Relates to clarifying certain provisions relating to occupancy of class A multiple dwellings

Summary of specific provisions

Section 1 of the bill would add a new article 7-D to the multiple dwelling law, creating a short-term rental registration process. Under the registration process, the individual would register with New York City Department of Buildings for a fee of $200 per unit and attest to a standard of operation that guest registration records will be kept, no illegal activity or public nuisance will be permitted, occupancy limits will be followed, Cleaning procedures will be conducted between guests, and the name of a local Contact person shall be provided to guests. Two complaints that lead to violations will automatically cause a revocation of the registration.

Section 2 of the bill amends section 4 of the multiple dwelling law. A new subparagraph 3 would allow for owner-occupied brownstones with 4 or less units to provide short-term rentals. A new subparagraph 4 adds requirements to certain short-term rental units in other class A multiple dwellings. Such requirements include:

o Not an SRO o Contain a bathroom and kitchen o Guests receive notice of evacuation diagram o Smoke detectors are located in each room o Sufficient liability insurance to cover guests (this is something to be more specific on) o Expressly carves out rent stabilized units/rent controlled and other subsidized housing o Specific occupancy/hotel taxes required o Registration required unless unit is used for less than 30 days per calendar year

Section 3 of the bill amends section 4 of the multiple dwelling law to add a new subdivision 15-a that would define "short-term rental unit". Sections 4, 5 and 6 of the bill would amend the administrative code of the city of New York, adding the same language as in sections 1, 2 and

3 of the bill to section 27-2004 and a new article 2 to subchapter 1 of chapter 2 of title 27, and thereby, maintaining uniformity.

Justification

Last year's law was written to encompass a greater universe than was intended. While it will attempt to phase out short-term SR0s, it also is ridding New York State of a legitimate business model: short term rental units used by tourists, hospital patients and business guests.

These short term units provide tax income to New York and tourism dollars to the areas in which they are located. They should not be confused with the small single room living spaces that are SR0s, which often get associated with decrepitude, poor maintenance, and numerous building and health code violations. These units should also not be confused with the illegal hotels hotels that often contain subdivided units and an excess-occupancy such that fire and safety codes are not complied with. Short-term rentals are a growing industry for travelers and the only way for the City to ensure the safety of guests and permanent residents alike is to properly regulate the industry.

This legislation is written to expressly exclude rent stabilized and rent controlled units and to protect the public. While one can certainly find examples of municipalities and states regulating short-term rentals, it is a hard pressed task to find those which completely ban it. This legislation would help those individuals and small businesses that will no longer be able to operate because of this law.

Prior legislative history

2011: S.4263 - Referred to Housing, Construction and Community Development

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.