The Real Deal New York

Illegal hotel crackdown squashing legitimate B&Bs

May 10, 2012 12:30PM

The new state law cracking down on illegal hotels has had unintended consequences for legitimate hotels, the New York Daily News reported. Vanessa Milando, proprietor of the Ivy Terrace Bed and Breakfast, at 230 East 58th Street, told the News that the $10,000 in fines inspectors leveled on her last year have translated to more than $180,000 in renovation costs and lost business.

Milando said she believes she was an “unintended target” of the law, which was supposed to tighten regulations on short-term subletting and curb illegal single-room-occupancy hotels. She said that she knows owners of other legitimate bed and breakfasts who have been slapped with fines, and some that have shuttered due to the new law.

“We’re staying in business by improvisation,” Milando said. “I’ve spend most of my savings. So far I haven’t had to fire the two people who work for me, but things are tight.” [NYDN]