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.