemblymember Linda B. Rosenthal's bill levying steep fines on illegal hotel advertising

New York, NY – With the signing into law of Assemblymember Linda B. Rosenthal's bill prohibiting advertising of illegal hotels by the Governor, New York today became the first state in the nation to take bold action to stop the spread of illegal Airbnb listings.

"Today, New York has sent the message that our affordable housing is not up for grabs," said Assemblymember Linda B. Rosenthal. "This law will help to keep housing available and affordable for thousands of hardworking New Yorkers and their families."

The bill, which took effect immediately upon its signing, prohibits the advertising of illegal hotels on websites like Airbnb and others like it. The bill would levy hefty fines of $1,000 for the first offense and $7,500 for the third and every subsequent offense.

New York's Multiple Dwelling Law (MDL) already makes it illegal to rent units in class-A multiple dwellings, or the vast majority of apartment buildings in New York City, for fewer than 30 days. This prohibition was put in place to protect the city's dwindling supply of affordable housing, and tenants and tourists alike.

"Airbnb has revolutionized the illegal hotel industry, making it easier than ever for illegal hotel operators to drive up housing costs and steal affordable housing from our communities," said Assemblymember Linda B. Rosenthal. "This law was desperately needed to stem the steady loss of affordable housing and to protect tenants."

A recent report commissioned by affordable housing groups revealed that more than 50% of all Airbnb listings are illegal and together they have robbed New Yorkers of tens of thousands of units of affordable housing and hastened gentrification in certain communities and led to a marked increase in the cost of housing for all New Yorkers in all communities.

New York City's fire and building codes are designed to specifically protect people in different classes of buildings, and the rules for permanent residents and short-term tourists vary wildly. What's more, the incursion of tourists into permanent residences jeopardizes tenant security and disrupts their quiet enjoyment in their homes.

"Homes are not hotels," said Assemblymember Linda B. Rosenthal. "But Airbnb turns apartment buildings into hotels, with tourists traipsing around at all hours of the day and night, hosting raucous parties, trashing common areas, contributing to vermin and wreaking general havoc in the buildings. This law will help to ensure that permanent residents are protected against the security and other problems created by tourists in their building."

Airbnb has threatened a legal challenge, erroneously arguing that New York's law runs afoul of the federal Communications Decency Act, which shields internet platforms, such as Airbnb from liability, for content posted on its site by third-party users. The law will withstand the challenge since liability is assigned to third-party users or hosts for advertising illegal listings, and not Airbnb.

"Airbnb's legal claims amount to nothing than empty threats," said Assemblymember Linda B. Rosenthal. "We here in New York know how to write strong tenant protection legislation that does not run afoul of federal law, and I hope other cities and states will soon follow our lead."

The effort to crack down on Airbnb's illegal hotel activity in New York enjoyed broad support among a diverse range of interests. In addition to being a bipartisan effort, the campaign saw tenants' rights and affordable housing advocates joining forces with the real estate lobby and the hotel industry to stop the illegal spread of Airbnb."