New York City to delay enforcing law against Airbnb hosts
Supporters of Airbnb hold a rally on the steps of New York City Hall showing support for the company, Oct. 30, 2015.

The City of New York will delay enforcing a municipal law that Airbnb said could limit the number of people who can host rentals in the city, a Friday court filing showed.

The short-term rental company filed a lawsuit against the city on June 1 over the law it called a "de facto ban" against short-term rentals set to go into effect on July 1.

Under the law, hosts must be permanent occupants of the units being rented and must register with the Mayor's Office of Special Enforcement before posting rentals.

The office will not issue fines against hosts or booking services until Sept. 5, according to the filing.

"Both parties agreed to a temporary stay of enforcement to afford them the opportunity to fully brief the issues before the court," said Jonah Allon, deputy press secretary for the office of New York City Mayor Eric Adams.

Airbnb said that the law would make it harder for hosts to do business by requiring that they comply with numerous zoning regulations, dwelling laws, and housing maintenance and construction codes.

"We hope the city will use the extra time to collaborate with us on a sensible alternative solution that will benefit Hosts, tourism, and the local economy," said Airbnb's attorney, Karen Dunn, a partner at Paul, Weiss, Rifkind, Wharton & Garrison.

Airbnb said that in the first week of July, more than 5,500 short-term rentals are reserved to host more than 10,000 guests in New York City.