San Francisco Legalizes, Regulates Airbnb with 7-4 Vote, Lots of Amendments
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I don't know about California, but in Massachusetts short term rental activity is explicitly residential, and not commercial, per existing case law. That may be why they didn't do what you suggest.
Prior to the internet, it was difficult enough to get word out and so forth about a spare room that short term rentals could be regulated largely as an afterthought. Now, they're a multi-billion dollar industry.
There may be a middle ground we need to find, something between "government out of my private home" and surprise inspections of a hotel. But things like unpermitted wiring, lead paint, uninspected furnaces, the absence of carbon monoxide alarms… while these things are actually illegal in residential units, I think the game really does change when you start to expose potentially hundreds of people to this over the course of a year through commercial use of a property.
It's kind of like running a restaurant out of your dining room, but claiming that the government has no right to inspect your kitchen, because you're "sharing" meals. If I invite friends over for dinner, I should be careful about food prep, but the government clearly doesn't have the right to suddenly show up and inspect my counters and refrigerator.
But if I start charging and serving a large number of meals this way? Totally different game.
I agree that when commercial activity takes place, inspections are necessary so that people don't have their implicit expectations violated. But your comment demonstrates a big problem with how this ends up being implemented - people cut wide swaths through subjects they know little about (driven by fear of the unknown), leaving mandatory onerous regulations in their wake. And obviously once the regulatory bodies obtain power, they will work to expand their scope like any organism.
Take for instance the recent addition of mandatory AFCIs in the NEC. Yes, modern circuit breakers are now running unauditable and unupgradeable software! In addition, the prohibitive cost of these devices actually causes fewer circuits to be built out in new construction. The simpler solution would have been to stop running plastic-covered wires through wood-framed structures, but presumably the AFCI patent holders lobbied for such circuits not being exempt.
(Don't get me started on California title 24, user-hostile shutoff timers, and sickly GU24)
Huh? Of course it is - the case I'm referencing (Crowninshield v. Blaisdell) is explicitly regarding the classification of short term rentals. The courts found them to be residential, not commercial (which makes sense, if it's a residential short term rental).
Which, legally, it is.
The problem it doesn't solve, however, is the fact that hotel guests shouldn't be staying in apartment buildings unattended by a host anyway. It creates terrible problems for people who are actually trying to live there, since Airbnb guests will treat your building like a hotel. I would much prefer that a host always be required to be present if the rental in question is an apartment.
They should have created a private right of action sounding in nuisance, with damages available, and open to any affected party. And maybe a loser pays provision.
Of course this would totally shrink their market size over night but...
I want to reiterate that while I provided what I think is a relatively easy and doable approach, the burden is not on people negatively impacted by a company to come up with solutions. The simple fact is that most metropolitan areas do not allow short term rentals in residential neighborhoods as a matter of zoning, not to mention the fact that many leases prohibit subleasing of any kind. AirBnB allows a ton of illegal activity to happen on its network, and then claims it has no easy way to enforce the law. That may or may not be true, but it's like telling a bank that is laundering money that it's not responsible for fixing the money laundering problem because detecting it is expensive, and hey, they're just the platform right?
I would agree with AirBnB having to be audited so that the gov't could do the policing but that's about it.
http://www.bloomberg.com/news/2013-07-02/hsbc-judge-approves...
So I believe that these two are not necessarily the same, depending on the city's legalese.
"What the Law Says -- Contrary to what many may think, New York laws about short term rentals are pretty clear, thanks to a new law went into affect in 2011. "Under the New York State multiple dwelling law, a residential multiple dwelling can only be used for what is termed 'permanent resident purposes,'" explains attorney Robert Braverman. "What that means under the statute is that it has to be occupied by the same person or family for 30 or more consecutive days." So anything less than 30 days, no matter how you swing it, is violating the law, unless of course, the place is zoned to be a hotel or hostel."[0]
[0]: http://ny.curbed.com/archives/2013/03/25/an_introduction_to_...
Only 376k housing units? WTF! And 172k of them are rent controlled? WTF!
What a clusterfuck.
I was not aware the numbers were that bleak. Is that total housing units or just rental units?
