EXCLUSIVE: Airbnb wants to pay taxes and become a legal hotel, but faces opposition from an affordable housing group
By Annie Karni
The popular home-sharing website Airbnb wants to go legal and pay its share of local taxes, but a group of affordable housing advocates are saying: Thanks for the offer, but we don't want you here anyway.
The Real Affordability for All Coalition — made up of 50 tenant advocate and labor union groups — is accusing Airbnb of "throwing gasoline on a fire" by contributing to a growing affordable housing crisis.
"After years of operating an illegal enterprise in New York, your company is now apparently interested in paying your fair share of taxes and announcing that development as though you are some kind of charitable organization bestowing your riches on our city," the Real Affordability for All Coalition writes in a letter to Airbnb founders, obtained by the Daily News.
Airbnb currently operates illegally in New York City because of a 2010 law that prohibits New Yorkers from renting out entire apartments for less than 29 consecutive days.
Last week, Airbnb asked state lawmakers to change the law and classify the service as a legal hotel. The company dangled in front of lawmakers an estimated $21 million in annual taxes it says it would contribute to the city and state.
Airbnb has asked state lawmakers to change the law and classify the service as a legal hotel, requiring it to pay taxes. The company told lawmakers the city and state would collect an estimated $21 million in annual taxes. (Airbnb)
Affordable housing advocates, however, accused the San Francisco-based company of trying to lure lawmakers with a promise of tax dollars when all it's doing is jacking up rents.
The group said it plans to put pressure on city enforcement authorities to crack down on existing laws "so that companies like yours can't turn scarce affordable housing into illegal hotels."
Airbnb argues its service makes New York City affordable to people who use it to supplement their incomes.
"Airbnb has saved people from losing their homes," said company spokesman Nick Papas.