April 15--Newly proposed rules regulating Airbnb and other vacation-rental websites in Los Angeles could set the stage for a political showdown, as the city demands the companies hand over information to track down illegal rentals.
The plan, released Friday, would empower Los Angeles to fine the online platforms -- and the hosts that use them -- if they advertise rentals that defy a new set of city restrictions on where and how often Angelenos can rent out rooms or entire homes to travelers for short stays.
The websites also could be fined if they fail to hand over addresses to help the city track down illegal rentals. In the past, Airbnb has been reluctant to turn over information about where and how often rooms are rented, arguing the practice tramples on the privacy of their hosts.
The proposed law "takes a step backward putting consumer privacy at great risk by requiring online platforms to give the government unfettered access to confidential user data without any idea of how that information would be used," Airbnb spokeswoman Alison Schumer said in a statement.
But critics have argued that putting Airbnb and similar websites on the hook for illegal rentals is a crucial step to prevent scofflaws from flouting any newly proposed rules. City Councilman Mike Bonin said that if the websites don't hand over information to help enforce the rules, "we're shooting blind."
"We're not asking for a ton of deep, personal private information," Bonin said. "What units are being rented? How often?"
The new law would allow short-term rentals in Los Angeles but impose several restrictions: Angelenos would be allowed to rent out only their own "primary residence," defined as the place where they live at least six months out of the year. That means that hosts could advertise only one home or room.
Hosts could rent out only that one home or a room within it for up to 90 days annually. And they would be barred from offering apartments that fall under rent stabilization or affordable-housing covenants.
The plan quickly drew praise from housing and labor advocates who had raised concerns about how such rentals have affected housing availability. Roy Samaan, a research and policy analyst with the Los Angeles Alliance for a New Economy, called the proposal "a great step forward."
"It allows legitimate homesharing without displacing rent-controlled tenants," Samaan said.
The Los Angeles Short Term Rental Alliance, which includes rental hosts who use Airbnb and other platforms, called the plan "misguided" and said it would hurt Angelenos who rely on renting out a second home as a vacation property to support their families.
However, those critics have focused their ire largely on commercial operators renting out a string of homes or apartments nonstop, not Angelenos offering up a spare bedroom from time to time. City lawmakers say the proposal targets those "de facto hotels" while allowing "genuine homesharing."
"This draft ordinance proposes an enforceable system to protect affordable housing and our neighborhoods from rogue hotel operators, while still allowing people to make ends meet by sharing their primary residence," Bonin said in a statement released Friday.
Bonin said a new registration process also would give Los Angeles an easy way to enforce the rules. Hosts would have to register with the city, obtaining an official number that would have to be displayed in online listings. If they fail to do so, they could be fined -- and so could the websites they use.
Rental hosts also would have to pay the same kind of lodging taxes as hotels, which would go into a city fund for affordable housing. And they would be required to regularly hand over information about their rentals to the city, including how long travelers had stayed and the price they paid.
Residents will be able to weigh in on the proposed rules at a May hearing before the city planning commission takes up the proposal in June. If approved, the law would have to be vetted by the City Council.
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