For the past decade, there has been a continuous struggle between policymakers, multifamily property owners, tenants, and ultimately, home-sharing Internet platforms, such as Airbnb.com, regarding the short-term usage of apartments in “Class A” apartment buildings. (For purposes of this article, we will refer to all home-sharing Internet platforms as “Airbnb”.) This article will chronicle how the law has evolved during this timeframe and discuss where it may be headed.

‘Class A’ Apartment Buildings and the State’s Multiple Dwelling Law

The State’s Multiple Dwelling Law (MDL) was amended by Chapter 225, Laws of 2010, to modify MDL §4(8)(A) to provide that housing accommodations in “Class A” apartment buildings could only be occupied for “permanent residential purposes,” which is defined as the same natural person or family occupying the housing accommodation for 30 consecutive days or longer. This 2010 MDL amendment, and corresponding amendments to the Administrative Code of the City of New York (NYC Code), was the Legislature’s response to the Appellate Division, First Department’s decision in City of New York v. 330 Continental, 60 A.D.3d 226 (1st Dept. 2009), wherein the Appellate Division vacated a preliminary injunction against property owners using some “Class A” housing accommodations in their apartment buildings for short-term transient use, i.e., for periods less than 30 consecutive days. The Appellate Division concluded that no violation of the City’s Zoning Resolution or the “Class A” certificate of occupancy resulted from a minority of the housing accommodations being occupied by transient tenants for periods less than 30 days. In view of the vagueness of the MDL defining what amount of transient use could lawfully occur in a “Class A” apartment building, the Appellate Division vacated the preliminary junction against any transient rentals as being, at minimum, premature.