Score one for the hotel oligopoly.
Gov. Andrew M. Cuomo of New York has signed a bill that will impose steep fines on Airbnb hosts who break local housing regulations, creating a new law that could drive people from the short-term rental service, reports The New York Times.
Since 2010, it has been illegal in New York to rent out a whole apartment for fewer than 30 days. But some tenants and landlords have ignored those rules and have been using Airbnb to rent out their apartments for much shorter periods.
The new law allows the local government to fine hosts up to $7,500 if they are caught listing a property on a rental platform such as Airbnb.
“In typical fashion, Albany back-room dealing rewarded a special interest — the price-gouging hotel industry — and ignored the voices of tens of thousands of New Yorkers,” said Josh Meltzer, head of the Airbne’s New York public policy division.