Skip to main content

Tech-friendly cities struggle with new biz rules

PHILIP MARCELO
Associated Press

BOSTON (AP) — A renowned technology hub that is home to some of the country’s top universities, Boston is emerging as an unlikely battleground for web-based businesses like Airbnb and Uber, with some saying more regulations are needed to prevent the upstarts from disrupting communities and more established industries.

Boston, prompted by the arrival of the mobile app Haystack, recently banned services that allow people to offer their public parking spaces for sale. Now the City Council is considering restrictions on ride-sharing services like Uber, Lyft and Sidecar and lodging websites like Airbnb, HomeAway and FlipKey, which allow users to book short-term stays in private residences. Across the river in Cambridge, home to Harvard and MIT, officials have been trying for years to restrict rideshares.

From New York to San Francisco, cities have been wrestling with the same questions and developing solutions ranging from outright bans to minimum safety requirements. At the heart, officials say, the issue is about balancing public safety and governmental oversight with the services’ growing popularity.

But technology companies point out that the push for regulation is ironic in many technology-heavy cities that have built their reputations, in large part, on being on the leading edge.

“For a city known for its innovation and progressiveness, it is shocking that Cambridge would cling so blindly to the past,” Uber wrote on its website in June as it called on supporters to speak out against proposed regulations.

Andrea Jackson, the chair of Cambridge’s Licensing Commission, said Uber was oversimplifying the challenges emerging business strategies pose to cities.

“We know that these things are likely here to stay,” she said. “My only concern is that they are safe. I want to make sure the drivers have background checks. I want to make sure they have adequate insurance.”

Safety mandates have been imposed in other cities. Chicago, for example, assesses licensing fees and requires rideshare companies to submit to background checks, vehicle inspections, driver tests and random drug screens of their employees. The companies are also required to obtain $1 million in commercial auto liability coverage.

Uber spokesman Taylor Bennett said the company understands the need for thoughtful regulations but will fight attempts to protect the local taxi industry.

Cab owners complain rideshares offer lower prices because they avoid licensing fees and other costly mandates imposed on their highly-regulated industry. Boston-area cab drivers staged a noisy, rolling protest around Uber’s downtown Boston office in May.

“Simply reacting to taxi or creating regulations or ordinances to protect taxi is protectionism, and that only serves one entrenched industry when consumers are clamoring for more and better options to get around town,” Bennett said.

Bennett said Uber is focused on securing specific, statewide authority from legislators to operate in Massachusetts, as they have in Colorado and other states.

For short-term lodging services, cities have focused their energies on imposing local hotel taxes, establishing basic registration programs, and making sure property owners meet minimum housing standards.

Austin, Texas has set up a licensing system with an annual fee and limits on the number of units in a building — or houses in a residential neighborhood — that can be rented at a given time. Portland, Oregon allows single-family homeowners — but not apartment and condo owners — to offer short-term rentals, as long as they complete a safety inspection and neighbor notification process.

In Boston, City Councilor Salvatore LaMattina, who has requested public hearings on Airbnb-type services, says short-term lodging operators should, at minimum, be required to register with the city, so officials at least know where they are, for safety reasons.

He’s also concerned the services could eventually end up pricing out families and full-time residents. Landlords, increasingly, are turning their apartments and condos into full-time lodging operations rather than renting them to longer-term tenants, he says. “They’re taking away the affordable housing stock,” LaMattina said. “I’m working to keep my neighborhoods stable, with families that know each other.”

Airbnb spokesman Nick Papas disputed that notion, citing a company-commissioned study that suggests offering rooms for short-term rentals provides extra income to families living in high-cost metropolitan areas.

“We’ve heard countless stories from people who have been able to stay in their home and the neighborhood they love thanks to Airbnb,” he said.

Papas says the San Francisco company has already had “productive conversations” with Boston leaders and looks forward to working on “clear, progressive and fair” rules for home sharing. But he declined to elaborate on what proposals the company would support and which it would strongly oppose.

“We believe people should be able to share the home in which they live,” Papas said.

Brooks Rainwater, of the National League of Cities, which is helping cities develop strategies to address these new services, says it’s not surprising that the most pitched battles are playing out in tech-friendly cities like Boston and Cambridge.

The college students and young professionals that comprise a large part of their populations are usually the early adopters. And historical urban centers are also the ones that tend to have outdated and oftentimes byzantine local codes.

“It’s really a reflection of cultural shifts that are happening in cities globally. As society is speeding up, people are expecting services are their beck and call,” Rainwater said. “The landscape is constantly shifting. … Cities are actually working fairly swiftly to address these issues.”

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story