New York, NY – Speaker Christine C. Quinn, Council Member Gale A. Brewer, Council Member Daniel Garodnick, Council Member Jessica Lappin, Council Member Rosie Mendez, Manhattan Borough President Scott Stringer, State Senator Liz Krueger, State Senator Tom Duane, Assembly Member Richard Gottfried, Assembly Member Linda B. Rosenthal, Housing Conservation Coordinators, the Hotel Association of New York, the Westside Neighborhood Alliance, the Goddard Riverside’s SRO Law Project, elected officials and advocates today celebrated a Council vote to set fines for those who illegally convert permanent residential units into illegal hotels.
The legislation will set fines at $1,000 to $25,000 for those who illegally convert multiple apartments or receive repeated illegal conversion violations.
“Time and time again, we hear from residents who have been pushed out of their homes by landlords looking to make a quick buck,” said Speaker Christine C. Quinn. “Our legislation will make sure there are immediate and severe consequences for landlords who endanger the safety of residents and tourists and take away affordable housing from New Yorkers in need.”
“I thank the advocates, government and elected officials, and tenants who for years have worked to maintain permanent affordable housing for New Yorkers in residential hotels and SROs,” said Council Member Gale A. Brewer. “There are several reasons to support Intro 404 and end illegal hotel use in the SROs: 1. Illegal hotels displace working people who rely on SRO units for permanent housing, and owners often evict stabilized tenants and move tourists in to obtain higher revenue; 2. Tourists who are on vacation stay out late and create disturbances, making terrible neighbors for working people who share bathrooms and who have to get up early for work; 3. Illegal hotels also often involve illegal alterations that create a danger for residents and firefighters in case of emergency. New York City needs more legitimate, quality, low-cost accommodations for tourists, but we should not meet this need by converting permanent residential units into unsafe dwellings, driving out lawful tenants, and rewarding illegal behavior. For all of these reasons, I urge my colleagues to support Intro 404 which empowers the City to crack down on illegal hotel operators and end these abuses.”
To protect the availability of rental housing for tenants, the legislation adds a section to the City’s Administrative Code prohibiting the illegal conversion of permanent residential units and would classify the illegal conversion of more than one permanent dwelling unit or a subsequent violation for an illegal conversion at the same dwelling unit or building as an immediately hazardous violation.
“This legislation hits these unscrupulous land lords where it hurts the most, their wallets,” said Council Member Jessica Lappin. “We will not allow these bad apples to put tenants’ security at risk and take away much needed affordable housing.”
“Too many New Yorkers in their own apartment buildings find that they are unexpectedly living in a Holiday Inn, but without the room service,” said Council Member Dan Garodnick. “Illegally renting out apartments to endless transient occupants raises serious safety concerns, and depletes the stock of affordable housing available to New Yorkers. Let’s make sure that the fines for this illegal behavior are not viewed simply as a cost of doing business.”
“The Lower East Side continues to be one of the epicenters of the illegal hotel business in our city and – remarkably – the strong statewide reforms passed in 2010 have not fully discouraged illegal conversion, speculative investment and unlawful operation,” said Council Member Rosie Mendez. “The illegal conversion of residential apartments to transient hotel rooms has a great societal cost: affordable units are lost, the price of rents in the surrounding area skyrockets and the character of our communities wane. That is why Intro 404-A is necessary at this juncture: to send a resounding message that illegal conversion will not be tolerated and those who willfully violate the law will be held accountable.”
These changes were made possible by state law amendments which state that permanent residential buildings cannot be used transiently.
“Preserving safe, affordable housing has never been more important for New Yorkers,” said Manhattan Borough President Scott Stringer. “But the illegal conversion of apartment buildings into tourist hotels eliminates housing opportunities for the tenants who need it most. The Council’s legislation will empower the City with the ability to slap illegal hotel operators with a penalty that fits the crime.”
“Today’s vote is a victory for all New Yorkers,” said State Senator Liz Krueger, the sponsor of the state law which clarified that residential housing units may not be used for transient rentals, enabling enforcement against illegal hotel operations. “Illegal hotel operators have removed thousands of affordable apartments from an already tight housing market, hurting tenants across the city. The City Council’s action today sends a strong message to these scofflaws: breaking the law is not a good business model. I thank Council Member Brewer and Speaker Quinn for acting decisively on behalf of New York’s tenants today.”
“Both long-term residents and visitors in this City have suffered the consequences of illegal hotel operators’ exploitation of loopholes and weak enforcement measures for far too long,” said State Senator Thomas K. Duane. “While I was proud to co-sponsor the landmark state law that effectively prohibits the operation of illegal hotels, and I greatly appreciate OSE’s tireless work to shut them down, the City lacked the enforcement powers it needed to comprehensively combat this scourge on our City’s affordable housing stock until now. Thanks to Speaker Quinn and Council Member Brewer, New York can finally beat back the tide of illegal hotels.”
“Illegal hotels displace residents, encroach on our neighborhoods, and lack the fire safety of real hotels. Two years ago, we passed state legislation sponsored by Senator Krueger and Assemblyman Gottfried to close loopholes in our law. Now, this bill is another important step,” said State Senator Daniel Squadron. “Thank you to Speaker Quinn, Council member Brewer, and all of the tenants and advocates here today.”
“The 2010 Illegal Hotels Law draws a clear and enforceable line between legitimate hotels and the illegal operations that disrupt and endanger tenants’ lives and rob New York City of desperately needed housing. The City has been doing a good job enforcing the law, but the fines need to be higher so they’re not just brushed off as a cost of doing business,” said Assembly Member Richard N. Gottfried, who sponsored the Illegal Hotels Law with State Senator Liz Krueger.
“Housing Conservation Coordinators, Inc. (HCC) is grateful for the hard work of Speaker Christine C. Quinn, Council Member Gale A. Brewer, their colleagues at the City Council and all of the tenants and advocates who have been fighting illegal hotels in NYC,” said Housing Conservation Coordinators, Inc. Executive Director Sarah Desmond. “Illegal hotel use has created untenable living situations for the permanent tenants, in which their health, safety and quiet enjoyment of their homes is compromised. This incredibly important bill, that dissuades and penalizes landlords from illegally renting out apartments to tourists for transient use, allows the hardworking City inspectors to assess meaningful penalties for failure to correct illegal use, and goes a long way to promoting much needed safe and affordable housing in our city. Intro 404 demonstrates the City’s commitment to ending illegal use and restoring safe decent and affordable housing for all New Yorkers. Congratulations to all the tenants who have been affected by illegal hotels, we are one step closer to getting your lives back to normal.”
“Illegal hotels are a black mark for New York City’s booming hospitality industry. They undermine the safety of workers, guests and tenants in the buildings they occupy. This legislation makes sure that City officials can enforce the law with real fines and penalties,” said Peter Ward, President Hotel Trades Council.
“Goddard Riverside’s SRO Law Project thanks Speaker Quinn and the City Council for their leadership in fighting the illegal conversion of permanent residential buildings to tourist hotels,” said Marti Weithman of the Goddard Riverside SRO Law Project. “This legislation creates an essential tool that will provide the City with the leverage it needs to crack down on landlords who are illegally converting their buildings. Passing this legislation will send a strong message to landlords that it will no longer be lucrative to illegally rent to tourists and they will be held accountable for illegal conversions, which create security risks and deprive New Yorkers of much needed affordable housing.”
“The West Side Neighborhood Alliance has been working on the illegal hotel problem in New York City for nine years,” said Tom Cayler of the Westside Neighborhood Alliance. “The State legislation clarifying the use of Class A residential apartments as per the Multiple Dwelling Law was an important step toward maintaining affordable housing for New Yorkers. The City Council’s bill increasing the fines for illegal hotel use is the next piece of the puzzle needed to discourage landlords and tenants alike from illegally converting the available residential housing stock for transient purposes. We applaud and support the Council and the Speaker’s efforts to make New York City a better and safer place for both the residents and the tourist who love it.”
“For a number of years the Hotel Association has worked cooperatively with the Administration, City Council and Albany to develop measures to eliminate illegal hotels while protecting legitimate hotel operators,” said Joseph Spinnato, President of the Hotel Association of New York City. “We think that Int. 404 is another important step in the enforcement of illegal conversions.”
“Illegal hotels not only cut into the business of the hundreds of legitimate hotel operators in the City, these conversions are often not safe for visitors, are not regulated by the various City agencies with oversight over the industry, and diminish the City’s ability to collect critical hotel and sales tax revenue from those who stay in illegal hotel rooms,” said John Fitzpatrick, Chairman of the Board of the Hotel Association of New York City and CEO of Fitzpatrick Hotels.