New York City agreed to delay until September enforcement of a new municipal law requiring hosts of short-term rentals to register for an operating license.
(Bloomberg) — New York City agreed to delay until September enforcement of a new municipal law requiring hosts of short-term rentals to register for an operating license.
Airbnb Inc. and three local hosts on June 1 sued to block the regulation, which had been set to go into effect next month, saying it amounts to “de facto” ban on short-term rentals in the city.
In a Friday court filing, the city said it won’t issue violations on the law or seek the imposition of fines or penalties until September 5 while Airbnb continues litigating its case.
Shares of Airbnb rose $6.73, or 5.7%, to $124.59 on Monday.
“While we are happy on behalf of guests and hosts whose summer plans and rentals will no longer be ruined by these rules, we hope the city will use the extra time to collaborate with us on a sensible alternative solution that will benefit hosts, tourism, and the local economy,” Karen Dunn, a lawyer for Airbnb, said in a statement.
Passed in January 2022, the law requires hosts who want to list on Airbnb or other platforms to register with the city and receive an operating license and bars companies from collecting booking fees on unregistered properties. Units with unresolved fire-code violations or orders to vacate will be unable to register.
Airbnb has been battling for years over regulations implemented by the city, which are among strictest in the country and essentially forbids most short-term rentals.
The case is Airbnb Inc. v New York City Mayor’s Office of Special Enforcement, 154865/2023, New York State Supreme Court, New York County.
(Updates with share movement.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.