Aggravated Penalties for Short-Term Rental of Apartments Revoked

DOB issued five violation notices to landlord based on conversion to transient use of two Class A apartments at landlord’s building. At a hearing, DOB showed documentation of Airbnb information for short-term rentals at the building. DOB also showed prior violations for transient use at the building and sought aggravated penalties. ECB ruled against landlord and fined it $27,300 for the violations, including violations of the building and fire codes.

Landlord appealed and won, in part. Landlord argued that DOB’s proof of Airbnb reservations was insufficient proof of transient use, especially since DOB’s inspector didn’t testify at the hearing. Landlord also argued it had inadequate notice that DOB was seeking aggravated penalties. The Airbnb photos documented the short-term rental of the apartments and it was reasonable to conclude that the apartments were occupied during the periods in question. Landlord presented no proof in opposition, except proof that the violations had been corrected. But landlord was given insufficient notice of aggravated penalties. DOB merely checked a box stating “recurring condition” on the violation notice. While daily penalties were properly imposed, ECB reduced the total penalties by $6,300.

W 47 Realty LLC: ECB App. No. 1600535 (7/28/16) [6-pg. doc.]