Tuesday, June 21, 2016

SUMMARY OF NEW AIRBNB LAW



Not yet signed by the Governor:

"BILL NUMBER: S7053

TITLE OF BILL : An act to amend the multiple dwelling law, in
relation to the short term rental of dwelling units through internet
based residential rental websites

PURPOSE OR GENERAL IDEA OF BILL :

An act to amend the multiple dwelling law, in relation to the short
term rental of dwelling units through internet based residential
rental websites

SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of the bill amends the Multiple Dwelling Law by adding two
new subdivisions 15-a and 15-b, which define "short term rental unit"
and "internet based residential rental website."

Section 2 amends the Multiple Dwelling Law by adding a new Section 15
which mandates that tenants and subtenants are liable for violations
of the Multiple Dwelling Law pertaining to the illegal short term
rental of Class A dwellings, when the legal tenant or subtenant of
such premises rents their unit through an internet based residential
rental service without the knowledge and consent of the property
owner. The new Section 15 further mandates that when a tenant or legal
subtenant has abandoned the unit in question, the property owner shall
provide all information it possesses regarding the whereabouts of the
tenant or legal subtenant to enforcement authorities.

Section 3 sets forth the effective date of the law.

JUSTIFICATION :

While the regulatory debate over the legality of AirBnB and other
Internet-based residential rental platforms continues in New York
State, it remains the case that the rental of units in a Class A
multiple dwelling (many apartment buildings, condominiums, etc.) for
less than thirty days is illegal. As such, enforcement authorities
have the ability to levy fines of up to $2,500 per day for violations
of the Multiple Dwelling Law and currently, landlords - who are often
unaware that their tenant or a legal subtenant is illegally renting
their unit through these platforms - are hit with this civil penalty.
As an issue of fairness, and until a regulatory framework is put in
place to address this and larger issues pertaining to Internet-based
residential rental platforms, it is only just that the tenant or legal
subtenant soliciting and providing travelers with an illegal
short-term rental is responsible for these fines.

PRIOR LEGISLATIVE HISTORY :

None. New bill.

FISCAL IMPLICATIONS :

None apparent to the State. The ability to levy fines for violations
of the Multiple Dwelling Law is not changed, except that the liable
party differs from that under current law.

EFFECTIVE DATE :
This act shall take effect immediately."

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