Illegal hotel problem getting worse

From the Daily News:

The city's legitimate hotel business is slumping, but the illegal room-rental industry is booming, said pols pushing to pass state legislation to stamp out the practice.

The number of residential buildings with units illegally converted to hotel rooms has soared by 20% in the past year, according to a study released Sunday.

Elected officials said the illegal hotels, which are marketed online, cut into the city's increasingly scarce stock of affordable housing and put both apartment dwellers and tourists in danger.

The study, done by the West Side Neighborhood Alliance, found illegal hotel operations in 270 buildings in Manhattan, Brooklyn and Queens, many in rent-stabilized, single-room occupancy buildings or apartment houses.

A growing number of sponsor-owned condo and co-op units have also been turned into makeshift hotel rooms.

Most of the illegal hotel operators don't pay city hotel taxes, the group said.