Skip to content

Proposed Regulation for Short-Term Rentals in NYC: A Gleam of Hope for Tourists and Small Businesses?

April 11, 2012

Senator Golden
who sponsored the new bill

Bill S4263A-2011, sponsored by Senator Martin J. Golden, advanced to third reading in February 2012.

When a bill advances to third reading, it becomes ready for a final vote.  However, a bill advancing to third reading does not guarantee that it will be voted on: it could be laid aside, or returned to committee for further study by the bill’s sponsor or it could be placed in an inactive file by the Majority Leader.

Will the Golden Bill be voted on or remain in limbo?

Recap on Bill S4263A-2011

Bill S4263A-2011 seeks to narrow the scope of the recent Short-Term Rental Ban in New York City.

The purpose of the bill is said “to provide an exemption for a specific class of good actors” who rent residential apartments on a short-term basis.

Under this proposed legislation, owners or leaseholders of a residential unit are allowed to rent for less than 30 days provided that:

(1)  The unit is not a SRO (Single Room Occupancy)
(2)  The unit has at least one bathroom and one kitchen
(3)  The unit has smoke detectors in each room
(4)  The unit carries sufficient fire, hazard and liability insurance and
(5)  The unit has a valid vacation rental license.

Chicago implemented a unique vacation rental license system in 2011

Vacation Rental License Regulatory Framework

Other communities across the US and Europe have adopted a similar regulatory framework.  For example,  Amsterdam’s short stay accommodations have been regulated since 2009 and Chicago’s vacation rentals since January 2011.

Proposed Vacation Rental License for the City of New York

– Application Fee: $ 200 (renewable every two years).
– The license is good for one unit only.
– A license is not be required if the owner rents his unit(s) less than 15 days per year.
– Licensee must rent for at least 48 consecutive hours.
– Licensee must keep guest registration records etc.

In April 2011, we posted an article about a former version of this bill regulating vacation rentals in New York City. What version do you prefer?

A potential flaw in Bill S4263A-2011?

Please note that if the licensee operates its own website, the license registration must be posted on the website. However there appears to be no such requirement if the licensee advertises his/her property on an online rental marketplace or a classified ads website.

All would benefit from such requirement to be imposed on online rental marketplaces/classified ads websites – as it would make it harder for tourists and business travelers to be scammed (a proper license registration number would need to be posted along the advertisement) and it would further “help to eliminate the type of illegal short-term use of class A units that the 2010 law sought” (one of the bill’s stated objective).

Moreover, there is no doubt that the New York legislature might be more amenable to authorize the operation of short-term rentals in residential apartment buildings in New York City if there was a system in place ensuring that owners collect the appropriate taxes from their guests.

.

What role(s), if any, should an online rental marketplace/classified ads website play in the implementation of such a system? Give us your opinion

From → Uncategorized

2 Comments
  1. Mick permalink

    This sounds like positive news for multi-family owners, who wish to use their apartments as vacation rentals, but it is still not certain that this bill will even come to a vote.

    WHAT YOU CAN DO:

    I know you care about your business and your right to make optimal use of your property. So make your voice heard by writing to NY State Senators (Listed Below) and expressing your support for this amendment S4263A-2011 Vacation rental Proposal sponsored by Senator Golden. I have included a list of state senators who heard the recent amendment and voted on its contents.

    GO to https://protect-vacation-rentals.com/ and educate yourself about this issue.

    Yours in solidarity,

    A Brooklyn Homeowner

    Here’s the letter I sent:

    Dear Senator,

    As a NYC homeowner of a multi-family property I am writing to encourage you to support the amendment brought forth by Senator Golden, Bill S4263A-2011 seeks to narrow the scope of the recent Short-Term Rental Ban in New York City. The May 2011 law passed by Governor Patterson S6873B-2009 has ensnared good landlords in its wide-ranging prohibition without exception for the legal, safe apartments they own and operate. It is appalling that multi-family homeowners have lost the right to determine how they rent the legal apartments in their own homes, by disallowing them to rent to NYC tourists for shorter stays.

    Tourists who use short-term vacation rentals do so because they refuse to pay exorbitant hotel prices. As such, the city is now losing sales tax revenue from these tourists. Further, because vacation rentals are a more economical option to hotels in NYC, this sub-set of tourists are able to stay longer in NYC to attend more shows, do more shopping and use more cabs and mass transit options.

    Thank-you for your thoughtful consideration of this issue. I hope you will choose to help and support local homeowners who deserve the right to determine how to rent their legal, safe apartments.

    Yours Sincerely,

    A cautionary tale from Protect Vacation Rentals website:

    I received a violation over the summer for “occupancy contrary to that allowed by C of O – 2-family dwelling converted to transient use”

    This was for a 2-family house in Queens, based on a neighbor complaint and the inspector speaking to the tenant who indicated “he is only here for a visit of a few weeks or months” and
    the inspector also claimed he saw a person arriving with luggage. The inspector admitted that there
    was nothing illegal about the house in and of itself, but that the violation was based entirely on
    that he believed it was being rented out on a short-term basis for a few days or weeks at a time, and that this is illegal in a 2-family house, being contrary to the C of O.

    In the first place, I thought I was allowed to rent a 2-family house out short term, but in any case at the hearing I presented a lease for 6 weeks along with the argument that since the lease was for over 30 days, it could not legally even be considered transient use in the first place and the case should be dismissed…

    However, I was found guilty, and now I wonder if the city can just decide whatever it wants, irrespective of the law?

    I plan to appeal since it seems to me the decision was improper.

