Inside Airbnb's covert initiative to undermine New York City's new rental regulations through undisclosed financial support of 'grassroots' organizations.

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Airbnb is making an effort to regain its foothold in New York City's short-term rental scene by investing $1 million into what is being presented as a grassroots initiative among homeowners eager to lease their one- or two-family residences.

The online rental company suffered an embarrassing defeat in fall 2023 when the City Council passed a law that imposed strict regulations on home-sharing, forcing Airbnb to remove from its site tens of thousands of Big Apple rentals at the time and sending traditional hotel rates soaring.

Local Law 18 mandates that hosts must be present when their guests are in the property. However, Airbnb's discreet lobbying efforts are backing a new proposal from Councilmember Farah Louis, which has the endorsement of Speaker Adrienne Adams, that seeks to change this requirement.

According to Airbnb, the implementation of Local Law 18 in September 2023 led to a more than 90% decrease in Airbnb listings throughout New York City. AFP via Getty Images.

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According to Airbnb, the implementation of Local Law 18 in September 2023 led to a more than 90% decrease in Airbnb listings throughout New York City. AFP via Getty Images.

The proposed legislation would permit short-term rentals in one or two-family homes as long as the owner is not on the premises.

Certain critics argue that Airbnb is financing organizations to create a grassroots movement that is, in reality, nonexistent.

Michael McKee, treasurer of the Tenants PAC, expressed his doubts on Tuesday to The Post, stating, “I believe that the majority of homeowners with one- and two-family residences do not wish to witness this type of activity in their communities. There is certainly no widespread indication of support for it.”

According to McKee, the billion-dollar tech firm concealed its lobbying costs within various coalitions and nonprofits advocating for the legislative changes sought by Airbnb, a strategy referred to as an "astroturf" campaign.

An Airbnb representative refuted claims that the company is attempting to mask its lobbying activities as a grassroots initiative. REUTERS

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An Airbnb representative refuted claims that the company is attempting to mask its lobbying activities as a grassroots initiative. REUTERS

As an illustration, Airbnb allocated almost $400,000 to a group named Communities for Homeowner Choice, a lobbying entity that was established earlier this February.

According to lobbying reports submitted to the Commission on Ethics and Lobbying in Government and acquired by The Post, Airbnb is the exclusive financial backer of Communities for Homeowner Choice. However, the organization lacks any contact details on its website and has not made any posts on its social media platforms for the past six months.

"I don't think there is a genuine grassroots movement. I doubt there are countless homeowners who are eager to participate in this," McKee remarked.

The recent legislation that Airbnb is advocating for has garnered the backing of Speaker Adrienne Adams. AP

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The recent legislation that Airbnb is advocating for has garnered the backing of Speaker Adrienne Adams. AP

The website for Communities for Homeowner Choice did not provide any contact details, and there was no prompt response to a message sent via Facebook.

Restore Homeowners Autonomy and Rights is claimed to be a grassroots organization primarily backed by Airbnb; however, a representative mentioned that their support base extends far beyond that.

According to RHOAR's website, they are a collective of homeowners in New York City advocating for the reinstatement of their rights to engage in short-term rentals of their properties.

Since May, the group has invested $600,000 in an advertising campaign aimed at the City Council, with Airbnb identified as the exclusive financial backer of RHOAR, as per lobbying records submitted to the Commission on Ethics and Lobbying in Government.

Both RHOAR and Communities for Homeowner Choice have paid Bamberger & Vlasto Strategies, a political consulting firm, to handle advertising campaigns and lobbying, according to records obtained by The Post.

A representative from RHOAR, identified as Gia S., informed The Post that the organization boasts more than 600 members.

“Gia mentioned that we have established private messaging groups with approximately 450 active members who engage daily in discussions about homeowner concerns and initiatives for advocacy. We also organize virtual town halls to facilitate easier participation for our members.”

Nathan Rotman, Airbnb's policy director, informed The Post that the company's backing of the organizations was not intended to be kept a secret.

"Rotman stated, 'We have always been transparent about our support for the hosts pushing for these changes. This is not something new or out of the ordinary for us.'"

Rotman mentioned that Airbnb backs the changes to Local Law 18, as it would enable specific homeowners to earn additional income by renting out their properties during their absence, similar to practices in major cities throughout North America and globally.

Rotman stated, “This legislation will enable individuals to rent their homes while they’re away for a weekend, on vacation, or simply looking to earn some extra income.”