ALBANY, NY—Governor Andrew Cuomo today signed into law a bill prohibiting advertising for many short-term rentals—a big blow to home-sharing sites like Airbnb.
The legislation applies to rentals of fewer than 30 days when the owner or tenant is not present. Violators can face a penalty of up to $1,000 or the first violation, $5,000 for the second violation and $7,500 for the third and subsequent violations.
“Today is a great day for tenants, seniors and anyone who values the safe and quiet enjoyment of their homes and neighborhoods,” said Senator Liz Krueger (D-NY), a proponent of the law. “For too long, companies like Airbnb have encouraged illegal activity that takes housing off the market and makes our affordability crisis worse.”
In response to the law, which was signed just a few days after landing on the governor’s desk, Airbnb announced it would immediately file a lawsuit.
“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, Airbnb’s head of New York public policy, in a statement. “A majority of New Yorkers have embraced home sharing, and we will continue to fight for a smart policy solution that works for the the people, not the powerful.”