Airbnb settles lawsuit with New York state

Airbnb is settling its lawsuit with New York state over a law aimed at restricting many short-term rentals, The Wall Street Journal reports.

The company and New York Attorney General Eric Schneiderman (D) filed court papers on Tuesday agreeing to end the suit against the state. But the two parties agreed that New York City is responsible for enforcing the law, and the company will continue negotiations with the city government.

{mosads}The law being disputed imposed penalties on advertising short-term rentals, defined as under 30 days during which owners or landlords are not present. The fines could be as high as $7,500 for hosts who offer their properties on Airbnb. The practice was previously illegal, but the new law added those penalties as a deterrent.

Airbnb filed a lawsuit to try and block the law shortly after Gov. Andrew Cuomo (D) signed it into law in late October.

Supporters of the law have said that it will help make more housing available and away from Airbnb. They have also argued that the law would help keep prices down in New York City’s extremely competitive rental market.

New York state and city have both said that they will wait to enforce the law until the suit is resolved, according to Bloomberg.

New York City officials are slated to hold a hearing regarding the matter on Dec. 17.