Depending on who you ask, Airbnb either poses a significant threat to cities across the country—to residents, hotel owners, and hotel employees alike, or is a innovative disruptor to the lodging market. Home sharing is proving to be wildly popular, but it is not without risks and legal issues. Aside from health, security and life safety concerns raised by the illegal short-term rental of apartments and homes to transient guests, the use of apartments for short-term rental use is damaging the available stock of affordable housing, driving up rents, forcing residents from their neighborhoods, and taking significant business away from hotels, in turn threatening the jobs of hotel employees.

These issues are particularly significant in New York City, where lack of affordable housing is a constant issue and tens of thousands make their livelihoods in the tourism industry. To address those concerns, in early 2016, an Act was introduced in the New York State Senate and Assembly to curtail the advertisement of short-term rentals in New York, and drafted to amend both New York state and New York city law to allow for the punishment and fining of offenders for the advertisement of illegal, short-term rentals. That act passed the Assembly and the Senate in June 2016, and was signed into law by Governor Andrew Cuomo on Oct. 21, 2016.

However, in settling subsequent litigation with Airbnb, Governor Cuomo and Mayor Bill de Blasio have, in an effort to protect Airbnb, undercut the express language of the statute. In so doing, the executive branch has usurped the power of New York's legislature, in direct violation of the separation of powers doctrine. This article explores this situation and potential avenues for aggrieved parties to enforce the law against Airbnb.

The New Law

Under New York's Multiple Dwelling Law §120, it is illegal to rent out an apartment in a Class A multiple dwelling (nearly all residential apartments fit into this category) for less than 30 days without the owner being present. N.Y. Mult. Dwell. §120 (2011). For various reasons including fire and life safety concerns, this law recognizes that apartments are not to be used like hotels.