Matters of Interest

The following articles are intended to inform and assist property owners and managers to be in compliance of current rules and statues associated with the management of their properties.

NY POST 5/24/2019

Airbnb gives NYC information on 17,500 rental listings
By Priscilla DeGregory
May 24, 2019 | 3:09pm | Updated 

Airbnb turned over partially redacted data of 17,500 listings — as part of a deal in the company’s long-simmering legal battle against the city, according to court documents.
The data dump, which was stripped of user-specific information, involved listings from January 2018 through February and was given to the city on April 5 in response to a subpoena from the Mayor’s Office of Special Enforcement.
OSE issued the subpoena on February 18 as part of the city’s crackdown on illegal rentals.
Airbnb and the city reached the agreement in Manhattan Supreme Court on May 14, court records show.
As part of the agreement, OSE can also request listing information from Airbnb containing user data — but only if they can show it will be “relevant to an investigation.” They only have a one-year window to make that request, the court papers said.
Airbnb and the city have been at war ever since before Mayor de Blasio signed a law requiring the site to turn over private data of its users. But in January, a federal judge granted an injunction to block the law, which was set to go into effect the following month.
The recent agreement between the company and the city is separate from that injunction, officials said.
“The city will use this data to identify the operators who disrupt the city’s housing stock, damage the quality of New Yorkers’ neighborhoods, and place visitors and residents in harm’s way,” said OSE Executive Director Christian Klossner.
Airbnb spokeswoman Liz DeBold Fusco said the deal shows the company is willing to meet the city halfway.
“We have long said that we want to work with the City on an effective regulatory framework and we recognize data sharing is an important part of that,” DeBold Fusco said. “We hope that our compliance with this subpoena — by providing data in line with our shared enforcement priorities against illegal hotel operators — is a first step toward finding such a solution that is consistent with Airbnb’s legal rights and obligations and allows us to share the kind of actionable data with the level of precision that the City needs.”
Separately, Airbnb and the city have four cases against each other pending in Manhattan Supreme Court relating to whether Airbnb should be forced to share user data with the city.
On May 17, a judge in those cases ordered Airbnb to respond to city subpoenas for records from listings in Manhattan, Brooklyn and Queens they believe are being used illegally. Those records will be subject to confidentiality measures, according to court papers.
Under state law, city apartments can only be rented for fewer than 30 days if the “permanent occupants” are also present.

If you suspect your tenant is illegally subletting their apartment, take action and call us, we can help.

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Proposal to ban the use of facial recognition technology at apartment buildings  May 2019

An article appeared in the NYPost on May 16 and May 19, 2019, regarding New York State's effort to ban the use of facial recognition technology to manage Apartment buildings.  According to NYS Senator Brad Hoylman (D-Manhattan),

  • "New Yorkers have an expectation of privacy in their homes.  Facial recognition systems would give landlords the ability to track, at the very least, every entry and exit of their tenants and guests"
  • "The technology is an instrument of discrimination: studies show, again and again, that facial recognition software is less accurate when analyzing faces of color.  It's surge in popularity across our city-especially in residential buildings-is deeply alarming."

https://nypost.com/2019/05/16/proposal-would-ban-use-of-facial-recognition-at-apartment-buildings/

If enacted, violators can face fines of up to $10K.

This proposed bill illustrates the importance to conduct a proper investigation, rather than rely on facial recognition analytics when you suspect a tenant is illegally subletting, does not primarily reside in the apartment or is using their apartment in the furtherance of criminal activity.

We use trained video analysts who remotely monitor and meticulously document all activities associated with our covert video surveillance investigations.

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The physical key has prevailed over the smart lock  May 2019

In a stipulated settlement released on Tuesday, May 7, 2019, a judge ordered landlords of an apartment building in New York to provide physical keys to any tenants that do not want to use the Latch smart locks installed on the building last September.

