A long-anticipated showdown between Airbnb and New York City culminated in a ruling on Tuesday, as a state Supreme Court justice sided with the city over new regulations governing short-term rentals.
Judge Arlene Bluth dismissed suits that Airbnb and three of its hosts had filed against New York City, asserting that the regulations, embodied in Local Law 18, did not impose undue burdens. Her ruling clears the way for the city to begin enforcing the law on Sept. 5.
“Nearly every commercial activity in New York is governed by a set of rules,” Judge Bluth wrote in her decision. She emphasized that the regulations merely required Airbnb to verify potential listings to ensure their legality.
The law, which took effect in January, has been a point of contention since its inception. Airbnb and the host plaintiffs contended that the new regulations, especially the license registration process, would effectively eradicate short-term rentals across the city’s five boroughs.
Airbnb has pointed to the slow approval rate under the new rules as evidence of its claims. As of May, fewer than 10 short-term rental licenses had been granted. In contrast, Airbnb asserts that over 80,000 guests have bookings for stays beginning on or after the enforcement date.
Attorney Debbie Greenberger, representing the three host plaintiffs, expressed disappointment in the ruling. “The city’s rules target ordinary New Yorkers instead of the illegal hotel operators,” she stated, emphasizing the financial hardships hosts face in the city.
City officials and supporters of the law view it differently. Their stance is that it aims to make more housing units available for full-time residents and curb illegal renting. Over the years, complaints about short-term rentals have mounted, with nearly 12,000 reported from 2017 to 2021.
As the enforcement date looms, it remains to be seen whether the Office of Special Enforcement will be able to process the backlog of short-term rental…
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