New Law Makes It Easier for City to Shut Down Illegal Hotels

Governor Paterson recently signed into law a measure giving the city greater power to crack down on illegal hotels. The law removes a legal gray area that contributed to the problem of landlords renting apartments as hotel rooms so they can charge more than rent laws allow. It provides a clear definition of permanent occupancy.

The bill, which was supported by Mayor Bloomberg, requires that a “class A multiple dwelling” be rented for no less than 30 days. Bloomberg began pushing for the legislation after a recent court ruling that more than 50 percent of a residential building's units had to be used for transient guests for it to be declared illegal.

State Senator Liz Krueger, the Manhattan Democrat, who sponsored the bill, argued that illegal hotel rooms have led to the removal of thousands of apartments “from an already tight housing market.”

The effective date of this law will be May 1 of next year.