Though I was actually surprised it was so high. That's units, not bedrooms, and it's only a city of ~800k people. I guess there's a lot of 1-person households to bring down the average despite all the families and twenty-somethings in 2-4 bedroom units with at least as many inhabitants as bedrooms.
The US is vast, but of course, let's cram all the technology workers in a tight corner of a bay and densify that to the max.
Grow Out. Of course, SF is a "city", not the kind of city that's part of an urban sprawl like the others. Maybe that's what other cities should start doing. That and quality public transport (not only Google Bus)
Having said that, it's not the main driver preventing development in the Bay Area. Citizens with money, influence, and established interests want lower-density development, and so that's what exists.
Both California and Japan have a long history of earthquakes and know the danger involved. When you look at the numbers, more people have died due to earthquakes in Japan than in California.
Prime example: CA 1994 Northridge earthquake (6.7 magnitude, 70 people died, $20B in damage) vs Hanshin earthquake (6.8 magnitude, 6400+ died, $100 billion in damage).
Are the fears irrational? Each culture has a different approach.
I agree with other comments though - fear of earthquakes is a minor footnote in the grand scheme of property development in California.
Many of California's cities have laws requiring massive, incredibly wasteful amounts of parking to be built even in supposedly high-density or transit-oriented communities. In addition, there are rules saying houses have to be set back a certain distance from the road, which takes a good deal of space. Finally, most places also require that roads meet a certain (high) "Level Of Service", meaning lots of cars can move through very quickly. Nevermind the fact that by building things like this you are forcing them to go much, much FARTHER. Have you noticed that driving through LA (or San Jose for that matter) is mostly driving through a sea of parking lots and wide streets? See http://en.wikipedia.org/wiki/Level_of_service for more.
There is also a cultural preference for lots of land; I'm bemused by how many people mock "McMansions" for having small yards but never spend any time in their own yards.
This is less true in the bay (and not at all in SF) than other parts of the state (looking at you LA) but it remains a problem. Also, areas where the majority of the population are homeowners tend to vote against new housing construction. This increases the value of their own homes at the cost of strangling newcomers to the area and making the cost of living exorbitant. Of course, without new housing those areas will continue to consist primarily of homeowners, so the cycle continues. Even in supposedly lefty places you see people oppose construction that would help increase housing supply, presumably because it's bad for the environment or will damage neighborhood character. I'm sympathetic to those claims, but making people commute from 40 miles away (if they're LUCKY it'll be on BART or Caltrain, but probably not) can't be good for those things either.
I wonder if it's time we reconsidered whether it makes sense for highly interdependent neighboring communities to be separate cities. Would we have a more integrated and efficient transportation, housing, and office infrastructure if the bay from San Mateo up to Mill Valley and east to 680 were the same city? Quite possibly. It would at least mean, to some small extent, that they couldn't say "we'll take your companies but housing the plebs is somebody else's problem - only huge single-family homes for us, thank you!".
Source: I lived in SM and attended city council meetings that discussed the matter because I wanted to see more transit-oriented development and improved bike infrastructure. Can't say I'm sad I left; socal is dysfunctional with regards to transportation. I do miss the beer, though.
The problem is that getting around in that part of the Bay Area still requires a car, so units with no available parking are much less desirable. Having 1 parking spot per unit, and 1 level of parking, effectively limits the height to ~4 floors of marketable residential units (a second level of parking would be more expensive than the first, and allow for ~8 floors of marketable units).
In a city with a population of 840K, is that so bad? That works out to roughly 2.23 people per unit.
In NYC, in 2011, there were 3.35M housing units, and population of NYC was 8.273M. That works out to 2.47 people per unit.
So why is NYC's situation not a clusterfuck, but SF's is?
People don't cram into arbitrarily small spaces, so one thing to remember is the cause and effect: way more than 840K people want to live in SF proper, but there's no room. So 376K housing units effectively sets the population cap. But because a larger pool of people want to live there, the prices all go up. Rent control fixes that for incumbent residents but worsens the problem for everyone else. The only way to alleviate that is to create more houses so that a larger percentage of the people who want to live there actually can.
