By Sabina Mollot
Airbnb, the controversial home sharing listings site, was the subject of a lengthy and contentious hearing on Tuesday that consisted mainly of accusations being traded between politicians and the company’s director of global policy.
At the heart of the conversation was whether Airbnb was making efforts to comply with state law that forbids short-term rentals in most residential buildings, which the hearing’s chair, City Council Member Jumaane Williams, said he doubted. Meanwhile, Airbnb’s representative, David Hantman, threw in — at every chance he could get — a chance to defend Airbnb users who rent their homes out infrequently, who he said make up the bulk of the service’s users — and asked repeatedly why the law couldn’t be changed to exempt them. Instead, he argued, the law should just focus on “bad actors,” tenants or landlords who regularly rent apartments to tourists for short-term stays, making life hell for neighbors.
Most of the people in attendance were tenants opposed to Airbnb, due to illegal hotel activity in their own buildings, but there were also a few dozen supporters of the company, including hosts, with both groups demonstrating outside before the hearing. Those against the company carried signs with slogans like “I don’t want strangers for neighbors” and “sharing = selfish.”
A couple of demonstrators in that camp were Stuyvesant Town residents Arlene Dabreo and Marina Metalios.
Both said they’d seen suspected illegal activity in the community.
“We’ve seen it for sure, definitely in the past year,” said Metalios. “A lot of people coming in with suitcases and garbage being kept in the wrong place.”
Also at the event was ST-PCV Tenants Association Chair Susan Steinberg, who’d hoped to speak about illegal hotel operations in Stuy Town, but finally gave up at around 5 p.m. since she had a meeting to go to. At this time the hearing, which began at around 11 a.m., was still going on. Since the City Council chambers were filled with around 200 people, some of them standing, the rest of the attendees, like Steinberg, had gotten herded into an overflow room.
Had she been able to give testimony, Steinberg said she would have focused on how, when residents’ use of Airbnb started to take off in 2011, it coincided with an uptick in bedbug infestations in Stuy Town buildings where short-term rentals were taking place. Following meetings with company reps alongside reps from CWCapital, illegal hotel activity in the complex has decreased, though it hasn’t ended completely.
Steinberg also had included in her testimony how the TA had heard concerns from neighbors about their safety when they challenged short-term renters who wanted to gain entry into buildings. In one case, an irate guest “just pushed their way into the building.”
One tenant who did get to testify at the hearing was West Side resident Audrey Smaltz, who said she’d lived in a penthouse apartment in her building since 1977, always feeling safe with the same neighbors for many years. But in recent years, this changed, with the owner renting vacant units as hotel rooms. “The entire fourth floor is for short-term rentals and (there are) many units on other floors,” she said.
As for Airbnb supporters, not too many had signed up to testify at the hearing, which Hantman had explained as being because they’re working people who can’t afford to wait around five hours.
“They have jobs; they have no voice right now,” he said.
However, politicians seemed less than sympathetic about the plight of New Yorkers resorting to home-sharing to help pay their own rent.
Council Member Corey Johnson, who represents Greenwich Village, said he lives in a tiny studio apartment for which “the rent is too damn high,” but added with what New Yorkers pay in rent, they should have the right to not be surrounded by transients.
Another Council Member, Robert Cornegy of Brooklyn, asked Airbnb for their revenue in 2014 and projected revenue for this year, which Hantman said he wouldn’t be allowed to provide. “I’ve got to FOIL that?” Cornegy asked him. “You’ve got to go to our finance people,” Hantman responded.
When questioned about how the attorney general had found that 72 percent of Airbnb rentals to be illegal, Hantman said this was “inaccurate,” especially since Airbnb has since removed thousands of listings by users who don’t provide a “quality” experience.
In response, Williams blasted Hantman for mentioning the word “quality” more than once when discussing hosts’ renting practices.
“You keep mentioning quality — you never once mention following the law,” said Williams. “I’m sure you have lobbyists that can try to change the law, but I don’t know how you can be a business person and never mention state or federal law. You only mention quality of experience. That’s not an effective business model in the City of New York.”
Hantman had argued that very few Airbnb rentals turned out negatively out of two million people using the service to stay in New York over the past few years. He also said 1400 of those people had found places to stay when they were impacted by Hurricane Sandy.
Council Member Helen Rosenthal, who represents the Upper West Side, asked about quality of life issues related to short-term rentals, when Hantman mentioned Airbnb has a neighbor hotline that can be called if a resident wants to report problems with an Airbnb guest or host. Rosenthal challenged this, asking “How would they know?” if a neighbor is in fact an Airbnb user as opposed to a client of some other home-sharing service or that the number even exists for the reporting of such issues.
When accused of putting tenants at risk for eviction for hosting, Hantman said the company does have a pop-up on its site for New York City users warning them hosting may not be legal in their buildings or allowed in their leases.
“We know how much they earn, but we don’t know what their lease is,” he said. “We ask our hosts to obey the law.”
One host there to support the company, Lee Thomas, told the panel about how after he became ill with cancer, his high-paying career on Wall Street came to an end and the only means he had of supporting himself was by renting out his getaway cottage. In response, Williams told him the illegal hotels law didn’t even apply to him because it applies to multi-family buildings while his property was just a two-family one.
Along with Airbnb, also getting quite a bit of criticism was the city office tasked with investigating illegal hotel activity, with Council members accusing its director of not doing enough or having the resources needed to adequately deal with the ongoing problem.
Elizabeth Glazer, the director of the Mayor’s Office of Criminal Justice, kept saying she believed her office was doing a good job at keeping up with complaints, but politicians countered that the system shouldn’t just be complaint-driven. Rather, Rosenthal said, it should be proactive enough to keep up with any suspicious short-term rental listing. This was after Glazer had said her office last year had received 1,050 illegal rental complaints, up from 712 in 2013. In response, Rosenthal told her there were over 2,000 listings in Council Member Antonio Reynoso’s district in Brooklyn alone.
“I publicly take issue with what you’re saying,” said Rosenthal.
When asked how the office investigates tips of illegal activity, Glazer said there is “an array of techniques that we use,” but she declined multiple times to say what they were.
This answer didn’t impress Council Member Peter Koo, who threw back, “I don’t see you using them though.”
He told Glazer about how he’d seen an inspector show up at an address where there was suspected illegal activity and knock once. When no one answered, the inspector knocked again. Then, after a few minutes more, when the door remained unanswered, he was gone.
“How come it’s so hard to open a door?” asked Koo. “Pretend you’re a tourist. Send a decoy. Tell them they’re here to give a massage.”
Despite getting some chuckles from the audience, Koo was then cut off by Williams. Koo said he represents an area in Flushing that’s become a “gateway of Asian tourism.”
Also sitting in at the hearing were the authors of the 2010 illegal hotels law, State Senator Liz Krueger and Assembly Member Richard Gottfried. Krueger said what she hoped would come out of the event would be more and not less enforcement of the law at the city level.
“Without enforcement at the local level, it’s as if we didn’t pass it,” she said.
According to Glazer, out of the 1,050 complaints received in 2014, 883 resulted in inspections and 495 violations being issued.
Council Member Dan Garodnick, who was not at the hearing since he is not a member of the housing committee, later said he does support “more aggressive enforcement” of the law.