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Airbnb on Friday filed a lawsuit against New York state’s attorney general, New York City and its mayor Bill de Blasio after the state enacted a law that steps up enforcement against those who violate short-term rental laws.
The bill that authorizes fines of up to $7,500 for listings that violate a 2010 state law forbidding rentals of less than 30 days when the owner or tenant is not present.
Airbnb alleges that the bill violates Airbnb hosts’ free-speech rights and due-process rights, and is ambiguous about whether Airbnb or its hosts would be liable for any violations. The bill was signed into law by New York Gov. Andrew Cuomo on Friday.
“In typical fashion, Albany back-room dealing rewarded a special interest — the price-gouging hotel industry — and ignored the voices of tens of thousands of New Yorkers,” Airbnb said in a statement. “A majority of New Yorkers have embraced home sharing, and we will continue to fight for a smart policy solution that works for the people, not the powerful.”
New York Attorney General Eric Schneiderman and hotel industry representatives have long taken issue with Airbnb and its hosts. Schneiderman has argued that most New York City listings violate the law that prohibits dwellers from renting out units for less than 30 days.
Meanwhile, lodging representatives allege that Airbnb hosts aren’t subject to the same regulations as hotels.
New York housing advocates have maintained that the growth of Airbnb is exacerbating the city’s housing shortage.
“The law signed today will provide vital protections for New York tenants and help prevent the continued proliferation of illegal, unregulated hotels, and we will defend it,” Schneiderman said in a statement. “Airbnb can’t have it both ways. It must either police illegal activity on its own site — or government will act to protect New Yorkers, as the state just did.”
Airbnb’s lawsuit is at least the second high-profile claim against a U.S. city in four months. In late June, Airbnb sued San Francisco over a bill that required all Airbnb hosts to register with the city and enabled the city to fine Airbnb as much as $1,000 a day for each listing by an unregistered host.
Airbnb justified its lawsuit by calling San Francisco’s registration system “broken” and “confusing.”
In New York, Airbnb’s impact on the hotel market has long been in dispute. In February, hospitality-research firm STR said Airbnb didn’t have a material impact on Manhattan hotel demand because Airbnb units’ occupancy and rental rates are substantially lower than those of the hotels. Airbnb hosts’ accommodations account for about 9% of Manhattan’s approximately 92,000 lodging units, STR said.
In another report, research firm CBRE Hotels estimated that Airbnb units account for about 16% of the lodging units in New York’s five boroughs and about 5% of New York City’s annual lodging revenue.
And, the American Hotel & Lodging Association did a study showing that “full-time hosts” who illegally rent out unoccupied units at least 360 days per year accounted for almost a quarter of the revenue generated by New York’s Airbnb hosts.
Sourse: travelweekly.com
