New York City Continues Crackdown on Illegal Short-Term Rentals

Atelier Condo NYC
Credits: Jim Henderson via Wikimedia Commons

New York City law enforcement officers raided Enforcement raided Atelier, a 46-story Midtown luxury condominium, as part of a citywide crackdown on illegal short-term rentals.

The New York Post, which reviewed summonses, first reported about the raid last month at Atelier. The Mayor’s Office of Special Enforcement (OSE) issued 33 violations for illegal short-term rentals such as those listed on Airbnb.

In a draft lawsuit, Daniel Neiditch, the President of the Atelier Board of Managers, together with other named defendants allegedly “engaged in a complex illegal transient rental enterprise” at the luxury condominium.

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The Atelier Board of Managers denied the allegations. One of its members, Roman Gambourg told the media outlet, “A handful of disgruntled unit owners have made it their hobby to complain to 311 in a false attempt to credit the Board.”

In addition, Gambourg said some unit owners have been “assaulted” for walking into the building with a suit case.

On the contrary, the draft lawsuit described a different scenario—Neiditch allegedly engaged in “bullying.” As a result, the life in the luxury tower became “akin to a 1920s Gulag.”

Massimo D’Angelo, a partner at law firm, Adam Leitman Baily, which is filing the lawsuit, said the illegal short-term rental operation “tremendously reduces” residents’ property values. He added, “It’s so egregious.”

Largest crackdown on illegal short-term rentals

According to the Mayor Bill de Blasio’s office, the raid at the Atelier is the largest crackdown on illegal short-term rentals across the city. It is the latest in a series of clampdowns conducted by the OSE this year.

In January, OSE filed a lawsuit against a Chelsea landlord for listing apartments on Airbnb and other home sharing platforms. The landlord allegedly converted rent stabilized units into illegal hotel rooms. The agency made the decision to sue landlord after he refused to comply with administrative enforcement actions against his activity

In February, OSE sued two property owners and their assistant in Staten Island for allegedly converting family dwellings into illegal hotels. The landlords listed the properties on Airbnb and other home-sharing platform and refused to comply with administrative enforcement actions.

In June, the agency sued Big Apple Management LCC for allegedly converting at least seven walk-up buildings into illegal hotel rooms. The property manager listed the units on Airbnb and other home-sharing platforms.