Airbnb sued New York City on Thursday over an ordinance that the company says imposes arbitrary restrictions that would greatly reduce the local supply of short-term rentals.

The 2022 ordinance, which the city plans to begin enforcing next month, would require owners to register with the mayor’s office, disclose who else lives in the property, and promise to comply with zoning, construction and maintenance ordinances.

Airbnb said called the restrictions “extreme and oppressive” and a de facto ban against short-term rentals that left the company no choice but to sue.

“Taken together, these features of the registration scheme appear intended to drive the short-term rental trade out of New York City once and for all,” Airbnb said. The company said the mayor’s Office of Special Enforcement “failed to consider reasonable alternatives.”

A spokesman for Mayor Eric Adams said city hall will review the lawsuit.

“This administration is committed to protecting safety and community livability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive," said the spokesman, Jonah Allon. “The rules governing short-term rentals ... have been clear for years,” and the 2022 registration law was properly adopted by the city council, he added.

San Francisco-based Airbnb filed the lawsuit in state court in Manhattan. Three Airbnb hosts filed a companion lawsuit against the city.

Airbnb sued New York state in 2016 over a ban on advertising short-term rentals. It dropped that lawsuit when the city promised not to enforce it. In 2020, Airbnb settled a lawsuit against the city over monthly reporting requirements for its listings. Airbnb said the 2022 ordinance violates both settlements.

The New York restrictions are among many efforts by local communities to regulate short-term rentals without banning them. New Orleans is among cities taking on the rental giant, after a court struck down a previous law.

In some places, opponents have raised concerns about noise and safety. Critics also say the growth of short-term rentals pioneered by Airbnb has contributed to a shortage of affordable housing for residents, particularly in vacation towns. Those complaints extend far beyond U.S. borders.

On Thursday in Italy, the popular tourist destination of Florence announced an immediate ban on new vacation rentals in the city’s historic center.

Share:
More In Business
Google and AARP to Provide Digital Skills Training for Older, Low Income Workers
Google’s philanthropy arm, Google.org, recently announced a $10 million grant for the AARP Foundation to aid in teaching digital skills to low income older workers. As the implementation of hybrid work expands, a greater emphasis is being placed on helping workers 50 years old and up — especially among women and people of color — to be digitally literate in order to keep the workplace generationally diverse. Lisa Marsh Ryerson, president of the AARP Foundation, joined Cheddar News to talk about the curriculum of the partnership. "Those of us who are 50 and older are not digital natives, so we do have a learning curve that we have to address," she noted.
AT&T Investors Digest WarnerMedia Spinoff Merger With Discovery for $43 Billion
AT&T announced earlier today it is spinning off its media properties in WarnerMedia in a merger with Discovery in a $43 billion deal.Scott Rostan, founder and CEO at Training The Street, joined Cheddar to talk about what the unwinding of the telecom giant's Time Warner media properties means for investors. "I think the investor sentiment is they're digesting the new information, and they're looking into the dividend, especially the reduction of the dividend," said Rostan, noting the transaction allows AT&T to focus on its core telecommunications business.
End of an Era: Tom Brady Announces Retirement From NFL
Greg Bishop, Senior Writer for Sports Illustrated, joins Cheddar News' Closing Bell, where he says Tom Brady's legacy is all about 'progress' and expects the future Hall of Famer to bolster his entrepreneurial ventures following his retirement.
Stocks Close Near Session Highs to Begin February
Anthony Saccaro, Founder and President of Providence Financial, joins Cheddar News' Closing Bell, where he elaborates on why he is excited that the market is beginning to rebound and believes February has the potential to be a good month after a turbulent January.
Energy Storage Solutions Company Leclanché Powers EV Fleets to Reduce Emissisions
A 2021 report from UK Research and Innovation found that the shipping industry makes up at least 2.5 percent of the world's total CO2 emissions. It's a problem that energy solutions company, Leclanché, is trying to solve. Founded in 1909, the company has been developing and producing batteries for more than 100 years. Today, Leclanché's lithium-ion battery is used to electrify not just ships, but also railroad locomotives, trucks, and specialty vehicles. Cheddar News spoke with Pierre Blanc, chief technology and industrial officer of Leclanché, to discuss.
Amazon Funds Amogy to Commercialize Ammonia-Powered Cargo-Shipping Vessels, Decarbonize Transportation
Amazon is betting that ammonia could be the fuel of the future, participating in a Series A round for the Brooklyn-based company Amogy in December. Amogy aims to de-carbonize transportation with a clean energy system that uses ammonia as a renewable fuel. Amogy is partnering with Amazon on its first commercial product - an ammonia-powered cargo-shipping vessel. Amogy CEO Seonghoon Woo joins Cheddar Climate to discuss.
FedEx Announces Student Ambassador Program With Historically Black Colleges & Universities
One of the world's largest transport companies is kicking off Black History Month with a new initiative aimed at the next generation of business leaders. Today, FedEx announced the launch of its Student Ambassador Program. Participants selected from eight historically black colleges and universities will receive career guidance from FedEx executives. The program is part of FedEx's ongoing commitment to HBCUs and will also help the company expand its pipeline for diverse talent. Cheddar News welcomes senior vice president at FedEx, Jenny Robertson, and Jerryl Briggs, President of Mississippi Valley State University, to discuss.
Load More