Airbnb has reacted to a new law which would impose steep fines on hosts who violate housing regulations in New York City.

Only a day after the new regulatory bill was signed into law Airbnb fired back at lawmakers with a law suit stating the new law would cause "irreparable harm". The bill proposed earlier in the year aims to crack down on Airbnb hosts who were illegally renting out apartment units which according to regulators and affordable housing advocates causes a major strain on the efforts to promote and sustain affordable housing in New York City. In a statement New York State Attorney General Eric Schneiderman said the new law is meant to protect New Yorkers,

"The law signed today will provide vital protections for New York tenants and help prevent the continued proliferation of illegal, unregulated hotels, and we will defend it. Airbnb can’t have it both ways: it must either police illegal activity on its own site -- or government will act to protect New Yorkers, as the State just did."

According to the New York Times Airbnb has been fighting the proposed law in a big way. Spending millions in advertising dollars and putting pressure on politicians trying to sway their votes. One of the bills sponsors, Assemblywoman Linda Rosenthal says New York is taking a bold step with the new legislation and she hopes the rest of the country will follow suit.

“Airbnb put a lot of pressure on Governor Cuomo and spent millions, so I’m gratified that he stood up for the cause of affordable housing and protecting tenants,” Ms. Rosenthal said. “This will help stop the bleeding and the loss of units that should be occupied by New Yorkers and not tourists who are here for a few nights.”

In a statement released Friday Airbnb blames the decision on Albanys "Back-room dealings" to reward special interest groups, saying the law ignores the voices of tens of thousands of New Yorkers.

 

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