New York Gov. Andrew Cuomo signed into law one of the nation's toughest measures targeting short-term apartment rentals, a blow to Airbnb Inc., which had recently sought to placate lawmakers in one of its most important local markets.
The law allows for fines of up to $7,500 for people who advertise rentals of 30 or fewer days, a violation in New York City since 2010. It applies only to apartments in multiunit buildings.
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Airbnb responded Friday by saying it planned to file a lawsuit against the state. "We will continue to fight for a smart policy solution that works for the people, not the powerful," Josh Meltzer, head of New York public policy for Airbnb, said in a statement. "We are filing a lawsuit in New York this afternoon."
The San Francisco company, which recently landed a $30 billion valuation from its venture investors, had fought the measure by offering new policies earlier this week that would crack down on violators of New York law and require additional registration on its site.
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