ALBANY – The state legislature delivered a body blow to Airbnb Friday, passing a bill that imposes hefty fines that start at $1,000 for apartment rentals of less than 30 days — which are illegal and which are a big part of the apartment-sharing site’s business.
“I’m elated,” said Assemblywoman Linda Rosenthal (D-Manhattan), the chief sponsor in the Democratic-controlled Assembly.
“You should know who your neighbor is and what happens when people rent out their apartments on Airbnb is you get strangers. Every night there could be different person sleeping in the next apartment and it shatters that sense of community in the building. It also can be dangerous.”
The measure now awaits Gov. Cuomo’s signature.
New Yorkers who advertise their apartments on Airbnb and similar sites for less than 30 days would face fines that start at $1,000 for the first offense, $5,000 the second time and $7,500 for the third violation.
Rosenthal said some of those who rent their pads through the site “serial lawbreakers” who remove apartments from the market that could go to residents instead of short-term tourists.
But Airbnb argued that the penalties could actually worsen New York City’s housing crisis by pushing poor residents who depend on the extra rental income into homelessness and financial hardship.
“For thousands of New Yorkers, Airbnb has become an economic lifeline, making it possible to pay the bills, make ends meet and stay in their homes,” said Airbnb spokesman Josh Melzter.
The bill was backed by the powerful Hotel Trades Council, which charged that Airbnb threatens “good-paying union hotel jobs in New York City and around the country.”