Is there a New York law that turns my apartment into an illegal hotel?

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I have been renting my apartment occasionally for a week or so when I go out of town. I have heard conflicting things about the city's effort to cut out illegal hotels in the media. According to the law am I doing something illegal?

Attorney Answers

2
Kent Gubrud ·
According to the City of New York, renting out an apartment for less than 30 days supposedly violates section 4 of the New York State Multiple Dwelling Law (or “MDL”) as amended by the Legislature in 2010. Under the City’s “illegal hotel” theory, such short-term rentals supposedly implicate some unidentified MDL language that causes the entire building to automatically and retroactively convert into a “hotel,” thereby supposedly implicating the building and fire codes of hotels and violating the Certificate of Occupancy of such apartment building. In fact, when one examines the MDL, it becomes obvious that the NYC’s “illegal hotel” arguments lack any merit. Specifically, for example, the MDL’s definition of a “hotel” has nothing to do with the duration of its rentals [see MDL Section 4(12)]. In addition, the applicable common law of New York has long held that the duration of an occupancy is not relevant to the definition of the “hotel.” The term “illegal hotel” is actually something that former Mayor Bloomberg began using in 2006 (long before the 2010 Legislature ever amended the MDL Section 4) when he started sending police (and fire) officials to try to help DOB building inspectors gain entry into NYC buildings without getting the required search warrants. After an appellate court rejected the Mayor’s legal arguments in 2009 (NYC v. 330 Continental, he tried to get the Legislature to modify the MDL to reverse what the appellate court had ruled. However, while trying to make short term rentals unlawful, the 2010 Legislature in fact did nothing to enact the City’s current, flawed “illegal hotel” theory and arguments. Despite the lack of legal merit, because the City still controls and operates the NYC agencies that investigate, prosecute and adjudicate these types of cases (i.e. the NYPD, FDNY, the Department of Buildings and the Environmental Control Board, or “ECB”) the City has – so far -- been able to ignore the law and get away with its unjustified prosecutions of building owners. Incredibly, when the City’s ECB upholds the department of building’s unjustified “illegal hotel” theory, the ECB refuses to disclose its claimed legal authority in its Notices of Violation or enforce the actual MDL legal definition of a “hotel.” In fact, remarkably, the City refuses to even enforce the State and federal Constitutions at the ECB. Unfortunately, the City of New York is well known for “rigging” its administrative agencies in order to more effectively collect revenue, even in violation of law. For example, a couple of years ago, concerning the Department of Consumer Affairs (DCA), former Public Advocate de Blasio (current Mayor) described DCA proceedings as follows: "Before an inspector even walks through the door, the fix is in. City Hall is out to squeeze small businesses any way it can. We see it every day with nuisance fines that can literally kill a business. To find out that even the appeals process is rigged against business owners is completely outrageous. This is government at its worst—and this needs to end now.” And, similarly, according to the New York Times, Mayor de Blasio (when he was Public Advocate) described the completely unfair ECB’s legal procedures as follows: “I want to say, in defense of the Environmental Control Board, they are slightly more fair than the Spanish Inquisition.” See: www.nytimes.com/2012/10/27/nyregion/de-blasio-focuses-on-small-business-owners-as-he-eyes-new-york-mayor-bid.html?_r=0 The Mayor’s view about the ECB was not founded only upon its recent conduct and is not much of a secret. Indeed, ten years ago, former Councilman James Gennaro (D-Queens), held hearings concerning the need to reform the "kangaroo tribunal" known as the ECB. Thus, contrary to the City’s current legal claims, by renting out an apartment for less than 30 days, the MDL does not actually convert your building into a “hotel” (illegal or otherwise). Some building owner needs to challenge this.
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Steven Smollens ·
Dear New York Tenant: Yes. Short term rentals are illegal. In nearly every instance also a lease violation. If the apartment is rent regulated the tenant may lose the legal right to the apartment if challenged by the landlord in a special proceeding in the NYC Housing Court. There is no conflict on the issues.
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