WHAT IS AN ILLEGAL HOTEL?

An illegal hotel is typically a rent-stabilized building that is being illegally operated as a hotel by the landlord. It does not have a certificate of occupancy to operate as a hotel, and is in violation of fire safety standards and the local zoning. Tenants living in these buildings often report seeing a parade of transient people coming in and out of their building or waiting in the lobby,making them feel less safe as more and more people have keys to their building entrance. In addition, many of these buildings are receiving J-51 tax abatements which requires them to preserve reasonably affordable rent-stabilized housing, so they are defrauding the taxpayers.

As of 2009, the number of illegal hotels in the city has grown to 280 buildings according to a report by the Illegal Hotels Working Group (IHWG). This represents a 20% increase over the past 12 months. The illegal hotels are not only depleting the supply of affordable housing units,they are siphoning away business from legitimate hotels.

In the wake of a report by the IHWG, elected officials are calling on Mayor Bloomberg and Governor Paterson to pass legislation cracking down on illegal hotels.

WHAT TO DO IF YOUR BUILDING IS BECOMING AN ILLEGAL HOTEL:

If you notice that a lot of tourists are coming in and out of your building, and staying short-term, you should document the apartment numbers. You should then contact the Mayor’s Office of Special Enforcement (OSE) by calling 311 and reporting the problem. The office is located at 1 Centre Street, Room 1012N, NY NY 10007.

The OSE will set up a sting operation whereby they will attempt to rent an illegal hotel room from your landlord, or from the dummy company that s/he has set up to rent out the apartments. If they are successful, they will then fine the landlord. Currently, fines are only $800.

Stronger penalties for illegal hotels are needed since they create a variety of negative impacts on buildings and communities. Contact your local NYC Councilperson and NYS legislator to let them know about the problem as well, and urge that they support legislation to address the issue.

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