A hotel in Greenwich Village that listed rooms on Airbnb is facing a lawsuit from the city for allegedly trying to sidestep regulations around short-term rentals.
The complaint, filed in New York Supreme Court, alleges that this establishment, known as Incentra Village House, is operating illegally under a crackdown labeled local law 18, which has been in place for about 20 months. The city describes the hotel as the “first gay inn in Manhattan.”
According to city officials, Incentra Village has been ignoring safety laws for years, lacking proper fire alarms and sprinkler systems, and has been illegally converting its basement for overnight rentals.
This property, located just half a mile from the iconic Stonewall Inn, was advertising a space called the Stonewall Room on various platforms like Airbnb.
One guest’s experience noted the challenges of the room’s layout, describing it as “two flights down a narrow, rattle stairs” in a sub-basement with no windows, and a ceiling so low that they hit their head repeatedly.
Another review expressed concerns about emergency escape routes, highlighting that if a crisis occurred, exit options seemed nonexistent.
A recent review on TripAdvisor even included a picture of a notice about the city’s order to vacate, with site users commenting on the room’s deteriorated condition, stating it was in a “serious state of devastation.”
The complaint cited that Incentra was never authorized by the city to function as a hotel; its residency certificate is intended for permanent housing.
Despite this, they had listed twelve rooms across platforms like Airbnb and Booking.com, but those listings have since been removed.
This hotel, established in the 1840s as two interconnected townhouses, rents its rooms for more than $400 a night.
Although Incentra is still open, it seemingly removed its basement listings temporarily.
The hotel had previously sued the city, arguing it had been operating legally for decades and that the city was unjustly rejecting efforts to update its classification from residential to commercial.
A property attorney representing the hotel contested the city’s claims, asserting that the lawsuit is an unwarranted attack on a historic accommodation that has supported the Greenwich Village community for many years.
Local law 18, established in 2023, came in response to a surge in short-term rentals from platforms like Airbnb and is said to be the strictest home-sharing regulation worldwide.
Under these rules, hosts can only rent apartments or homes for short stays of fewer than 30 days and must register with the city, following a specific set of guidelines. This includes limiting guest numbers to two per unit, ensuring hosts remain on-site, and granting guests accessible access to common areas within the property.
Reports have indicated that the new regulations have led to a drastic reduction in the number of short-term rentals in New York City, creating a shadow market for these accommodations.
Airbnb pointed out that, according to a recent report, city hotels are benefiting significantly from local law 18.
Since 2023, about 3,054 registrations have been issued to Airbnb hosts, according to the Office of Special Enforcement.
The lawsuit application stated that Incentra is under considerable pressure, facing threats of closure and hefty fines.
The city is pushing to shut down Incentra Village, imposing fines that could rise to $5,000 daily for any unregistered short-term rentals, affecting its ability to continue operating as a hotel.
Christian Crosner, the executive director at OSE, mentioned that the local law provides necessary tools to address businesses that exploit housing for illegal profit.
