Developer Ran Illegal Airbnb Hotel In Jersey City: Officials

JERSEY CITY, NJ — The developer of the Caprice Hotel in Jersey City has been penalized by the city for operating an illegal hotel there through the Airbnb platform, officials announced.

Mayor Steven Fulop and the city's Division of Taxation notified that Chosen Condominiums Urban Renewal LLC is in default of its tax abatement agreement for operating an illegal hotel at the 83-unit complex, officials announced.

The developer is in default of its tax abatement for operating the "Caprice Hotel" at 3075 John F. Kennedy Boulevard instead of a rental property Chosen Condominiums promised the city it would build in 2013, officials said.

Chosen Condominiums created a different project than what neighbors thought would be built: A building with transient occupants.

"Had Chosen been honest with the City Council, the tax abatement would have been structured differently, and the neighbors in the area would have been made aware of the 83 strangers moving in and out daily right next door, impacting the entire neighborhood’s quality of life and safety," said Fulop. "This is just another example why Airbnb needs regulations."

It is the third default issued against a tax-abated Jersey City property this year, and the first from a developer operating an illegal hotel, officials said.

Email: daniel.hubbard@patch.com