Pebdubg Short Term Hotel Bill

Online, July 23, 2010 (Newswire.com) - Contact: Jonathan B. Nelson, Partner
Email: jnelson@dorflaw.com

The Short Term Rental Association (STRA), a not yet incorporated trade organization, opposes Bill A10008/S6873 (the "Proposed Bill") which seeks to make it illegal for property owners to lease or sublease on a short-term basis (less than 30-days) their property in New York. The Proposed Bill is anti-competitive, over-broad, and it unfairly limits the rights of small property owners to rent their property on a short-term basis.

Passage of the Proposed Bill would, in essence, throw the baby out with the bath water. While the Proposed Bill may be aimed at addressing valid public concerns, its over-breadth strikes at the hearts of law abiding business owners and homeowners. STRA looks forward to working with the governor's office and the legislature in drafting a fair bill that addresses the community concerns in a fair and responsible manner.

During these trying economic times, the right to rent or sublease on a short-term basis a property unit or home has enabled many property owners, whose only asset is the roof over their head, to survive. The right to provide rental units on a short-term basis has allowed literally thousands of property owners to earn supplemental income they so desperately need to make ends meet. Depriving these property owners of the use and economic value of their property by passing a blanket restriction on short-term rentals is grossly unfair and will result in significant economic pain for thousands of New York property owners, including being singularly responsible for propelling many New Yorkers into foreclosure and bankruptcy.

The Proposed Bill will materially reduce the number of visitors to New York by doing away with an affordable way to stay in the city and the state. The short-term rental market spawned from a market need which was not being met and has allowed many people who could not ordinarily afford to visit New York, the opportunity to visit our wonderful state. These tourists spend meaningful dollars in New York and bring significant economic benefits to restaurants, Broadway shows/entertainment and other businesses, as well as helping small property owners to survive.

The Proposed Bill is an over-broad and poorly thought-through effort, which not only does not address health and safety concerns cited by the supports, but completely disregards the rights of property owners to control the use of their property. We and countless others believe that the Proposed Bill will result in great economic hardship for thousands of property owners and reduce economic benefits flowing into New York, without adequately addressing any health and safety issues.