(The Center Square) — A New York State judge has tossed out a lawsuit filed by Airbnb challenging New York City’s “de-facto ban” on short-term rentals.
In Tuesday’s ruling dismissing the legal challenge, Supreme Court Judge Arlene P. Bluth said the city acted within its authority when it approved a law requiring short-term rental hosts to register with a local agency to reduce the thousands of illegal listings.
In June, three Airbnb hosts sued the city over the regulations arguing that the regulations, known as Local Law 18, are an “extreme and oppressive regulatory scheme” that equates to a “de facto ban against short-term rentals” and that enforcement of the rules would make it harder for hosts to do business.
But the judge rejected those arguments, ruling that requiring Airbnb to verify listings is “inherently rational” to ensure it isn’t facilitating unlawful activity. She cited data showing the city has fielded more than 12,000 complaints about short-term rentals from 2017 to 2021.
“Clearly, respondents have identified a major problem … and these rules attempt to address that issue,” Bluth wrote in the 14-page ruling.
The 2020 law, which went into effect earlier this year, set new requirements for short-term rentals in the Big Apple, including a registration and renter verification process.
City officials have defended the law, saying it’s aimed at cracking down on illegal renters and ensuring there are enough housing units for full-time residents as New York grapples with a shortage of affordable housing. The city’s Office of Special Enforcement is expected to begin enforcing the law this fall.
But Theo Yedinsky, Airbnb’s global policy director, called the rules a “blow” to the city’s tourism economy “and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home sharing and tourism dollars to help make ends meet.”
“The city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York City: you are not welcome,” he said in a statement.
In 2016, Airbnb sued New York State over a law banning advertising for short-term rentals but dropped the legal challenge after New York City agreed not to enforce the law. The company settled another lawsuit with the city in 2020 over reporting requirements for short-term rental listings.
