Airbnb might soon be a thing of the past in New York City.
The New York State Senate passed a bill this week that would prohibit companies like Airbnb from advertising short-term rentals of homes on the site. While the bill has made it through the State Assembly and the State Senate, it still needs the signature of Governor Andrew Cuomo to make it official.
The bill is designed to make the short-term rental options unable to legally be posted on Airbnb because they don't align with New York City's multiple dwelling law. That law has been in effect for six years and was created to curb landlords from buying apartments in order to run them like hotels. If this bill gets passed, anyone who lists a site on Airbnb for a period of less than 30 days faces fines. These fines range from $1,000 for the first time to as much as $7,500 for a repeat offender.
“It’s disappointing — but not surprising — to see politicians in Albany cut a last minute deal with the hotel industry that will put 30,000 New Yorkers at at greater risk of bankruptcy, eviction or foreclosure,” Airbnb Head of New York Public Policy Josh Metzler told TechCrunch. “Let’s be clear: this is a bad proposal that will make it harder for thousands of New Yorkers to pay the bills. Dozens of governments around the world have demonstrated that there is a sensible way to regulate home sharing and we hope New York will follow their lead and protect the middle class.”
What could happen as a result of this law, however, could be action taken that would result in the eviction of 31,000 people in New York City alone, according to Airbnb's latest survey results. Airbnb's business in the city would also take a hit, of course, since the company said more than half of its listings in the city are entire homes/apartments.