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Airbnb is trying to counter the lobbying force of its opponents in the hotel and real estate industries by organizing its 46,000 New York users. Airbnb is pushing back against the Share Better coalition, which includes many city and state politicians, housing groups, and the New York Hotel Trades Council union, and has repeatedly accused Airbnb of reducing the city’s supply of housing. Share Better was among the groups that supported a state bill that levies fines up to $7,500 on New York hosts who advertise illegal listings. The bill has yet to be signed by Gov.
The City Council recently held a hearing on a bill, known as 214-a, that would make New York City the first jurisdiction in the country to guarantee lawyers for any low-income residents facing eviction. Unlike defendants in criminal cases, individuals who cannot afford an attorney in civil proceedings, such as Housing Court cases, are not entitled to state-provided counsel. The hearing was held more than two years after the legislation was first proposed. Under the measure, tenants who make below 200 percent of the federal poverty line would qualify.
Last year, NYC’s buildings phased out the dirtiest type of heating oil. And, on Sept. 28, the City Council passed Intro 642, a bill requiring buildings to use cleaner biodiesel blends for heating oil. Biodiesel is a clean-burning and renewable diesel replacement fuel that is produced from multiple resources like animal fats, soybean oil, and recycled cooking oil. Biodiesel is the first fuel that was commercially produced across the U.S.
The federal government recently reported that median household incomes jumped by 5.2 percent in 2015, the largest gain on record, meaning the typical American family got a raise for the first time in seven years. In New York City, the median household income rose by 5.1 percent, to $55,752.
Following a report that found that over half of Airbnb listings in New York City were illegal, Airbnb has released its own numbers. The report was issued by Housing Conservation Coordinators and MFY Legal Services. It found that 55 percent or almost 30,000 of the more than 51,000 Airbnb listings are for the entire apartment in apparent violation of New York State law and 30 percent were rented for over a third of the year.
The DOB is rolling out a new $29.6 million computer system this summer that will replace an antiquated mainframe that still relies on paper to process all construction permits, safety inspections, and complaints. The new system is called DOB Now, and its purpose is to streamline and digitize nearly every filing. It will replace the paper-dependent Building Information System, which has been in use since 1989 and has been upgraded erratically over the years.
The New York State Legislature finished its last official session of 2016 without renewing or replacing the state’s 421-a program. The 421-a program expired in January. Originally, it launched during the fiscal crisis of the 1970s to encourage new residential construction by offering developers tax breaks. Owners who receive the 421-a tax benefits are supposed to submit all the units in their properties to rent stabilization for the duration of their tax breaks, which can span up to 34 years and significantly lower property tax burdens, in some instances by more than 90 percent.
The New York State Senate recently passed a bill that would make it illegal to advertise short-term rentals (less than 30 days) for entire homes on Airbnb after the State Assembly passed the bill through to the State Senate. The next step in the process is for Governor Andrew Cuomo to either sign or veto it.
The City Council recently introduced a set of bills aimed at limiting the practice of buying rent-stabilized units at prices that advocates say make sense only if some tenants are ultimately replaced by higher-paying ones. The council members are hoping that by targeting and identifying real estate professionals involved in these “predatory equity” transactions the attention may stem aggressive tactics used to push out rent-stabilized tenants.
Recently, Steven Croman, a landlord whose companies had bought up more than 140 Manhattan apartment buildings, turned himself in to the authorities after he was charged with 20 felonies, including grand larceny, criminal tax fraud, falsifying business records, and a scheme to defraud, relating to accusations he inflated his rental income to secure more than $45 million in bank loans. He faces up to 25 years in prison. Croman pleaded not guilty to the criminal charges in State Supreme Court in Manhattan.