A bill just passed the New York legislature that makes it illegal for a person to advertise an entire home on websites like Airbnb for 29 days or less. Short-term rentals are already illegal in New York, but there was no law prohibiting the advertising of such rentals until now.
The proposed legislation would impose fines of up to $7,500 for those caught making such online offers. The bill now goes to Gov. Andrew Cuomo, who will either sign it into law or veto it.
First-time violators will pay a $1,000 fine. A second violation will cost $5,000, and each violation after that will cost $7,500.
A statement from New York Attorney General Eric Schneiderman said that 72 percent of Airbnb units in New York City are in violation of the rule of law.
Airbnb supporters and investors are clearly upset about the decision. People like venture capitalists Fred Wilson, Paul Graham, Reid Hoffman, and actor and investor Ashton Kutcher have expressed their frustrations on Twitter. Those voices have been met with criticism from politicians, who argue that the decision will protect New Yorkers and help ease pressure on the housing market.
“Airbnb has been trampling on laws that protect affordable housing and renters for years,” said Linda Rosenthal. “This bill, when signed into law, will send a strong message that New York City’s working families and affordable housing come first.”
Airbnb was quick to release a statement, explaining its belief that the proposed legislation would harm lower-income New Yorkers who use Airbnb as an additional source of income.
