City Can Block Short-Term Stays at Apartment Buildings Pending Lawsuit

The City of New York sued landlords for deceptive trade practices under the consumer protection law, and for public nuisance. The city claimed that landlords operated a multi-tiered business that advertised, booked, operated, and maintained transient accommodations for short-term stays of less than 30 days in 50 or more Class A multiple dwellings. The city sought a preliminary injunction against landlords while the case was pending. The court ruled for the city, which showed a likelihood of success on the merits of the case, irreparable injury absent the injunction, and a balancing of the equities that favored the city's position. Landlord's advertising touted short-term stays but didn't mention that this use of apartment dwellings as transient hotels was illegal and created fire safety hazards in violation of both the NYC Housing Maintenance and Fire Codes. There also was likely a public nuisance because landlords' use depleted the city's stock of affordable, long-term housing while creating security risks and quality-of-life problems at the buildings.

City of New York v. Smart Apartments LLC: Index No. 402255/12, NYLJ No. 1202592998859 (Sup. Ct. NY; 2/13/13; Engoron, J)