tavc
1501 days ago
 

NY Governor signs into law measure opposed by vacation rental owners

New York Governor David Paterson signed into law yesterday a measure that bans vacation rentals of less than 30 days in some New York City buildings.

However, Paterson issued a statement saying that he, the bill’s sponsor and New York City Mayor Michael Bloomberg support an amendment to the bill which would mean the law would not go into effect until May 1, 2011, giving property owners time to adjust to its provisions.

Many vacation rental and B&B owners, as well as companies such as TripAdvisor and HomeAway, which list vacation rental properties, had vehemently opposed the bill and urged the public to contact the governor to express opposition to the bill.

Adoption of the law sets up the possibility that vacation rental websites may have to pull some of their listings of New York City vacation rentals and B&Bs — although it’s now possible the law would not go into effect until May 1, 2011.

This also would give property owners time to continue their fight against the new law.

tavc

Opponents argued that the bill unduly restricted the rights of New York City property owners and will prove to be detrimental to tourists seeking an economical New York City stay.

The law bans all rentals — not just vacation rentals — of less than 30 days in Class A buildings, and was aimed in part to ensure that these buildings aren’t kept off the apartment rental market.

There is fear that other states or cities may institute similar laws.

Paterson signed the bill into law late Friday, 10 days after he had received it from the state legislature, according to the New York Daily News.

A spokesperson for the governor’s office confirmed that he signed the bill into law.

Governor Paterson stated: ”This new law fixes problems caused by illegal hotels and improves quality of life in traditional residential apartment buildings, while also meeting the needs of visitors. By removing a legal gray area and replacing it with a clear definition of permanent occupancy, the law will allow enforcement efforts that help New Yorkers who live in SRO (single room occupancy) units and other types of affordable housing preserve their homes.

“My office, the bill sponsors and the City have agreed to support a chapter amendment that makes the effective date of this law May 1 of next year. By making the effective date of this law May 1, 2011, property holders, business owners and not-for-profit corporations will be able to adjust the uses of their properties to the provisions of this law, or to dispose of the properties at issue so that they may find alternate sites for their current uses.”

The restrictions apply to “Class A multiple dwelling buildings” and the bill was backed by New York City Mayor Bloomberg, who saw the measure as a means of cracking down against illegal hotels.

As the clocked clicked down on Paterson’s 10-day deadline to sign or veto the bill, S6873, there had been misplaced optimism that Paterson might veto the bill.

 
 
Dennis Schaal

About the Writer :: Dennis Schaal

Dennis Schaal was North American editor for Tnooz.

 

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  1. Matt Davison

    What an absolute joke. My hotel for coming to New York has been closed due to this. Which means i have nowhere to stay in June for 10 days. Plus getting a new hotel will cost me alot more money.

     
  2. Constance

    I support this law because I own an apartment in a co-op and our building has had problems with owners that do not live in our building but rent out their apartments as hotel rooms. We have paid enormous exterminating bills this year due to bed bugs, our hallways are litterd with garbage that the visitors leave outside their doors thinking that employees comes around and picks up, loud music all hours of the night and the list goes on an on. Perhaps if the owner of the unit actually lived in the building then maybe their guest wouldn’t be so inconsiderate. I prefer to rent an apartment instead of a hotel room when I travel and when I do I’m, 1- given a statement from the owner and management company that the rental is allowed in the building, 2- given a contract to sign regarding conduct along with the rules of the building, 3- the owners own rules for the care of the apartment and 4- the owner DOES live in the building in case of any problems. Perhaps if the owners that are renting had respect for their fellow share holders, the ones that are fed up with their property being abused and don’t want their building to have strangers coming and going with no regard for anyone else this wouldn’t be an issue for the State to decide. Unfortunetly, those owners are more concered with the money they make than their neighbors quality of life being disturbed and sometimes at risk.

     
    • Ellen

      This sounds more like a problem with your nyc co-op than with the nyc short term rental laws. Any co-op worth its salt in nyc has building rules and by-laws in place to prevent the type of abuse you described. And should have a decent co-op board in place to enforce the rules and protect the shareholders.

      Saying that an entire small business industry should be eliminated because some buildings have lousy management is wrong. Many nyc homeowners run very responsible and considerate part-time rentals (such as you described in your travels) and should not all be punished. There are other ways to stop those who abuse common rules of conduct or safety. This is clearly more about the hotel lobbyists than protecting any quality of life issues.

       
  3. Joe

    Perhaps they should ban hotels from renting thier units long term or selling them as condos

     
  4. Patrick Henry

    THe Governor and Mayor are quick completely misinformed for supporting this law. Any bonehead can understand why the hotel lobby pushed this bill. They were surely able to spread a few million around to certain legislators to pass this ridiculous, illegal ban. I doubt they have enough money to bribe Bloomberg and Patterson probably doesn’t give much care about the city as he’s headed for the door. While there are clearly problems arising with vacation rentals, this is true for hotels as well as every other form of housing. WE operate a business of short term rentals which — like the industry as a whole — has thrived. The reason this industry has thrive is that we offer guests a whole lot more for their money than NYC hotels do. In Manhattan, for several hundreds of dollars per night, most hotels offer guests a tiny room without kitchen or space. Some have bed bugs, a lack of light and are filthy. For the same or less money as any hotel, we can offer the guests an entire (very clean) apartment with full kitchen and multiple bedrooms and living room. Guests enjoy their more affordable NYC visits much more and are more likely to return and spend more money in the city. That’s a GOOD thing for NYC. And to pass such law IMMEDIATELY is absolutely outrageous. This is a complete recipe for financial distaster for hundreds or even thousands of Manhattan businesses and residents who have invested their lives and millions of dollars in their property and entered contracts with thousands of businesses and guests to provide housing for the next year. You cannot expect such people and businesses to stop their lives on a dime, immediately fire all of the people employed in this industry and tell the banks and others who have invested in them that they cannot afford to pay their mortgages or rent because the governor has just outlawed their entire business. NYC will also lose a lot of tax revenue. The Hotel industry will give a hearty laugh because they managed to dupe or bribe these politicians into elminating their competition. This is truly un-American. The hotels will be able to inflate their already very high prices on this limited commodity (short term rentals). The politicians are also eliminating an important option for many New Yorkers who find themselves in need of temporary quarters when they are moving, renovating or repairing their apartments, having family visit who cannot fit in their tiny apartments. Few families can afford or want to spend weeks in a tiny Hotel room when confronting these circumstances. This bill is a travesty at so many levels. Also, it is ridiculous to say that everyone responsible agrees that this law should not go into effect until next year and then sign the law into effect. The governor should have vetoed it and sent it back to change the effective date. Stupid, stupid, and more stupid.

     
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  7. Graham

    That makes no sense at all. In Australia we have tons of apartment rentals/serviced apartments. There are no issues caused by them and they’re very profitable.

    This seems like a move in the wrong direction, to me.

     
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