JERSEY CITY, NJ. (THECOUNT) — Airbnb was dealt another major setback, this time on new limits on short-term rentals in New Jersey. The limit comes after the company’s announcement to ban party house rentals following a deadly California shooting.
In one of Airbnb’s most important markets, New Jersey city, voters approved restrictions on short-term rental despite the company’s big bucks campaign to shelf the referendum which was passed in June.
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The new rules limit how often landlords can rent properties if they don’t live on site. They forbid short-term rentals in buildings with more than four units if the owner isn’t present. They also prohibit renters from serving as hosts, reports WISH.
The vote in Jersey City was lopsided in favor of the restrictions, despite a fierce and expensive campaign mounted by the company. Airbnb spent at least $4.2 million on an effort to sway voters while its opponents, including the hotel industry, spent around $1 million.
The new rules were initially passed by Jersey City lawmakers in June, but were put on hold after short-term rental advocates gathered enough signatures to force a referendum.
Airbnb spokesman Christopher Nulty, meanwhile, criticized “hotel-backed special interests” for backing rules that he said went too far.
“From the start of this campaign, we knew this was going to be one of the toughest fights we’ve faced, with the big New York hotel industry determined to fight home sharing, but we had an obligation to stand up for our community,” he said. “Cities from Buffalo to San Francisco, and Boston to Seattle have managed to pass comprehensive short-term rental regulations without punishing tenants or creating red tape and onerous registration systems.”
Airbnb and local advocates argued that the restrictions would have the effect of eliminating 90% of the city’s properties from the market and would disproportionately affect renters, most of whom are minorities.
DEVELOPING::
Geo quick facts: New Jersey is a northeastern U.S. state with some 130 miles of Atlantic coast. Jersey City, across the Hudson River from Lower Manhattan, is the site of Liberty State Park, where ferries embark for nearby Ellis Island, with its historic Immigration Museum, and the iconic Statue of Liberty. The Jersey Shore includes notable resort towns like historic Asbury Park and Cape May, with its preserved Victorian buildings – wikipedia.