New York City filed a lawsuit against Smart Apartments, alleging it has been booking, accepting and advertising short-term reservations in illegally converted and unsafe apartments in residential buildings.
In May 2011, a state bill went into effect that clarified ambiguities in the law and codified transient occupancy as being less than 30 days. Illegal hotels unlawfully convert residential units intended for permanent occupancy for short-term stays of fewer than 30 days, Mayor Michael Bloomberg said in a statement.
Smart Apartments has been operating illegal short-term tourist accommodations in nearly 50 residential buildings in Manhattan and Brooklyn, Bloomberg said in the statement.
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