The decision is a first as there is no legal precedent or legislation that mandates how landlords can use smart home technology. 

Mary Beth McKenzie, her husband Tony Mysak and other tenants filed a lawsuit against their landlord after they installed the smart locks last year, arguing that there were several privacy concerns with the Latch smart lock and the app required to get into their own building.

Mysak, who is 93, was not capable of using a phone and found himself trapped in his home because of the smart locks, McKenzie said. They also had issues with Latch's privacy policy, which stated that the app could collect people's location data and use it for marketing purposes. 

In the settlement, the judge also ordered that physical keys were a "required service" for the landlords, and that any smart entry system in the future was not considered a required service. If the landlords do not provide physical keys, the tenants can bring the issue to court again, documents showed.

"This agreement takes back for the tenants some control over the technology used to control entry into buildings," Seth Miller, an attorney who represented another client in the case, said. "The building code requires that the entrance door be controlled by the tenant's key, not by an internet app."

Latch's smart locks are installed in more than 1,000 buildings in New York, and this case's settlement could mean changes for tenants who also have privacy and security concerns with these connected devices.

This case illustrates the importance to conduct a proper investigation, rather than rely on key fob or access control devices when you suspect a tenant is illegally subletting, does not primarily reside in the apartment or is using their apartment in the furtherance of criminal activity.  

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Landlord Responsible for Tenant's Illegal Short- Term Rental of Apartment February 26, 2019

The Department of Buildings issued a violation notice to landlord based on tenant's transient rental of his apartment. OATH sustained the violation and denied landlord 's appeal. Landlord then filed an Article 78 court appeal, claiming that OATH ’S decision was arbitrary and unreasonable because landlord didn 't know that tenant was renting the apartment out through Airbnb. The court ruled against landlord. NYC Admin. Code Section 28-210.3 makes landlords responsible for tenant's illegal short-term rentals if landlord "permits" the short-term rentals.

JNPJ Tenth Ave LLC v DOB : Index No. 1002682018 , NYLJ , 1/30/19, p. 21, col. 2 (Sup . Ct. NY; 1/16/19; St. George, J)

This case exemplifies a common misconception by property owners leave them vulnerable to civil liability with penalties, by not actively preventing illegal Airbnb activities.

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Landlord Fined $40,000 for Permitting Short- Term Rentals

October 23, 2015

The New York City Department of Buildings issued 12 violation notices to landlord based on transient occupancy of Class "A" apartments in two of landlord 's adjoining buildings . DOB 's inspector testified that he spoke to apartment occupants who said there were staying in the apartments for no more than a week . Most were from foreign countries and had booked their

stays through Trip Advisor or Airbnb . They showed the inspector documentation

of their

bookings . The apartments in question all were leased to one person for a term of five months.

Landlord claimed that it was unaware of the short -term rentals . The violations were corrected before the first hearing date . The ALJ found that lack of knowledge was no defense and fined landlord $40,275.

Landlord appealed and lost. Landlord 's ignorance of the violations was no defense . Landlord was responsible for maintaining the building in a safe and code-compliant manner. Landlord also claimed that the fines imposed were excessive and violated the Eighth Amendment of the U.S. Constitution . ECB wasn't authorized to determine constitutional claims. And the fines imposed all were within the range of penalties authorized by statute . Some of the violations were for immediately hazardous conditions such as failure to provide fire alarm systems , egress , and sprinkler systems for transient use, as well as daily penalties.

J.J.N.K. Corp.: ECB App. No. 1500708 (9/25/15) 6-pg. doc.

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Advertisements Appearing Throughout NYC

The Mayor's Office to Protect Tenants is posting signs encouraging tenants who face eviction to fight landlords. These signs represent the most egregious cases, but the message is clear.  Fight your landlord.

Property owners should also be fully prepared with credible evidence to evict unscrupulous tenants.

We can help.

Call us for a complimentary consultation to discuss your investigative options.