Required Disclosures Of Short-Term Rental Transactions By Booking Services

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Friday, September 6, 2019

PLEASE NOTE: This rule takes effect 15 business days after the lifting of the preliminary injunction issued on January 3, 2019 in Airbnb, Inc. v City of New York, 18 Civ. 7712 (PAE) and HomeAway.com, Inc. v City of New York 18 Civ. 7742 (PAE), unless another date is ordered by the court.  The effective date shown here is a required field for this website, and reflects the 30 day period required by the New York City Charter 45-1043(f)(1)(c).  In this case the rule does not automatically take effect on that day.

Statement of Basis and Purpose of Rule  

Local Law 146 for the year 2018, enacted on August 6, 2018, establishes a new provision of law: Chapter 26 (sections 26-2101 through 26-2105) of Title 26 (“Housing and Buildings”) of the Administrative Code of the City of New York.  Chapter 26 requires online, computer, or application-based platforms, or “booking services,” that charge, collect, or receive fees for the use of the platform in connection with short-term rentals to report information about those transactions to the Mayor’s Office of Special Enforcement. Such information includes: the physical address of the short-term rental; the location online of the advertisement that resulted in the short-term rental; information regarding the identity of the host, including contact information; and information regarding the scope of the short-term rental transaction.  The law specifies that it is to be administered by the Mayor’s Office of Special Enforcement (“OSE”) unless specified otherwise by executive order. 

This rule implements Local Law 146 for the year 2018.  Specifically, this rule specifies the time, manner, and form of reporting by the booking services; establishes penalty provisions; establishes a process for publishing and maintaining a list of buildings exempt from the reporting requirements; and establishes a retention and disposal period for information obtained pursuant to the law. 

OSE revised the proposed rule in response to comments received at the public hearing as well as written comments received during the public comment period. The final rule includes the following changes from the proposed rule: 

The final rule has two sections.  Section 1 contains the substantive provisions, changed as described below.  Section 2 addresses the effective date, which at the time of the issuance of the final rules, is stayed by a preliminary injunction issued in Airbnb, Inc. v City of New York, 18 Civ. 7712 (PAE) and HomeAway.com, Inc. v City of New York 18 Civ. 7742 (PAE). 

§17-02 (“Reporting requirements for booking services”) – minor typographic modification; in subdivision (1)(g), clarified intent of the minimum anonymization method in the proposed rules by replacing reference to the last five numbers of a bank account with a statement balancing best practices and the technical capacity of the booking service to conduct de-identification of data, and clarified that such de-identification of a unique account must be consistent between reports. 

§17-03 (“Method of submission”) – minor typographic modification; amended subdivisions (1) and (3) to include security requirements. 

§17-05 (“Exempt transactions based on rentals occurring in certain buildings”) – minor typographic modification. 

§17-06 (“Privacy and security of information”) – in subdivision (2), clarified allowed use by administering agency; subdivision (3), clarification and typographic modification; subdivision (4), clarification of relevant FOIL provisions under which administering agency will assess personal privacy impacts and assert basis for withholding identifying information, and addition of mandatory notification of impacted individuals via email should disclosure be required; addition of new subdivision (6) incorporating and expanding upon former section 17-07(4) to require implementation of safeguards consistent with existing city standards for data security. 

§17-07 (“Retention and Disposal of Information Obtained in the Report”) – minor typographic modification; removed subdivision (4) after incorporation into new section 17-06(6). 

§17-08 (“No Private Right of Action”) – added section stating that this chapter does not create a private right of action against the city or any agency, office or employee thereof.