On January 2, 2018, New York City reached a reportedly record-breaking $1.2 million settlement with Salim Assa, a Manhattan real estate owner and founder of Assa Properties, over his tenants’ use of the home-sharing platform Airbnb at four properties located at 15 West 55th Street, 19 West 55th Street, 334 West 46th Street and 336 West 46th Street.

According to the City’s suit, Assa allegedly ignored nearly 100 notices of building and fire code violations issued by the Department of Buildings for the 334 West 46th Street and 15 West 55th Street properties, most of which contained accusations that apartments were being booked through Airbnb as hotels for stays of less than 30 days.

In an interview with Law360, Todd E. Soloway, Chair or Pryor Cashman’s Hotel + Hospitality and Real Estate Litigation practices, applauded the settlement order. “The city is cracking down on these owners because this alleged activity reduces the available stock of affordable housing and poses a danger to the tenants in the buildings,” he said. “Clearly, Airbnb should bear responsibility as well. It certainly appears that Airbnb enabled these owners to engage in this allegedly illegal activity.”

The settlement, which was approved by New York Supreme Court Justice James d’Auguste, includes Assa’s agreement to hire an independent property manager to run his buildings, as the city continues its efforts to crack down on commercial landlords that illegally convert long-term residential units into short-term tourist rentals through websites like Airbnb.

To read the full Law360 article, please click here.

More About Soloway’s Practice

Todd Soloway leads Pryor Cashman’s Hotel + Hospitality and Real Estate Litigation Groups. He has been named a leading real estate attorney by Best Lawyers in America and is a frequent contributor to industry publications on topics ranging from hotel management agreements to hospitality mergers.

Soloway also counsels foreign real estate developers and owners in cross-border transactions as well as institutional, private and mezzanine lenders. To learn more about his work, please visit here.