Illegal Hoteliers Could Face Higher Penalties

Building owners operating illegal hotels may soon face stiff penalties, as the City Council debates legislation today that could fine them as much as $20,000 for secretly renting out residential apartments as hotels.

City Council member Gale Brewer, who is sponsoring the legislation, said yesterday that there would be no change to the law regarding illegal hotels, only an increase in the fines associated with violations. "Lots of people pay the fine and it's worth it to them," Ms. Brewer said of the current penalties.

Under the proposed bill, owners caught renting rooms in residential units for short-length stays would pay as much as $5,000 for their first offense, $15,000 for their second, and $20,000 for a third.