Landlord Fined $52,000 for Tenants' Short-Term Rental Violations

November 12, 2018

LVT Number: #29727

Landlord filed an Article 78 court appeal of an ECB decision finding violation of NYC administrative code provisions based on illegal occupancies and converting permanent residential units into use for transient occupancy. ECB fined landlord $52,100. Landlord argued that it was unreasonable to hold it responsible for tenant's short-term rentals and that only three of the building's 264 units were used for short-term rentals of less than 30 days. The court ruled against landlord.

Landlord filed an Article 78 court appeal of an ECB decision finding violation of NYC administrative code provisions based on illegal occupancies and converting permanent residential units into use for transient occupancy. ECB fined landlord $52,100. Landlord argued that it was unreasonable to hold it responsible for tenant's short-term rentals and that only three of the building's 264 units were used for short-term rentals of less than 30 days. The court ruled against landlord. Landlord knew about tenants' illegal rentals, and the short-term occupancies triggered fire safety requirements that required the installation of sprinklers in the building. The amount of the fine wasn't disproportionate to the offense, given the seriousness of the offenses and landlord's prior history of violations. And there was no constitutional prohibition against the remedial fines.

42/9 Residential LLC v. NYC ECB: 84 NYS3d 352, 2018 NY Slip Op. 07052 (App. Div. 1 Dept.; 10/23/18; Renwick, JP, Richter, Kahn, Gesmer, Singh, JJ)

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