New York City has filed a lawsuit against Incentra Village House, a hotel in Greenwich Village, for offering short-term rentals on platforms like Airbnb in violation of local law. The lawsuit seeks to enforce Local Law 18, which aims to crack down on illegal rentals and protect the city’s housing stock.
A Historic Hotel at the Center of a Legal Battle
Incentra Village House, a boutique hotel located on Eighth Avenue in the West Village, has long been a fixture in the neighborhood. Opened as Manhattan’s first gay inn, it advertises itself as a cozy place to stay in one of New York City’s most iconic areas. Despite its storied history, the city argues that Incentra has been illegally converted from an apartment building into a hotel, a move that has raised serious safety concerns.
The City’s Lawsuit: Uncovering Safety Violations
The lawsuit filed by the city in the Manhattan Supreme Court alleges that the Incentra Village House is not legally authorized to provide short-term rentals. The lawsuit alleges that the hotel has serious fire safety violations, including the absence of proper fire alarms and sprinklers, in addition to its improper conversion. One of its rooms, the Stonewall Room, was described in the lawsuit as an “unsafe cellar room” with inadequate escape routes, putting guests at significant risk.
The Fight Over Local Law 18 and Short-Term Rentals
This lawsuit is part of the city’s broader effort to enforce Local Law 18, which was enacted in 2023 to restrict short-term rentals to those where the host is present. The law has faced significant opposition from platforms like Airbnb, and it has already caused a dramatic decline in the number of illegal short-term rental listings. According to city officials, the number of illegal rentals has decreased dramatically since the law took effect. Still, incidents like Incentra highlight the ongoing struggle to crack down on non-compliant businesses.
Impact on the City’s Housing Crisis
Mayor Eric Adams emphasized the importance of Local Law 18 in addressing the city’s housing crisis. With a vacancy rate of just 1.4%, the mayor warned that illegal short-term rentals remove much-needed housing from the market, exacerbating New York City’s shortage of affordable housing. “New York City cannot afford to have housing units siphoned off for illegal short-term rentals,” Adams said in a statement.
Incentra’s Defiance and Legal Challenges
Despite the lawsuit, Incentra continues to operate. Reservations were still being accepted on the hotel’s website as of Monday afternoon. The hotel’s legal team disputes the allegations, arguing that it has a long history of providing safe and affordable accommodations. The owners of Incentra have filed their lawsuit against the city, claiming that records from the 1960s support their right to operate the building as a hotel and accusing the city of undermining their business with bureaucratic interference.
The Broader Debate: Affordability vs. Regulation
While city officials argue that illegal rentals are contributing to the city’s housing crisis, opponents of Local Law 18, including Airbnb, argue that the restrictions have driven up housing prices and hurt local businesses. Airbnb has claimed that the law has made it harder for residents to afford housing and has given more power to traditional hotels. Many homeowners also feel that the law unfairly restricts their ability to rent out their property as they see fit.
A Historic Landmark Under Threat of Closure
Incentra’s owners, who have fought to keep the hotel open, argue that it has been an important part of the community for decades, especially for the LGBTQ+ community. As a historic landmark, Incentra’s closure would represent a significant loss for the neighborhood. Despite this, city officials maintain that enforcing Local Law 18 is necessary to guarantee that short-term rentals do not undermine the city’s housing stock or pose safety risks to visitors.