NYC landlords can now be fined $10K per raid for renting space to illegal weed sellers
That’s a lot of loot!
Big Apple landlords who rent store space to illegal weed or tobacco sellers can now be slapped with $10,000 fines under a new law that aims to crack down on the surge of unlicensed smoke shops popping up across the city.
The law, which is now in effect, will see owners of commercial spaces fined under a two-strike system if they are busted knowingly leasing space to unlicensed sellers, the City Council announced Monday.
Councilwoman Lynn Schulman, who spearheaded the legislation, said the new law would be a “game-changer in shutting down illegal cannabis shops that are proliferating in New York City and threatening our communities.”
“Until now, measures at the state and local levels have targeted the actual businesses. My legislation targets the commercial landlords who knowingly rent to these illegal operations.
“The fines are steep and will send a message to landlords that will make them either begin eviction proceedings against current tenants, or provide a chilling effect to keep them from renting to them at all.”
Under the new two-strike system, a landlord will now be notified by the sheriff’s office that they are renting to an illegal business if raids uncover such unlicensed activity.
If the unlicensed weed and tobacco sellers are still operating from the storefront during a follow-up inspection, the commercial landlord will then be slapped with an initial $5,000 fine.
Fines of up to $10,000 will be issued for every subsequent raid that yields illegal pot.
Steven Soutendjik of the Real Estate Board of New York backed the new law, saying the commercial real estate community “strongly condemns any property owner who knowingly leases any property for an illegal or illicit use.”
“We’ve all seen over the past year that many neighborhoods across the city have seen these illegal smoke shops emerge,” he continued. “The vast majority are not licensed cannabis dispensaries, sell tobacco and hash products along with other cannabis-related materials like pipes and rolling papers.
“These storefronts and local retailers have become hotspots for illegal drug sales and distribution. These storefronts have also impacted a community streetscape for quality of life.”
Mayor Eric Adams has estimated 1,500 illegal pot shops have taken root in the Big Apple since the state legalized recreational marijuana use in 2021.
Currently, there are just five legally licensed smoke shops in the city, according to the state’s Office of Cannabis Management.
In addition to posing a health threat to consumers and undermining licensed sellers, Councilwoman Schulman argued that products sold in unlawful stores robbed the city of tax revenue.
“They are public health and public safety hazards. These illegal shops sell to kids. The cannabis they sell has been found to be adulterated,” she said.
“They prevent licensed sellers … from opening legitimate businesses and they rob the city of much-needed tax revenue to pay for essential programs and services.”
