BILL NUMBER:  S6340

 TITLE OF BILL :

An act to amend the multiple dwelling law and the administrative code
of the city of New York, in relation to prohibiting advertising that
promotes the use of dwelling units in a class A multiple dwelling for
other than permanent residence purposes; and to amend the real
property law, in relation to requiring that landlords provide notice
to tenants of the consequences of advertising a rental unit for use on
short term rental websites

 PURPOSE :

To prohibit advertising for the use of dwelling units in a class A
multiple dwelling and require notice to tenants of the consequences of
advertising a rental unit on short term rental websites.

 SUMMARY OF PROVISIONS :

Section one amends the multiple dwelling law by adding a new section
121

* Prohibits advertising that promotes the use of dwelling units in a
class A multiple dwelling for other than permanent residence, by
making it unlawful to advertise the occupancy or use of this class of
              

dwelling units for other than permanent residence purposes.

* Any person in violation of this provision shall be liable for a
civil penalty of not more than $2,500 for the first violation, $5,000
for the second violation, and $7 500 for the third and subsequent
violations

* Under this law, the term 'advertise" shall mean any form of
communication for marketing that is used to encourage, persuade or
manipulate viewers, readers or listeners into contracting for goods
and/or services as may be viewed through various media including but
not limited to:
          o Newspapers, Magazines, Flyers, Handbills, Television
          commercials, Radio, Signage, Direct mail, Websites, Text
          messages

Section two amends subchapter three of chapter one of title twenty
seven of the administrative code of the city of New York by adding a
new article.

* Same as above

Section three amends the real property law by adding a new section
226-c.

* The landlord is required to provide notice to tenants on all annual
and bi-annual lease renewals that offering or advertising the rental
unit on a short-term rental website may be prohibited if the rental
unit is a class A multiple dwelling, and that such offering or
advertising may violate the terms of the lease agreement.

* Such notices provided by the landlord should encourage tenants who
wish to offer or advertise the rental unit on a short-term rental
website to contact the proper authorities prior to utilizing such
short-term rental websites

Section four sets forth the effective date



* This act shall take effect immediately; provided, however, that
section three of this act shall take effect on the ninetieth day after
it shall have become a law.

 JUSTIFICATION :

It is and has been illegal in New York City to occupy a class A
multiple dwelling unit for fewer than 30 days. The legal prohibition
against transient occupancy in these dwellings was instituted to
ensure that all buildings comply with fire, building and other safety
codes relative to their class. Safety codes for class A multiple
dwelling are different than for buildings allowing transient occupancy
to ensure that specific classes of occupants are best protected.

In addition, the ban on transient occupancy in class A multiple
dwellings was also intended to guard against the dangers of mixing
long- and short-term residents in the same dwelling. The intentions of
long- and short-term occupants vary, and each occupant class has a
significantly different investment in their building and community.

In 2010, in the face of an explosion of illegal hotel operators in
single room occupancy (SRO) buildings in New York City, New York State
clarified and strengthened the laws regarding transient occupancy in
class A multiple dwellings. Now, with the proliferation of online home
sharing platforms that allow users to advertise their apartments for
use that directly violates New York State's "illegal hotels" law, the
accomplishments of years of work we have done to protect New York
tenants and hotel guests alike are at risk of being undone.

While it is already illegal to occupy a class A multiple dwelling for
less than 30 days, this legislation would clarify that it also illegal
to advertise units for occupancy that would violate New York law.
Unfortunately, online home sharing platforms have refused to rid their
sites of advertisements for use of units that would violate New York
law and subject tenants to fines and potential eviction, These online
home sharing platforms have also refused to provide New York's tenants
with accurate information about the ways in which they may legally use
the service, It rests with the city and state to protect tenants,
communities and existing affordable housing stock from an incursion
that is destabilizing communities, endangering tenants and depleting
our rapidly dwindling stock of affordable housing,

The bill will also require landlords to provide tenants with annual
notice that renting units for fewer than 30 days can in some cases
violate New York State law and subject tenants to fines and even
eviction.

The legislative intent, with respect to this legislation, is not to
criminalize individual tenants, who for the most part are
intentionally not advised of the legal prohibition against operating
illegal hotels out of their apartments. Instead, it is designed to
ensure that all tenants are aware of their legal rights and
responsibilities before making a decision to advertise their homes on
online home sharing platforms,

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately