Published: Sun, October 23, 2016
Economy | By Melissa Porter

New York governor approves new regulations on Airbnb

New York governor approves new regulations on Airbnb

This comes just a few days after Airbnb announced plans to crack down on hosts with multiple listings in ny and San Francisco.

NY housing law restricts short-term rentals for certain housing, and housing advocates in the city argue that numerous units listed on Airbnb are illegal.

The bill regulates short-term rentals throughout the state, including fees of up to $7,500 for individual hosts who violate state regulations.

Airbnb just took a hit in NY, where Governor Andrew Cuomo signed into a law a bill the short-term rental startup has been fighting for months. People are allowed to rent out a room in their house or apartment while they are also staying there, however.

Airbnb responded Friday by saying it planned to file a lawsuit against the state.

Airbnb filed on Friday afternoon in Federal District Court in the Southern District of New York against state attorney general Eric T. Schneiderman and New York City Mayor Bill de Blasio, according to the New York Times.

But, for the NY governor's office, it seems that offer wasn't enough.

Still, the company will move forward with its lawsuit.

Prior to Gov. Cuomo signing the legislation, Airbnb's head of public policy, Chris Lehane, penned an op-ed in the New York Daily News that proposed "a comprehensive set of clear, fair rules for home-sharing in New York City to serve as the framework for new legislation".

Violators of the new law can be fined up to $7,500.

NY state is one of the most lucrative markets for rental site Airbnb, with some 46,000 people offering lodging online.

"These illegal rentals are not just breaking the law, they are breaking the back of already dangerously thin affordable housing supply", stated New York Councilmember Corey Johnson. The company last month also held a summit for its New York City hosts, where it handed out postcards and encouraged them to write the governor a message "about why you love hosting".

Airbnb is in the crosshairs of many cities around the world, where tourism industries see this increasingly popular type of home sharing, lacking the legal and tax constraints of commercial enterprises, as threatening revenues.

Airbnb claims the NY advertising law violates the First Amendment and the Federal Communications Decency Act.

New York Assemblywoman Linda Rosenthal, sponsor of the New York legislation, was unimpressed by Airbnb's announcement.

Supporters of the measure said many Airbnb rentals are already prohibited under that law.

Cuomo hasn't said what he intends to do, and Airbnb is pushing hard for a veto.

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