Airbnb sues NYC over new rules requiring hosts to register their homes as 
short-term rentals

Airbnb claims it faces an existential threat in New York City.

By Jaclyn Jeffrey-Wilensky and Christopher Werth Published Jun 2, 2023 
https://gothamist.com/news/airbnb-sues-nyc-over-new-rules-requiring-hosts-to-register-their-homes-as-short-term-rentals


In a pair of lawsuits filed in state Supreme Court in Manhattan on Thursday, 
the online platform and three hosts claim that new rules requiring short-term 
rental properties to be registered with the Mayor’s Office of Special 
Enforcement will “all but eliminate” the market for home-based vacation stays 
in the city.

The registration requirement, known as Local Law 18, stems from legislation 
passed by the City Council last year and applies to anyone planning to rent out 
their property in the city for less than 30 days. The city finalized the new 
rules earlier this year. They went into effect in March and enforcement is 
scheduled to begin in July.

But Airbnb argues that the new rules are overly burdensome and complex, in part 
because they require hosts to obtain a unique identification account with the 
city, provide proof of identity and contact information, and clear all existing 
building violations on their properties, among other requirements.

The regulations will also force Airbnb and other short-term rental platforms to 
cross-reference registrations with the listings on their sites, the company 
says — a process that it claims can be easily hindered by typos or 
abbreviations.

“It is literally impossible for regular people to comply with the rules,” said 
Airbnb’s attorney Karen Dunn at a press conference on Thursday. “These are 
regulations that experts will tell you no regular person could understand 
unless they had a history of working in building code engineering.”

The company’s complaint states that the city had only approved nine host 
registrations as of the beginning of May, less than two months before the 
enforcement deadline, according to information provided to Airbnb from the city.

“That is a de facto ban on short-term rentals in New York, and that's what the 
city is trying to bring about with these new rules,” Dunn said. “Airbnb will 
have to cancel thousands of reservations over the summer, impacting hosts and 
thousands of tourists planning to come to New York City. And so the city of New 
York is poised to be the Grinch who stole summer.”

We live here, too.

The complaint also contends that in implementing the rule, the city ignored 
feedback from hosts and disregarded its unintended consequences — such as 
discouraging hosts from offering legal short-term rentals.

Airbnb has requested that the court stop the new rules from taking effect 
before enforcement begins next month.

The city has about 12,000 Airbnb listings that are booked for short stays on a 
regular basis. More than 60% of those are full homes or apartments, many of 
which will be barred from registering under the new rules.

While these short-term rentals are common practice, they are already illegal 
under New York state’s multiple dwelling law, which only allows hosts to rent 
out their own homes while they are present.

Jonah Allon, a City Hall spokesperson, said the registration rules are city law 
and that the city has worked hard to get hosts and short-term rental companies 
up to speed. Furthermore, he added, the multiple dwelling law is old news.


“The rules governing short-term rentals, codified in both city and state law, 
have been clear for years,” he said in a written statement.

In a separate lawsuit, three Airbnb hosts claim that some of the personal 
information that’s required to register their properties — including the number 
of people living in their homes who are unrelated to them — amounts to a 
“warrantless administrative search of their private personal information,” 
which they suggest is prohibited by the Fourth Amendment.

One of the hosts named in the complaint, Rupi Arora, said she rents out part of 
her Forest Hills home to supplement her Social Security and pay for home 
repairs. She and the other hosts called on the city to make a distinction 
between illegal hotel operators and small hosts renting out parts of their 
homes.

“If Airbnb is stopped by the city, I will lose this revenue. I might have to go 
to the city to ask for money to help me pay my bills,” Arora said. “I'm not 
selling my house to move out. Where would I go? Which city would I go to? I 
came to this city and this is where I'm going to live till I die.”

Gia Briscoe, a musician, said that Airbnb has helped her and her husband stay 
afloat and hang on to their Brooklyn Heights brownstone, which has been in her 
family for generations.

“We were in support of some regulations,” she said. “All we asked was that they 
be fair and allow people like us to continue sharing our own home where we 
live.”

Tom Cayler, a supporter of Local Law 18 and chair of the illegal hotels 
committee at the West Side Neighborhood Alliance, said he was skeptical that 
the suits would stand up in court.

“This is the best [Airbnb’s] crack legal team could come up with?” he asked in 
an email to Gothamist.

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