Wednesday, October 26, 2016

THE NEW AIRNBNB LAW



Here is the sponsor memo on the new Airbnb law signed  October 21, 2016:

 
BILL NUMBER:  S6340A

 TITLE OF BILL :  An act to amend the multiple dwelling law and the
administrative code of the city of New York, in relation to
prohibiting advertising that promotes the use of dwelling units in a
class A multiple dwelling for other than permanent residence purposes

 PURPOSE :

To make unlawful advertising for the use or occupancy of dwelling
units in class A multiple dwellings for purposes other than permanent
residence, to create civil penalties for violations of this
prohibition, and to define the term "advertise" in such context.

 SUMMARY OF PROVISIONS :

Section one amends the Multiple Dwelling Law by adding a new section
121. It makes unlawful to advertise the occupancy or use of dwelling
units in a class A multiple dwelling for purposes other than permanent
residence. It also contains civil penalty of not more than $1,000 for
the first violation, $5,000 for the second violation, and $7,500 for
the third and subsequent violations. Section 1 also defines the term
"advertise" as any form of communication for marketing that is used to
encourage, persuade or manipulate viewers, readers or listeners into
contracting for goods and/or services as may be viewed through various
media including but not limited to newspapers, magazines, flyers,
handbills, television commercials, radio, signage, direct mail,
websites, and text messages.

Section two amends subchapter three of chapter one of title twenty
seven of the Administrative Code of the City of New York by adding a
new Article 18. This section makes it unlawful to advertise the
occupancy or use of dwelling units in a class A multiple dwelling for
other than permanent residence, creates civil penalties based on the
number of violations of this prohibition, and defines the term
"advertise".

Section three contains the effective date.

 JUSTIFICATION :

It is illegal in New York City to occupy a class A multiple dwelling
unit for fewer than 30 days. The legal prohibition against transient
occupancy in these dwellings was instituted to ensure that all
buildings comply with fire, building and other safety codes relative
to their class. Safety codes for class A multiple dwelling are
different than for buildings allowing transient occupancy to ensure
that specific classes of occupants are best protected.

In 2010, in the face of an explosion of illegal hotel operators in
single room occupancy buildings in New York City, New York State
clarified and strengthened the laws regarding transient occupancy in
class A multiple dwellings. Now, with the proliferation of online home
sharing platforms that allow users to advertise their apartments for
use that directly violates New York State's "illegal hotels" law, the
purpose of the "illegal hotels" law is at risk of being undone.

While it is already illegal to occupy a class A multiple dwelling for
less than 30 days, this legislation would clarify that it also illegal
to advertise units for occupancy that would violate New York law.
However, online home sharing platforms still contain advertisements
for use of units that would violate New York law. It rests with the
city and state to protect communities and existing affordable housing
stock by prohibiting advertisements that violate the law, creating a
civil penalty structure for those who violate the prohibition, and
clarifying activities that constitute advertising.
 
 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE : 
 
This act shall take effect immediately.

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