    Contact info
    Gov. Cuomo
    http://www.governor.ny.gov

    (518) 474-8390
    The Honorable Andrew M. Cuomo
    Governor of New York State
    NYS State Capitol Building
    Albany, NY 12224

    NY State SENATORS

    AYES:
    golden@nysenate.gov
    skelos@nysenate.gov
    alesi@senate.state.ny.us
    Farley@nysenate.gov
    hannon@nysenate.gov
    ojohnson@nysenate.gov
    larkin@senate.state.ny.us
    senator@senatorlibous.com
    marcelli@senate.state.ny.us
    maziarz@nysenate.gov
    nozzolio@nysenate.gov
    seward@nysenate.gov
    sampson@senate.state.ny.us
    dilan@nysenate.gov
    montgome@senate.state.ny.us
    lavalle@nysenate.gov
    saland@nysenate.gov
    breslin@senate.state.ny.us
    parker@senate.state.ny.us
    perkins@senate.state.ny.us
    masmith@senate.state.ny.us

    duane@nysenate.gov
    hassellt@senate.state.ny.us
    lkrueger@senate.state.ny.us
    scousins@senate.state.ny.us

    Mayor Michael R. Bloomberg
    City Hall
    New York, NY 10007
    PHONE 311 (or 212-NEW-YORK outside NYC)
    FAX (212) 312-0700
    E-MAIL:
    http://www.nyc.gov/html/mail/html/mayor.html

    FULL CONTACT Info
    AYES:
    Martin Golden
    Albany Office
    188 State Street Room 409, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2730

    Dean G Skelos

    Albany Office
    Legislative Office Building, Room 909
    Albany, NY 12247
    United States
    Phone: (518) 455-3171
    skelos@nysenate.gov

    James S Alesi
    Albany Office
    Room 512, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2015
    Fax: (518) 426-6968
    alesi@senate.state.ny.us

    Hugh T Farley
    Albany Office
    188 State Street Room 711, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2181
    Fax: (518) 455-2271
    Farley@nysenate.gov

    Kemp Hannon
    Albany Office
    The Capitol Room 420
    Albany, NY 12247
    United States
    Phone: 518-455-2200
    hannon@nysenate.gov

    Owen H Johnson
    Albany Office
    188 State Street Room 913 Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-3411
    ojohnson@nysenate.gov

    William J Larkin
    Albany Office
    188 State Street Room 502, Senate Capitol Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2770
    larkin@senate.state.ny.us

    Tom Libous
    Albany Office
    429 Capitol
    Albany, NY 12247
    United States
    Phone: (518) 455-2677
    senator@senatorlibous.com

    Carl L Marcellino
    Albany Office
    188 State Street Room 811, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2390
    marcelli@senate.state.ny.us

    George T Maziarz
    Albany Office
    Room 708, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2024
    maziarz@nysenate.gov

    Michael F Nozzollio
    Albany Office
    188 State Street Room 412, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2366
    nozzolio@nysenate.gov

    James L Seward
    Albany Office
    172 State Street Room 430, Capital
    Albany, NY 12247
    United States
    seward@nysenate.gov
    Phone: 518) 455-3131

    John L Sampson
    Albany Office
    188 State Street Room 907, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2788
    Fax: (518) 426-6806
    sampson@senate.state.ny.us

    Martin Malave Dilan
    Albany Office
    188 State Street Room 903, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2177
    Fax: (518) 426-6947
    dilan@nysenate.gov

    Velmanette Montgomery
    Albany Office
    944 Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-3451
    montgome@senate.state.ny.us
    Fax: (518) 426-6854

    Kenneth P Lavalle
    Albany Office
    188 State Street Room 806, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-3121
    lavalle@nysenate.gov

    Stephen M Saland
    Albany Office
    State Street Room 504 – Capitol
    Albany, NY 12247
    United States
    Phone: 518-455-2411
    saland@nysenate.gov

    Neil D Breslin
    Albany Office
    172 State Street Room 413, Capitol
    Albany, NY 12247
    United States
    Phone: (518) 455-2225
    breslin@senate.state.ny.us

    Kevin S Parker
    Albany Office
    188 State Street Room 604, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2580
    Fax: (518) 426-6843
    parker@senate.state.ny.us

    Bill Perkins
    Albany Office
    188 State Street Room 517, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: 518-455-2441
    Fax: 518-426-6809
    perkins@senate.state.ny.us

    Malcolm A Smith
    Albany Office
    181 State Street Room 808, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2701
    Fax: (518) 455-2816
    masmith@senate.state.ny.us

    NAYS:

    Tom Duane
    Room 711B
    Legislative Office Building
    Albany, NY 12247
    (518) 455-2451 Fax: (518) 426-6846
    duane@nysenate.gov

    Ruth Hassell-Thompson
    Albany Office
    188 State Street Room 707 Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2061
    Fax: (518) 426-6998
    hassellt@senate.state.ny.us

    Liz Krueger
    Albany Office
    172 State Street Room 905 Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2297
    Fax: (518) 426-6874
    lkrueger@senate.state.ny.us

    Andrea Stewart-Cousins
    Albany Office
    188 State Street Room 615, Legislative Office Building
    Albany, NY 12247
    United States
    Phone: (518) 455-2585
    scousins@senate.state.ny.us
    Fax: (518) 426-6811

    Ayes (14): Skelos, Alesi, Farley, Hannon, Johnson, Larkin, Libous, Marcellino, Maziarz, Nozzolio, Seward, Sampson, Dilan, Montgomery
    Ayes W/R (6): LaValle, Saland, Breslin, Parker, Perkins, Smith
    Nays (4): Duane, Hassell-Thompson, Krueger, Stewart-Cousins

    Bill S4263A-2011 Vacation rental proposal

  2. sean permalink

    This is heartening news. I hope the bill advances. Please write to your local state rep.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: