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New York cracks down on Airbnb
New York Governor Andrew Cuomo banned short-term rentals on Airbnb after he signed a bill on Friday penalizing people for listing unoccupied apartments on the service for stays under 30 stays.
Airbnb had made an aggressive push against the proposal and spent $11 million on a super PAC to fund a campaign against the measure. The company also commissioned a report showing American's support for home sharing services.
The San Francisco based company's unsuccessful efforts culminated on Wednesday with a four-page proposal from Airbnb offering a set of compromises. Proposed measures in the letter included registering short term rental hosts and tourists taxes in New York.
The new law will fine violators up to $7,500 for renting residences for less than 30 days, when owners or landlords are not present at the property.
Housing activists have supported the New York measure, pointing to studies that show Airbnb's short term rentals have reduced available housing in New York City.