Lawmakers Look To Pressure Those Who Run Illegal Hotels
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
In an attempt to ratchet up scrutiny of illegal hotels, about 60 elected officials, housing advocates, and tenants from around Manhattan yesterday stormed a single room occupancy building located on the Upper West Side, the Imperial Court, which has been renting residential apartments to tourists,
With backers carrying “Homes Not Hostels” signs, Assembly Member Linda Rosenthal said landlords rent out SROs and rent-controlled apartments to tourists on a daily basis because it is more profitable than having long-term tenants. Over time, illegal hotels threaten affordable housing, she said.
State Senator Liz Krueger said the city has “been limited in its ability to effectively deal with the proliferation of illegal hotels across Manhattan” because the financial penalties against offending landlords are too low.
Council Member Gale Brewer said illegal hotel operators pay a single financial penalty — usually about $800. The fine, set by the City Council, pales in comparison with potential revenue. The Imperial Court, for example, charges between $55 and $70 a night, bringing in about $1,700 to $2,100 each month.
A long-term resident of the Imperial Court, Annie Venesky, said the conversion of apartments into hotel rooms is more than an affordable-housing issue. Ms. Venesky, who has had items stolen out of her shared bathroom, said it doesn’t feel safe to have strangers checking in and out of the building. “It’s a security risk,” she said.
Ms. Brewer said the best way to combat illegal hotels “is to hit the operators where it hurts — in the wallet.” Accordingly, Ms. Brewer, Ms. Krueger, Ms. Rosenthal, and Assemblyman Richard Gottfried are sponsoring legislation that would give the city more authority to investigate and punish illegal operators.
If the legislation passes, penalties for renting apartments and SRO residences illegally as hotel rooms would be assessed per day, per unit, and compounded daily. Ms. Brewer said the minimum fine would be approximately $1,000, and that the maximum could be as high as $20,000.
