Image credit: Real Estate Board of New York.

New law would hinder hotel conversions to residential use. On June 2, 2015, New York City adopted Local Law 50, placing a prohibition on owners of hotels with 150 or more sleeping units from converting more than 20 percent of their hotel space to full-time residential uses. The law is based on City findings that such conversions were adversely impacting the City’s multi-billion-dollar tourism industry, as well as hotel employment. The purpose of the prohibition is to allow the City to conduct a study of the impacts that such conversions have on these industries. Although the law provides that affected hotel owners can apply on an individual basis for waivers with the Board of Standards and Appeals (BSA), under the law the BSA can award waivers only to “the minimum extent necessary” to afford relief. (read more…)