News Distributed by NYC Newswire
A new bill, Bill INT 1107, introduced by Council Members Farah Louis (Prime Sponsor), Adrienne Adams, Mercedes Narcisse, and Kevin Riley, is poised to change the landscape of short-term rentals in New York City. The proposed legislation aims to roll back the stringent regulations of Local Law 18 (LL18), which nearly wiped out the short-term rental market for homeowners in one- and two-family residences across the city. If this bill goes through then small homeowners in NYC will once again be able to make ends meet through short term rental opportunities like Airbnb.
The Overreach of Local Law 18
Local Law 18, enacted in September 2023, imposed severe restrictions on short-term rentals. It required hosts to grant renters unrestricted access to all parts of their homes, including private areas like bedrooms and offices. These invasive requirements triggered privacy and safety concerns among homeowners, pushing many to abandon the short-term rental market entirely.
Bill 1107 seeks to correct these overly restrictive measures by restoring homeowners' ability to rent out their properties while safeguarding private spaces. The legislation is especially crucial for working and middle-income homeowners in Brooklyn, Queens, Staten Island, and the Bronx, who have relied on short-term rentals as a vital income source.
Key Provisions of Bill INT 1107
The proposed amendment introduces several changes to offer more flexibility and protection for one- and two-family homeowners:
1. Restored Short-Term Rental Permissions
Homeowners of one- and two-family dwellings will once again be allowed to legally offer short-term rentals for stays of 30 days or less. This measure seeks to undo the restrictions of LL18, reviving a crucial revenue stream for property owners.
2. Control Over Private Spaces
The new legislation explicitly states that homeowners are not required to provide renters access to private areas, such as bedrooms or offices. This provision addresses safety and privacy concerns, making the prospect of short-term rentals more appealing and viable for homeowners.
3. Increased Flexibility for Homeowners
Under the proposed bill, homeowners can offer short-term rentals even if they are not physically present during the rental period. This change accommodates homeowners who travel frequently or wish to rent out their homes seasonally.
4. Expanded Occupancy Limits
The amendment raises the allowable occupancy to four adult boarders and their children per stay. This increase is designed to enhance rental income potential and cater to larger visiting groups, broadening the market appeal.
Brooklyn NY- August 13 2007: 19th century brownstones line the west side of Henry Street in the Brooklyn Heights historic district[/caption]
Economic Insights from HR&A Report
A recent report by HR&A Advisors highlights the economic fallout from LL18. According to the analysis, the outer boroughs are projected to lose $1.6 billion in visitor spending, along with over 15,700 jobs and $573 million in worker earnings due to the drop in short-term rental activity. The report also noted that despite LL18's aim to increase housing availability, vacancy rates have remained stagnant, and rents continue to rise, with Airbnb listings plummeting by about 92%. This suggests that the law has failed to deliver on its promises of improving housing affordability while significantly dampening the city's economic vibrancy.
Strong Community Support
Homeowner advocacy group RHOAR (Restore Homeowner Autonomy And Rights) has thrown its weight behind Bill 1107, emphasizing its potential to alleviate the financial burden caused by LL18. In a recent statement, RHOAR remarked:
“Intro 1107 regarding proposed amendments to New York’s short-term rental laws would be a crucial step in saving NYC’s homeowners. The current law, while needed to stop bad actors, went too far and has devastated working and middle-income homeowners, especially in Brooklyn, Queens, Staten Island, and the Bronx, essentially rendering all of us unable to rent out our own homes short-term when we’re simply trying to make ends meet. Although there is still a long way to go towards undoing the financial harm that has been caused, these amendments would allow the city’s homeowners to regain some of the housing security and autonomy that we have lost – which is especially critical at this moment when the costs of affording and maintaining a home have never been higher.”
RHOAR also expressed gratitude towards City Council Speaker Adrienne Adams and the bill's sponsors for addressing this pressing issue.
The Booming Hotel Market and Soaring Prices
The HR&A report indicates that LL18 has inadvertently bolstered the hotel industry, which initially lobbied for the law. Since its implementation, hotel prices have surged, with the Average Daily Rate (ADR) increasing by 6% from May 2023 to May 2024, peaking at a record-high ADR of $524. This sharp rise has funneled tourists primarily into midtown hotels, limiting accommodation choices and increasing costs for budget-conscious visitors.
With only 20% of hotel rooms located outside Manhattan, the outer boroughs have seen a significant loss in tourism revenue. Local businesses in Brooklyn, Queens, the Bronx, and Staten Island have been particularly hard-hit, missing out on the economic benefits that short-term rentals previously provided.
A Step Towards Economic Recovery
As Bill 1107 moves through the City Council, it offers a chance to reverse the economic and social impacts of LL18. By restoring short-term rental opportunities, the legislation aims to reintroduce diverse, affordable accommodations for visitors while supporting local homeowners in maintaining their properties.
The bill's passage could signal a more balanced approach to the city's housing and tourism economy, easing financial pressures on property owners and distributing the benefits of New York's vibrant tourism sector more evenly across all five boroughs.
If successful, Bill INT 1107 will not only revive short-term rentals but also pave the way for a fairer, more economically robust city.
News Distributed by NYC Newswire
