In the city where it all began, Airbnb is now moving toward legalization.
San Francisco's Board of Supervisors approved initial legislation on Tuesday that would legalize short-term rentals popularized on sites like Airbnb and VRBO -- after certain requirements are met. For the past six years, the number of short-term rentals has grown even though they have not been permitted.
Board President David Chiu has been working for nearly two years to regulate an activity that was already widespread, according to the San Francisco Business Times.
Airbnb called the vote a "great victory."
"The legislation that moved forward tonight will give regular people the right to share the home in which they live and make it fair to share in San Francisco," the sharing service said in a statement. "This vote was a great victory for San Franciscans who want to share their home and the city they love. We look forward to working with everyone as we move forward."
San Francisco's decision follows similarly Airbnb-friendly legislation in cities like Portland, where one- or two-room stays in private homes are now permitted after hosts register with the city.
San Francisco's legislation, approved Tuesday in a seven-to-four vote, requires hosts to:
Have liability insurance coverage of at least $500,000
Show they have occupied their residence for at least 275 days in the prior year
Have a business license
File with the city for a permit
Have no building code violations
Not everyone on the board is happy with allowing Airbnb to operate in the city.
“This is about ensuring that a multi-billion dollar company has to pay their fair share of taxes," said David Campos, who is challenging Chiu in the election next month. Campos wants short-term rental hosting platforms to pay millions in back taxes. "It shouldn’t be the little people who should pay taxes. It should be everyone who benefits from being a part of this city that has to pay their fair share."
The measure requires a second vote, which is expected to take place Oct. 21. The bill would then go to the mayor for a signature.