BILL NUMBER: S9152

SPONSOR: SAVINO
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring a
market and financial feasibility study prior to approval of an applica-
tion to construct a hotel or motel in a city with a population of over
one million

 
PURPOSE OR GENERAL IDEA OF BILL:

This would require a market and financial feasibility study prior to
approval of an application to construct a hotel or motel in a city with
a population of over one million.

 
SUMMARY OF PROVISIONS:

Section 1: Would amend the General Business Law by adding a new section
209-h requiring a market and financial feasibility study prior to
approval of an application to construct a hotel or motel in a city with
              

a population of over one million.

Section 2. Effective date.

 
JUSTIFICATION:

This bill would help combat the increasing number of hotels across in
New York City in neighborhoods that don't have a market need. It would
require business owners to perform a market feasibility study to ensure
that there is a need for a hotel in a specific neighborhood. If the
owner can't show that there is a market for the hotel, they would not
receive approval to build.

The New York City government has failed New Yorkers with its indis-
cretion when it comes to allowing hotels and motels in areas that simply
don't need them. The use of hotel rooms as makeshift homeless shelters
has had a rippling effect throughout the city.  Unscrupulous business
owners have found how profitable it can be with overcrowded shelters and
a lack of progress from the city on finding permanent housing for the
homeless. This legislation will require that these business owners prove
that hotels in these neighborhoods will benefit the community.

Also of note, a recent study raised great concerns about the conditions
of hotels the city has used to make up for the lack of shelters. That
2017 study found that 78% of identified hotels had 433 open viola-
tions.It is unconscionable to allow children and families to be forced
to live in violation-ridden hotels that often lack the basic services
that homeless families should have access to.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.