There's also a massive amount of rental apartment stock at any time. This means that you have the liquidity to make any tradeoffs necessary, by balancing your budget, commute distance, number of roommates, and the amount of space you need.
New York is also connected to several public transit systems (NJTransit, Metro North, PATH), so you can often go way cheaper, by leaving the city bounds itself.
It's not all sunshine and roses, though. Rent is going up in a lot of the previously-cheap neighborhoods in Brooklyn. This hasn't really affected me, but my sister has been priced out of multiple apartments in the 5 years she has lived in the city.
Though, I'm sure they didn't want to pay $25 million, I doubt it was as important as some of the other regulations they were hoping to avoid.
A one time fine of $25 million isn't as important as a law that would've prevented any type of rental. That would've been more existential.
Also, the $25 million was proposed to be paid by Airbnb and other similar companies. They weren't on the hook for the entire amount, though, it probably would have been most of the amount. But that's off track from my point that $25 million isn't the #1 issue they were worried about.
In cases like this the government does not compel anyone to do anything. Rather, it permits them to engage in a particular line of business on the condition that it does so in a way that attempts to re-internalize what would otherwise be a host of harmful externalities.
> can there be legislation for airbnb to get a new logo?
http://techcrunch.com/2014/10/07/san-francisco-airbnb/?fb_co...
Uh, was it illegal before?
unregulated ≠ illegal
The problem with Airbnb business,is that Airbnb soclializes the risk.Airbnb doesnt risk anything,hosts do.Of course it is in the interest of Airbnb to make sure its users risk the minimum.But Airbnb as a plateform is legal.Airbnb can argue it's just like Ebay or Paypal.
All these "disruption" plateforms Airbnb,Kickstarter,Uber and such,they pretty much work the same way.They are the new middlemen,that bypass former middlemen,collect a fee and wash their hand of any wrong doing when things turn south.
My only problem is with Airbnb, it can really drive prices up for long-term renters,that have others things to do than running illegal hotels.
Like Craigslist. And Ebay. And Etsy. And all these other fantastic platforms that let people generate money / increase productivity without the old gate keepers getting in the way. Not a new problem, and one that many consumers -- like me -- are happy to deal with versus the alternative.
Is that true? I thought the FDA could only regulate drugs that made a claim to treat or cure a disease. If it wasn't specifically illegal or if it isn't making a claim to treat a disease, the FDA doesn't have jurisdiction to regulate it.
Can someone with a source confirm or debunk this?
http://en.wikipedia.org/wiki/Everything_which_is_not_forbidd...
That said, "unlicensed hotel" is a quandary that has been argued a thousand times over. A hotel and a boarding house are legally distinct. Legally speaking, hotels have separate rooms for guests which is distinct from subletting either a single room as well as from subletting the entirety of the property. Legally speaking, an AirBNB rental most closely correlates to a "lodging house", which does not provide food for its guests, which is a requirement for a hotel, or inn (per Black's, anyway).
Legally speaking, what we are likely talking about is a fraction of a fraction of a fraction of all AirBNB rentals that are now being lumped together into a single term, which only muddies the argument even further.
The idea that a sublet, lodging house, or boarding house is "close enough" to a hotel to be considered under the purview of hotel licensure is ... optimistic, and to me, smacks of the state's unwillingness to let some revenue go uncaptured.
But, that's just my opinion, and I appreciate that the argument is nuanced, and there are potentially safety concerns as well.
AirBnB is just a platform. It is, by itself, legal. However, virtually everyone who uses AirBnB uses it illegally.
Thus, it's not illegal (because AirBnB the service is not forbidden) but it's not legal (because it's hard to use the service without breaking the law, and in practice almost nobody does what's required).
Sort of like how running a user-generated content site is legal, but people who upload movies/albums/etc. to it in violation of copyright are on the wrong side of the law.
Running a hotel without paying hotel taxes and following other regulations is generally illegal.
It surely is also is against local zoning regulations. I think zoning regulations are generally a good idea but in practice they are often harmful (except in older downtown areas which are generally friendly to mixed use).