By HWM
New York City officials have filed a multi-million-dollar lawsuit against a landlord accused of illegally operating short-term rentals in rent-stabilized apartments on Manhattan’s Upper West Side, seeking penalties that could exceed $4 million along with a court order to stop the activity.
The lawsuit, announced by the Mayor’s Office of Special Enforcement, targets landlord Mark David Militana and alleges violations tied to nine apartments across two brownstone buildings located at 24 W. 89th St. and 44 W. 89th St. The city is also asking the court to appoint an independent receiver to take control of the buildings and ensure they are operated legally.
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According to investigators, all nine units were rent-stabilized when the properties were purchased, and at least seven appear to still fall under regulation. Under Local Law 18, which took effect in 2022, rent-regulated apartments cannot be registered for short-term rentals in order to preserve housing availability and affordability for residents.
Officials say Militana initially advertised units on Airbnb but shifted tactics after the platform began enforcing registration verification requirements under the new law. The lawsuit alleges he then created his own booking website to continue renting units to transient guests despite receiving a cease-and-desist letter from the city in November 2024.
City leaders say the landlord rented apartments to more than 900 guests and generated over $550,000 in revenue since February 2023.
Mayor Mamdani pointed out rent-regulated housing is meant to serve New Yorkers, not tourists, and emphasized that enforcement actions are part of the administration’s broader effort to address the housing affordability crisis.
Deputy Mayor for Housing and Planning Leila Bozorg said rent-stabilized units should provide permanent homes rather than short-term accommodations, while Deanna Logan, director of the Mayor’s Office of Criminal Justice, noted the agency also works to educate hosts seeking to operate legally.
The lawsuit further accuses the landlord of deceptive practices, including using false names and addresses, even listing a neighboring private school, and removing a building’s buzzer and intercom system to prevent inspectors from entering.
Officials say the case reflects the city’s ongoing effort to protect its housing stock as vacancy rates remain historically low, and to deter landlords from profiting through illegal short-term rental schemes at the expense of tenants.
Photos courtesy NYC Office of Special Enforcement
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