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When Farah Louis, a New York City Council member representing the 45th District – which includes parts of Flatbush in Brooklyn and borders Little Haiti — sponsored Bill 1107 in November to loosen Airbnb restrictions for one- and two-family homeowners, it upset supporters of the wide-ranging restrictions originally put in place in September 2023.
While introducing Intro 1107, Louis warned that rising mortgage rates and living costs have pushed many small homeowners—especially those in one- and two-family homes—to the brink. These homeowners now make up 66% of foreclosures in New York City, with East Flatbush and Canarsie among the hardest-hit neighborhoods, she said at a recent City Council meeting.
The fight over short-term rental laws pits small homeowners – who rely on Airbnb to supplement their income and subsidize their mortgage – against tenant advocates and the hotel industry, which support the current restrictions to curb illegal rentals and prioritize permanent housing.
“What should have been a constructive debate about supporting small homeowners has instead devolved into divisive rhetoric that particularly impacts our BIPOC communities.”
NYC Council Member Farah Louis
Louis’ bill, backed by small homeowner advocacy groups, aims to ease some of the toughest restrictions, but housing advocates and labor unions have pushed back, arguing that deregulation would worsen the city’s housing crisis.
The debate has sparked rallies on both sides as supporters and opponents try to influence the City Council’s next steps.
Local Law 18 significantly reduced Airbnb rentals, a change the hotel industry has lobbied for since the law’s introduction. Meanwhile, small homeowner advocacy groups such as the member-funded Restore Homeowner Autonomy & Rights (RHOAR), which held a rally at City Hall on Feb. 12, argue that the latest version of Intro 1107 still doesn’t go far enough.
New York City’s Local Law 18, also known as the Short-Term Rental Registration Law, was designed to cut down on large-scale and illegal abuses of the short-term rental market on third-party platforms by setting strict regulations under the registration law overseen by the NYC Office of Special Enforcement.
Here are some of the strictest rules under Local Law 18 in New York City:
“When I introduced Bill 1107, my intent was clear: to support small homeowners who rely on short-term rentals to maintain their properties, pay their mortgages, and build generational wealth for their families,” Louis said in a statement.
“This issue is particularly crucial for Black and brown homeowners in our city who have historically faced barriers to building and maintaining intergenerational assets.”
Over 30% of Brooklyn residents are homeowners, according to the NYU Furman Center, and Black and Brown homeowners make up more than 25% of that group. Many of these homeowners, particularly in the outer boroughs, rely on short-term rentals to offset rising mortgage costs and property expenses. However, there is no definitive data proving that restricting Airbnb has lowered rents. Instead, small homeowners argue that the policy has only deepened financial hardships, putting them at greater risk of foreclosure.
“[Local Law 18] has left me, like many of you, in financial distress and unsure of the ability for me to maintain my home, that has been in my family for generations. This, while having no effect on the housing crisis in the city,” said Jason Mondesir-Caesar at last week’s RHOAR rally. Mondesir-Caesar, a member of RHOAR is an Airbnb host and small homeowner who also appeared in a News12 segment the day before.
“Rental units are still scarce, rents have only gone up, and unsurprisingly, hotel rates in the city have skyrocketed.”
The NYC Hotel Association and other opponents of Intro 1107 approved of the revisions, arguing that the original bill would have allowed commercial operators, including private equity groups, to convert small homes into unregulated hotels.
“The legislation in its original form would have opened the door to commercial operators including private-equity groups for converting one- and two-family homes into de-facto hotels,” the association said in a statement to News 12.
They further warned that this would have happened “without any of the plethora of safety and regulatory requirements such as fire-safety, human-trafficking prevention and licensing for which hotels are ready and responsible partners of NYC.”
As the daughter of Haitian and Bahamian immigrants, Louis represents a district where many residents are Haitian-American and struggling with the same foreclosure crisis.
“[Local Law 18] has left me, like many of you, in financial distress and unsure of the ability for me to maintain my home, that has been in my family for generations. This, while having no effect on the housing crisis in the city.”
Jason Mondesir-Caesar, small homeowner and Airbnb host
Concerns over conflicts with the NYC Charter, along with the need for an environmental review and zoning changes, led Louis to scale back some of the bill’s original provisions. She said she’s still working with co-sponsors and stakeholders to refine the legislation.
District 46 Council Member Mercedes Narcisse, a first-generation Haitian American representing a large section of Southeast Brooklyn, where foreclosure rates are high, is a co-sponsor of Louis’ bill. She has also introduced her own legislation, Intro 948, which seeks to increase the number of boarders, roomers, or lodgers permitted in a private dwelling.
Both legislators, along with other co-sponsors of the bill continue to work through difficult challenges, exacerbated by lobbying efforts on both sides, which Louis mentioned in her statement:
“While I remain committed to the core purpose of this legislation, I am deeply troubled by how the public discourse has evolved,” Louis said. “What should have been a constructive debate about supporting small homeowners has instead devolved into divisive rhetoric that particularly impacts our BIPOC communities and negative commentary about the co-sponsors of the bill that happen to be Black legislators.”
The post Brooklyn small homeowners fight for Airbnb rights amid foreclosure risks, say proposed reform falls short appeared first on The Haitian Times.
