New York Real Estate News

New York Real Estate News

From bills requiring short-term rental hosts to publish their addresses to the priciest foreclosure in NYC history being stalled, here are some of the real estate news items taking place in New York.

Officials Propose Bill Requiring Short-Term Rental Hosts to Publish Addresses

In an effort to address issues related to illegal listings of short-term rental apartments in multi-unit buildings, local officials have proposed a new bill that would force hosts to disclose the precise location of the property. If the bill goes into place, it will affect a variety of short-term rental sites such as Airbnb.

Put forth by Assemblywoman Linda Rosenthal, the bill is meant to add another layer of transparency for those who are renting apartments as well as for those who are monitoring illegal listings. Currently, most hosts do not disclose the precise location of the property, instead opting to provide the location once the client books a trip. While this practice may help owners enjoy more privacy, it also makes it easier to advertise illegal listings.

In previous attempts to deter illegal listings, a bill was passed to impose hefty fines on those who are caught engaging in the practice. Unfortunately, it has proven difficult to enforce the fines. In fact, the city only managed to fine 139 listings out of more than 23,000 potentially illegal listings.

Right now, the proposal is in the early stages of development. One hurdle would include determining how to go about requiring hosts to disclose their addresses. One option might be to require hosts to share their addresses with City Hall. In this way, the addresses would not be posted in plain view on the rental sites.

Not surprisingly, Airbnb officials are not too happy about the proposed bills. In addition to concerns about putting their hosts in danger, site officials maintain the bill does nothing but cater to the hotel industry.

One57 Foreclosure Put on Hold

The city’s largest residential foreclosure of One57’s pricey penthouses was set to take place last month, but was put on hold after a new creditor associated with the property came to surface. The new creditor claims that the property owner, Nigerian oil tycoon Kolawole Aluk, owes $83 million for unpaid gasoline and jet fuel. This new revelation forced the Luxembourg-based bank that granted Aluko a $35.3 million to temporarily stop moving forward with its foreclosure plans.

Aluko purchased the 6,240-square-foot home in 2015 for $50.9 million, making it the eighth priciest condo to sell in the One57 skyscraper. Just two years later, it because the second unit in the building to enter into foreclosure after Aluko failed to repay the mortgage within one year. Debt collectors are now reportedly trying to force the registered apartment owners, Earnshaw Associates Ltd. And One47 79 Inc., to file for bankruptcy to ensure the $83 million debt is repaid. The U.S. Department of Justice is also investigating Aluko’s business transactions and is making plans to seize all of the properties in the United States that he purchased with money from his fraudulent deals. This includes an $80 million yacht on which the billionaire was reportedly hiding.